FMO invests USD 20 million in Lula to expand SME funding in South Africa

In a significant development for small business development in Southern Africa, South African SME funding platform Lula has secured R340 million (USD 20 million) in local currency funding from FMO, the Dutch entrepreneurial development bank. This investment is set to significantly expand access to finance for micro, small, and medium enterprises (MSMEs) across the country.

The funding follows a period of strong ongoing growth for Lula.

Positive Growth Trajectory Continues

In 2023, the company successfully closed a USD 35 million Series B round led by Lightrock, which included participation from the International Finance Corporation (IFC), Quona Capital, DEG, and Triodos Investment Management. 

More recently, in late 2025, Lula further bolstered its lending capacity through a USD 10 million local-currency loan from the IFC, underscoring its position as a leading force in South Africa’s fintech landscape.

This latest investment from FMO will significantly increase on-lending to SMEs that remain underserved by traditional banks due to limited collateral, thin credit histories, or cash-flow volatility. 

It strengthens Lula’s ability to deliver fast, flexible working capital through its technology-driven lending platform, helping businesses manage day-to-day operations and unlock growth opportunities.

Endorsement of Lula’s Successes

“This investment from FMO is a powerful endorsement of our mission to empower every South African SME to succeed. Access to capital remains the single biggest hurdle for small business owners; by bridging this gap, we aren’t just funding businesses, we’re fuelling the engine of our economy,” said Trevor Gosling, co-founder and CEO of Lula.

“Receiving this capital in local currency is a critical enabler. It eliminates the volatility of exchange rate fluctuations, allowing us to provide stable, predictable, and sustainable lending rates to our customers. Over the next three years, this capital will allow us to scale our impact exponentially, reaching thousands of additional entrepreneurs and helping them transition from survival to long-term resilience,” said Gosling.

“Our partnership with Lula reflects FMO’s strategy to support fintech solutions that break down barriers to financial inclusion,” said Angelica Ortiz de Haas, Africa Manager Financial Institutions at FMO. “By providing local currency financing, we help Lula serve thousands of small businesses that are the backbone of South Africa’s economy.”

Local currency funding plays a critical role in reducing risk for both lenders and borrowers. The investment aligns with FMO’s broader commitment to inclusive economic growth, supporting locally embedded fintech lenders that play a critical role in strengthening competition and resilience within South Africa’s SME funding landscape.

Looking ahead, the partnership is expected to enable Lula to support thousands of South African SMEs over the next three years, contributing to a more diversified, inclusive, and sustainable SME ecosystem.