This initiative aims to bridge the financing gap for informal small and medium-sized enterprises (MSMEs), which often struggle to secure loans from traditional institutions.

Over 600,000 Pochi La Biashara users can now access these micro-loans directly through their M-Pesa business accounts.

The loans come with a one-time access fee of 2.76% and a seven-day repayment term with a single, optional fourteen-day extension incurring an additional fee.

“This partnership empowers small business owners by providing them with convenient access to capital to run their businesses,” said a Safaricom spokesperson. “The ability to separate business and personal finances through Pochi La Biashara makes managing these loans even more efficient.”

Pezesha’s expertise in credit management will be used to assess borrowers’ creditworthiness and deter defaults through collaboration with credit bureaus.

This collaboration strengthens Pezesha’s position in the credit management market, having already supported over 50,000 MSMEs.

“Mkopo Wa Pochi,” as the new service is called, complements Safaricom’s existing M-Shwari and Fuliza offerings, further solidifying their role in providing accessible financial solutions to Kenyans. The success of these mobile loan products has spurred the growth of lending apps and mobile loan options from traditional banks.

The easy accessibility and short repayment terms of these micro-loans cater specifically to the needs of small businesses that require smaller amounts for short-term needs like restocking inventory.

The rise of mobile phone penetration and technological advancements have made these financial services not only lucrative but also convenient for a wider range of entrepreneurs.

The investment will be used to expand Noki Noki’s services in its existing six Central African markets and establish a strong presence in the Democratic Republic of Congo (DRC).

Uma Ventures led the funding round, highlighting the growing confidence in Congolese startups.

In 2023, Congo attracted a record $62 million in venture capital, becoming the top contributor to startup funding growth in Central Africa.

Founded in 2021 by entrepreneur Jonathan Yanghat, Noki Noki offers a suite of services, including Noki Food for meal delivery, Noki Drive for grocery assistance, and Noki Pay, an integrated payment system.

The company boasts over 10,000 users and processed more than 1 billion CFA francs (approximately $167 million) in transactions in 2023.

“We started small, with just a few motorcycles, but with a big dream to revolutionize delivery and e-commerce across Africa,” said Yanghat. “This investment is a major step towards our goal of becoming the leading last-mile delivery service in Africa.”

Noki Noki competes in a rapidly growing market, with Africa’s last-mile delivery sector expanding at an annual rate of 8.45% and is expected to reach $2.35 billion by 2030.

Vinay Vaswani, founder of Uma Ventures, praised Noki Noki’s deep understanding of the market and leadership potential.

“Their vision aligns perfectly with our commitment to supporting tech-driven infrastructure in Africa,” Vaswani said. “We’re thrilled to be a part of their growth journey.”