Kenyan Fintech Startup Kwara Raises USD 3 M Seed Extension; Acquires IRNET Coop Kenya

Kwara, a Kenyan fintech digitizing credit unions (saccos), is eyeing enormous growth in the coming years after raising a USD 3 M seed extension, and signing an exclusive digital solutions distribution agreement with the Kenya Union of Savings & Credit Cooperatives (Kuscco), the national umbrella body representing saccos. As part of the exclusive deal, Kwara is also set to acquire Kuscco’s subsidiary IRNET, a software company and provider for saccos, for an undisclosed amount. The entire IRNET team will join forces with Kwara to ensure a seamless transition and to embed the entire KUSCCO regional network and marketing expertise into Kwara.

The seed extension round had the participation of existing investors DOB Equity, Globivest and Willard Ahdritz, the founder of Kobalt Music. New backers One Day Yes, Base Capital as well as fintech executives including Mikko Salovaara, the CFO of Revolut, also joined the round. The new funding brings the total seed amount raised by the startup to USD 7 M. 

Kwara has built a digital banking platform designed to help unbanked and underbanked individuals build wealth together in a frictionless way. It offers a management platform to drive efficiency and automation at the cooperative staff level and also has a neobank-style mobile banking app for end clients, alongside alternative channels.