Kenyan fintech Kwara has raised USD 3 million seed extension in its latest round of funding.
Investors in the round include existing backers DOB Equity, Globivest and the founder of Kobalt Music.
New investors, mainly African VCs, participated as well. They include One Day Yes and Base Capital as well as fintech executives including Mikko Salovaara, CFO of Revolut, a British fintech company offering banking services.
Just over a year ago, Kwara raised USD 4 million in seed funding led by Breega and Softbank; the total seed investment now stands at USD 7 million.
Just a few days ago, Kwara announced the acquisition of IRNET, a software provider owned by the national body of credit unions in Kenya – KUSCCO.
Since the start of last year, Kwara has grown its neobank user base by 35x, seen a 120x jump in monthly app transactions, surpassed over Kshs 120 billion in cumulative transactions processed on its core banking platform and now serves more than 120 credit unions.
Over Kshs 25 billion has been securely and rapidly disbursed in fair loans using the Kwara platform, leading some of Kwara’s credit union clients to triple their membership base and win awards like the Most Improved Nationwide.
“We have spent the last three years uplifting the credit union sector in Kenya, becoming the leading core banking provider in Kenya. Our clients grow up to 4 times faster than other credit unions and serve members up to 100 times more efficiently,” Kwara CEO, Cynthia Wandia is quoted saying in a statement from the startup.
The startup has been releasing features that have attracted larger and more capitalized credit unions while continuing to offer banking-grade service that a small or midsize credit union can afford. Fortuitous timing, as the incoming government of Kenya has committed Kshs 250 billion over the next 5 years in the ‘Hustler Fund‘ to be disbursed as low-interest loans to the public through financial intermediaries such as credit unions.