This African neobank just raised $18.5 million to expand financial access for SMEs in Kenya, Uganda

4G Capital, a notable African neobank with headquarters in Mauritius, announced today that it has finalized a Series C funding round of $18.5 million. In a statement sent to Business Insider Africa, the company disclosed that the funding round was led by Lightrock, a London-based private equity fund.

The statement further explained that the funding would go a long way in aiding 4G Capital’s mission of availing financial access to more African Small and Medium Enterprises (SMEs). Specifically, the company would use the money to expand access to its products in Kenya and Uganda.

“We are delighted to partner with Lightrock to further our financial inclusion mission. Lightrock and 4G Capital share a complete alignment of purpose and mission. They bring unrivalled experience of Africa and emerging markets. This capital will have a transformative effect in enabling us to scale the best products and services to the world’s most important sector,” said Wayne Hennessy-Barrett, the Founder and Chief Executive Officer of 4G Capital. On his part, a Partner at Lightrock, Shakir Merali, said it has become necessary to provide more investment capital to companies like 4G Capital who are providing financial empowerment to African SMEs. He said:

“Often used to justify the backing of many African companies, ‘Financial inclusion’ has not always translated into positive outcomes for customers. What is needed on the continent is investment capital to back companies with the mission of financial empowerment. 4G Capital provides liquidity to the vast market of economically generative businesses – the mobile phone repairers, hairdressers and food sellers – that dot the landscape of Africa.

“The systemic value of improving lives is compounded, as productive employment leads to economic outcomes and better education and health outcomes in the communities these businesses serve. That’s where 4G Capital plays. That’s why we believe they are doing necessary work and why we are excited to become a part of their growth journey.”

On his part, a Partner at Lightrock, Shakir Merali, said it has become necessary to provide more investment capital to companies like 4G Capital who are providing financial empowerment to African SMEs. He said:

“Often used to justify the backing of many African companies, ‘Financial inclusion’ has not always translated into positive outcomes for customers. What is needed on the continent is investment capital to back companies with the mission of financial empowerment. 4G Capital provides liquidity to the vast market of economically generative businesses – the mobile phone repairers, hairdressers and food sellers – that dot the landscape of Africa.

“The systemic value of improving lives is compounded, as productive employment leads to economic outcomes and better education and health outcomes in the communities these businesses serve. That’s where 4G Capital plays. That’s why we believe they are doing necessary work and why we are excited to become a part of their growth journey.”