South African SME funding platform Lula has secured R340 million ($20 million) in local-currency financing from FMO, the Dutch entrepreneurial development bank, in a move set to significantly expand access to credit for micro, small and medium-sized enterprises (MSMEs across the country.
The investment comes amid a period of strong growth for Lula and will boost on-lending to small businesses that remain underserved by traditional banks due to limited collateral, thin credit histories and volatile cash flows.
In 2023, Lula raised $35 million in a Series B round led by impact investor Lightrock, with participation from the International Finance Corporation (IFC), Quona Capital, DEG, and Triodos Investment Management. More recently, in late 2025, the company secured an additional $10 million local-currency loan from the IFC, further strengthening its lending capacity.
The latest funding from FMO is expected to enhance Lula’s ability to deliver fast, flexible working capital through its technology-driven lending platform, helping SMEs manage day-to-day operations while unlocking growth opportunities.
“This investment from FMO is a powerful endorsement of our mission to empower every South African SME to succeed,” said Trevor Gosling, co-founder and CEO of Lula. “Access to capital remains the single biggest hurdle for small business owners. By bridging this gap, we’re not just funding businesses — we’re fuelling the engine of our economy.”
Gosling added that receiving the funding in local currency was a critical advantage, shielding both the company and its customers from exchange-rate volatility.
“Local-currency funding allows us to offer stable, predictable and sustainable lending rates,” he said. “Over the next three years, this capital will allow us to scale our impact exponentially, reaching thousands of additional entrepreneurs and helping them transition from survival to long-term resilience.”
FMO said the partnership aligns with its strategy to support fintech solutions that advance financial inclusion in emerging markets.
“Our partnership with Lula reflects FMO’s commitment to backing innovative fintechs that break down barriers to finance,” said Angelica Ortiz de Haas, Africa Manager for Financial Institutions at FMO. “By providing local-currency financing, we are enabling Lula to support thousands of small businesses that form the backbone of South Africa’s economy.”
Local-currency funding plays a key role in reducing risk for both lenders and borrowers, particularly in volatile markets. The investment also aligns with FMO’s broader mandate to promote inclusive economic growth by supporting locally embedded financial institutions that strengthen competition and resilience in the SME lending sector.
The partnership is expected to enable Lula to support thousands of South African SMEs over the next three years, contributing to a more diversified, inclusive and sustainable small-business ecosystem.