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

Yudala ‘an unstoppable movement’, says Zinox chief

Yudala VP Stanley Uzoechina, Access Bank CEO Herbert Wigwe and Zinox CEO Leo Stan-Ekeh The opening of Yudala outlets, combining an online shopping platform with retail stores, has been described as a game-changer in Nigeria. Read More

Travelport, TTS sign reseller agreement for Africa, Middle East and Asia Pacific region

Travelport and TTS have signed a sales and distribution agreement for TTS products in the Africa, Middle East, and Asia Pacific regions. Read More

Airbnb to expand further across Africa

Airbnb, the world’s leading community-driven hospitality company, announced that its CEO, Brian Chesky will attend GES 2015 to meet with entrepreneurs from around the world and explore the sharing economy’s impact and expansion, particularly on the African continent - which represents a huge opportunity for the company.  Read More

What African entrepreneurs want

On the eve of U.S. President Barack Obama’s visit to Kenya for the Global Entrepreneurship Summit, GeoPoll, the Global Entrepreneurship Network, and the U.S. State Department have released a survey of 1,000 business owners throughout sub-Saharan Africa on entrepreneurship in their countries. Read More

ISON eyes 25,000 jobs, $400m in Nigeria

Pravin Kumar ISON Group has projected the creation of 25,000 new jobs and $400 million revenue within space of one or two years in Nigeria. Read More

NEC invests in XON to accelerate regional African growth

NEC Europe, a wholly owned subsidiary of NEC Corporation, has invested in XON, the sub-Sahara African ICT group, and the two organisations will have an integrated market approach that will combine their local expertise in the region to provide greater sales coverage in the sub-Sahara African market. Read More

Orange, Airtel in talks on acquisitions

Orange and Bharti Airtel International (Netherlands) BV, have entered into an exclusive agreement to explore the possible acquisition by Orange of four Airtel subsidiaries.  Read More

Equitel seeks a share of Kenya’s lucrative telco market

Equity Bank’s subsidiary, Finserve Africa, has launched Equitel, a new mobile payment and banking platform for its customers, which officially brings to the fore the convergence between mobile and banking services in Kenya. Read More

Kenya to host global entrepreneurship forum

Kenya has captured global attention following the imminent entrepreneurship forum to be graced by US President Barack Obama. Read More

MTN Group appoints new CEO for SA operation

MTN Group today announced the appointment of Mteto Nyati as MTN SA CEO, effective 13 July 2015. Read More

PRESS OFFICES

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

FEATURED STORY

Batswana dragging feet in digital migration Batswana dragging feet in digital migration

More than a month after the deadline for the digital migration from analogue television, few people have shown any pronounced enthusiasm in entering the new digital TV realm. 

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.

COMPANY NEWS

MTN Business App of the Year submissions closed

Entries for the annual MTN Business App of the Year Awards taking place on 13 August in Johannesburg have closed, and an expert panel of judges that is adjudicating ...