Kenyan Startup Zanifu Raises $11.2 Million to Expand Inventory Financing Platform for Small Retailers

Kenyan startup Zanifu has successfully raised $11.2 million in a round of debt-equity funding to support its platform, which provides inventory financing solutions for micro, small, and medium-sized businesses (MSMEs). Beyond Capital Ventures and Variant Investments led the funding round, and other participants included Founders Factory Africa, AAIC Investment, Google Black Founders Fund, and Launch Africa.

Platform Overview:

  • Zanifu’s Android app enables small retailers to obtain inventory from their suppliers and make payments after selling the goods.
  • Unlike traditional financing methods, Zanifu doesn’t require collateral or a credit history. Instead, a pre-existing relationship with the supplier is the main criterion.
  • The company boasts a high repayment rate of 99.2% from its user base of 13,000 micro-firms.
  • Zanifu charges an interest rate of 5 to 6% per month to its users.

Utilizing the Funding:

The newly acquired funds will be utilized to expand Zanifu’s platform to distributors and further scale its operations within Kenya. This strategic move is aimed at enhancing the platform’s accessibility and impact within the MSME sector.


Impact and Future Growth:

Zanifu’s innovative approach to inventory financing addresses the challenges faced by small retailers in accessing credit. The platform’s user-friendly model and high repayment rate signal its success in assisting micro-firms to manage inventory and cash flow efficiently. With the additional funding, Zanifu is well-positioned to accelerate its growth, foster financial inclusion, and contribute to the growth of the Kenyan business ecosystem.

Source: TechCrunch