Beyond Capital Ventures (BCV) has invested in Zanifu, a financial services platform supporting small retailers in Africa by addressing the financing gap for microenterprises. Zanifu's innovative approach of providing working capital and credit to retailers using a distributor-led model has positioned it as a supplier-agnostic financier, achieving low default rates. BCV's investment reflects its commitment to strong financial returns and positive social impact in East Africa.
DALLAS, Aug. 24, 2023 /PRNewswire-PRWeb/ -- Beyond Capital Ventures (BCV), a leading diversified emerging markets venture capital firm, is proud to announce its recent investment in Zanifu, a financial services platform empowering small retailers in Africa. The investment highlights BCV's commitment to fostering sustainable growth and creating positive social impact in East Africa.
Zanifu addresses a critical need in the African market, targeting the 51% of MSMEs (Micro, Small, and Medium Enterprises) that struggle to access financing due to limited collateral, their size, and the absence of formal credit history. By providing a platform for procuring inventory from suppliers and buy-now-pay-later, Zanifu unlocks the immense potential of the $45 billion MSME financing market in Kenya, Uganda, and Tanzania.
Founded in 2017 by CEO Steve Biko and CTO Sebastian Kilimo, Zanifu boasts an impressive leadership team. Steve Biko brings a wealth of experience in the financial technology sector, having previously served in sales and business development roles at leading startups Sendy and Kopo Kopo. Sebastian Kilimo brings deep product experience from his tenure at KOKO Networks and Youtap.
Eva Yazhari, General Partner of Beyond Capital Ventures, expressed her confidence in the partnership: "We view this investment in Zanifu as a seamless addition to our fintech portfolio. By addressing the critical financing gap in Kenya and beyond, Zanifu is fostering economic growth and financial inclusion in the region. Steve and Sebastian's dedication to lending working capital to microenterprises aligns with BCV's commitment to drive robust financial returns and to imbed a lasting impact into our portfolio returns."
The decision to invest in Zanifu was driven by the compelling investment merits identified during the due diligence process. The vast, fragmented, and informal nature of the $330 billion market presents significant opportunities for innovative start-ups like Zanifu to address the underserved needs of African MSMEs. Zanifu's distributor-led B2B2C acquisition model, which leverages network effects to expand its customer base, distinguishes the company in the lending space. Additionally, Zanifu's access to transaction data and established relationships within the informal trade market positions it uniquely to assess customer creditworthiness and grow sustainably.
Zanifu's competitive advantage became evident as it surpassed several later-stage players in the lending space, positioning itself as a supplier-agnostic financier, offering de-risked credit to retailers and instant liquidity to distributors. Several tailwinds – including being one of the first recipients of a Central Bank regulatory license in the Kenyan market – have allowed Zanifu to supercharge its growth. Furthermore, Zanifu's proactive approach to risk mitigation resulted in a decline in average default rates, achieving a rate of 1.48%, significantly lower than the industry average for non-performing MSME loans.
BCV is proud to collaborate with Zanifu in creating new opportunities for small retailers and driving economic progress in Africa. Together, they look forward to creating a positive impact on local communities while shaping the future of inclusive finance in the region.
Media Contact
Isabelle Schmidt, Beyond Capital Ventures, 1 9789444887, [email protected]
SOURCE Beyond Capital Ventures
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