Watu, a Nairobi-based asset financing company, has secured a $7 million debt facility from AHL Venture Partners to support working capital and expand its lending portfolio across selected African markets.

The financing extends a relationship between Watu and AHL that began in 2022 and will give the company additional funding to grow its financing of motorcycles, three-wheelers, smartphones and electric motorcycles.

Watu raises funding to expand lending

Founded in 2015, Watu has originated more than 7 million loans since its launch, with operations across Kenya, Tanzania, Uganda, Rwanda, the Democratic Republic of Congo, Nigeria, Sierra Leone and South Africa, as well as Mexico and Brazil.

The new facility is intended to provide working capital for loan origination and business expansion rather than finance a specific acquisition or project. That gives Watu additional capacity to extend credit as it grows its operations in its existing markets.

“AHL has been an important funding partner as Watu has grown across Africa. This facility strengthens our working-capital base and gives us additional capacity to expand our mobility and smartphone-financing portfolios while continuing to serve our customers consistently and responsibly,” Watu founder Andris Kaneps said.

Watu drives earnings growth

The new funding comes as Watu’s business continues to contribute significantly to the earnings of its listed shareholder, Car & General. Car & General, which is listed on the Nairobi Securities Exchange, owns nearly 30 percent of Watu.

In its latest financial results, the company said its share of profit from Watu rose 382 percent to KSh2.04 billion ($15.7 million) in the six months ended June 2026, from KSh423 million ($3.3 million) a year earlier.

The increase in Watu’s contribution accounted for most of the sharp rise in Car & General’s earnings during the period, highlighting the growing importance of the asset financier to the listed group.

Watu boosts financing across African markets

Watu provides financing for motorcycles, three-wheelers and smartphones, targeting customers who have limited access to traditional forms of credit. Its financing model is aimed at helping customers acquire assets that can support income generation and access to digital services.

The company operates across several African markets, with its financing business focused on mobility and connectivity assets. Its motorcycle and three-wheeler financing supports customers using the vehicles for commercial and personal purposes, while smartphone financing gives customers access to devices needed for digital payments, communications and other services.

The latest facility adds to the funding available to Watu as it seeks to increase loan origination across its markets. For AHL Venture Partners, the transaction continues an existing financing relationship with the company that dates back to 2022.