• Metier Capital Growth Fund III invests an undisclosed sum in Watu Group.
• Watu operates in 8 African markets, with over 2 million loans disbursed since 2015.
• Investment will support governance, geographic expansion, and product diversification.

Watu Group, a financial institution providing micro-credits for mobility and connectivity, announced on September 16, that South African investor Metier has acquired a stake in its capital. Watu operates in eight Sub-Saharan African countries: Democratic Republic of Congo, Kenya, Nigeria, Rwanda, South Africa, Sierra Leone, Tanzania, and Uganda. The company primarily targets entrepreneurs and underbanked populations. This transaction marks Watu as the fifth addition to Metier’s portfolio.

Metier executed the investment through its Metier Capital Growth Fund III (MCGF III). This fund achieved its final closing at $219 million in July 2024. The exact financial terms of the transaction remain undisclosed. MCGF III, Metier's third growth vehicle, focuses on investing in mid-sized African enterprises. It aims for a total of eight to twelve portfolio companies.

The investor's support will enable Watu to enhance its governance framework, broaden its operational reach, and diversify its financing solutions. Andris Kaneps, founder of Watu, stated that this strategic backing will help capture new opportunities within a sector exhibiting strong demand for mobility solutions, particularly from moto-taxi drivers and micro-entrepreneurs.

Two-wheeled vehicles represent a crucial income-generating tool across Africa. Their financing boosts productivity in areas with inadequate public transportation. Furthermore, access to smartphones promotes digital and financial inclusion, which is essential for the growth of mobile payment and commerce services.

Metier's entry follows the exit of BluePeak Private Capital, which invested in Watu in 2022. Since its establishment in 2015, Watu reports disbursing over 2 million loans across its eight African markets. The company operates amidst significant financial exclusion; 57% of the African population holds a formal bank account, marking one of the world's lowest rates. In East Africa alone, over 100 million adults lack access to traditional financial services.

By integrating microfinance with asset financing, Watu addresses this structural challenge. The investment could signal a new phase in consolidating Africa's microfinance sector, where demand for flexible solutions continues to escalate.

This article was initially published in French by Chamberline Moko

Adapted in English by Ange Jason Quenum