Kuunda, a digital lending infrastructure provider, has completed a US$5 million secondary share sale led by E4E Africa. The transaction allowed early investors to realize returns while consolidating the company's shareholder base. It follows a US$7.5 million Pre-Series A round announced in 2025 and reflects growing liquidity options for African fintech companies.
Transaction details and investor returns
The secondary sale, Kuunda's second since its launch in 2018, was led by E4E Africa, with existing investors Accion Ventures, Portugal Gateway Fund, and Seedstars Africa Ventures increasing their positions. The deal reduced the number of investors on the cap table from 12 to 4. It also provided liquidity to some of the company's earliest backers, including angel investors.
Angel investors who sold shares recorded annualized internal rates of return greater than 70%, according to Kuunda. Seed investors achieved annualized internal rates of return between 25% and 40%. These outcomes demonstrate that secondary transactions can deliver meaningful returns for early backers well before a traditional exit event, highlighting the value created for early supporters.
A lending-as-a-service model
Founded in 2018, Kuunda provides digital lending-as-a-service infrastructure that helps banks, mobile money operators, and other providers offer credit through existing platforms. The model addresses liquidity constraints faced by mobile money agents and micro-merchants who need electronic float or working capital. Kuunda uses transaction and behavioral data to assess creditworthiness and support lending from loan delivery to reconciliation.
Kuunda's main product lines are Hapa Cash and Kazi Cash, which address distinct financing needs across its partner networks. Hapa Cash provides short-term real-time liquidity for mobile money agents and consumers, including e-float financing and airtime purchases. Kazi Cash offers growth financing for micro-merchants and agents, such as stock financing, term loans, and merchant cash advances.
Growth metrics and expansion plans
Since closing its Pre-Series A round, Kuunda has expanded bank partnerships from 6 to 16, while its customer base grew from 2.6 million to nearly 4 million, according to Andrew Milne. The company has disbursed more than 870 million loans with a total value exceeding US$4.4 billion, reaching 14.6 million agents, merchants, and consumers. Kuunda operates in 5 markets and plans launches in 7 more.
Milne said the company's biggest constraint to future growth is capital access for its partners. "We've hit such a rate of scale that our biggest constraint to future growth is capital access for our partners," he said. This reflects Kuunda's role in enabling lending through banks, mobile money operators, point-of-sale networks, and e-commerce platforms.
What leadership is saying
Andrew Milne, Kuunda's Chief Executive Officer, described the transaction as an important milestone for the company and its investors. He said the secondary sale demonstrates the strength of a profitable, scalable lending infrastructure serving millions across Africa. Milne added that the company was grateful to its early backers and looked forward to growing with a strong shareholder base.
Bas Hochstenbach, Managing Partner at E4E Africa, said Kuunda is an exceptional company using technology, distribution, and banking partnerships to deliver essential financial services where traditional institutions cannot reach. He noted that the company is building a healthy and fast-growing business while offering fair products to African small businesses and consumers. The expanded investment reflects confidence in that trajectory.
The US$5 million secondary sale signals that African fintech startups can create shareholder liquidity without waiting for an IPO or acquisition. By consolidating its cap table and bringing in long-term investors, Kuunda has positioned itself for its next growth phase. As it enters new markets and deepens bank partnerships, its lending infrastructure could broaden access to credit for underserved businesses and consumers.