Risevest Secures Kenyan Market With Hisa Acquisition

Nigerian fintech Risevest has finalized the acquisition of Kenyan investment startup Hisa. This acquisition will allow Risevest to enter the Kenyan market without needing new licenses.

The deal is Risevest’s second acquisition within the year, following its purchase of Chaka, another Nigerian fintech company, in September 2023. Hisa will continue to operate under its current brand, retaining its staff and leadership, with Eric Jackson transitioning from CEO to Chief Technology Officer (CTO), while co-founder Eric Asuma will serve as Strategy Advisor. Leah Njoroge, Hisa’s Finance Associate, will become Head of Operations, reporting directly to Risevest CEO Eke Urum.

Speaking on the acquisition, Urum stated that no major changes are planned for now, emphasizing that it’s time to “understand the company, culture, context, and market” before implementing significant adjustments.

Founded in 2020 by Asuma, Hisa allows users to buy and sell U.S. stocks through its platform. It was valued at $5 million after raising $250,000 in pre-seed funding from notable investors, including Faida Investment Bank and Estonia-based Startup Wise Guys.

Risevest, on the other hand, was founded in 2020 and has grown rapidly, now boasting approximately 600,000 users on its wealth management platform.

The acquisition is seen as a win-win as it enables Risevest to expand its operations into East Africa while leveraging Hisa’s existing licenses and local market knowledge. The deal offers an opportunity for Risevest to capitalize on Kenya’s growing appetite for digital investments.

In 2024, Kenya’s digital investment market is projected to reach a transaction value of $2.7 billion. By acquiring Hisa, Risevest positions itself to tap into this growing sector without the lengthy process of obtaining regulatory approval for a new entity.This acquisition follows months of speculation about Risevest’s interest in Hisa, which first surfaced in mid-2023.

In an earlier statement, Urum hinted at potential alignments between the two companies but stopped short of confirming any agreements at the time. As for the terms of the deal, specific details remain undisclosed, though insiders have reported that the acquisition involved a mix of stock and cash.

Though the acquisition has generated substantial media coverage, it is important to note that details of the deal are primarily being reported by news sources that haven’t been fully evaluated by the independent media monitoring agencies. Additionally, specific terms of the transaction, including the financials, remain undisclosed. As such, confirmation from independent agencies is still pending, and this should be considered when analyzing the broader impact of the acquisition.