MICROCAPITAL BRIEF: Enygma Ventures Places $1m in Equity in Zambia-based MFI Lupiya, Boosting Digital Financial Services, Especially for Women, Rural Clients

South Africa-based Enygma Ventures recently invested USD 1 million in Zambian microfinance institution (MFI) Lupiya, which serves its customers online rather than at retail branches. Lupiya describes its offerings as “simpler and easier so that people and businesses located across the country even in rural, remote areas can access financial services.” The MFI offers personal loans of up to ZMK 20,000 (USD 1,093) for as long as 12 months, categorized into Collateral Backed Loans, Salary Advance Loans and Scheme Loans. Lupiya also offers working capital loans of up to ZMK 60,000 (USD 3,280) for as long as 6 months with a fee of 5 percent to 15 percent plus interest. The lender’s Financial Inclusion for Women program offers “management training and start-up best practices in addition to providing financial support through flexible credit” intended to allow “women without financial assets to progress economically.”

Lupiya CEO Evelyn Kaingu explained that the organization is “thrilled with this investment, [which] has come at the right time in the interesting financial climate many businesses are experiencing as a result of the COVID-19 pandemic.”

Established in 2016, Lupiya serves women and men with the goal of boosting “financial inclusion in Zambia by simplifying borrowing processes and requirements.” Financial data on the firm remain confidential.

Launched in 2019, Enygma Ventures is a private investment fund that focuses on supporting female-led businesses in southern Africa. It works with businesses that have “an established track record, a proven revenue model and demonstrated growth in SADC [the Southern African Development Community].” Since 2019, the fund has partnered with 11 companies through its “investor ready” program. In addition to investments, Enygma Ventures offers entrepreneurship classes, business coaching as well as customized acceleration support. In 2020, it created a sub-fund for early-stage businesses planning to take advantage of opportunities that will follow the COVID-19 pandemic. Although financial data on the organization have not been released, it has announced one previous investment of ZAR 8.25 million (USD 492,000) in South Africa-based educational company Play Sense.

By Madigan Ruch, Research Associate

Sources and Additional Resources

Enygma Ventures article
https://www.enygmaventures.com/news/enygma-ventures-invests-1m-in-lupiya-fintech-startup

Enygma Ventures homepage
https://www.enygmaventures.com/

Lupiya homepage
https://www.lupiya.com

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