Kuunda Completes $5M Secondary Share Sale for Early Backers

In Short

• Kuunda completed a $5 million secondary share sale.
• The deal gave early backers, including angels, liquidity.
• Existing investors increased their stakes, and the cap table was simplified.

What Happened

Kuunda has completed a $5 million secondary share sale as it scales its digital lending business. A secondary sale is when existing shareholders sell some of their shares to other investors, rather than the company issuing new shares.

CEO Andrew Milne said this is the second secondary transaction since Kuunda launched in 2018. The first one happened around its pre-Series A raise, which was announced in 2025 and totaled $7.5 million. That earlier round also included $2.2 million earmarked for secondary sales.

This latest sale was designed to provide liquidity for some of Kuunda’s earliest backers, including angel investors. Milne also said it consolidated the shareholder base, reducing the number of investors on the cap table from 12 after the last fundraise to four.

Some selling angels reportedly achieved annualised IRRs above 70%. Seed investors who sold saw annualised IRRs of between 25% and 40%. IRR, or internal rate of return, is a way to estimate the yearly return on an investment.

The transaction was led by E4E Africa. Existing investors Accion Ventures, Portugal Gateway Fund, and Seedstars Africa Ventures increased their positions.

Kuunda’s core product is lending-as-a-service infrastructure, meaning it provides the software and operational rails that help banks, mobile money operators, and other financial institutions launch digital credit products. Instead of lending directly to most end users, it works through partners that already have customers and distribution.

On Liners, Kuunda also operates Kuunda Cloud, which sits within the broader fintech infrastructure stack used to build and manage credit offerings.

Why It Matters

Secondaries are still relatively rare in African venture markets, especially outside late-stage companies. A completed secondary can signal that a startup has matured enough to offer early investors a path to returns without waiting for an IPO or acquisition.

For fintech infrastructure players like Kuunda, simplifying the cap table can also make future fundraising, governance, and strategic deals easier. It may also indicate stronger investor confidence in the company’s lending partnerships and revenue durability as demand for digital credit tools grows across African markets.