The investment aims to support the expansion of its Lending Management System (LMS), a tool designed to facilitate unsecured digital lending for small businesses.

Since its beta launch in 2018, Oze has provided MSMEs with a mobile platform to track sales, expenses, receivables, and payables.

The app utilizes this data, combined with machine learning, to assess credit risk and connect businesses with financing from banking partners.

The company previously raised $3 million in a pre-Series A round in 2022 and has now secured an additional undisclosed amount.

Investors in the latest round include Visa, DEG (the German development finance institution), and returning backers such as Speedinvest and Africinvest’s Cathay AfricInvest Innovation Fund.

With the new funding, Oze plans to enhance its LMS, allowing financial institutions—including banks, microfinance organizations, and fintech firms—to offer collateral-free digital loans to merchants and small businesses.

The system is powered by Oze’s proprietary machine-learning credit risk model, which aims to improve lending efficiency and accessibility.

“This funding accelerates our goal of empowering small businesses across Africa. By scaling our Lending Management System, we enable financial institutions to unlock the potential of SMEs, driving financial inclusion on a large scale,” said Meghan McCormick, Oze’s co-founder and CEO.

Oze currently operates in several African countries, including Ghana, Nigeria, Guinea, Benin, Rwanda, Madagascar, Zimbabwe, and Lesotho, in partnership with commercial banks such as Ecobank.

The platform helps banks and lenders digitize loan processes while providing MSMEs with business management tools to track financial activities and customer data.

DEG’s investment comes through its Up-Scaling Programme, which supports high-impact business models in emerging markets.

“Oze’s technology has the potential to unlock financial opportunities for millions of small businesses in Africa, contributing to sustainable development and inclusive growth,” said Dr. Tobias Bidlingmaier, head of Up-Scaling at DEG.