Watu Lands $7 Million to Fuel Expansion of Vehicle and Smartphone Lending

Kenyan asset-financing startup Watu has secured a strategic $7 million debt facility from AHL Venture Partners. This investment will strengthen the company’s working capital and enable it to expand its vehicle and smartphone financing operations across key African markets, as well as in Mexico and Brazil.

Watu, which was founded in 2015, finances essential assets used for work, transport, and connectivity. Its mobility business includes motorcycles and three-wheelers, while Watu Simu provides financing for smartphones. The company has also begun including electric motorcycles in its portfolio as adoption of EVs grows across the continent.

“This facility will strengthen our working capital position and allow us to grow our motorcycle, three-wheeler, and smartphone financing portfolios while maintaining our focus on customer service,” said Watu founder Andris Kaneps.

Since launching, Watu has originated over 7 million loans by combining digital onboarding with flexible repayment options tailored to local market conditions. The company operates in Kenya, Tanzania, Uganda, Rwanda, the Democratic Republic of Congo, Nigeria, Sierra Leone, South Africa, Mexico and Brazil.

Strategic Implications

The investment underscores debt financing’s growing importance for African lenders, particularly asset-financing businesses that require a steady supply of capital to fund new loans. Unlike equity funding, debt allows companies like Watu to expand their lending capacity without diluting existing shareholders.

For AHL Venture Partners, the investment aligns with its focus on asset finance and measurable social impact, providing access to mobility and connectivity assets for customers who may otherwise struggle to afford them. This latest close brings the AHL Africa Credit Fund I to $45.5 million raised towards a $70 million target.

Watu’s expansion into electric motorcycles positions it at the intersection of financial inclusion and sustainable transportation, offering both growth potential and social benefit as African markets transition to cleaner mobility solutions.