Kenya: Fintech company Kwara raises additional seed funding
Kenyan fintech company Kwara has raised a $3 million seed extension round and signed an agreement to acquire IRNET, a software provider owned by the national body of credit unions in Kenya, KUSCCO.
Investors in the round include existing backers DOB Equity, Globivest and the founder of Kobalt Music. New investors, mainly African VCs, participated as well. They include One Day Yes and Base Capital as well as fintech executives including Mikko Salovaara, CFO of Revolut.
Thirteen months ago, Kwara raised $4 million in seed funding led by Breega and Softbank. The company’s total seed investment now stands at $7 million.
Together with this acquisition, Kwara has entered into an exclusive digital solutions partnership agreement with KUSCCO whereby Kwara will offer its banking-as-a-service solution and neobanking experience to KUSCCO’s 4,000+ credit unions to consolidate credit union banking as the preferred retail banking method in Kenya.
Kwara CEO, Cynthia Wandia says, “We have spent the last three years uplifting the credit union sector in Kenya, becoming the leading core banking provider in Kenya. Our clients grow up to 4 times faster than other credit unions and serve members up to 100 times more efficiently. This acquisition enables us to place a digital banking experience in the hands of every credit union in Kenya, together with the most established credit union partner in Kenya.”
“This development marks a game changer in the management of credit unions going forward,” says George Ototo, group managing director of KUSCCO. “The acquisition of IRNET and the KUSCCO-Kwara partnership will deliver to our 4,000+ member credit unions tested and proven, secure and efficient digital services as well as a modern neobanking experience.”