Yango Ventures Expands African Footprint with Strategic SME Fintech Investment

Yango Ventures, the Dubai-based corporate venture capital arm of global tech conglomerate Yango, has announced a strategic investment in Zanifu, a Kenyan fintech specializing in working capital solutions for small and medium-sized enterprises. This marks the fund’s second major investment in Kenya this year, solidifying the country as a critical beachhead for Yango’s ambitious African expansion strategy.

The investment, announced on September 18, 2025, represents more than just capital deployment—it demonstrates a deliberate strategy targeting the continent’s vast, underserved SME financing sector. While the specific investment amount remains undisclosed, the deal underscores growing international investor confidence in African fintech solutions addressing fundamental infrastructure challenges.

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Addressing the $5.2 Trillion Global SME Financing Gap

Zanifu’s business model directly addresses one of the developing world’s most pressing economic challenges. The International Finance Corporation estimates that 65 million enterprises, or 40% of formal micro, small and medium enterprises in developing countries, have an unmet financing need of $5.2 trillion annually. In Sub-Saharan Africa specifically, this gap is particularly acute, with more than 60% of MSMEs needing loans but unable to access them through traditional banking channels.

Founded by co-founders Steve Biko and Sebastian Mithika, Zanifu has demonstrated remarkable traction since launching its financing operations in 2018. The platform offers digital inventory financing to small retailers who are typically excluded from formal credit systems due to lack of collateral, structured accounting records, or asset-based guarantees. According to data shared by Yango Ventures, the Kenyan fintech has achieved significant milestones including disbursing over $60 million in loans, financing more than 15,000 SMEs, and reaching operational breakeven for two consecutive months—a notable achievement in the capital-intensive fintech space.

The company’s approach is particularly innovative in its direct payment model to suppliers, effectively de-risking the lending process. Retailers can access working capital loans of up to $2,000, which they repay through business revenue streams. This model has resulted in an impressive 99.2% repayment rate, according to company data, demonstrating the effectiveness of Zanifu’s underwriting algorithms and risk management processes.

Strategic Pattern Emerges: The Yango Playbook

This investment follows Yango Ventures’ debut deal in July 2025, when it backed Kenyan mobility startup BuuPass. The transport digitization platform has processed over 20 million tickets and operates across Kenya, Uganda, Tanzania, and South Africa, working with more than 150 transport operators. Together, these investments reveal a deliberate strategic approach that industry analysts are calling the emerging “Yango playbook.”

Both BuuPass and Zanifu operate in the online-to-offline (O2O) space, using software solutions to organize and unlock value in traditionally fragmented, often informal economic activities. BuuPass digitizes intercity transport booking and fleet management, while Zanifu brings inventory financing into the formal financial system. This approach aligns perfectly with Yango Ventures’ stated focus on e-commerce, B2B SaaS, and fintech startups from seed to Series B stages.

“In a market where most small retailers are excluded from formal credit, Zanifu is building critical financial infrastructure from the ground up,” Yango Ventures stated in announcing the investment. “We’re proud to support the team as they scale across Africa and beyond.”

The pattern suggests Yango is targeting asset-light, high-volume platforms that solve fundamental infrastructure challenges in fragmented markets. By backing these foundational players, Yango appears to be creating an ecosystem of companies that could potentially integrate with its core ride-hailing and logistics services in the future, though the company has not explicitly outlined such integration plans.

Corporate Venture Capital Enters African Markets

Yango’s entry into the African venture scene reflects a broader trend of international tech companies launching corporate venture capital arms to tap into emerging markets. InDrive, another global mobility player, launched a $100 million venture arm in 2023 to invest in similar markets, while Google, Microsoft, and other tech giants have established dedicated African investment programs.

The appeal of corporate venture capital extends beyond pure financial returns. Corporate investors offer more than just capital—they provide access to global networks, operational expertise, and potential strategic partnerships. For startups like BuuPass and Zanifu, this “smart money” can provide significant competitive advantages in markets where operational knowledge and strategic relationships often matter more than capital alone.

