South African startup LulaLend raises $6.5 million, eases funding for other SMEs
As South Africa continues to gain momentum in the path of becoming a developed nation, start-ups like LulaLend are said to be one of the prime reasons behind it. The country located at the southernmost tip of African continent continues to show tremendous developments.
According to the latest reports, there are approximately 2,200 residential properties in South Africa having a worth of R20 million or even more. While the capital, Cape Town, is said to have around 900 properties, the report also found the prime locations, which can have the worth of R20 million in future.
With infrastructure and construction playing a key role in the development of the nation, the country is also beginning to see many Small and Medium sized Enterprises (SME’s) contributing in the development of the nation.
While the SME start-ups are beginning to make a mark in the nation, LulaLend – a financial start-up – has already began to leave its footprint in the development of the nation and contributing towards the increasing GDP of the country.
As per the latest reports, the start-up has raised $6.5 million in Series A financing. While the credit to such success goes to its CEO Trevor Gosling and CTO Neil Welman, the round was led together by both IFC and Quona Capital. The round also saw the participation of the existing investors Accion Venture Lab and Newid Capital.
The startup led by Gosling and Welman allows various other SMEs to obtain funding without the need of visiting the bank. It is believed that LulaLend will help furnish investment for the growth of financial technology and at the same time, address the lack of funding in the business market of the country.
In an interview with, Gosling said, “The biggest thing is strengthening our balance sheet so we can access traditional debt funding to grow our loan book.”
He explained the working of his organisation and said that the start-up aims to furnish short-term loans ranging from $1500 to $70,000 for a period of 6-12 months. He said that their start-up allows SMEs to seek and secure funding with the help of automated lending decisions within 24 hours.
Gosling also brought attention towards the financing gap of $23 billion for the SMEs of the country and said that if that is resolved then the SMEs will contribute around 34 percent in the country’s GDP.
With being on the road of development and giving a chance to start-ups, it won’t be wrong to say that South Africa might become the hub of SMEs with GDP growth helping the country to gain new heights.
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