Ugandan fintech startup Numida has successfully secured $2.3 million in seed funding, marking a significant step toward its continental expansion goals. The funding round was led by Pan-African payments giant MFS Africa, known for its strategic investments in Ugandan startups, including the acquisition of Beyonic in June 2020. Additional participants included DRK Foundation, Equilibria Capital, Segal Family Foundation, and various angel investors.

Mina Shahid, CEO of Numida, highlighted the pivotal role of this investment and the strategic support from MFS Africa in realizing the startup’s ambitious plans to scale across Africa. Shahid emphasized that MFS Africa’s extensive expertise and established continental footprint will be crucial in enabling Numida’s future growth and market penetration.

With this fresh injection of capital, Numida plans to pilot its services in a new market beyond East Africa, with Ghana emerging as a strong contender for initial expansion. The company also intends to diversify its offerings by introducing additional financial services, including payments, micro-insurance, and deposits, aiming to provide a more comprehensive suite of tools for small businesses.

Founded in 2017 by Mina Shahid, Catherine Denis, and Ben Best, Numida is dedicated to democratizing access to credit for Africa's micro and small businesses. The startup targets approximately 22 million African small businesses that remain underserved by traditional financial institutions and are in critical need of accessible loans.

Numida addresses a critical gap highlighted by the African Development Bank, which notes that only 20% of African SMEs have access to a line of credit. McKinsey further estimates the total credit need for formal SMEs in sub-Saharan Africa at around $100 billion, representing the largest demand among emerging market regions. To address this, Numida offers a mobile lending app that allows small businesses to apply for working capital loans of up to $3,500, with funds typically disbursed in less than two hours.

A key challenge for these businesses is the lack of robust financial records and cash flow history, which hinders access to credit. Numida tackles this through its record-keeping platform, TrackApp, which empowers enterprises to build credible financial histories, make informed business decisions, and demonstrate creditworthiness to potential lenders. CEO Shahid explained, “One of the major reasons why financial institutions don’t give loans to these businesses is because they don’t have good financial track records and cash flow history. That was the problem we set out to solve — to create the mechanisms to capture cash flow data and present it in a form that can be used in underwriting processes.”

To date, Numida has disbursed over $2 million in unsecured credit to 3,000 micro and small businesses solely within Uganda. This represents an average disbursement of approximately $250,000 per month, inclusive of outstanding collections, consistent repayment rates, and strong client retention — underscoring the effectiveness and high demand for its services.