Lula secures $21 million local-currency boost from FMO to expand SME lending platform

Lula, a South African fintech that offers AI-driven financial tools and funding services for small businesses, has secured new growth financing to reach more entrepreneurs nationwide.

South African fintech Lula has raised ZAR?340?million (around US?$21?million) from the Dutch entrepreneurial development bank FMO, a move that will accelerate the company’s efforts to expand access to finance for micro, small, and medium-sized enterprises (MSMEs) across the country.

Founded in 2014 by Trevor Gosling and Neil Welman, the Cape Town-based startup began as Lulalend before rebranding to Lula in 2023. The company provides digital business accounts and instant access to working capital through its lending-as-a-service model. Using its proprietary AI platform, Lula helps entrepreneurs manage cash flow, access loans seamlessly, and gain insights through real-time financial analytics.

The new funding follows Lula’s US?$35?million Series?B round in 2023, which supported its transition into a broader neobanking offering. The latest investment from FMO is structured entirely in South African rand, a significant step that shields the company and its clients from foreign exchange volatility.

According to Gosling, the capital will enable Lula to “reach thousands of additional business owners over the next three years,” helping them strengthen operations and move from “day-to-day survival to sustainable growth.”

“This being a local-currency investment is essential,” he added. “It allows us to offer consistent and affordable lending conditions, ensuring stability for South African entrepreneurs.”

The partnership between Lula and FMO underscores a growing push to strengthen access to finance for small businesses in emerging markets, particularly in sectors driving job creation and economic resilience.