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

Orange to acquire Millicom subsidiary in DRC

Orange and Millicom have signed an agreement leading to Orange’s acquisition of Millicom’s operations in the DRC. Read More

Ringier Africa and Asia Pacific get new structure and leadership

Ringier is restructuring its international market set-up for the beginning of the new year, with four dedicated teams established for each of the African business models.  Read More

Travelstart secures strategic partnership with MTN

Amadeus, the global technology investor, has announced a $40m investment in Travelstart in partnership with MTN, Africa’s leading mobile and digital life services operator.  Read More

VMware appoints new Regional Director of SSA

VMware has announced the appointment of Matthew Kibby as regional director of Sub-Saharan Africa (SSA). Read More

More than 700 delegates at Sage’s first African Business Partner Conference in South Africa

Sage’s first African Business Partner Conference in SA marks a milestone in Sage’s journey towards becoming the global market leader for integrated accounting, payroll and payment systems. Read More

SweepSouth secures funding from top SA Venture Capitalists

Vumela Fund has backed online home cleaning services platform SweepSouth. Read More

Smarter use of digital skills, tech, could boost global economy by $2 Trillion: Accenture

Optimizing the use of digital skills and technologies could generate $2 trillion of additional global economic output by 2020, according to a new study by Accenture. Read More

Ghana’s real estate industry to benefit from MLS database

Real Estate Professionals in Ghana will soon have access to a new Multiple Listing Services (MLS)  designed to relieve them of the stress of listing properties.  Read More

Online shop Dakika launches in Kenya

Dakika online, a Kenyan owned e-commerce platform, has launched its operations in Kenya to offer a stress free shopping experience to online shoppers across the country. Read More

Chinese tech firm Konka opens shop in Nigeria

Another Chinese technology firm, Konka Telecoms of China, yesterday opened shop in Nigeria with a pledge to deepen competition in the mobile phone market and give customers opportunities to experience the cutting edge technology associated with its products. Read More

PRESS OFFICES

Sage EnterpriseSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4AfrikaNetworks Unlimited

FEATURED STORY

Viber Spreads Good Vibes in Africa with the introduction of public chats Viber Spreads Good Vibes in Africa with the introduction of public chats

Viber, one of the leading messaging and calling apps with more than 664 million unique users worldwide, has opened its latest social channel ‘Public Chats’ to partners in Africa and the Middle East. 

IN DEPTH

Poised for greater heights – Roshi Motman, AfricaCom CEO of the Year WinnerPoised for greater heights – Roshi Motman, AfricaCom CEO of the Year Winner

Roshi Motman is not your average CEO. Since taking up the reins as the first female CEO of Tigo Ghana in 2014, she has led the Tigo brand through a remarkable transformation. 

COMPANY NEWS

Arbor Networks maintains leadership in IHS Infonetics Report on DDoS prevention appliances

Arbor Networks was identified once again as the top supplier of DDoS mitigation appliances overall, as well as in the Carrier, Enterprise and Mobile market segments, according ...