Lulalend (IFC-42350)

Countries
  • South Africa
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 10, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
LULA LEND (PTY) LTD
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 2.80 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 6.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 15, 2019

Disclosed by Bank Apr 8, 2019


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Project Description

According to bank documents, the proposed project is a US$2.8 million equity investment into Lulalend, an online uncollateralized MSME lending platform based in Cape Town, South Africa. Lulalend leverages technology to provide loans to banked but underserved businesses in South Africa. Lulalend’s customers are MSMEs with annual turnover ranges of $36K-3.5M, from the retail, services, manufacturing, logistics and construction sectors. IFC’s investment will help increase access to finance for micro and small and medium enterprises (“MSMEs”) in South Africa.

Investment Description
  • International Finance Corporation (IFC)

 The proposed investment is a US$2.8 million equity investment in preferred Series A stock of Lulalend. The total round size is US$6.5 million. 

Private Actors

Founded in 2015, Lulalend is an online uncollateralized MSME lending platform based in Cape Town, South Africa. To date, the company has disbursed 2,180 loans worth $18.5MM in total cumulative disbursements.

Post IFC’s investment, Lulalend’s shareholding structure will be as follows: Trevor Gosling (CEO), Neil Welman (CTO), Alexander Schuetz, IFC, Quona, Hallman Holding International, Accion, Team Africa Ventures, Newid Capital, Lutz Seebacher, Employees.  

Contact Information

Lulalend 
Mr. Trevor Gosling 
CEO 
+27879432381 
trevor@lulalend.co.za 
1st floor, 81 Church Street, Cape Town, WC 8000, South Africa 
www.lulalend.co.za  

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/