Kenya: Breega, Softbank, DOB Equity, others participate in fintech seed funding
Nairobi-based fintech startup Kwara announced a $4 million seed round from investors across Africa, Asia, Europe and the US. The round follows rapid sales growth and the upcoming launch of its neobank app. The company will use these funds to further develop its app to enable credit unions in emerging markets to digitise and bring financial services to millions of people.
The round was led by Breega, with participation of SoftBank Vision Fund Emerge, Finca Ventures, New General Market Partners, Globivest, Do Good Invest, Rabacap, Launch Africa, Norrsken Impact Accelerator, Future Africa, Samurai Incubate and DOB Equity, among others.
Kwara is building a next generation neobank for emerging markets, powered by existing credit unions. It provides BaaS software to credit unions to upgrade their back-office operations, then turn their existing account holders into users of the startup’s neobank app. The app allows members of credit unions to deposit money directly to their credit union accounts, repay their loans and apply for instant loans, while tracking their finances and payments, all in a seamless and social manner. In addition, Kwara is building open banking infrastructure via an open API that allows credit unions to integrate with payment gateways, banks and third party vendors, enabling a full marketplace.
“We’ve been thrilled to see the excitement around the Kwara brand among credit unions and their members, which is fast becoming synonymous with a superior user experience and the future of banking. Thanks to our investors, we will now be able to offer an end-client experience that is 100 times better than what they previously had access to,” said Cynthia Wandia, co-founder and CEO of Kwara.
With credit union clients in Kenya, South Africa and the Philippines, the company launched in January 2019 and today is growing its credit union customer base by 40% month-on-month.
“Over the years, we’ve seen an increasing interest in how to build wealth through community, as well as a shift in consumer preferences towards digital-first banking,” said Ben Marrel, founding partner at Breega, who led the investment. “Kwara’s unique approach is a catalyst for a new way of retail banking through digital-first credit unions. We are both proud and excited to be helping this outstanding team scale across Africa and other emerging markets.”
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