Zambian fintech Lupiya has raised an additional $8.5 million, extending its Series A funding round to a total of $11.25 million. The capital infusion, announced this week, comes from new investors the Cisco Foundation and FINCA Ventures, which join existing backers in supporting the company's expansion of digital financial services.
The funds are earmarked for scaling Lupiya's operations within Zambia and exploring growth opportunities in neighbouring markets. The company offers a digital platform providing savings, credit, and payment solutions, primarily targeting individuals and micro-enterprises that have limited access to traditional banking services. This focus aligns with broader regional efforts to improve financial inclusion through mobile and digital channels.
"Our mission is to dismantle the barriers that prevent millions from participating in the formal economy," said Evelyn Kaingu, Lupiya's co-founder and CEO. The company reports that it has already facilitated over $150 million in loans to more than 250,000 customers since its inception, demonstrating significant uptake for its digital lending products.
The investment from the Cisco Foundation and FINCA Ventures represents a strategic partnership aimed at amplifying financial inclusion. According to statements from the investors, the capital will support technological enhancements and the development of new product offerings designed to reach underserved communities. This model of venture capital partnering with impact-focused foundations is becoming more common in Africa's fintech landscape, where bridging the financial access gap remains a central challenge.
Zambia, like many African nations, has a high rate of mobile phone penetration but a significant portion of the population remains outside the formal banking system. Digital lenders and neobanks have emerged to fill this gap, though they operate in a competitive and evolving regulatory environment. The Bank of Zambia has been actively developing a regulatory framework for digital financial services to ensure consumer protection and systemic stability.
The extension of Lupiya's Series A round underscores continued investor confidence in Africa's fintech sector, particularly in business models that address clear gaps in financial infrastructure. While larger, cross-border payments companies often capture headlines, lenders and savings platforms focused on specific national markets continue to attract funding for their deep local integration and understanding of customer needs.
Lupiya's plans for regional growth will see it navigate varying regulatory regimes and competitive landscapes across Southern Africa. The company's success will depend on its ability to adapt its product suite to different markets while maintaining the core value proposition of accessible, digital-first financial tools. The fresh capital provides the resources to undertake this expansion and invest in the technology required to scale securely.