Accion Venture Lab, the early-stage investment vehicle of the financial inclusion firm Accion, with participation from Newid Capital and Hallmann Holding International Investment, have invested in South Africa-based online lending platform Lulalend.

Lulalend focuses on providing productive funding for small and medium enterprises (SMEs) throughout South Africa.

The firm currently operates in South Africa, and is looking to expand throughout the region.

Lulalend was founded in 2014 to provide quick, transparent online credit to small businesses in South Africa.

Its approach leverages technology and a proprietary algorithm to evaluate applicants and provide funding quickly, conveniently, and transparently.

Lulalend offers South African businesses: an all-digital process that allows businesses to apply for and receive funding without visiting a physical branch; quick turnaround, expedited through the use of new data sources that allow Lulalend to make decisions within minutes and provide funding within 24 hours; and transparent pricing with no hidden fees or costs; the pricing structure is based on the total principal, and Lulalend shows the repayment schedule as part of the acceptance process.

“We’re excited to receive this new round of funding that validates our approach and our impact,” said Lulalend CEO Trevor Gosling, who founded the company alongside Lulalend CTO Neil Welman.

“The support of these investors will be invaluable in helping Lulalend expand our team and further develop and scale our offering to provide South Africa’s businesses with the financing they need,” he added.

Around the world, systemic issues such as the high cost of due diligence, an overall lack of reliable applicant data, and inadequate funding pools for the lenders themselves often deter traditional commercial banks from working with SMEs.

Conversely, the revenues for many of these same SMEs can make them too large to be eligible for funds from microfinance providers.

According to a 2011 International Finance Corporation report, the funding “gap” for SMEs in Sub-Saharan Africa is estimated to be $70-90bn, and in South Africa alone, fundable, formal businesses account for a $2.5bn funding gap.

For SMEs that do meet traditional financial institutions’ funding requirements, getting funds in-hand can take weeks, or even months. Lulalend’s rapid application and review process gives qualified SMEs the financing they need, when they need it.

“Many small businesses around the world are too small to receive credit from traditional commercial banks, yet too large to receive credit through traditional microfinance institutions,” said Accion CEO and President Michael Schlein.

“Lulalend aims to address this credit gap in South Africa, and has the potential to serve the entire region, helping small business owners access funding, build credit histories, and participate in the global economy,” he said.