Watu, a microlender which finances acquisition of smartphones and motorcycles on credit focusing on underserved communities in several Sub-Saharan Africa ountries, has secured equity investment of undisclosed amount from a South African private equity firm, Metier, to boost its operations in existing markets.
Watu was founded in 2015 and has grown its microlending business over the years with strong presence in Kenya, Uganda and Tanzania, and expanding operations in Rwanda, Sierra Leone, the Democratic Republic of Congo, Nigeria, and South Africa.
The lender says it plans to utilize the funds and support from Metier to scale its operations, strengthen governance and unlock new opportunities.
Andris Kaneps, founder of Watu said:
“We are proud of the journey Watu has taken – from a single-country startup to a pan-African platform empowering over a million clients. Partnering with Metier marks a significant milestone in our growth story. Their strategic support and access to capital will help us scale our operations, strengthen governance, and unlock new opportunities to serve our communities better.”
Watu becomes the fifth company the South African-based Metier has invested in under the Capital Growth Fund III. Metier raised $219 million(Sh28.3 billion) last year and plans to make eight to twelve equity and equity-related investments into mid-market companies with strong growth in Sub-Saharan Africa.
Peter Rowse, Principal of Metier said:
“Watu represents a compelling opportunity to support a high-growth, impact-driven business that is transforming access to finance across Africa. Their tech-enabled credit model, diversified product offering, and strong execution track record aligns well with our investment philosophy. We are excited to partner with Watu’s leadership team to accelerate their growth and deepen their impact in the region.”
Watu generated revenues of Sh29.8 billion in 2024, a growth of 66.5 per cent compared to the Sh17.9 billion it generated in 2023.
