Zambian digital bank Lupiya has extended its Series A funding round to $11.25 million as it prepares to scale operations in Zambia and expand into new markets.

Founded in 2016, Lupiya provides digital financial services aimed at unbanked and underbanked populations. The company focuses on technology-driven lending and other financial products designed to increase access to formal finance.

The startup initially raised $8.25 million in September in a Series A round led by Alitheia IDF Fund, with participation from INOKS Capital SA and German development finance institution KfW DEG. The round has now been increased to $11.25 million, with backing that includes Mastercard.

The additional capital will be used to strengthen Lupiya's technology infrastructure, expand its product offering and scale customer acquisition.

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The company said the funding positions it to deepen its footprint in Zambia and pursue growth opportunities across Southern and East Africa.

Key Takeaways

Lupiya's extended raise reflects continued investor interest in digital financial services targeting underserved markets in Africa. Zambia's formal banking penetration remains limited, creating demand for mobile-first lending and savings products. Digital lenders have sought to fill this gap by leveraging data-driven credit models. Development finance institutions and impact-focused funds remain active in supporting fintechs with inclusion mandates, especially those targeting women and low-income borrowers. Scaling beyond Zambia will require regulatory approvals, funding capacity and risk management discipline. As competition increases across African fintech markets, operational efficiency and portfolio quality will determine sustainability. The expanded Series A provides Lupiya with additional capital to build scale in a region where digital banking adoption continues to grow.