Power, a Kenya-based financial technology provider, announced on Tuesday it raised a $3M seed funding round led by DOB Equity alongside Bolt by QED Investors, Quona Capital, Zephyr Acorn, and Norrsken Accelerator. The funds will support the company’s growth in Kenya, Zambia, and other countries across Africa.
Power, founded by Brian Dempsey and Chandra Singh in 2020, allows workers to take control of their financial health by making a holistic set of financial services available to employees and gig workers across Sub-Saharan Africa. The company helps individuals to access earned wages, streamline savings and investments to regulated partners, qualify for longer-term credit, and enrol in affordable insurance so that workers can live with dignity, reduce financial-related stress, and take control of their financial well-being.
Power’s solution includes a mobile app for employees and workers, a workforce deduction management system for employers, and a digital core banking engine connecting to regulated financial service providers. Through the app, workers are digitally onboarded and verified and then have immediate access to the Power services.
Africa has witnessed strong growth in financial inclusion over the last decade. In Kenya, nearly 84% of adults had access to financial services and products from formal institutions in 2021, a healthy increase from 27% in 2006. However, while financial inclusion has improved, financial health (day-to-day managing needs, coping with shocks, and investing in future goals) has deteriorated in this same period. According to Financial Sector Deepening Kenya (FSD Kenya), only 17% of Kenyans were financially healthy in 2021, compared with 39% in 2016. The main drivers of the deterioration in financial health were predatory interest rates, lack of financial transparency, and easy access to predatory loans for those disproportionately lacking financial literacy.
By 2035, more people will be entering the workforce in Africa than in the rest of the world combined. Nearly three out of every four people in Sub-Saharan Africa today work in the informal economy, which is increasingly becoming digitized. Yet casual gig workers and formal employees largely remain unprotected, underserved, and financially stressed.
There is an urgent need to develop a more holistic set of financial solutions that improve financial health and well-being for both formal workers and the growing gig economy. A growing global workforce is unprotected, financially stressed, and unhealthy. At Power, we help individuals regain control of their financial well-being by connecting them to affordable and appropriate financial services. We provide a complete digital banking platform connecting financial service providers, companies, and their workforces. We are incredibly excited to have such a strong group of investors join us on our journey to bring financial health to workers across Africa.
Brian Dempsey – co-founder and CEO of Power
This seed round investment will accelerate Power’s growth in Kenya and Zambia and deepen its presence across other countries in East, West, and Southern Africa. Power engages customers directly in Kenya and has already onboarded over 70 employers and gig platforms representing over 40,000 workers. As it expands into new markets like Zambia, Power strategically partners with banks and lenders and delivers a white labelled Workplace Banking solution that is quick to deploy and can provide digitized financial services to the workforces of companies that bank with Power’s partners.
The deterioration in financial health, and increased prevalence of predatory financial instruments, present an opportunity for transparent, holistic and beneficial financial solutions. We are thrilled to be teaming up with Power to scale up in Kenya and across Africa to address this pressing opportunity.
Anne Njuki – Investment Professional at DOB Equity
In addition, QED Investors’ Africa Head and Partner, Gbenga Ajayi, expressed enthusiasm for collaborating with Power in Kenya to offer targeted financial services to a demographic that has been overlooked or underserved by current providers. He looks forward to sharing insights gained from similar businesses worldwide to support Power’s growth in Kenya and across Africa.
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