Kenyan fintech, Kwara, is looking to scale even further in 2023 following a new $3 million seed extension.
The startup reportedly doubled its number of clients in 2022 and has even more opportunity for expansion after signing an exclusive digital solutions distribution agreement with the Kenya Union of Savings & Credit Cooperatives (KUSCCO), the national umbrella body representing over 4,000 saccos in Kenya.
According to Kwara, these saccos will use its banking as a service platform while Kwara also acquires KUSCCO’s own software solutions company for saccos, IRNET.
Kwara’s software solutions also help to digitize a lot of the work done by these Saccos, including much of the paperwork involved in their operations and the need to have physical branches. In addition to the convenience, the software makes it possible to get more clients digitally while also helping to introduce new products.
Have you joined the waitlist for the Kwara Neobank app? No? What are you waiting for? It's the easiest way to join a SACCO, save, spend and get instant loans!
Join the waitlist to be the first to know when we launch 👉🏽 https://t.co/N56tBRd6bS pic.twitter.com/4o95jfnRRT
— Kwara (@getkwara) October 19, 2022
“We think we’ve barely scratched the surface in the Kenyan market. And so, we are just going to be really investing in products and services that deepen our relationship here. They are stacking their bets on us but we have been able to prove that we can do it as we continue to grow.” – CEO, Cynthia Wandia
Kwara also has a neobank that targets members of the saccos providing extra services such as instant loans and third-party services such as insurance while it is also focused on improving bespoke features for the saccos.
“We continue to ship more or less enterprise grade features for the large saccos that are well capitalized, the ones who are at the same size and level as some of the banks. There are specific features they need and specific ways they need to be taken care of so we will continue investing in that,” said Wandia.
Participants in the seed extension include existing investors:
- DOB Equity
- Globivest, and
- Willard Ahdritz, the founder of Kobalt Music.
They are joined by new investors:
- One Day Yes
- Base Capital
- Mikko Salovaara, the CFO of Revolut
This funding brings the company’s total seed amount raised by Kwara to $7 million. Initial round saw participation of several investors including:
- Breega
- SoftBank Vision Fund Emerge
- Finca Ventures
- New General Market Partners
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