Ugandan Tech Startup Secures $3.5 Million Investment for Fintech Platform

Pesa Digital, a Kampala-based financial technology startup, has secured $3.5 million in Series A funding to expand its innovative banking solutions for underbanked populations across East Africa. The investment round was led by Savannah Ventures with participation from East African Technology Fund and several angel investors.

The Innovative Platform

Founded in 2020 by tech entrepreneurs David Muwanguzi and Esther Nakato, Pesa Digital has developed a unique financial platform that combines mobile banking, digital lending, and financial education services designed specifically for small businesses and individuals with limited access to traditional banking services.

The platform uses proprietary algorithms to assess creditworthiness based on alternative data points, allowing it to serve customers typically rejected by conventional banks. It also features an offline mode that functions in areas with limited connectivity—a significant innovation for rural users.

"We're building financial infrastructure that works for the realities of East Africa, not importing models that were designed for completely different contexts," explained CEO David Muwanguzi. "This investment will allow us to reach millions more underserved customers across the region."

The startup currently serves over 150,000 active users in Uganda and has processed more than $25 million in transactions since its launch. With the new funding, Pesa Digital plans to:

• Expand into Rwanda and Tanzania by early next year
• Double its technical team to enhance platform capabilities
• Launch new products including microinsurance and savings tools
• Strengthen partnerships with local businesses and cooperatives

The investment represents one of the largest Series A rounds for a Ugandan fintech company and signals growing interest in East Africa's emerging technology ecosystem.