Finnfund backs East African e-commerce platform with $1m
Finnish development financier Finnfund has made a $1 million investment in Kasha, an e-commerce platform selling health, hygiene and self-care products in East Africa.
The company supplies menstrual care products, contraceptives, pharmaceuticals and a range of beauty products via its own platform, accessible through basic phones and a website and delivered to customers confidentially.
Kasha was first founded in 2016 in Rwanda and has since expanded to Kenya. The company has served over 55,000 clients, of which 75% are low-income, and delivered close to 600,000 products.
“We are a very purpose-driven company with a strong focus on our customers. We deliver the products that women actually want and need in a way that is most private and discreet for them,” says Joanna Bichsel, CEO, Kasha. “What drives us is that we can change the way women in emerging markets get their health products. Partnering with Finnfund, we look forward to growing our presence in Rwanda and Kenya as well as expanding to other countries in Africa – and eventually to other parts of the world.”
Finnfund started negotiations with Kasha in February 2020. “We were convinced by their strong mission and at the same time, we see that e-commerce is rapidly growing its share of consumer spending,” says Johanna Raehalme, investment manager, Finnfund. “During the investment process, Kasha’s role has become more relevant than ever. At the moment, they are preparing for an active role in protecting people from COVID-19."
Bichsel confirms this, “Kasha is already serving as a safe way to get hand sanitisers, antibacterial soaps, masks, gloves and eventually COVID diagnostic rapid tests. Our content channels also provide access to information on how to protect yourself from the virus.”
Finnfund is committed to investing €105 million in businesses that advance gender equality during 2019-2021. The investment in Kasha promotes gender equality by creating access to health-related products as well as creating employment and leadership opportunities for women. “This investment fills all the 2X Challenge criteria that we apply to our gender investments,” says Raehalme. “Kasha increases access to health products and health information while also employing low-income women in the rural communities as Kasha agents. The company was founded by two women, 50% of senior management are women and 50% of the board members are women.”
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