Watu Secures $7M to Expand Mobility and Smartphone Financing in Africa

Watu, the pan-African asset financing company, has secured a $7 million debt facility from AHL Venture Partners, a move meant to give the business more room to grow its mobility and smartphone financing activities across African markets. For startups working in access and inclusion, working capital can be a bit of a lifeline, and I reckon this deal shows lenders still have appetite for models that solve everyday problems at scale.

The new facility will support Watu’s working capital needs and help it expand its loan book in several countries. It also deepens a funding relationship that started back in 2022. Andris Kaneps, Watu’s founder and chief executive, said AHL has been an important funding partner as the company expanded across Africa, adding that the latest facility strengthens Watu’s working-capital base and gives it more capacity to grow both its mobility and smartphone financing portfolios while serving customers “consistently and responsibly”.

Founded in 2015, Watu focuses on asset-backed financing for motorcycles, three-wheelers and smartphones. In plain terms, it helps customers get hold of tools that can improve how they work, move and stay connected. At Arageek, we often see founders talk about “inclusion” in a very broad way, but in Watu’s case the detail is quite spot on: a financed motorbike can support income generation, while a financed smartphone can open access to jobs, payments and digital services.

The company runs its transport lending through its core mobility division, while smartphone financing sits under Watu Simu. Interestingly, around 80% of the loans Watu originates are for smartphones. That is a striking number, and, believe it or not, it says plenty about how essential affordable connectivity has become across emerging markets.

So far, Watu says it has originated more than seven million loans and disbursed over $1 billion in credit since launch. Its model is built around quick onboarding, flexible repayments and local market knowledge, aimed at customers who may not get far with traditional banking options. Well… I mean, that practical approach is often what separates a scalable financing business from a nice idea on paper.

The company also works with more than 4,000 registered dealerships and says it has maintained a 100% repayment record with more than 35 funding partners, including development finance institutions, private credit funds, local banks and other institutional lenders. That sort of track record will likely matter as it keeps leaning on institutional debt to fund expansion.

Watu is now active in 10 markets: Kenya, Tanzania, Uganda, Rwanda, the Democratic Republic of Congo, Nigeria, Sierra Leone, South Africa, Mexico and Brazil. After spending its first decade mainly focused on Africa, the company entered Latin America in 2025, extending its footprint into Mexico and Brazil while continuing to build across East, West and Southern Africa.

That said, the business is not only sticking to conventional vehicle finance. It is also increasing financing for electric motorcycles in selected African markets, tying financial inclusion to cleaner mobility. On the flip side, scaling EV finance in such markets is never simple — infrastructure, servicing and affordability can all be a faff — but the direction of travel is clear.

Rosanne Whalley, chief executive of AHL Venture Partners, said the firm was pleased to deepen its partnership with Watu and back its continued growth across Africa. She added that Watu’s asset-backed model is helping to widen financial inclusion and improve access to cleaner mobility for underserved consumers. AHL recently reached a $45.5 million second close for its AHL Africa Credit Fund, giving it more capital for credit investments on the continent.

For Watu, the fresh $7 million should provide extra firepower to grow its mobility and connectivity lending, enter new markets and continue building its electric vehicle financing operations. For readers across MENA following startup finance trends, there is something familiar here too: when a company proves it can pair scale with discipline, debt becomes not just available, but usefull.

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