MARKET UPDATES

Zambia’s Lupiya raises $8.25m to grow neobank business

1 min Read September 18, 2023 at 11:07 AM UTC

Highlights

Zambian neobank Lupiya has successfully secured $8.25 million in a Series A funding round led by Alitheia IDF Fund, with substantial participation from INOKS Capital SA and the German Investment Bank KfW DEG.
Founded in 2016, Lupiya works to bridge the financial inclusion gap by offering easy-to-use, technology-driven financial solutions to the unbanked and underbanked populations in Zambia.
The funding will be channeled into enhancing Lupiya’s technological infrastructure, expanding its range of financial products, and scaling its operations to reach more customers.

Our Takeaway

Neobanks, also known as digital-only banks, have gained popularity in Africa in recent years. They offer a range of banking services through a mobile app or website, without the need for physical branches and notable names include Kuda, Carbon, and Fairmoney in Nigeria, as well as TymeBank in South Africa. These banks have attracted a significant number of customers, especially among the younger generation, due to their ease of use, lower fees, and innovative features such as savings goals and budget tracking. With the increasing adoption of smartphones and mobile technology, they have the potential to reach previously even more underserved populations.

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