Kenya-based Fintech Kwara raises $ 4 million in funding round – Fintech bitcoin news
Kenya-based fintech, Kwara raised $ 4 million in a funding round led by Breega VC. The funds will be used to create an app that allows members of credit unions to access financial services.
The growing demand for financial services by members of credit unions
Kwara, a Kenyan fintech that focuses on helping credit unions, raised $ 4 million in her last fundraising round. The startup plans to use the funds to create a “neobank” app that allows individuals to register with their favorite credit unions to access various financial services.
The round table was led by the company Breega VC, with the participation of Softbank Vision Fund Emerge, Finca Ventures, New General Market Partners, Globivest and Do Good Invest. Other investors include Rabacap, Launch Africa, Norrsken Impact Accelerator, Future Africa, Samurai Incubate, DOB Equity, and angel investors.
Founded in 2019, Kwara already offers its proprietary backend as a service (BaaS) software to cooperative savings and loan companies in Kenya. However, as the Techcrunch report explains, the increase in fintech’s customer base from just two to over fifty in the span of just over two years has prompted Kwara to question the creation of the company. ‘application.
Explaining Kwara’s plan following the capital increase, current co-founder and CEO Cynthia Wandia said:
We want to make credit unions as efficient as possible by giving their members the kind of neo-banking experiences they want.
The Techcrunch report adds that Kwara expects the app to open up new borderless avenues for lending institutions to enroll new members. The app should also help credit unions move away from tedious paper systems and the need for complex brick-and-mortar branches.
The beta test
Already, Kwara’s existing customers have seen membership growth of over 19% year-over-year, about three times the global average. At the same time, the loan base of credit unions using its technologies increased by 46%, about five times the national average.
Meanwhile, David Hwan, a co-founder and COO, revealed that the beta version of the app has been tested for feasibility. Adoption of the app ranged from 60% to 90%, he said.
The fintech, which also operates in South Africa and the Philippines, says it hopes to triple the number of credit unions using its software to 150 by the end of 2022. On the other hand, Kwara also aims to increase the number of credit unions. members it serves from 60,000 to 100,000 by the end of the year.
How do you see this story? Let us know what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons