funding gap emerging markets

Umati Capital is a technology based financial services provider (fintech) seeking to revolutionise access to finance for small and medium-sized growing businesses (SMEs) within corporate supply chains and digital platforms. Umati was founded in 2012 by CEO Ivan Mbowa, a cum laude graduate economist and Munyutu Waigi, a technology entrepreneur. The company is registered as NBFI, or non-banking financial institution in Kenya. Initially focused on factoring to agricultural borrowers, the company has since expanded the target market client segment and now aims to achieve their business goal through the provision of working capital to small businesses that sell on e-commerce platforms and/or accept digital payments through 3rd party payment providers. Typical customers are unable to access loans from traditional financial providers (such as banks) in order to access cash required to stock increased inventory and grow their sales. Therefore, customers look to Umati Capital to provide customised and collateral-free working capital using historical transaction data and a lien on their cashflows.

Currently operating in Kenya, Umati intends to scale out our model across Africa to reach the vast majority of the over 10 million micro, small & growing businesses that are underserved by existing financial services providers across Africa.

General information

BorrowerUmati Capital Limited
Head officeNairobi
Founded 1 January 2013
Active on Lendahand since 1 October 2016

Financial information per 2018-03-31

Portfolio Overview€329,495
Leverage ratio41.28%
Write-off ratio last 12 months14.99%
% investment amount in arrears (>90 days)7.18%

About Kenya

Kenya has the highest income per capita and the largest economy of East Africa, making the country the financial center of the region. This is partly due to its convenient location at the coast, allowing the country to be the regional trade center. Kenyans are typically higher educated compared to people in neighboring countries. There is a free market and low import and export restrictions. All of these factors lead to Kenya being the main location for foreign companies to settle in after South Africa. Important sectors are agriculture, industry and services, including the financial sector. The increase in export of tea and flowers also contributes to an influx of foreign currency.

Last funded project