Kwara, a fintech startup, has raised Ksh. 451.8 million ($4 million) in a seed round. The funding will be used to build a Neobank app that will enable individuals to sign up with their preferred credit unions to access various financial services.
The seed round was led by Breega VC firm, with 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 Fintech Angels.
The app is expected to open up new borderless avenues for the lending institutions to sign up new members and help credit-unions shift away from tedious paper-based systems. Members using the app will be able to track their personal financial flows from the app too.
The company has over the last year entered South Africa and Philippines, as the demand for its services grew beyond Kenya. It hopes to triple the number of credit unions using its software to 150 by the end of 2022. The startup currently serves 60,000 SACCO members but is also looking to cross the 100,000 mark by the end of next year. The startup’s goal is to serve 1 billion people by 2030.
Kwara has also started forging alliances with companies, to offer third party services on its app. The startup recently partnered with Lami Technologies, a Kenyan-based digital insurance company, to make accessible a wide range of insurance products including health, property, business and life covers on the app. This is as the startup continues to perfect its app in readiness for a full launch next year.
Commenting on the son to be launched app, Kwara co-founder and COO, David Hwan said, “The app gives power to the members, who have the ability to view and download their financial statements, apply for loans and make repayments. By giving power to the members, we are extending the freedom that credit unions need to focus on their core business or more value-added tasks,” said Hwan.