Kenyan construction Fintech, Jumba raises US$4.5M seed financing to grow its reach

By Remie OTIENO

Kenya’s construction tech startup Jumba Monday announced it had raised $4.5 million or more than Sh567 million in seed financing to advance its technology and extend its regional presence beyond the EAC market.

Further revealing that it will partner with local banks to launch an embedded credit solution to provide financing to its marketplace customers, a move it noted will address cash flow constraints in the construction materials ecosystem that have historically hindered residential construction.

Its chief executive Kagure Wamunyu said the startup currently covers 60 percent of Kenya’s 47 counties and will use the acquired funds to scale up its Kenyan operations amid growing demand for construction materials.

“We are making it easier and more affordable for businesses to access construction materials, and look forward to contributing our efforts and technology to establish more affordable housing in Africa,” said Wamunyu in a statement.

Adding, “This round will allow us to further build a product that increases efficiencies in the construction supply chain, unlock financing, and reach more regions in Kenya.”

Jumba enables construction material retailers (regarded as hardware stores locally), found on almost every block, to restock, and real estate developers to access the supplies they need for their projects, said it had recorded three times quarterly growth at the close of 2022.

The seed round was led by European seed-stage investment firm LocalGlobe, including Fundamental, a construction tech-focused that mainly invests in construction unicorns outside Africa, as well as Enza Capital – who led the pre-seed round, Seedstars International Ventures, Logos Ventures, SpeedInvest, First Check Africa, and Alumni Angel Network.

The fintech simplifies the sourcing of construction materials through a common marketplace for retailers and developers which takes away the headache of dealing with multiple suppliers.

Customers access products through its web platform but its team of sales associates in different counties helps with client sourcing too. Jumba then negotiates discounted prices, including their markup with manufacturers.

The announcement comes on the backdrop of a reported surge in finance app installation and downloads for mobile loans which rose by five percent between January and September 2022, according to marketing analytics platforms AppsFlyer and Google, highlighting the growing prevalence of app-based borrowing use in the country.

The study showed that app installs Ads or commercial spending rose significantly during the period, before cooling off in the latter stages of the year, due to global economic challenges. Mobile attribution platforms, AppsFlyer, and Google note that over the past few years, micro and macro conditions have proved conducive to the growth of Africa’s fintech industry.