Kenyan fintech, Kwara, has raised $4 million in a seed round to build a neobank app that will enable individuals to sign-up with their preferred credit unions to access various financial services.
The money 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, which is set for launch mid next year, will be able to track their personal financial flows from the app too.
“The shared belief of these top global investors is a testament to the amazing team of Kwara for being dedicated, user-driven and super creative in building a seamless digital banking experience for 1 billion people. Go Kwarans!!!,” Kwara co-founder and COO David Hwan took to LinkedIn to celebrate the milestone.
The beta version of the app has been tested for feasibility, with an uptake of between 60% and 90%, Kwara co-founder and COO, David Hwan said.
The Kenyan fintech Kwara was launched in 2019 to help credit unions (savings and credit cooperatives societies, SACCOs) in the East African country shift to digital platforms by providing them with its proprietary Back-end-as-a-service (BaaS) software.
The startup’s trajectory has been steep, as its clientele shot up from two to 50 in just over two years. This is as it became clearer to the country’s cooperative credit-unions that they needed more technology to remain competitive.
Recently, the fintech firm partnered with a Kenyan-based insurance technology company, Lami Technologies, to provide Savings and Credit Co-operative Society (SACCO) members in Kenya with affordable and transformational insurance products through its digital platform.
The partnership was meant to allow SACCO members to conveniently access innovative insurance products ranging from health, general, life, business, and property coverage.