Kenyan fintech Kwara has received $3 million in a seed extension round, backed by DOB Equity, Globivest and Willard Ahdritz. This brings the total amount of capital raised in the latest round to $7 million.
Growth of Customer Base
Kwara, a fintech targeting the financially excluded, secured an initial extension of $3 million and inked a distribution agreement with an organization to distribute its digital solutions to Kenyan cooperatives. The fintech has nearly doubled its customer base by 2023 and stated it wants to raise capital to support its expansion.
As per a Techcrunch report, DOB Equity was among the existing investors who took part in the seed extension round of the startup. Additionally, he joined the most recent round of fintech financing, One Day Yes and Base Capital. Revolut CFO Mikko Salovaara reportedly joined the round.
Offering More Services
Commenting on the timing of the deal between the fintech startup and the Kenya Credit Union Union (KUSCCO), Kwara Co-Founder and CEO Cynthia Wandia said:
We believe that we have only scratched the surface of the Kenyan market. Therefore, we will invest heavily in products that will strengthen our relationship.
Prior to the latest capital raise by fintech Kwara, a seed round of funding by investors such as Breega, Softbank Vision Fund Emerge, Finca Ventures and New General Market Partners had already raised $4 million. Now, the round of financing has been completed.
KUSCCO intends to make it easier for members of partner unions to access additional services through Kwara’s neobank app. The same app allows users to deposit funds directly into credit union accounts.
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