Fintech JUMO secures $7.5 Million investment from BlueOrchard Microfinance Fund

KAMPALA, Uganda — A fund managed by global impact investment manager BlueOrchard Finance Ltd. has committed $7.5 million to an innovative financing structure by the Uganda-based fintech company JUMO, bolstering access to credit for micro and small enterprises.

The BlueOrchard Microfinance Fund is investing in JUMO’s asset-backed securitization, or ABS, financing structure in Uganda, which is designed to expand financial services for underserved entrepreneurs and individuals. This financing mechanism, which is reportedly the first of its kind for e-money microfinance in Africa, allows micro and small enterprises to access credit directly through their mobile phones.

The partnership is aimed at generating significant social and economic impact, as many of the beneficiary businesses are operated by people living below the poverty line. Research has shown that half of these micro enterprises employ at least one other person, contributing to job creation in their communities. JUMO’s technology, combined with the capital from BlueOrchard, is designed to serve new entrants to financial services, including those living on less than $10 a day.

BlueOrchard’s investment marks a critical step in mobilizing additional capital for the ABS structure and ensuring that more entrepreneurs, including first-time borrowers, can access necessary financing. The investment supports a scalable model that partners intend to replicate across multiple Sub-Saharan African markets.

The ABS structure was first announced in June 2024 with Standard Bank serving as the sole arranger and senior lender. The solution unlocks local currency financing for JUMO’s Ugandan portfolio, allowing for the scaling of lending on more favorable terms.

It is estimated that more than 4 million clients in Uganda will benefit from accessing formal credit through the ABS structure, with many of them being first-time borrowers.

Jeanne de Guillebon, BlueOrchard’s regional manager for Africa, said the investment aligns with the firm’s mission to foster inclusive and sustainable growth.

“By blending financial innovation with deep social impact, we can reach thousands of underserved entrepreneurs and help catalyze economic resilience in Uganda and beyond,” de Guillebon said.

Andrew Watkins-Ball, founder and chief executive officer of JUMO, called BlueOrchard’s participation “an incredible boost” and an “important endorsement of how fintech and impact investors can work together to drive financial inclusion for overlooked market segments.” He added that the investment would expand sustainable lending solutions and open doors for a new class of borrowers.