Kwara

Kwara operates as a business-to-business (B2B) fintech company, offering a digital banking platform specifically designed for credit unions, known as Savings and Credit Cooperative Organizations (SACCOs) in Kenya. The company was established in 2018 by Cynthia Wandia and David Hwan, who launched the venture after their initial concept, a neobank for the African diaspora, faced challenges with high customer acquisition costs. This pivot led them to focus on the underserved credit union market, recognizing the opportunity to digitize their operations.

The core of Kwara's offering is a proprietary backend-as-a-service (BaaS) software. This platform empowers SACCOs to transition from manual, paper-based processes to a fully digital system, enhancing efficiency and security. For the credit unions, this means improved management of member data, loan processing, and overall administration. For the members of these SACCOs, Kwara provides a mobile application that functions as a neobank. Through this app, members can access their accounts, apply for loans, track their savings, and perform transactions, effectively giving them a modern digital banking experience. This addresses a significant gap, as many SACCOs have struggled to provide digital services to their members, who were increasingly demanding them.

Kwara's business model is primarily subscription-based, where SACCOs pay a recurring fee to use the platform. This model provides a steady revenue stream and aligns with the long-term partnerships the company seeks to build with its clients. The company targets the vast market of credit unions in emerging economies, starting with a strong focus on Kenya, which has one of the highest numbers of SACCOs globally. The market opportunity is substantial, with credit unions holding trillions of dollars in assets worldwide but often lagging in technological adoption.

The company has achieved significant milestones, securing funding from prominent investors such as Breega, SoftBank Vision Fund's Emerge program, Norrsken VC, and FINCA Ventures. A notable achievement was the acquisition of IRNET, a software company that was part of the Kenya Union of Savings and Credit Cooperatives (KUSCCO), which expanded Kwara's client base significantly. By late 2023, the company reported serving over 250 SACCOs with more than 300,000 members.

Keywords: Fintech, SACCO, Credit Unions, Digital Banking, B2B, BaaS, Financial Inclusion, Mobile Banking, Cooperative Societies, Emerging Markets