4G Capital

The firm operates primarily in Kenya and Uganda, addressing the significant finance gap for small businesses that often lack the collateral required by traditional banks. 4G Capital's business model combines a 'touch-tech' approach, utilizing a network of over 1,600 field agents for in-person relationship management with proprietary AI-backed technology to assess risk and determine loan viability. The company's machine learning algorithm, named EVA, analyzes client data to offer appropriately sized, unsecured loans, which are disbursed rapidly via mobile money platforms. This strategy has resulted in consistently high collection rates, averaging around 94%, without refinancing clients.

In addition to financing, a core component of 4G Capital's offering is bespoke business training, delivered through mobile apps and face-to-face outreach. This dual approach of providing both capital and knowledge is designed to foster sustainable business growth, with clients reporting an average revenue increase of 82%. The company primarily serves female entrepreneurs, who make up over 70-80% of its client base, and has a strong focus on rural businesses. Revenue is generated from interest and fees on its loan products. 4G Capital has also developed a B2B service called Kuza, a fintech plug-and-play offering that allows distributors for major brands like P&G and Diageo to provide stock to retailers on credit.

Since its inception, the company has disbursed over 5.5 million loans valued at more than $620 million. It has received significant backing, including a Series C funding round of $18.5 million from Lightrock in 2022, which supported its expansion and technological development. 4G Capital is a certified B Corporation, recognized for its social and environmental performance, and was named one of the Financial Times' fastest-growing companies in Africa.