Publications
Publications
- January 2025
- HBS Case Collection
Untapped Global: Financing Africa's Missing Middle
By: Raymond Kluender and Emanuele Colonnelli
Abstract
In November 2024, Jim Chu, founder and CEO of Untapped Global, faced mounting internal tensions over the company’s strategic direction. Untapped had developed a data-driven revenue-based financing (RBF) model to address the “missing middle” problem—the $5.2 trillion funding gap for small and medium-sized enterprises (SMEs) in emerging markets. By financing digital lenders who provided asset-backed loans to SMEs, Untapped combined flexible repayment structures with real-time data tracking, achieving strong results across 15 African countries. However, as both an investment fund raising capital from limited partners and a fintech startup seeking venture capital, the company’s dual structure had created operational challenges and conflicting priorities. This case provides an opportunity to examine the potential of RBF to address SME financing gaps in emerging markets and to explore the strategic and organizational decisions required to scale a mission-driven business operating at the intersection of finance and technology.
Keywords
Social Entrepreneurship; Venture Capital; Working Capital; Private Equity; Financial Strategy; Microfinance; International Finance; Currency Exchange Rate; Profit Sharing; Revenue; Developing Countries and Economies; Economic Growth; Emerging Markets; Mission and Purpose; Small Business; Entrepreneurial Finance; Banking Industry; Financial Services Industry; Information Technology Industry; Technology Industry; Africa; Nigeria; South Africa; Kenya; Uganda; California; San Francisco
Citation
Kluender, Raymond, and Emanuele Colonnelli. "Untapped Global: Financing Africa's Missing Middle." Harvard Business School Case 825-056, January 2025.