Fintech Startup Kwara receives $4M Seed Capital

Kwara is a Kenyan company that assists traditional savings cooperatives to become modern digital banks. It has received seed funding of US $4,000,000 to improve its neobank app ahead of its launch.

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Kwara raised $4 million through seed rounds from investors in Africa, Asia and Europe.

SoftBank Vision Fund Emerge and Finca Ventures, New General Market Partners Globivest and Do Good Invest led the round. The round also featured several fintech executives along with The Flex Company and Comply Advantage creators and executives from Salesforce.

This funding comes after the company has experienced strong sales growth and is in advance of the launch its neobank app.

This funding will be used for further development of the startup’s software. It will enable credit unions in emerging economies to digitize their services and offer them financial services to millions.

Kwara, a digital bank service that Cynthia Wandia & David Hwan established in 2018, enables underbanked and unbanked people to share their assets in a seamless way.

It offers a management tool for cooperative workers that increases effectiveness and automates, as well as a mobile banking app similar to a neobank for end clients and other outlets.

Kwara however uses an open API to connect the savings cooperatives with banks and banking transactions.

All of this is included in a single software-as-a-service subscription, which means cooperative clients only pay for what they use and receive a single end-to-end solution.

Multi-accelerated company has already over 60,000 users, and processes as much as $40 million monthly transactions.

Kwara is growing its credit union user base 40% per month, which includes customers in Kenya, South Africa and the Philippines.

Cynthia Wandia (Kwara CEO) said that the company is working on a solution to the estimated one billion people who are unable to access personalized banking services.

This is due to technological gaps in banking-grade technology and a lack of neobank-like experiences available for customers.

Our team was thrilled to see credit unions and customers embrace Kwara, which quickly became synonymous with outstanding user experience and the new paradigm in banking.

She expressed gratitude to investors and assured them that they will be able provide a better experience for clients than ever before.

Breega’s founding partner Ben Marrel says there is growing interest to build wealth through community, and that users are increasingly interested in digital-first banking.

Ben says Kwara’s unique approach is a spark to a new way of retail banking through digital-first credit unions.

He expressed his excitement about the possibility of helping this team scale across Africa and other emerging countries.

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