MICROCAPITAL BRIEF: Tugende Borrows $2.6m to Finance Vehicle Ownership for SMEs in East Africa

Verdant Capital, a Mauritius-based corporate finance firm, recently helped Tugende, a Uganda-based, technology-driven, lease-to-own vehicle financing firm, secure EUR 2.5 million (USD 2.6 million) in debt funding from an unspecified “European impact investor.” In addition to financing motorcycles, minibusses and boat engines for first-time clients, Tugende offers medical and life insurance. Successful lessees also may finance mobile phones as well as equipment for tailors, food sellers and hair stylists. Tugende, whose name can be translated as “Let’s Go,” has 20 branches in Kenya and Uganda. Since its founding in 2012 through 2022, the company has served approximately 52,000 customers.

In addition to Mauritius, Verdant Capital has offices in Democratic Republic of Congo, Ghana, and South Africa. The firm provides capital-raising and financial advisory services as well as assisting in mergers and acquisitions

By Ben Greissman, Research Associate

Sources and additional resources

Verdant press release
https://verdant-cap.com/verdant-capital-arrages-eur-2-5-milion-for-tugende/

Tugende homepage
https://gotugende.com/

Tugende products and services
https://gotugende.com/products-and-services/

Previous MicroCapital article on Tugende
https://www.microcapital.org/microcapital-brief-tugende-expands-leasing-products-to-finance-boat-engines-for-fishing-in-uganda/

Previous MicroCapital article on Verdant
https://www.microcapital.org/microcapital-brief-usplus-borrows-11m-from-lendable-absa-to-boost-access-to-factoring-for-smes-including-black-owned-rural-companies/

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