Lula Secures R340 Million Boost to Expand SME Financing in South Africa

Lula Secures R340 Million Boost to Expand SME Financing in South Africa. South African small business funding platform Lula has secured R340 million in local currency financing from Dutch development bank FMO, a move aimed at widening access to finance for small and medium enterprises across the country.

The funding is intended to increase lending to businesses that often struggle to obtain traditional bank finance due to limited collateral, thin credit histories, or inconsistent cash flow. Lula provides working capital through a technology-driven lending platform that focuses on faster credit decisions and short-term funding solutions tailored to SME needs.

The latest funding follows a period of capital raising and expansion for the fintech company. In 2023, Lula closed a 35 million US dollar Series B funding round led by Lightrock, with participation from the International Finance Corporation, Quona Capital, DEG, and Triodos Investment Management. In late 2025, the company also secured a 10 million US dollar local-currency loan from the IFC to further strengthen its lending capacity.

Trevor Gosling, co-founder and Chief Executive Officer of Lula, said access to capital remains a significant constraint for many small businesses. He noted that receiving funding in rand helps reduce exchange rate risk, which can be a concern when raising capital in foreign currencies. Gosling said the additional funding would support Lula’s plans to scale lending to more entrepreneurs over the next three years.

Angelica Ortiz de Haas, Africa manager for financial institutions at FMO, said the investment aligns with FMO’s strategy to support fintech companies that expand financial inclusion. She said local currency financing enables lenders to extend more appropriate funding to small businesses, which play an important role in South Africa’s economy.

FMO’s investment is positioned as part of a broader effort to support locally focused fintech lenders and strengthen both competition and resilience in the SME finance market. Lula expects the partnership to help increase its support for thousands of small and medium enterprises over the medium term, as it continues to expand its technology-enabled lending operations across South Africa.