4G Capital said on Friday it has secured a $2 million investment from Global Innovation Fund’s growth-stage vehicle, GIF Growth, to expand lending to small businesses across East Africa.
The Kenya-based fintech, which provides loans and business training to micro and small enterprises (MSEs), said the funding will support the scaling of its hybrid “touch-tech” model combining digital lending with in-person support.
MSEs account for more than 80% of employment in East Africa but remain largely excluded from formal credit systems due to limited financial records.
Founded in 2013, 4G Capital said it has disbursed more than $800 million in loans to over 755,000 customers in Kenya and Uganda. The company has issued 6.8 million loans and expects to surpass $1 billion in cumulative lending later this year.
GIF Growth, which provides debt financing to early growth-stage businesses in Africa and Asia, counts development finance institutions backed by the United States, United Kingdom and Canada among its funders, alongside corporate partners including Unilever.
“This investment provides us with the right kind of capital to scale our model sustainably,” said 4G Capital founder and executive chairman Wayne Hennessy-Barrett.
The company said the funds will also be used to strengthen its digital infrastructure and partnerships as it seeks to expand financial inclusion among underserved entrepreneurs, particularly women and youth.
4G Capital added it is considering a Series D funding round to support further digital expansion.
The firm said it has generated more than $3 billion in economic impact to date.