The Fintech Kwara, based in Kenya, collects $ 4 million in the Seed round-FinTech

The Fintech Kwara, based in Kenya, collects $ 4 million in the Seed round-FinTech

Kwara, a fintech company based in Kenya, has raised $ 4 million in a seed round under the direction of the VC company Breega. The funds are used to create an app that enables members of credit cooperatives to access financial services.

The increasing demand for financial services by members of the credit cooperative

Kwara, a Kenyan Fintech company that focuses on supporting credit cooperatives, has raised $ 4 million in its latest seed round. The startup plans to use the funds to develop a "Neobank" app that enables individuals to register for their preferred credit cooperatives to access various financial services.

The seed round was led by Breega VC, in which Softbank Vision Fund Emerge, Finca Ventures, New General Market Partners, Globivest and DO Good Invest take part. Other investors are Rabacap, Launch Africa, Norrsken Impact Accelerator, Future Africa, Samurai Incubate, Dob Equity and FinTech Angels.

Kwara was founded in 2019 and already provides Kenyan savings and credit cooperatives its proprietary backend-as-a-service (BAAS) software. However, since the techcrunch test report explains that the increase in the clientele of the fintech from just two to over fifty within just over two years caused Kwara to discuss the development of the app.

Cynthia Wandia, co -founder and current CEO, explained Kwara's plan after the capital increase:

We want to make credit cooperatives as efficient as possible by offering their members the type of neobank experience they want.

The TechCrunch report adds that Kwara expects the app to open up new limitless ways to winning new members. The app is also intended to help loan cooperatives get rid of boring paper -based systems and the need for complex stationary branches.

The beta test

The existing customers of Kwara have already recorded a membership growth of over 19% compared to the previous year, such as three times the worldwide average. At the same time, the loan base of the loan cooperatives that use their technologies rose by 46 %, such as five times the national average.

Meanwhile, David Hwan, co-founder and COO, announced that the beta version of the app was tested for feasibility. The acceptance of the app was between 60 and 90 %, he said.

The FinTech, which also works in South Africa and in the Philippines, hopes to triple the number of loan cooperatives that use its software to 150 by the end of 2022. On the other hand, Kwara is also striving to increase the number of loan cooperatives to members who care for 60,000 to 100,000 by the end of the year.

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