Lupiya, a Zambian digital banking platform, has closed an $11.25m Series A funding round led by IDF Capital’s Alitheia IDF Fund, with participation from INOKS Capital and German development finance institution KfW DEG.
The round, which CEO and co-founder Evelyn Chilomo Kaingu described as taking nearly two years to complete, will be used to strengthen the neobank’s technology infrastructure, expand its product range, and extend operations beyond Zambia into broader Southern and East African markets.
Founded in 2016, Lupiya operates as a digital-first financial services provider targeting Zambia’s unbanked and underbanked populations. The platform offers lending products alongside Lupiya Pay, its digital payments service, and is developing embedded finance partnerships.
A challenging fundraising environment
Kaingu acknowledged the difficulties of raising capital as an African fintech, describing the process as involving “multiple rejections” and requiring founders to inject personal capital to maintain operations while negotiations continued.
“Major rounds have taken us close to two years each time,” Kaingu said in a statement. “And as the business grows, the bar only gets higher. Expectations evolve. Governance tightens. Due diligence gets deeper.”
The company has previously raised capital through multiple instruments including debt, equity, convertible notes, grants, and non-dilutive capital. Early backers include Enygma Ventures, which invested $1m during the pandemic, alongside support from Mastercard’s financial inclusion programmes.
Expanding the lending book
The Series A comes as Lupiya opens another funding round to scale its lending operations and deepen its embedded finance capabilities. The company did not disclose current loan book size, customer numbers, or revenue figures.
Polo Leteka, founder of IDF Capital and co-managing partner of the Alitheia IDF Fund, said the investment aligned with the fund’s focus on financial and gender inclusion across Africa. The Alitheia IDF Fund is a private equity vehicle focused on gender-lens investing.
“We have always been on the lookout for startups that are at the cusp of making a significant impact in the financial sector of Africa,” Leteka said. “Lupiya’s vision and dedication to financial and gender inclusion resonates deeply with our own objectives.”
Financial inclusion in Zambia
Zambia’s financial inclusion rate has improved in recent years but remains below regional averages. According to World Bank data, approximately 45% of Zambian adults held accounts with financial institutions as of 2021, with a significant urban-rural divide and gender gap in access.
Digital lenders have emerged as alternatives to traditional banking infrastructure, though the sector faces challenges including currency volatility, regulatory uncertainty, and high operational costs in lower-density markets.
Lupiya’s partnerships with Mastercard provide access to payment rails that enable digital transactions. Vincent Malekani, Mastercard’s country director for Zambia and Malawi, said the collaboration supports the card network’s goal to bring one billion people into the digital economy by 2025.
“Our collaboration with Lupiya stands as a testament to Mastercard’s commitment to fostering digital inclusion across Africa,” Malekani said.
Regional expansion plans
While Lupiya has operated primarily in Zambia since its founding, the Series A capital is intended to support geographic expansion across Southern and East Africa. The company has not specified which markets it plans to enter or timelines for expansion.
The fintech also counts Google, the World Bank, and the UN’s International Trade Centre among its institutional supporters, though the nature of this support — whether financial, technical, or programmatic — was not detailed.
Sarah Dusek, a partner at Enygma Ventures, said the Series A validated the firm’s early-stage investment thesis. “It’s remarkable to witness Lupiya’s growth, especially given our initial investment of $1m during the peak of the pandemic,” Dusek said.
Kaingu indicated that Lupiya would continue raising capital as it scales. “We have opened another funding round this year as we scale Lupiya across markets, deepen our lending book, and expand Lupiya Pay and embedded finance partnerships,” she wrote.