Lupiya

Lupiya is addressing access to finance challenges for SMEs in Zambia. Zambia and Malawi edition, Day 17.

Lack of collateral, proper transaction records, coupled with high interest rates make it almost impossible for Small and medium-sized enterprises (SMEs) to access the much-needed credit for their businesses’ financing.

As such, many small businesses close shop not because they were not viable but because they didn’t get a helping hand, a push to scale to the next level.

It is these ills that two Zambian entrepreneurs faced and instead of sitting back, they chose to do something about them. With very little resources, they started Lupiya – a ‘digital bank for the unbanked.’

Founded in 2016, Lupiya is an AI-powered neobank providing digital loans, payments, and investments across Africa.

“I and my co-founder built Lupiya because we came out of the field business as we couldn’t fulfil orders because we couldn’t get a bank loan due to lack of collateral. So, we decided to build the next Bank for SMEs to access loans on our platform with the help of alternative data. We have built credit scoring models to solve that missing middle of what SMEs don’t have. They don’t have collateral and also don’t have transaction history because majority of the transactions happen in cash. So, we leverage alternative data to lend to this demographic,” Evelyn Chilomo Kaingu, Co-Founder and CEO for Lupiya explained.

She noted that over the 8 years, Lupiya has grown in to a digital and innovation first FinTech that acquires all its customers online using web, mobile and USSD that caters for feature phones users.

“The instant loan is one solution we are very excited about. It is strictly accessible on our mobile app. We also have an agriculture loan that provides solar irrigation financing for farmers but just recently we are now able to extend financing to horticulture farmers. This is a very exciting proposition for us. To access our loans, your only need your National ID – NRC to apply,” Kaingu explained.

She highlighted that while Lupiya started with just USD 500, it has since grown in to a multi-million-dollar company that has raised of over USD 15 million to date. We have grown Lupiya from just 20 customers at the start to more than 120,000 customers currently.

Kaingu revealed that as lending FINTECH, the key challenges they face is defaulting customers, and limited data.

“One of the biggest problems that we come to solve everyday is how to get the right customer in, target the right individuals to ensure that they can make the repayments but at the same time ensure that we create the impact we want to create in their businesses.”

She called for open data policies and more interoperable systems as ways of supporting innovation across Africa.

“I want to give a shout out to 40 Days 40 FinTechs initiative for the visibility you are giving to African FinTechs. This opportunity encourages a lot of entrepreneurs who are building innovations like we have done. Echoing these stories across the continent is noble,” she concluded.

Lupiya featured on Day 17 of the initiative; Zambia and Malawi edition. The roll-out of the 40 Days 40 FinTechs initiative in Zambia and Malawi followed its success in East Africa. Over the past 5 years, the 40 Days 40 FinTechs initiative has featured over 200 FinTech stories from Uganda, Tanzania, Kenya, and Rwanda. This initiative has also engaged hundreds of end-users and shared their stories with millions worldwide.

The primary objective of this initiative is to support and showcase innovative FinTech giants and start-ups from across Africa, with a focus on promoting financial inclusion and economic growth, in addition to giving start-ups access to the resources they need to develop new and innovative financial solutions that can benefit underserved populations. Such resources include but are not limited to guidelines, Mojaloop Open Source Software and Inclusive Finance systems, etc.

| COMESA Business Council Gates Foundation Mojaloop Foundation Common Market for Eastern and Southern Africa (COMESA) Cyberplc Limited