More
    HomeEcosystem NewsDFC Supports Kenya’s Pezesha with $500K Grant Following Settlement in Liquidation Dispute

    DFC Supports Kenya’s Pezesha with $500K Grant Following Settlement in Liquidation Dispute

    Published on

    spot_img

    Kenya’s digital lending platform, Pezesha, is set to enhance its credit scoring technology with the backing of a $500,000 technical assistance grant from the Development and Finance Corporation (DFC), as confirmed in the second quarter of the 2024 fiscal year.

    The DFC, through its sub-board, has greenlit a total of 22 projects worldwide, amounting to $697 million, spanning infrastructure, agriculture, and enterprise development sectors. This technical assistance grant aims to empower Pezesha in leveraging data science and advanced machine-learning technologies to refine its lending processes.

    Established in 2016, Pezesha Africa Limited has been dedicated to offering short-term and affordable loans to small and medium-sized enterprises (SMEs). With a mission to impact one million SMEs, the company has unveiled plans to utilize the grant to bolster its lending capabilities, foster strategic partnerships, and navigate regulatory requirements.

    “At Pezesha, our vision for 2024 is ambitious yet attainable, driven by our committed team, regulatory compliance, strategic alliances, and the invaluable support of investors,” remarked Hilda Moraa, the founder and CEO of Pezesha.

    Pezesha’s recent initiative, Pezesha 2.0, launched in December the previous year, aimed to broaden its reach to a wider spectrum of micro-enterprises. Through this platform, customers could access loans and inventories swiftly, facilitated by an advanced credit scoring algorithm that evaluates credit history and repayment patterns.

    Since its inception, Pezesha has provided instant capital to over 50,000 small business owners, filling a critical gap left by traditional banking and micro-finance institutions. This move aligns with Kenya’s broader economic landscape, where MSMEs contribute significantly to the GDP and employment opportunities.

    The latest backing comes on the heels of Pezesha and MarketForce, two key players in Kenya’s digital financial marketplace, resolving their liquidation dispute out of court. The disagreement, which arose from outstanding debts, prompted Pezesha to file a liquidation suit against MarketForce in August 2023.

    However, in a gesture of reconciliation, Hilda Moraa and Tesha Mbaabu, CEOs and founders of Pezesha and MarketForce respectively, reached a settlement agreement during the Harambe Global Summit at Maasai Mara in March 2024. This agreement involves MarketForce utilizing some of its intangible assets to settle the debt owed to Pezesha.

    Reflecting on the resolution, Moraa emphasized the importance of aligning risk appetite with business growth, while Mbaabu acknowledged Moraa’s efforts in resolving the situation, citing an African proverb urging mutual support in times of adversity.

    Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard.

    Latest articles

    $500K Up for Grabs: Moroccan Diaspora’s MFounders Targets High-Potential Startups

    The club will focus on startups requiring initial funding between $50,000 and $500,000, addressing a critical need in the funding landscape for early-stage ventures.

    Nigerian Stocks Go Mobile: NGX Invest Opens Stock Market to Everyone

    The platform’s launch is timely, coinciding with the Central Bank of Nigeria’s (CBN) recapitalization directive, which has spurred numerous offers for subscription and rights announcements by Nigerian banks.

    South African Safetech Startup AURA Raises $1.1M Bridge Round to Democratize Safety

    The technology platform enables users to access the nearest vetted private security and medical response units through connected devices.

    Fuzé Investment Series: Togolese Media Startup Makifaa Secures Funding

    Founded in in 2023 by Doris DJAGLO and Jean Pignan, Makifaa’s unique approach blends the creative talents of local photographers with cutting-edge artificial intelligence (AI) to deliver personalized media solutions within an impressive 48-hour timeframe.

    More like this

    $500K Up for Grabs: Moroccan Diaspora’s MFounders Targets High-Potential Startups

    The club will focus on startups requiring initial funding between $50,000 and $500,000, addressing a critical need in the funding landscape for early-stage ventures.

    Nigerian Stocks Go Mobile: NGX Invest Opens Stock Market to Everyone

    The platform’s launch is timely, coinciding with the Central Bank of Nigeria’s (CBN) recapitalization directive, which has spurred numerous offers for subscription and rights announcements by Nigerian banks.

    South African Safetech Startup AURA Raises $1.1M Bridge Round to Democratize Safety

    The technology platform enables users to access the nearest vetted private security and medical response units through connected devices.