Kenyan fintech providing secure and affordable digital banking to SACCOs and their members, Kwara has closed a $3 million seed extension round, bringing its total funding raised to $7 million.
Founded in 2018, Kwara has processed over $400 million in annual transactions so far and the startup targets an even bigger growth rate with its plans to expand its current reach and acquire KUSCCO’s subsidiary IRNET, a software company and provider for SACCOs, for an undisclosed amount.
Added to the funding raised, Kwara also signed an exclusive digital solutions distribution agreement with the Kenya Union of Savings & Credit Cooperatives (KUSCCO), the national umbrella body representing SACCOs.
The seed extension round included existing investors such as DOB Equity, Globivest and Willard Ahdritz, the founder of Kobalt Music. New investors were One Day Yes, Base Capital and fintech executives including Mikko Salovaara, the CFO of Revolut.
Also present in South Africa and the Philippines, Kwara affirms to have had an increased clientele base which grew from 50 to 120 in 2021, maintaining a 100% customer retention, with its automated onboarding process, serving as a stimulator to this growth.
Kwara focuses on helping credit unions go digital rather than keeping up with stressful paper-based processes and physical branches, providing opportunities for them to gain higher reach and revenues.
The company also has a next-generation neobank app that gives members of partner credit unions access to additional services such as instant loans and third-party services such as insurance. The app allows users to deposit money directly into their SACCO accounts, and track their finances and payments.
To further achieve its goals, Kwara plans to enter more partnerships and launch new features, which will help members build a personalized view of their own goals and work towards achieving them.