Kuunda closes $5M secondary sale, handing early backers an exit before IPO
What's the deal? South African fintech KuundaDealroom has a profile for this one. Try Dealroom → has completed a $5 million secondary share sale led by E4E AfricaDealroom has a profile for this one. Try Dealroom →, returning capital to early investors. Existing backers Accion VenturesDealroom has a profile for this one. Try Dealroom →, Portugal Gateway Fund, and Seedstars Africa VenturesDealroom has a profile for this one. Try Dealroom → also increased their positions in the deal.
What does Kuunda do? Founded in 2018, the B2B lending-as-a-service company embeds credit products into existing digital platforms. It partners with mobile money operators, POS networks, e-commerce players, and banks to finance agents, merchants, and consumers in emerging markets using data-driven credit scoring.
By the numbers: Kuunda's infrastructure has disbursed more than 870 million loans, delivering over $4.4 billion in credit to 14.6 million agents, merchants, and consumers. It is live in five markets, with launches planned in seven more.
The secondary follows a $7.5 million pre-Series A round reported last October, which also included E4E Africa, 4Di CapitalDealroom has a profile for this one. Try Dealroom →, and NedbankDealroom has a profile for this one. Try Dealroom →. The latest transaction expands E4E Africa's stake as a long-term shareholder.
Why it matters: Kuunda says the deal gives early backers a meaningful return and shows African fintech companies can generate shareholder liquidity well before an IPO or acquisition.
"Delivering a successful secondary at this stage reflects the strength of the business we've built — profitable, scalable lending infrastructure serving millions of people across Africa," said Andrew Milne, Kuunda's chief executive officer.
Bas Hochstenbach, managing partner at E4E Africa, said Kuunda is using technology, distribution, and banking partnerships to reach where traditional institutions cannot. "Kuunda is an exceptional company, building a very healthy and fast-growing business while offering much needed products at fair prices to African small businesses and consumers," he said.
The signal: Secondary sales remain rare in African tech, where exits are scarce and IPOs even scarcer. A profitable infrastructure startup returning cash to its earliest backers offers a template for liquidity in a market that has struggled to show investors a way out.
Read more: disruptafrica.com
Image credit: Generated with Gemini
