Dutch Entrepreneurial Development Bank FMO Invests R340M In Lula To Expand SME funding In SA

South African SME funding platform Lula has secured R340 million in local currency funding from FMO, the Dutch entrepreneurial development bank. This investment is set to significantly expand access to finance for micro, small, and medium enterprises (MSMEs) across the country.

The funding follows a period of robust growth for Lula.

In 2023, the company successfully closed a $35 million Series B round led by Lightrock, which included participation from the International Finance Corporation (IFC), Quona Capital, DEG, and Triodos Investment Management.

More recently, in late 2025, Lula further bolstered its lending capacity through a $10 million local-currency loan from the IFC, underscoring its position as a leading force in South Africa’s fintech landscape.

This latest investment from FMO will significantly increase on-lending to SMEs that remain underserved by traditional banks due to limited collateral, thin credit histories, or cash-flow volatility.

It strengthens Lula’s ability to deliver fast, flexible working capital through its technology-driven lending platform, helping businesses manage day-to-day operations and unlock growth opportunities.

“Our partnership with Lula reflects FMO’s strategy to support fintech solutions that break down barriers to financial inclusion,” said Angelica Ortiz de Haas, Africa Manager Financial Institutions at FMO. “By providing local currency financing, we help Lula serve thousands of small businesses that are the backbone of South Africa’s economy.”

Local currency funding plays a critical role in reducing risk for both lenders and borrowers. The investment aligns with FMO’s broader commitment to inclusive economic growth, supporting locally embedded fintech lenders that play a critical role in strengthening competition and resilience within South Africa’s SME funding landscape.

Looking ahead, the partnership is expected to enable Lula to support thousands of South African SMEs over the next three years, contributing to a more diversified, inclusive, and sustainable SME ecosystem.