Kwara, a fintech startup based in Kenya, has raised seed funding of $3 million from its existing investors like DOB Equity, Globivest, and Willard Ahdritz, the Founder of Kobalt Music, according to a report by Techpoint Africa.
The firm is building a digital platform for credit unions, which are popularly called SACCOs. TechCrunch reported that Kwara doubled its client base in 2022 and has its eye set on growing the list.
It had previously raised $4 million in December 2021 when it first floated the idea of providing access to such things as instant loans and third-party services such as insurance. At the time, investors like Breega, SoftBank Vision Fund Emerge, and Finca Ventures participated in its funding.
The SACCOs market in Kenya has been notoriously analog with heavy reliance on physical branches that saw overcrowding and paper-based records. Stepping into the space to digitise it is a much-wanted innovation.
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Since then, it has reach an agreement with Kenya Union of Savings & Credit Cooperatives (KUSCO) that could see it acquire IRNET, a software company and provider for SACCOs.
“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,” Kwara co-founder and CEO Cynthia Wandia said in a statement.
“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.”
Kwara is also operating in South Africa and the Philippines. The CEO claims to have not only grown its clientele but maintained a 100% customer retention as well. It is planning to launch more products and add features.
The fintech prides itself in doing something for many of the SACCOs common in Kenya; provide all the features that members need under a licencse.
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