Kwara acquires software company

Kenyan fintech startup, Kwara, has announced its intention to fully acquire IRNET Coop Kenya, a subsidiary of the Kenya Union of Savings and Credit Cooperatives (KUSCC). The acquisition will enable Kwara to expand its reach by offering its banking software solutions and mobile banking channels to rapidly increase the growth and profitability of Savings and Credit Cooperatives (SACCOs) in Kenya.

Kwara, which was founded in 2018 by Cynthia Wandia and David Hwan, has developed a digital banking platform aimed at helping unbanked and underbanked individuals to build wealth together in a seamless manner. The platform offers a management system to improve efficiency and automation for cooperative staff, as well as a neobank-style mobile banking app for end-users and alternative channels.

In December 2021, the startup raised a $4 million seed funding round and has now entered into a partnership with KUSCCO, the umbrella organization for SACCOs in Kenya, which serves over 4,000 SACCOs. The partnership aims to accelerate the growth of SACCOs through deposit mobilization and digital member acquisition, while addressing the key challenges currently facing SACCOs, such as costly digitization, security concerns, and the digital divide between SACCOs and their increasingly young, tech-savvy membership.

Wandia stated that Kwara has spent the last four years working closely with KUSCCO to uplift the SACCO sector in Kenya. The entire IRNET team will join Kwara to ensure a smooth transition and to embed the entire KUSCCO regional network and marketing expertise into Kwara. KUSCCO, Kwara, and IRNET will soon launch the partnership at a Nairobi-based event, followed by regional launches across the country. The goal is to rapidly onboard the entire SACCO fraternity onto the Kwara platform within the next six months.