Watu Secures $7 Million Debt Facility from AHL Venture Partners as Car & General Profit Share Surges to KES 2.04 Billion

Pan-African asset-financing operator Watu has secured fresh growth capital through a $7 million strategic debt facility provided by impact credit fund manager AHL Venture Partners. Structured as non-dilutive senior debt through the AHL Africa Credit Fund I, the transaction builds on a financing relationship established in 2022 to scale asset-backed credit across key commercial markets in East, West, and Southern Africa, alongside Latin America.

Founded in 2015, Watu has originated over 7 million loans totaling more than $1 billion in credit disbursements. While initially built around two-wheeler and three-wheeler transport financing, the group’s connectivity arm—Watu Simu—now accounts for approximately 80% of loan disbursements, highlighting the rapid growth of smartphone asset financing. The company operates across 10 countries—including Kenya, Tanzania, Uganda, Rwanda, DRC, Nigeria, Sierra Leone, South Africa, Mexico, and Brazil—and is currently accelerating the financing of electric motorcycles to support clean urban transit.

The fresh capital deployment follows exceptional financial performance reported by NSE-listed conglomerate Car & General (C&G), which holds a strategic associate stake in Watu. For the half-year period ending June 30, 2026, C&G’s share of Watu’s net profit jumped 382.3% to KES 2.04 billion, up from KES 423 million in H1 2025. Accounting for over 70% of Car & General’s total pre-tax earnings, Watu’s rapid expansion has transformed the group’s financial balance sheet, proving the commercial viability of high-volume, asset-backed micro-lending.

Why This Matters

For the regional economy, the expansion of non-bank asset financing serves as an Engine for Informal Sector Financial Inclusion and a Catalyst for Electric Mobility Transition. Providing unbanked gig-economy workers, boda-boda operators, and small merchants with credit for revenue-generating assets—such as motorcycles and smartphones—directly expands daily income capacity while accelerating transition to green transport logistics.

From a macroeconomic perspective, the transaction underscores the Sovereignty of Asset-Backed Private Credit and Enterprise COMMAND. Relying on self-liquidating, collateralized micro-assets creates resilient credit portfolios capable of navigating foreign exchange volatility and inflation. Structuring sustainable debt models that fuel domestic employment ensures African financial ecosystems command their growth on internal market terms.

Opportunities

• B2B Private Credit Syndication & Debt Structuring: High commercial scope for private debt funds and investment banks to structure local currency credit facilities for scaling asset-finance portfolios.

• EV Charging Infrastructure & Battery-Swapping Networks: Substantial project scope for clean-tech engineering firms to partner with asset financiers on electric motorcycle charging and battery-swap stations.

• FinTech Underwriting, Credit Scoring & Scoring Algorithms: Commercial opportunities for software developers and alternative scoring providers to supply AI-driven risk management tools tailored for unbanked borrowers.

• Smartphone Supply Chain & OEM Distribution Contracts: Growing openings for hardware distributors and telecom operators to partner with asset-financing portals to supply low-cost 4G/5G smartphones across rural and urban markets.

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