Numidia, a Ugandan fintech startup attracted interest from several VCs in its latest funding round, as it raised a total of $12.3 million in an equity-debt pre-series A funding led by Serena Ventures.

The funding round saw participation from Y Combinator, Soma Capital, and Launch Africa, all making their first investment in the Ugandan market.

The startup which launched in 2017 is focused on providing digital working capital loans for small business owners. Supporting micro, small, and medium-sized enterprises, MSMEs, with credits of up to $5,000. The company also connects business owners to financial and non-financial services to help scale their businesses.

Since its launch, the Ugandan startup claims to have financed over 20,000 businesses with credit capital reaching up to $20 million. It grew from a $250,000 portfolio to $2 million monthly.

With the newly acquired funding, the credit company is looking to even further build its portfolio by extending loans to thousands of small businesses across Africa within the next 18 months as it shoots for a scale into other African markets.

With the increasing accessibility to traditional digital credit services, young entrepreneurs and small business owners are now presented with a lifeline, creating an enabling environment, especially in the areas of funding, development, and market.