Umati Capital secures $10m finance line from ApexPeak

BUSINESS

|
Image: By BiztechAfrica
Umati Capital secures $10m finance line from ApexPeak

By Tom Jackson, South Africa

Kenyan financial tech startup Umati Capital has agreed a deal with ApexPeak securing its first line of wholesale capital, which will see the latter offer a finance line commencing at US$300,000 per month but expected to grow to US$5-7 million per month before the end of 2014.

ApexPeak, which is headquartered in Singapore and has an office in Cape Town, South Africa, was established in 2013 to ease cash-flow problems for companies by buying e-invoices before they are due.

Umati believes it is set to make the adoption of invoice discounting easy for SME farmers and multinationals with its product M-Trader, which has just been through a six-month pilot. The company has been seeking funding since earlier this year to expand across Kenya and reach more agriculture-related businesses.

“We are confident our loan book will grow twenty-fold come December 2014. Since the launch of M-Trader, we have attracted a pipeline of over 50,000 active users,” said co-founder Ivan Mbowa. “Four large industrial companies purchasing volume agriculture products for retail sale have also joined the programme, and we expect this number to grow before the year is out.”

ApexPeak said it had stepped in to provide funding for Umati when bank and non-bank providers of capital proved unwilling. The US$300,000 per month provided initially could increase to upwards of US$10 million.

“We understand the challenges of setting up a supply chain finance platform. We were interested in the credit worthiness of the buyers, and the banks were interested in the credit worthiness of Umati. As Umati has no trading history, there was a problem,” said Gakim Solomons, chief executive officer (CEO) of ApexPeak.

“Most companies, when they talk about supply chain finance, struggle to get SMEs to adopt simple measures like paperless invoicing. Umati has gone one step further and shown the industry that supply chain finance can work from a cell phone. We are hoping Umati will make its technology available to other markets.”



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

DHL to invest millions of Euros across SSA in 2015

DHL plans to invest millions in upgrading its shipment handling systems and facilities in SSA this year. Read More

Ebenezer Asante to assume CEO role of MTN Ghana

Ebenezer Twum Asante will officially assume the position of Chief Executive Officer for MTN Ghana, effective 1st July, 2015. Read More

Nomanini scales West African footprint with Transaction Solutions partnership

South African-based portable Point of Sale (PoS) service provider Nomanini has signed an exclusive agreement with Transactions Solutions Ghana Limited to substantially scale numbers of its cloud-based PoS terminals in Ghana.  Read More

Online procurement system for East Africa goes live

Kenyan IT start-up M-Tenders Systems has created East Africa’s first live online procurement system, www.m-tenders.com. Read More

Customer experience starts with staff experience

Companies seeking to improve customer experience to boost business may be overlooking a critical component in the mix: staff, says new Interactive Intelligence research. Read More

MasterCard, Ecobank Group to accelerate e-payment in SSA

Ecobank, Africa’s largest bank by geographical reach, will roll out MasterCard payment solutions to millions of its customers in Africa. Read More

Travellers more tech savvy

78% of global travellers are using digital information while planning their trips; 66% resorting to digital sources for travel tips at the destination, says Visa. Read More

Standard Chartered appoints Chief Innovation Officer

Standard Chartered Bank says it has appointed Ms Anju Patwardhan as the Bank’s first Group Chief Innovation Officer, effective 1 July 2015.  Read More

Cameroon: a well-kept investment secret

The investment opportunities in Cameroon are wide open, believes Africa strategy advisor for Moore Stephens, Jeff Blackbeard, who recently met with Cameroonian Prime Minister Philémon Yang. Read More

Morpho targets African growth

Morpho, a leading supplier of biometric identification and security solutions, says it plans to aggressively capture the untapped markets in Africa. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

IHS plans to inject fresh $500m to grow capacityIHS plans to inject fresh $500m to grow capacity

Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.

IN DEPTH

As curtain falls on MDGs, what next?As curtain falls on MDGs, what next?

Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.