Kenyan fintech startup that offers a secure, simple, and affordable digital banking platform for Savings and Credit Co-operative Society (SACCOs) and their members, Kwara, has raised a $3 million seed extension.
The new funding was led by existing investors such as DOB Equity, Globivest, and the founder of Kobalt music. Also, there were funds from new investors which were mainly African VCs such as One Day Yes and Base capital as well as fintech executives including Mikko Salovaara, CFO of Revolut.
Recall that the startup on the 12th of January announced its acquisition of IRNET Coop Kenya, a software company that is a subsidiary of the Kenya Union of Savings and credit Cooperatives (KUSCCO LTD).
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With the acquisition, Kwara has now entered into an exclusive digital solutions partnership agreement with KUSSCO, which will see the startup offer its banking software solutions and mobile banking channels to help increase growth and profitability of SACCOs in Kenya.
Kwara CEO and Co-founder Cynthia Wandia recently disclosed that the deal came at the right time.
In her words,
“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.
“The rationale (of the deal) is clear, first it is an opportunity to generate leads and distribute our core product as fast, and to deepen our competitive moat.
“We’re entering an exclusive partnership, which also means no other tech company will be able to market with Kuscco. They are stacking their bets on us but we have been able to prove that we can do it as we continue to grow.”
Also speaking on its collaboration with Kwara, the Group managing director of Kuscco said, “this development marks a game changer in the management of credit unions going forward. 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 neo-banking experience”.
This will see the entire IRNET team join forces with Kwara to ensure a seamless transition and to embed the entire Kuscco regional network of 16 branch offices and several hundred marketers and marketing expertise in Kwara.
Founded in 2018, Kwara provides secure, simple and affordable online and mobile banking for cooperative financial institutions and their members who are often excluded by traditional banks.
The fintech startup is on a mission to make building wealth together frictionless and ensure that financial institutions can meet their member’s financial needs instantly, helping them avoid expensive predatory alternatives.
Backed by Catalyst fund, Finparx, Google for startups, Kepple, and Bonum ventures, today Kwara serves over 27,000 members.