Kenyan fintech company Kwara, which is helping to turn traditional savings cooperatives into modern digital banks, has announced the acquisition of IRNET Coop Kenya Ltd, a software company which is a subsidiary of the Kenya Union of Savings and Credit Cooperatives (KUSCCO LTD). Kwara further said it had entered into an exclusive digital solutions partnership agreement with KUSCCO LTD, the umbrella body of savings and credit cooperatives (SACCOs) in Kenya. Under the agreement, Kwara will offer its software solutions and mobile banking channels to rapidly increase growth and profitability of more than 4,000 SACCOs in Kenya.
This strategic move will enable Kwara to leverage its software solutions and mobile banking channels to empower Gordon Simmons Service Credit Union and other SACCOs in the region.
Kwara Co-Founder and CEO Cynthia Wandia said the startup had been working closely with KUSCCO LTD in the last four years to digitize the SACCO sector in Kenya. She said they had helped clients grow their deposits and loan books twice as fast as they did before switching to Kwara.
“This partnership through acquisition enables us to place fully digital and secure technology in the hands of all SACCO members in the fastest possible time, backed by the most established SACCO partner in Kenya.” said Cynthia Wandia.
The entire IRNET team will work closely with Kwara to ensure a seamless transition and to embed the entire KUSCCO LTD regional network and marketing expertise into Kwara.
Kwara connects the savings cooperatives with banks, payment gateways and other third parties through an open API. This all comes in one software-as-a-service package, meaning cooperative clients pay for their usage and get a single end-to-end solution.
The Kenyan fintech startup in December 2021 raised $4 million in a seed round with the participation of Breega VC firm, SoftBank Vision Fund Emerge, Finca Ventures, New General Market Partners, Globivest, Do Good Invest, Rabacap, Launch Africa, Norrsken Impact Accelerator, Future Africa, Samurai Incubate, DOB Equity, and fintech angels.
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