Umba, a pan-African digital bank, has secured a$5 million debt facility to expand its customer base and increase its lending capacity, a key step toward driving profitability and growth in one of Africa’s most dynamic fintech ecosystems.
The debt financing from Star Strong Capital and Umba plans to leverage this capital to continue delivering superior financial services while exploring opportunities to expand its portfolio. Customers and partners alike can expect enhanced access to vehicle financing options, bolstered by Umba’s well-capitalized position and commitment to growth.
“With the confidence of key financial backers like Star Strong Capital, Umba is poised to leverage this funding to broaden its market influence,” said Tiernan Kennedy, Co-Founder and CEO of Umba. “Our Kenyan launch has exceeded expectations, with excellent lending performance. As the only pure-play digital bank in the market, we’re delivering a better way to bank for Kenyans through speed, accessibility, and tailored financial solutions.”
Umba Kenya says it’s on track to report a profit for 2025, just two years after launching operations. Kenya’s fintech sector has seen unprecedented growth. The country attracted $800 million in venture capital funding in 2023, making it the largest market in Africa, according to Africa: The Big Deal. The fintech market, currently valued at $7 billion, is projected to grow at a compound annual growth rate (CAGR) of 16.5% between 2023 and 2027. Umba is well-positioned to capitalize on this rapid expansion with its innovative digital banking solutions.
Umba started operations in Nigeria in 2021 and launched in Kenya in 2023 after spending three years acquiring a banking license. Now, as one of only 14 licensed Microfinance Banks in Kenya, Umba has established itself in a market with a high barrier of entry due to strict regulatory requirements.
With 19% month-over-month revenue growth in 2024, Umba has rapidly scaled its operations, achieving a sixfold increase in revenue last year. Strong performance in vehicle and SME financing has fueled this growth, with new product offerings further enhancing customer satisfaction.
As part of Umba’s continued growth and strategic alignment, the company has hired in executives from banks and fintechs to broaden the management team depth after Umba co-founder Barry O’Mahony exited the company in 2023.
Star Strong Capital LLC, known for its strategic investments in high-growth fintech companies, is the exclusive lender in this transaction. Their involvement underscores their confidence in Umba’s business model and future growth.
Spring Hollis, Founder and CEO of Star Strong Capital, commented: “Our partnership with Umba represents more than just a financial transaction; it is an investment in the future of digital banking and financial inclusion in Africa. We believe Umba’s innovative approach and customer-centric model position them to become a key player in Kenya’s fintech revolution. This debt financing will support their continued growth and ensure they remain at the forefront of delivering accessible, affordable financial solutions to underserved markets.”
Gahigiro Capital acted as the transaction advisor to Umba for this debt raise.
