South African fintech company Lula has secured ZAR340 million, equivalent to US$21 million, in new funding from Dutch development bank FMO to expand its lending platform for micro, small and medium enterprises, deepening its push into digital banking and SME finance. The investment will support the scaling of Lula’s lending-as-a-service infrastructure and broaden access to working capital for smaller businesses that remain underserved by traditional banks.
Founded in 2014 by Trevor Gosling and Neil Welman under the name Lulalend before rebranding in 2023, the company operates an automated online funding platform that uses artificial intelligence to assess credit and manage cash flow. Lula has gradually evolved from a specialist lender into a neobank offering integrated business accounts and financial management tools. The new capital follows a US$35 million Series B round raised in 2023, which financed its expansion into digital banking and product development.
The latest funding is denominated entirely in rand, a structure designed to reduce currency risk and stabilise lending conditions for borrowers. According to FMO, the financing is intended to strengthen inclusive access to finance and accelerate the growth of small enterprises, a segment widely recognised as a key driver of employment in emerging markets. South Africa’s SME sector continues to face funding constraints, with many firms citing access to credit as a primary barrier to expansion.
Lula expects the additional capital to extend its reach to thousands more entrepreneurs over the next three years as it scales its technology platform and credit capacity. As reported by The World Bank, small and medium enterprises account for a significant share of private sector employment in developing economies, yet financing gaps remain substantial. By combining automated credit assessment with integrated banking services, Lula is positioning itself to capture a larger share of South Africa’s growing fintech-enabled SME finance market.