• IFC lends 170 million rand to Lula to boost digital, unsecured SME lending
• 80% of funds will support micro and small enterprises
• Deal strengthens a partnership first established with IFC in 2019

Lula, a South African fintech offering digital and unsecured loans to micro and small businesses, has signed a 170 million rand ($10 million) local-currency loan agreement with the International Finance Corporation (IFC). The announcement was made on November 11, 2025.

The loan will allow the company to provide more working capital to a larger number of businesses, supporting their growth and long-term success, said Trevor Gosling, Lula’s chief executive officer. Eighty percent of the amount will go to micro and small enterprises.

Founded in 2014 by chemical engineer Neil Welman and accountant Trevor Gosling, Lula focuses on financial inclusion and the empowerment of small and medium enterprises. Its model relies on technology, providing fully digital financing solutions and banking services.

To assess loan applications, the fintech uses credit-scoring algorithms that analyze data sources beyond traditional bank statements, enabling it to offer fast, unsecured working-capital loans. About 90% of Lula’s clients are businesses borrowing for the first time.

In South Africa, micro, small, and medium enterprises play a central role in the economy. They generate about 34% of GDP and account for 60% of jobs. Yet only 5% of these formalized businesses have access to bank credit, highlighting a significant gap between demand and available financing.

The new agreement strengthens the partnership between Lula and the IFC.

In 2019, the fintech received $6.5 million in funding from the World Bank Group subsidiary to boost its balance sheet and expand its loan portfolio. That operation was carried out jointly by the IFC and Quona Capital, a U.S. venture capital firm.