Kenya's Watu raises $7M in debt to grow motorcycle and smartphone financing
What's the deal? WatuDealroom has a profile for this one. Try Dealroom →, a Kenya-based asset-financing company, has secured a $7 million debt facility led by AHL Venture PartnersDealroom has a profile for this one. Try Dealroom →. The nondilutive financing supports working capital and expansion of its asset portfolio across select African markets.
What does Watu do? Founded in 2015, it runs two business lines: a mobility division financing motorcycles and three-wheelers, and Watu SimuDealroom has a profile for this one. Try Dealroom →, which finances smartphones. It has recently begun financing electric motorcycles in some African markets.
How big is it? Watu says it has originated more than 7 million loans since inception. It operates in Kenya, Tanzania, Uganda, Rwanda, the Democratic Republic of Congo, Nigeria, Sierra Leone, South Africa, Mexico, and Brazil.
Why now? The facility builds on a financing relationship between Watu and AHL that dates back to 2022. Because it is debt rather than equity, the capital goes directly to the balance sheet without diluting ownership.
What's the endgame? "This facility strengthens our working-capital base and gives us additional capacity to expand our mobility and smartphone-financing portfolios," said founder Andris Kaneps. AHL chief executive Rosanne Whalley said Watu's "asset-backed model is expanding financial inclusion and clean mobility for millions of underserved customers."
The signal: The deal follows the second close of AHL's Africa Credit Fund IDealroom has a profile for this one. Try Dealroom →, which has raised $45.5 million toward a $70 million target. It reflects a push to channel private capital into African credit markets, where Whalley points to "a matching problem in finding a structure that works for both" lenders and businesses.
Read more: launchbaseafrica.com
Image credit: whiteafrican
