Kuunda’s $7.5 Million Raise Breathes New Life into Tanzania’s Startup Scene

In a move that sends a clear signal across East Africa’s burgeoning tech landscape, Tanzanian B2B fintech firm Kuunda has secured a hefty $7.5 million in pre-Series A funding. This isn’t just another funding announcement; it’s a major vote of confidence in a company quietly powering small businesses and a shot in the arm for Tanzania’s entire startup ecosystem. The fresh capital is earmarked for an ambitious expansion into the Middle East and North Africa (MENA), with Egypt slated as the first port of call, as first reported by TechCabal.

Getting to Know Kuunda

So, who is the company making these waves? Founded back in 2018 by Andy Milne, Sam Brawerman, and Morne van der Westhuizen, Kuunda isn’t your typical consumer-facing app. Instead, it operates in the crucial B2B space, partnering with large companies to embed financial services—specifically credit products—directly into their digital platforms. Think of it as the engine under the hood, enabling other platforms to offer financial tools to their own customers.

Their mission is simple but powerful: unlock liquidity for the small-scale entrepreneurs who form the backbone of Africa’s economies. “We are unlocking access to finance for Africa’s productive class – the agents, merchants, and small businesses that are the backbone of these economies,” explained Andy Milne, Kuunda’s co-founder and co-CEO. He added that the goal is also to help “consumers build up resilience by accessing credit when they need it the most.”

The Investors Betting on Growth

A funding round of this size rarely happens without serious backers, and Kuunda’s list of investors is impressive. The round attracted a mix of new and existing partners, signaling strong belief in the company’s trajectory. Key participants include Portugal Gateway Fund, Seedstars Africa Ventures, 4Di Capital, Accion Ventures, and E4E Africa. Notably, South African banking giant Nedbank also joined as a strategic investor, a move that outlets like LaunchBase Africa highlight as part of the bank’s continued fintech shopping spree. This diverse group of venture capital firms and financial service providers underscores the widespread appeal of Kuunda’s model.

How Kuunda Fuels Small Businesses

At its core, Kuunda’s technology is all about providing short-term liquidity. It allows users—often small shop owners, mobile money agents, or merchants—to access products like airtime top-ups, mobile money float loans, and cash advances for inventory. This “embedded liquidity” model has already proven its worth, with the company having disbursed over $3 billion in loans through its bank partners. For a small merchant, having quick access to a float loan can be the difference between a successful day of trading and having to turn customers away. It’s this kind of practical, ground-level impact that has likely caught investors’ attention, setting the stage for a broader discussion on Africa’s fintech gold rush.

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Why the MENA Move Matters

Expanding beyond East Africa is a big step, and the choice of Egypt as the gateway to the MENA region is strategic. The funding is arriving just as Kuunda sets its sights on Egypt’s booming digital payments and e-commerce markets. Egypt offers a massive, digitally-savvy population and a rapidly formalizing economy, presenting a prime opportunity for Kuunda to replicate its success. This expansion could also pave the way for other East African startups to look north, challenging the narrative that African tech expansion is a one-way street from hubs like Lagos or Nairobi. The move echoes broader trends in the region, where companies like Saudi fintech Hala are also making significant strides, showing the immense potential across the MENA landscape.

A Welcome Jolt for Tanzania’s Startup Scene

Beyond Kuunda’s own ambitions, this funding round is a significant event for Tanzania. The country’s startup ecosystem has been growing steadily but often flies under the radar compared to its neighbors. According to the StartupBlink Global Startup Ecosystem Index for 2025, Tanzania’s ecosystem grew by over 7% and now ranks 116th globally, with its startups raising over $40.3 million. Kuunda’s $7.5 million haul represents a substantial chunk of that total, bringing welcome visibility and validation.

However, the journey isn’t without its challenges. Janeth Kareen Kilonzo, Co-founder of Plate AI, recently noted that “Tanzania’s subdued fundraising performance this year reflects both investor caution and structural gaps.” Kuunda’s success story might just be the catalyst needed to shift that perception and encourage more investors to take a closer look at the opportunities in the country.

What Comes Next for Kuunda and Tanzania

With fresh capital in the bank, Kuunda is set to scale its operations, deepen its existing partnerships, and roll out new financial products designed for micro, small, and medium-sized enterprises (MSMEs), as reported by Innovation Village. This isn’t just about growth for growth’s sake; it’s about refining a model that has a real impact on financial inclusion.

This growth happens in a supportive policy environment. The Tanzanian government has been making strides to improve its business climate. Dr. Blandina Kilama, a key official, stated that “the government aims to improve the ease of doing business so that starting and scaling a business in Tanzania becomes simpler, faster, and less expensive.” This commitment, coupled with a tech ecosystem that is clearly on the rise, creates a fertile ground for more success stories like Kuunda’s.

The numbers paint a promising picture. Recent statistics show that Tanzanian startups have raised over $53.3 million in funding, while internet access has leaped from just 6% to 37% in the last decade. As more of the population comes online, the demand for digital financial services is only set to grow, placing companies like Kuunda in a perfect position to lead the charge.