US Based Fintech Umba Acquires Major Stake in Kenyan Microfinance
A United States based fintech, Umba, has acquired a majority stake in Daraja, a Kenyan deposit-taking microfinance bank. Umba’s investment are spread around the globe and this Kenyan venture adds to the vast network.
According to a statement released by the Central Bank of Kenya (CBK), Umba purchased a 66.6% stake in Daraja, a move that’s expected to reorganize the Microfinance’s performance in the digital space.
The fintech has been operating in Nigeria since 2018 but has made significant strides in the continent this year. It raised $15 million in a pre-series A round in April this year, the same time when it announced plans to expand to Kenya, Ghana, and Egypt.
The company has so far raised $17.5 million. Investors who have funded the startup include; Tom Blomfield, the co-founder of Monzo, Lachy Groom and ACT Ventures, Lux Capital, Palm Drive Capital, Banana Capital, Streamlined Ventures and Costanoa Ventures.
Daraja has been in operation since 2015 with small and medium enterprises forming part of its most significant customers. This acquisition gives Daraja a competitive advantage in the country’s highly dynamic financial market.
A statement from the CBK said, “The investment by UMBA will strengthen Daraja MFB’s business model. In particular, it will support the digitization of Daraja MFB as it moves to provide ‘anytime anywhere’ services to its customers. This is aligned with CBK’s vision of a microfinance banking sector that works for and with Kenya,”