Renew Capital Selects 15 Startups for Embedded Finance Programme

Investment firm Renew Capital has selected 15 African startups to advance in its embedded finance programme, highlighting growing investor interest in technology companies that are expanding access to financial services for small businesses.

The selected startups were chosen from more than 500 applicants and represent Ethiopia, Ghana, Kenya, Morocco, Nigeria, Senegal, South Africa, Togo, Uganda and Zambia. They will receive advanced technical training and be considered for investment through the programme.

Closing the SME Finance Gap

Renew Capital believes embedded finance could help address one of Africa’s biggest business challenges. Small and medium-sized enterprises (SMEs) create most jobs across the continent but continue to face an estimated US$330 billion annual financing gap.

At the same time, digital adoption is creating new opportunities to reach businesses that have traditionally struggled to access formal finance. Smartphone penetration across sub-Saharan Africa is expected to increase from 54% in 2024 to 81% by 2030, while lower data costs are encouraging more businesses to adopt digital platforms.

Embedded finance allows technology companies to offer services such as payments, lending and insurance through software that businesses already rely on for day-to-day operations. Companies operating in sectors including logistics, agriculture, healthcare and digital commerce can also use customer and transaction data to develop financial products for businesses that have historically been underserved by traditional lenders.

From 500 Applicants to 15 Startups

As part of the programme, all applicants were invited to expert-led sessions featuring founders from some of Africa’s fastest-growing technology companies, alongside specialists in embedded finance and Web3 technologies.

From the initial applicant pool, 47 startups were shortlisted for a pitch competition and received access to a startup support package valued at more than US$250,000. The final 15 companies will now progress to the next stage of technical support and investment assessment.

“The next generation of Africa’s small business banks won’t be banks. They’ll be startups that already understand how SMEs operate, have their data and have earned their trust. These 15 companies are building from that advantage. That’s why we’re paying attention,” said Matthew Davis, Co-Chief Executive Officer of Renew Capital.