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4G Capital, a Kenya-based fintech startup founded by Wayne Hennessy-Barrett, has raised a total of $18.5 million in Series-C capital as it seeks to grow into new market sectors in East Africa.
The fundraising round raises the company’s total cash raised to $27.5 million since its inception nearly six years ago. The funding also has the support of Lightrock’s partner Shakir Merali, who has joined the 4G Capital board of directors.
Wayne Hennessy-Barrett launched 4G Capital in 2013 after working as a loan manager for a Kenyan institution for a short time. The firm’s mission is to provide 100-percent unsecured company loans in East Africa, as well as to promote financial literacy and access to digital solutions.
Lightrock, a London-based private equity platform that backs purpose-driven businesses solving the world’s most pressing issues, led the recently concluded Series-C investment.
The equity investment comes as the fintech prepares to launch a slew of new goods and services, including new loans that will raise the credit ceiling from $1,000 and allow for longer payback periods than the present limitation of one month.
The Kenya-based fintech startup revealed that the cash would be used to grow its product offerings in Kenya and Uganda, in keeping with its aim of providing financial access to more African small and medium enterprises across Africa.
While commenting on the $18.5-million fundraise, Wayne Hennessy-Barrett, the founder and CEO of 4G Capital, said: “We are delighted to partner with Lightrock to further our financial inclusion mission. Lightrock and 4G Capital share a complete alignment of purpose and mission. They bring unrivaled experience of Africa and emerging markets.”
“This capital will have a transformative effect in enabling us to scale the best products and services to the world’s most important sector,” he added.
Since Hennessy-Barrett started 4G Capital in 2013, the firm has touched over 1 million people and disbursed over $230 million in loans. Surprisingly, payback rates are high, hovering around 94 percent, with no need for refinancing.
