Kenyan fintech company Kwara, which helps turn traditional savings cooperatives into modern digital banks, has raised $3 million in seed extension round.
The fintech also signed an agreement to acquire a subsidiary of the Kenyan Union Of Savings and Credit Cooperatives (Kuscco).
Following the acquisition, Kwara has entered into an exclusive digital solutions partnership agreement with Kuscco whereby Kwara will offer its Banking-as-a-service solution and neo-banking experience to Kuscco’s 4000+ credit unions to consolidate credit union banking as the preferred retail banking method in Kenya.
Kwara raised the additional $3M Seed extension on top of the $4M Seed round raised last year, making it a total of $7M. Investors in the round include existing backers DOB Equity, Globivest and the founder of Kobalt Music. New investors, mainly African VCs, participated as well. They include One Day Yes and Base Capital and fintech executives, including Mikko Salovaara, CFO of Revolut.
“We have spent the last three years uplifting the credit union sector in Kenya, becoming the leading core banking provider in Kenya. Our clients grow up to 4 times faster than other credit unions and serve members up to 100 times more efficiently. This acquisition enables us to place a digital banking experience in the hands of every credit union in Kenya, together with the most established credit union partner in Kenya.” Kwara CEO, Cynthia Wandia.
The startup has continued to ship compelling features to attract larger, more capitalized credit unions while continuing to offer banking-grade service that a small or midsize credit union can afford.
“This development marks a game changer in the management of credit unions going forward. The acquisition of IRNET and the KUSCCO-Kwara partnership will deliver to our 4,000+ member credit unions tested and proven, secure and efficient digital services as well as a modern neobanking experience.” says George Ototo, Group Managing Director of Kuscco.
Read also; Fintech firm Kwara acquires Credit Unions Software Firm IRNET Coop.
