Zanifu

Zanifu is a Kenyan financial technology firm addressing the working capital needs of micro, small, and medium-sized enterprises (MSMEs) within Africa's fast-moving consumer goods (FMCG) sector. Founded in 2017 by Steve Biko and Sebastian Mithika, the company provides inventory financing to businesses that struggle to secure credit from traditional lenders due to a lack of formal structure, accounting records, or assets for collateral. Zanifu's core business revolves around a buy-now-pay-later model tailored for the B2B market.

The company's platform enables small retailers to procure inventory from their suppliers and defer payment, thereby unlocking critical working capital and preventing stockouts. Zanifu mitigates risk by paying the suppliers directly on behalf of the retailer. This process is managed through a mobile-first platform, designed to function in environments with low internet penetration, where retailers can apply for credit, get scored by a proprietary algorithm using data like historical purchase records, and receive a credit limit within hours. The loans are typically repaid within a month with interest rates ranging from 5% to 6%. This model has resulted in a high repayment rate, reported to be 99.2%.

Initially focused on retailers, Zanifu has expanded its services to include distributors, who also face cash flow challenges. Retailers can access financing for goods worth between $200 and $500, while distributors can receive up to $10,000 in stock financing. The company generates revenue by charging interest on the credit it provides. Following significant funding rounds, including an $11.2 million pre-Series A in 2023, Zanifu plans to deepen its presence in Kenya and introduce ancillary services such as insurance and inventory management tools to further support its client base.

Keywords: inventory financing, working capital, SME lending, B2B finance, fintech Africa, Kenyan startup, supply chain finance, MSME credit, FMCG financing, retailer credit, distributor financing, buy now pay later B2B, mobile lending, emerging markets finance, financial inclusion, stock financing, trade finance, short-term business loans, digital lending, Steve Biko, Sebastian Mithika