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Kenyan start-up, Kwara, is set to scale even further after reportedly securing an additional $3 million in funding and signing exclusive distribution deal.
The company, which has doubled its number of clients in the past year, has now raised a total of $7 million with this latest round of funding. Kwara has also signed a digital solutions distribution agreement with Kenya Union of Savings & Credit Cooperatives (KUSCCO) which represents over 4000 SACCOs, which will allow further opportunity for expansion. Kwara is also said to acquire software company IRNET, a subsidiary of KUSCCO, as part of the deal.
KUSCCO represents over 4,000 SACCOs in Kenya.
Kwara’s digital banking platform offers simple, affordable banking solutions to SACCOs (Credit Unions) and their members. It helps by digitizing a lot of the work done by SACCOs (Credit Unions) and introduces convenience and opportunities for their clients who do not have access to traditional banking services. The platform also allows them to introduce new products at the same time. Furthermore, Kwara’s neobank provides additional services such as instant loans & third party services like insurance, along with improving custom features for SACCOs.
Kwara co-founder and CEO Cynthia Wandia reportedly said in a comment with TechCrunch about company’s agreement with the Kenya Union of Savings & Credit Cooperatives (KUSCCO):
“We think we’ve barely scratched the surface in the Kenyan market… They are stacking their bets on us but we have been able to prove that we can do it as we continue to grow.”
The fresh seed funding of $3 million brings its total amount raised to $7 million and includes investors like DOB Equity, Globivest, Willard Ahdritz (founder of Kobalt Music), One Day Yes, Base Capital, Mikko Salovaara (CFO of Revolut) and Breega, Softbank Vision Fund Emerge, Finca Ventures & New General Market Partners.
Kwara continues to introduce innovative solutions that help extend financial inclusion into rural areas making banking more accessible throughout Kenya. This latest extension and support from key investors backing up their vision & mission and there is no telling what heights Kwara will take Kenyan fintech market in 2023.
