Zambia-based company secures €1m investment
Rent to Own (RTO), a Zambia-based business providing productive-use assets to rural SMEs, has announced that it has secured an investment of €1million from the Seed Capital and Business Development facility of the Dutch Good Growth Fund (DGGF) managed by Triple Jump BV.
Building upon convertible notes recently secured from longtime partners Small Foundation and Lundin Foundation (managed by AHL Venture Partners), this investment will be used primarily as working capital to more than double the company’s portfolio of rural Zambian entrepreneurs.
RTO provides high-impact assets to rural entrepreneurs and smallholder farmers in Zambia. Offering a unique “all-in-one” package of uncollateralized financing, delivery, installation, and equipment training, the company empowers its clients to grow their businesses and improve their quality of life.
RTO’s flexible, tech-enabled platform also provides a route-to-market for equipment suppliers and supports the rapid adoption of innovative assets, such as solar-powered irrigation pumps. To date, RTO has financed over 7000 high-impact assets in Zambia and has achieved a 96% repayment rate since inception.
“Our purpose at RTO is to unlock the potential of rural entrepreneurs to improve the quality of life of their families and communities. We are extremely excited by the opportunity provided by DGGF to continue to focus on this mission and rapidly grow our loan book despite the tough economic conditions we are currently experiencing in Zambia, ”says Jeffrey Scheidegger, CEO.
DGGF is a fund of funds investment initiative from the Dutch Ministry of Foreign Affairs that invests in funds and financial intermediaries that provide capital to SMEs. Through its seed investment in RTO, DGGF will help support rural SMEs to improve livelihoods and develop sustainable income sources.
RTO engaged Open Capital Advisors, a management consulting and financial advisory firm based in Africa, to provide investment-readiness and transaction advisory support for this deal.