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Kwara, a Nairobi-based fintech startup led by Kenyan entrepreneur Cynthia Wandia, has raised $3 million in its seed extension and signed an exclusive digital solutions distribution agreement with the Kenya Union of Savings and Credit Cooperatives (KUSCCO).
The partnership with KUSCCO, the national umbrella body representing savings and credit cooperatives (saccos), will give Kwara access to a pool of more than 4,000 saccos for its banking-as-a-service offering.
The deal also includes the acquisition of KUSCCO’s subsidiary IRNET, a software company for saccos, for an undisclosed amount. “We think we’ve barely scratched the surface in the Kenyan market,” Kwara Co-Founder and CEO Cynthia Wandia said.
“We are just going to be really investing in products and services that deepen our relationship here,” the Kenyan entrepreneur added.
Kwara, which is on a mission to deliver a secure, delightful, and affordable online and mobile banking experience for cooperative financial institutions and their members, starting in Africa, was founded in 2019 by Wandia and David Hwan.
Under the leadership of Wandia, who has established herself as an innovative Kenyan entrepreneur and a top-performing executive, Kwara secured $4 million in December 2021 in a seed round to build a neo-bank app that enables individuals to sign up with their preferred credit unions to access various financial services.
With the latest raise of $3 million in its seed extension round, led by existing investors such as DOB Equity, Globivest, and Willard Ahdritz, the founder of Kobalt Music, and new backers such as One Day Yes, Base Capital, and fintech executives including Mikko Salovaara, the CFO of Revolut, the startup’s total funding to date is now at $7 million.
Kwara, which has expanded its client base to 120 from 50 by the end of 2021 and operates in South Africa and the Philippines, is planning to enhance its offerings to cater to the needs of saccos and provide additional products for its neobank app users.
The startup aims to provide enterprise-grade features for large, well-capitalized saccos that are on par with traditional banks.
Additionally, Kwara is investing in improving the overall neo-banking experience by adding features that will help members personalize their financial goals and work towards achieving them.
