South African SME funding platform Lula has secured R340 million in local currency funding from FMO, the Dutch entrepreneurial development bank. This investmentSouth African SME funding platform Lula has secured R340 million in local currency funding from FMO, the Dutch entrepreneurial development bank. This investment

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

2 min read

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.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Victra Named 2025 Recipient of Verizon’s Best Build Compliance Award

Victra Named 2025 Recipient of Verizon’s Best Build Compliance Award

Verizon Recognizes Victra for Industry-Leading Excellence in Store Design and Brand Compliance. RALEIGH, N.C., Feb. 3, 2026 /PRNewswire/ — Verizon has named Victra
Share
AI Journal2026/02/03 20:49
Stablecoins could face yield compression after Fed’s rate cut

Stablecoins could face yield compression after Fed’s rate cut

The post Stablecoins could face yield compression after Fed’s rate cut appeared on BitcoinEthereumNews.com. The Federal Reserve reduced its policy rate by 25 basis points to 4.00%–4.25%, the first rate cut this year. The move, framed as a response to weakening labor data, signals the start of a cautious easing cycle. Projections show two more cuts possible before year-end, with further reductions likely in 2026. Inflation remains above target, but Chairman Jerome Powell emphasized risk management over immediate price control, prioritizing stability in employment conditions. Stablecoins will be quickly affected by this. Issuers like Tether and Circle have generated large profits by holding reserves in short-term Treasuries during the high-rate environment of the past two years. That income stream now begins to erode. DeFi protocols that offered tokenized Treasury exposure face the same squeeze, with returns set to fall further if the Fed continues cutting into next year. A multi-cut easing cycle could substantially reduce stablecoin profitability, forcing issuers and protocols to adapt. The decline in dollar yields also alters the balance between holding stablecoins passively and seeking higher returns in risk assets. Bitcoin benefits most from this reallocation. As nominal rates move lower and inflation remains sticky, real yields decline, making non-yielding assets more attractive. The weaker dollar and improving risk appetite amplify the effect, positioning Bitcoin as a relative winner of the Fed’s shift. The September cut is modest, but it could bring significant changes to the crypto market. Stablecoin models built on Treasury income face structural headwinds after the rate cut, while Bitcoin and other high-beta assets stand to gain from falling real yields and increased liquidity. The Fed has opened an easing cycle, and crypto’s internal capital flows will move with it. The post Stablecoins could face yield compression after Fed’s rate cut appeared first on CryptoSlate. Source: https://cryptoslate.com/insights/stablecoins-could-face-yield-compression-after-feds-rate-cut/
Share
BitcoinEthereumNews2025/09/18 19:31
Wormhole Jumps 11% on Revised Tokenomics and Reserve Initiative

Wormhole Jumps 11% on Revised Tokenomics and Reserve Initiative

The post Wormhole Jumps 11% on Revised Tokenomics and Reserve Initiative appeared on BitcoinEthereumNews.com. Cross-chain bridge Wormhole plans to launch a reserve funded by both on-chain and off-chain revenues. Wormhole, a cross-chain bridge connecting over 40 blockchain networks, unveiled a tokenomics overhaul on Wednesday, hinting at updated staking incentives, a strategic reserve for the W token, and a smoother unlock schedule. The price of W jumped 11% on the news to $0.096, though the token is still down 92% since its debut in April 2024. W Chart In a blog post, Wormhole said it’s planning to set up a “Wormhole Reserve” that will accumulate on-chain and off-chain revenues “to support the growth of the Wormhole ecosystem.” The protocol also said it plans to target a 4% base yield for governance stakers, replacing the current variable APY system, noting that “yield will come from a combination of the existing token supply and protocol revenues.” It’s unclear whether Wormhole will draw from the reserve to fund this target. Wormhole did not immediately respond to The Defiant’s request for comment. Wormhole emphasized that the maximum supply of 10 billion W tokens will remain the same, while large annual token unlocks will be replaced by a bi-weekly distribution beginning Oct. 3 to eliminate “moments of concentrated market pressure.” Data from CoinGecko shows there are over 4.7 billion W tokens in circulation, meaning that more than half the supply is yet to be unlocked, with portions of that supply to be released over the next 4.5 years. Source: https://thedefiant.io/news/defi/wormhole-jumps-11-on-revised-tokenomics-and-reserve-initiative
Share
BitcoinEthereumNews2025/09/18 01:31