ZANIFU

What they do:

Zanifu is an FMCG working capital provider that focuses on Kenya's fragmented and informal trade sector. The company focuses on providing credit at the grassroots level in Kenya, where most small shops wouldn't be able to access any form of credit or lending except distributor-driven 30-day stock loans – which are inaccessible to most. Their innovative solution to prevent high default rates is to disburse the loan through the distributor in the form of stock – which is delivered directly to the shop owner – and is fully paid back at the end of 30 days with interest via Mobile Money.

Why we invested:

In Kenya, the informal FMCG market, representing over 70%, involves a vast network of more than 200,000 Dukas serving end customers. Shop owners face significant structural challenges in this predominantly cash-based market, including limited access to proper banking, readily available supply, and credit. Distributors encounter increased logistics costs due to frequent stock deliveries, driven by low cash availability at the retailer's end. Some distributors extend credit terms to customers but struggle with delayed payments, leading to higher accounts receivables. These cash flow issues have prompted many distributors to halt internal credit systems.

The Founder:

Steve Biko is the Founder and CEO of Zanifu.

Active in:

Kenya