MICROCAPITAL BRIEF: Kwara of Kenya Raises $3m in Equity to Boost Technology for SACCOs, Acquires KUSCCO Software Subsidiary

Kwara, a woman-led financial technology (fintech) company serving credit unions in Kenya, the Philippines and South Africa, recently raised USD 3 million from its previous investors DOB Equity, Globivest and Willard Ahdritz plus a group of first-time investors in the firm, including One Day Yes, Base Capital and Mikko Salovaara. Kwara also signed a distribution agreement with the Kenya Union of Savings & Credit Cooperatives (KUSCCO), giving Kwara exclusive marketing access to 4,000 savings and credit cooperatives (SACCOs). The agreement with KUSCCO includes Kwara agreeing to purchase – for a price that remains confidential – KUSCCO’s subsidiary IRNET, which provides competing software.

Kwara’s services allow SACCOs to automate their internal operations and to offer their members services such as remote on-boarding, deposits, “instant” loans, insurance and financial management software. The firm is headquartered in the Kenyan city of Nairobi and also has an office in Germany. Kwara was established in 2018 and serves 120 credit unions as of 2023.

By Renata Samadova, Research Associate

Sources and Additional Resources

TechCrunch article
https://techcrunch.com/2023/01/16/kenyan-fintech-kwara-raises-3m-seed-extension-signs-deal-to-reach-over-4000-credit-unions

Kwara homepage
https://kwara.com

KUSCCO homepage
https://www.kuscco.com

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