Daniil Shuleyko, CEO of Yango Group, emphasized this ecosystem approach upon the fund’s launch: “We are more than just a tech company; we are an ecosystem committed to empowering entrepreneurs. With Yango Ventures, we are leveraging our expertise and network to support startups in scaling, thriving, and creating meaningful impact in their communities.”

The Yango Group operates a diverse technology ecosystem spanning ride-hailing, public transport data, delivery, e-grocery, advertising technology, mapping, entertainment, and AI voice assistance across more than 30 countries. This operational footprint provides portfolio companies with potential integration opportunities and market access that pure financial investors cannot match.

African Fintech: Resilience Amid Market Challenges

Yango’s investment in Zanifu comes at a critical juncture for African fintech. While the sector has experienced funding volatility—dropping from $2.4 billion in 2021 to $1.034 billion in 2024—fintech continues to dominate African startup funding, accounting for 46% of all startup investments by Q1 2025.

The resilience of the sector is particularly evident in Nigeria and Kenya, the continent’s two largest fintech markets. Nigeria’s fintech sector grew by 70% year-over-year in 2024, with the number of companies increasing from 255 in January 2024 to over 430 by February 2025. Kenya, meanwhile, has maintained its position as East Africa’s fintech hub, with mobile money penetration exceeding 95%.

Recent data suggests that fintech funding in Africa exceeded $1 billion in 2025, with the sector maintaining dominance despite global funding headwinds. The shift toward debt financing has become particularly notable, with companies increasingly accessing loans, bonds, and structured finance rather than traditional equity rounds.

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Zanifu’s Expansion Trajectory and Market Impact

Zanifu’s growth trajectory demonstrates the potential for fintech solutions addressing fundamental market gaps. The company has evolved significantly since its founding in 2017, initially starting as a platform before launching financing operations in 2018. Previous funding rounds include a $1 million seed round in 2022 and an $11.2 million debt-equity pre-Series A round in 2023, bringing total funding to approximately $12.7 million before the current Yango investment.

The fintech’s focus on Kenya reflects the country’s position as a regional fintech hub. Kenya’s mature mobile money ecosystem, anchored by M-Pesa, has created a conducive environment for digital financial services innovation. The country raised $638 million in startup funding in 2024, with fintech companies playing a significant role in this total.

Zanifu’s direct payment model to suppliers represents a significant innovation in SME financing. Rather than providing cash directly to borrowers, the platform pays suppliers directly for inventory, reducing default risk while ensuring capital is used for its intended purpose. This approach has enabled the company to achieve its impressive repayment rate while serving a traditionally high-risk market segment.

The company’s integration of multiple payment channels through its Android application facilitates swift repayments and enables retailers to pay for stock from distributors not included in its direct database. This flexibility has contributed to its ability to serve 13,000 micro-businesses and expand to 500 distributors following its recent funding rounds.

Regional Economic Context and Market Opportunity

The African economic context provides a favorable backdrop for fintech expansion. The African Development Bank projects Africa’s real GDP growth to average between 3.8% and 4.2% in 2024 and 2025, outpacing global averages. With financial inclusion at just 43% of Africa’s 1.18 billion people in 2023, the potential for digital financial services remains vast.

The informal economy’s prominence in African markets creates both challenges and opportunities for fintech players. In Kenya, informal businesses contribute 33.8% of GDP and provide 83.4% of employment outside small-scale agriculture. However, access to financing remains the main impediment to growth for these businesses, creating substantial market opportunities for innovative financing solutions.

McKinsey analysis estimates that Africa’s financial services market could reach $230 billion in revenues by 2025, with fintech companies already achieving penetration levels between 3% and 5% excluding South Africa. If African fintech markets can reach penetration levels similar to Kenya, the continent’s fintech revenues could reach eight times their current value by 2025.

