Cauris Finance to boost Africa’s fintech
Africa-focused impact credit fund, Cauris Finance, has landed a $40 million debt facility with a US-based institutional investor. Emerging fintech startups in Africa aim to tackle financial exclusion by providing credit to small businesses and entrepreneurs, who form the heart of the continent’s economy. This investment will put the firm in a position to increase its support for those fintech startups in Africa.
Cauris Finance, since it was founded in 2021 by Charles Packer, Alexandre Liege and Azer Songnaba, has managed to carve out a niche as an important enabler of financial inclusion in Africa. The credit fund company aims to empower small businesses, promote women-led enterprises, and bring youth employment to life by investing capital into fintechs who offer credit to underserved markets. This focus aligns with its broader commitment to advancing the United Nations’ Sustainable Development Goals (SDGs), particularly those tied to gender equity, climate resilience, and sustainable economic development.
The $40 million funding will go a long way in enhancing Cauris’s existing impact, as well as laying the foundation for the launch of its next initiative – The Third Wave Fund. Cauris has set its sights on closing $50 million in its first funding round of 2025. This fund is projected to bridge Africa’s financing gap by providing access to affordable credit for up to 10 million small businesses and entrepreneurs.
Cauris will deploy advanced underwriting technology and structured financing mechanisms to deliver both competitive financial returns and measurable social outcomes, a dual focus that aligns with the vision of a growing class of investors who prioritize impact and profit.
Cauris’s reputation in the African fintech ecosystem has grown alongside its involvement in transformative ventures. In 2023, the firm participated in a $13 million pre-Series A funding round for Ghanaian e-logistics startup Jetstream Africa, blending equity and debt to drive growth. In 2022, Float, a Ghanaian fintech startup that provides credit lines for businesses, also raised $17 million in seed funding from investors, including Cauris Finance.
According to Azer Songnaba, Chief Investment Officer of Cauris Finance, the funding marks a pivotal moment for the organization. “This facility strengthens our ability to support fintechs that are unlocking opportunities for Africa’s entrepreneurs and small businesses. These businesses are the backbone of economic activity, and through innovative credit solutions, we aim to generate meaningful social impact while driving sustainable growth.”
The announcement comes as Africa experiences profound demographic and economic shifts. With its population projected to surpass 2.5 billion by 2050 and its working-age population estimated to become the world’s largest at 1.2 billion by 2034, the continent stands at a critical juncture. While these trends create opportunities for economic expansion, they also highlight the need for innovative financial solutions to address the vast funding gap for small enterprises and underbanked populations.
