Ugandan FinTech startup Numida has closed a USD 2.3M raise in a seed round that was led by MFS Africa. The development was first reported by Tech Crunch.

Numida supports semiformal micro and small businesses with digital working capital loans of $100-$5000 disbursed via mobile money.

Numida started out as provider of a bookkeeping tool that enabled traditional micro-finance institutions (MFIs) to provide unsecured credit to semi-formal businesses.

MFS Africa that led the round is an African payments company and they were joined by DRK Foundation, Equilibria Capital and Segal Family Foundation alongside angel investors in the $2.3M seed round. MFS Africa acquired another Ugandan entity (Beyonic) in 2020.

Numida hope to use the new financing to expand their operations in Uganda and are targeting entry into West Africa with Ghana a possible starting point. According to Tech Crunch, Numida will introduce additional financial services like payments, micro-insurance and deposits to its customers.