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.
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.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
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.
Mr. Trevor Gosling
1st floor, 81 Church Street, Cape Town, WC 8000, South Africa
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/