The transaction was led by E4E Africa, with participation from existing investors Accion Ventures, Portugal Gateway Fund and Seedstars Africa Ventures. The company has not disclosed its valuation, the identities of the shareholders who sold their stakes or the amount contributed by each investor.
The deal follows Kuunda’s earlier fundraising activities, including a $7.5 million raise announced in October 2025 to support the expansion of its digital lending operations across Africa and the Middle East and North Africa region.
Kuunda Chief Executive Officer Andrew Milne described the latest transaction as an important milestone for the company and its investors. He said the deal reflected the strength of the business, which has built a profitable and scalable lending infrastructure serving millions of people across Africa.
Milne also expressed appreciation to the company’s early backers, noting that the transaction would help establish a shareholder base aligned with Kuunda’s next phase of growth.
Founded in 2018, Kuunda provides lending as a service technology that enables banks and fintech companies to integrate overdrafts and working capital financing into their digital platforms. Through this model, businesses and individuals can access short term credit within the services they already use.
The company works with mobile money operators, banks and other distribution partners to make lending more accessible. Its network includes payment aggregators, point of sale providers, e commerce platforms and financial institutions.
According to the latest transaction announcement, Kuunda has facilitated more than $4.4 billion in lending through over 870 million loans. Its services have reached approximately 14.6 million agents, merchants and consumers across Africa.
The figures highlight the scale of its operations in a market where many small businesses and individuals continue to face difficulties obtaining financing through traditional banking channels.
Kuunda currently operates in Tanzania, Kenya, Uganda, Mozambique and Malawi. Its planned entry into seven additional markets is expected to extend the reach of its lending infrastructure and create opportunities to serve more customers through local financial and technology partners.
The $5 million transaction was structured as a secondary share sale, meaning existing shareholders sold some of their holdings to other investors. Unlike a conventional funding round in which a company issues new shares to raise money for its operations, a secondary transaction primarily allows shareholders to sell their investments and obtain liquidity.
As a result, the deal does not necessarily provide Kuunda with $5 million in fresh operating capital. Instead, it gives existing investors an opportunity to realise part of their investments while allowing participating backers to increase their ownership in the business.
E4E Africa Managing Partner Bas Hochstenbach said the fund was increasing its investment in Kuunda because of the company’s technology, distribution network and partnerships with banks.
He noted that these strengths position the business to reach consumers and enterprises that remain underserved by conventional lenders.
With its existing operations covering several African markets and plans to expand further, Kuunda is seeking to strengthen its position in the continent’s digital lending sector. Its next phase of growth will depend on how effectively it can extend its partnerships, maintain responsible lending practices and adapt its services to the needs of customers in new markets.
