Zambian digital financial services platform Lupiya has raised $11.25 million in a funding round to expand its operations across Africa, with a focus on providing more inclusive banking services. The company stated the capital will be used to enhance its technology platform and grow its market presence, aiming to serve a broader base of entrepreneurs and individuals.

Lupiya, which offers digital lending and savings products, plans to use the funds to deepen its offerings in Zambia and explore expansion into new markets on the continent. The company targets customers who are often underserved by traditional banks, leveraging mobile technology to facilitate access to credit and other financial tools. The funding round included participation from both international and African investors, reflecting a continued interest in the continent's fintech sector.

The investment comes at a time when digital financial services are gaining traction in many African economies, driven by high mobile phone penetration and a need to improve financial inclusion. In Zambia, like much of sub-Saharan Africa, a significant portion of the population remains outside the formal banking system, creating opportunities for mobile-based solutions.

Lupiya's model involves using alternative data for credit scoring, allowing it to assess borrowers who may not have a conventional credit history. This approach is common among fintech firms aiming to bridge the credit gap for small business owners and salaried workers. The company says its services are designed to be accessible via basic mobile phones, not just smartphones, widening its potential user base.

Separately, in a distinct development within the African fintech landscape, the cross-border payments platform Nairagram has completed a capital raise of 10 billion naira, according to multiple reports. Nairagram, which facilitates remittances and currency exchange, stated the funds are intended to deepen financial connectivity across Africa. The company's focus is on enabling easier and more affordable transfers for the African diaspora and intra-continental trade.

The parallel announcements from Lupiya and Nairagram highlight two different, yet critical, vectors of growth in African fintech: domestic financial inclusion and cross-border financial integration. Both areas are seen as essential for economic development, with the African Continental Free Trade Area (AfCFTA) agreement potentially increasing the demand for seamless cross-border payment solutions.

For Lupiya, the challenge will be scaling its model in a competitive environment where several players, including large mobile network operators, also vie for market share in digital financial services. The company's success will depend on its ability to manage credit risk effectively while maintaining affordable services for its target customers. The new funding provides it with capital to refine its operations and pursue its growth objectives.