Technology and Innovation Drivers

The technological infrastructure supporting African fintech continues to improve. Mobile internet users in Africa are expected to reach nearly 475 million by 2025, creating an expanding addressable market for digital financial services. The integration of artificial intelligence and blockchain technologies is enhancing fraud detection, automating compliance processes, and streamlining cross-border payments.

Zanifu’s technology platform demonstrates several innovations characteristic of successful African fintech companies. The platform’s proprietary credit scoring model assesses borrower risk using alternative data sources, circumventing traditional requirements for formal credit histories or collateral. The company’s integration with supplier networks enables real-time inventory management and payment processing, creating value for both retailers and their supply chains.

The shift toward embedded finance—integrating financial services into non-financial platforms—represents another significant trend. This approach allows fintech companies to reach customers through existing touchpoints rather than requiring separate financial applications, reducing customer acquisition costs while improving user experience.

Competitive Landscape and Market Positioning

Zanifu operates in an increasingly competitive landscape that includes both local and international players. Regional competitors include Uganda’s Numida, which extends unsecured credit up to $3,500 in less than two hours, and Nigeria’s Payhippo, which offers average loans of $1,300. However, Zanifu’s focus on inventory financing and direct supplier payment model provides differentiation in the market.

The competitive dynamics are shifting as larger financial institutions and international players enter the market. Traditional banks are increasingly partnering with fintech companies to access SME segments, while corporate venture funds like Yango Ventures are providing strategic capital combined with operational expertise.

Market consolidation is becoming more apparent as companies seek to achieve sustainable unit economics. Mergers and acquisitions are becoming more common as investors prioritize building larger, more sustainable entities rather than pursuing growth at any cost.

Future Outlook and Expansion Plans

Looking ahead, Yango’s investment positions Zanifu for continued expansion within Kenya and potential regional growth. The company had previously considered expansion to Ghana and Uganda but chose to focus on deepening its operations in Kenya following its 2023 funding round. With Yango’s strategic backing and operational expertise, international expansion may return to the agenda.

The partnership also reflects broader trends in African fintech development. Regulatory environments are improving as more countries introduce regulatory sandboxes to balance innovation with risk management. Cross-border payment corridors are becoming more efficient, and digital identity systems are reducing onboarding costs for financial services providers.

For Yango Ventures, the Zanifu investment represents a calculated bet on Africa’s economic transformation. The fund’s focus on O2O platforms addressing fundamental infrastructure challenges positions it to benefit from the continent’s ongoing digitization. As mobile penetration increases and digital payment systems mature, the potential for portfolio companies to scale across multiple African markets becomes increasingly viable.

Strategic Implications and Industry Impact

The Yango-Zanifu partnership exemplifies several important trends in African venture capital and fintech development. Corporate venture capital is increasingly viewed as preferable to traditional VC due to strategic value addition, operational expertise, and longer investment horizons. For African startups, access to global corporate networks can provide crucial advantages in scaling across fragmented markets.

The focus on SME financing also addresses a critical economic development priority. Small and medium enterprises represent the backbone of African economies, yet access to capital remains their primary constraint. Successful fintech companies like Zanifu that can profitably serve this market segment have the potential to create significant economic impact while generating attractive returns for investors.

The partnership may also signal broader integration opportunities within Yango’s ecosystem. While not explicitly stated, the potential for synergies between BuuPass’s transport network and Zanifu’s SME customers could create value through integrated logistics and financing solutions.

As Yango Ventures continues deploying its $20 million fund, the investment pattern suggests a systematic approach to building complementary portfolio companies that address fundamental infrastructure challenges across Africa. This strategy, if successful, could establish Yango as a significant player in Africa’s digital transformation while generating substantial returns for the corporate parent.

The success of this investment will likely influence other international corporate venture funds considering African market entry, potentially accelerating the flow of strategic capital to the continent’s most promising startups. For African entrepreneurs, the growing presence of corporate venture capital represents expanding opportunities to access not just funding, but the operational expertise and strategic relationships necessary to build scalable, sustainable businesses across the continent’s diverse markets.

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By: Montel Kamau

Serrari Financial Analyst

22nd September, 2025