News
Lula secures R170 million IFC loan to fund South African small business lending
Cape Town digital lender Lula has secured a R170 million local-currency loan from IFC, about $10 million, to provide working capital to thousands of South African small businesses.
By Propel Africa · 2025-11-11
IFC, a member of the World Bank Group, announced on 11 November that it has provided Lula with a 170 million rand loan, about $10 million. The facility is a local-currency loan.
What the company does
Lula, based in Cape Town, offers digital business funding and banking services to micro, small and medium enterprises. Its unsecured working-capital loans are fully online, and it uses proprietary credit-scoring algorithms and alternative data to assess applicants. Loans go up to 5 million rand, about $280,000, and are often paid out within 24 hours. The company was founded in 2014 and Trevor Gosling is its CEO.
Traction and plans
The announcement says MSMEs generate roughly 34 percent of South Africa's GDP and 60 percent of its jobs, yet only about 5 percent of formalised businesses have access to credit. About 90 percent of Lula's clients are first-time business borrowers, and its partnership with IFC dates back to 2019. The new funds will provide working capital to thousands of small businesses, with at least 80 percent going to micro and small firms. Trevor Gosling, chief executive of Lula, said: "At Lula our mission is to empower every SME in South Africa to succeed."
At a glance
- Company: Lula
- Raised: 170 million rand (about $10 million)
- Type: Local-currency loan
- Lender: IFC
- Founded: 2014
- Based in: Cape Town, South Africa
- Markets: South Africa
- Key number: About 90 percent of clients are first-time business borrowers