Kuunda Completes $5 Million Secondary Share Sale as Lending Business Expands

South African fintech Kuunda has completed a $5 million secondary share sale led by E4E Africa, giving early investors an opportunity to cash out while strengthening the investment firm’s position in the business.

The transaction also saw existing investors Accion Ventures, Portugal Gateway Fund and Seedstars Africa Ventures increase their stakes in the digital lending infrastructure company, which plans to expand into seven additional markets.

Founded in 2018, Kuunda provides lending technology that enables banks, mobile money operators and other financial services providers to offer credit through their existing platforms. Its systems use transaction data and credit-scoring tools to help financial institutions extend financing to mobile money agents, small merchants and consumers who may struggle to access traditional credit.

Secondary Sale Provides Investor Liquidity

Unlike a conventional funding round, in which a company issues new shares to raise money for its operations, a secondary share sale involves existing shareholders selling their stakes to other investors.

Kuunda said the transaction gives early backers a financial return while bringing a more aligned group of long-term shareholders into its next stage of growth. The company did not disclose its valuation, the identities of the selling shareholders or the amounts invested by individual participants.

Andrew Milne, Kuunda’s chief executive officer, said the transaction reflected the development of a lending business that serves millions of people across Africa.

E4E Africa managing partner Bas Hochstenbach said the company uses technology, distribution networks and banking partnerships to provide financial services to small businesses and consumers who are underserved by traditional lenders.

The deal follows Kuunda’s $7.5 million pre-Series A funding round announced in October 2025, which included participation from E4E Africa, Accion Ventures, Portugal Gateway Fund, Seedstars Africa Ventures, 4Di Capital and Nedbank.

More Than $4.4 Billion in Credit Disbursed

Kuunda says its lending infrastructure has facilitated more than 870 million loans, delivering over $4.4 billion in credit to 14.6 million agents, merchants and consumers.

The company works with mobile money operators, banks, point-of-sale networks and e-commerce platforms to integrate credit products into services customers already use. This allows financial institutions to offer loans through established distribution channels rather than build separate customer-facing lending systems.

Its model addresses working-capital needs among small businesses and mobile money agents. Agents need sufficient electronic float to complete customer transactions, while merchants require financing to purchase stock and maintain operations.

Kuunda currently operates in five markets, with plans to enter seven more. The company has not publicly identified all seven planned markets or disclosed a timeline for the expansion.

The secondary share sale gives existing investors an opportunity to realise returns before a potential initial public offering or acquisition, while allowing Kuunda to continue pursuing its expansion plans. However, because the transaction involves existing shares, the $5 million should not be treated as new operating capital raised by the company.

The next phase of growth will depend on Kuunda’s ability to expand its partnerships, reach more borrowers and ensure that financial institutions have sufficient capital to fund the credit products delivered through its platform.