FinTech startup Lupiya bags $1m to fund the rollout of its financial inclusion tools in Zambia

Seven out of ten people in Zambia do not have access to formal financial services, but Lupiya hopes to change that on the back of a new $1m investment from Enygma Ventures.

The Zambian micro-finance startup has developed a platform to make the process of borrowing simpler and easier for people and businesses to access financial services.

If successful, Lupiya hopes to make a big a difference for the roughly 70% of Zambians who have no access to this type of service because they lack any collateral to secure their loans. The startup is particularly focused on helping women participate in the economy through its platform.

Through the investment round, Lupiya is set on rolling out its services with the aim to give 70% of Zambians access to financial services by 2022.

“We are thrilled with this investment, it has come at the right time in the interesting financial climate many businesses are experiencing as a result of the Covid-19 pandemic,” said Evelyn Kaingu, CEO and co-founder of Lupiya.

Sarah Dusek, managing partner and co-founder of Enygma Ventures, added, “We are excited to partner with Lupiya to make an extraordinary difference to the lives of particularly female Zambian business owners, who run small and medium-sized businesses. We believe the access to capital is a key strategic initiative to enable job creation, enterprise stimulus and in turn economic growth.”

Lupyia is one of several companies launching initiatives to boost financial inclusion in Zambia.

For instance, MPower, which raised £354,970 in a Crowdcube campaign in March, is working to create more access to clean energy and bolster financial inclusion in several African countries, including Zambia.

Similarly, JUMO is a FinTech set up to provide financial services for emerging market entrepreneurs in several countries, including Zambia. It recently bagged $55m to move into more markets.

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