Watu Lands $7M to Fuel Expansion of Vehicle and Smartphone Lending

Kenyan asset-financing startup Watu has secured a $7 million strategic debt facility from AHL Venture Partners to boost its working capital and expand operations across key African markets. This marks an extension of their partnership which began in 2022.

Watu specializes in financing assets used for work, transport, and connectivity – including motorcycles, three-wheelers, smartphones, and increasingly, electric vehicles (EVs). Since launching in 2015, the company has originated over 7 million loans, serving customers who often lack access to traditional financing.

The debt facility allows Watu to add lending capacity without diluting ownership. This is particularly valuable for asset-financing businesses where access to capital that can be recycled through loan repayments is crucial for growth.

Strategic Expansion Across the Continent

Watu operates in Kenya, Tanzania, Uganda, Rwanda, Democratic Republic of Congo, Nigeria, Sierra Leone, South Africa, as well as Mexico and Brazil. The company’s unique approach combines digital onboarding with flexible repayment options tailored to local market conditions.

“This facility will strengthen our working capital position and enable us to grow our motorcycle, three-wheeler, and smartphone financing portfolios while maintaining our focus on customer service,” said Watu founder Andris Kaneps.

The Rise of Private Credit in Africa

The investment underscores a growing trend of debt financing for African lenders. Rather than relying solely on equity raises, companies like Watu can access capital through debt instruments that align with their asset-based business model.

This approach allows them to extend credit more efficiently while preserving ownership structure. However, it also introduces new obligations related to repayment performance and managing borrowing costs across diverse markets.