Since launching at the end of 2021, IMFact, a fintech company that uses factoring to provide working capital to underserved micro, small and medium enterprises (MSMEs), has secured a £3m investment (~US$ 4 million) from FSD Africa Investments (FSDAi), the investing arm of FSD Africa. This new anchor investment makes it possible for IMFact to expand operations from Kenya to the rest of the region.
Convergence awarded IMFact (originally SHIFT Kenya) a Design Funding grant in 2019 through our Global Emerging Markets Design Funding Window, to develop a blended finance solution aimed at increasing access to finance for healthcare SMEs in Kenya.
Since then, IMFact has expanded outside of healthcare to other sectors in Kenya, providing access to finance for MSMEs through their factoring method, which makes it possible for MSMEs to receive upfront cash for unpaid invoices, providing them with immediate access to working capital to buy new inventory, pay suppliers, and grow their businesses.
“We were excited about funding IMFact because of its potential to be scaled and replicated in other sectors and countries outside of healthcare and Kenya. Now, two years since our grant, IMFact has done just that and shown the potential success and replicability of a thoughtful blended finance solution,” says Joan Larrea, CEO at Convergence.
“I’m very pleased say that the design funding grant provided from Convergence to IMFact has made a significant positive impact in initiating our operations. It has helped us pave the way for further capital investors, including debt, which will support further deployment of capital to our fast-growing list of clients. Our team is excited to expand our operations in Kenya for 2022 and we are happy to have Convergence as a supportive partner in our efforts,” says Nico de Nijs, CEO at IMFact.