In pre-Series A funding, Cowrywise, a Nigerian fintech startup offering digital wealth management and financial planning solutions, has raised $3 million. As Tsadik Foundation, Gumroad CEO Sahil Lavingia, and a syndicate of Nigerian angel investors locally and in the diaspora took part, Quona Capital led the round. The business has previously raised over $500,000 through a combination of equity.
“We are excited to announce we just closed a $3M pre-series A funding round, led by Quona Capital. This is Quona’s first investment in Nigeria and we feel humbled to be the vehicle they use in expressing their belief in the investment worthiness of Nigerian startup ecosystem. Others participating in the round include Sahil Lavingia, Tsadik Foundation and a syndicate of Nigerian angels,” the startup announced in a statement.
The new funding round will enable the startup to expand its product offerings, build out its nascent investment management infrastructure, onboard more fund managers in Nigeria, broaden its financial education program and continue to hire top talent.
Why The Investors Invested
Quona Capital is a Washington-based venture capital firm that invests mostly in early stage fintech startups. Although this is Quona’s first investment in Nigeria, it is not its first in Africa. The VC has previously invested in East Africa-focused Sokowatch and South Africa’s Lulalend. It has also invested in Zoona.
“Razaq, Edward and the Cowrywise team are providing everyday Nigerians with easy access to powerful and flexible wealth-generating tools that have typically been reserved for people who are already wealthy,” said Johan Bosini (partner at Quona Capital). “In a market of 200 million people, we think this will be very impactful for individuals to have more control over their financial future. We like the wealthtech space and the impact it can have in Nigeria in particular.”
On its part, TSADIK is a family philanthropy inspired by the ideal of social justice, supporting organizations that provide direct benefits to disadvantaged communities worldwide.
Angel investor Sahil Lavingia is the founder of Gum Road, a San Francisco-based online platform that facilitates the sale of products by creators directly to consumers.
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A Look At What Cowryrise Does
Founded in 2017 by Razaq Ahmed and Edward Popoola, Cowryrise democratises access to savings and investment products to the growing demography of underserved Nigerian millennials and the middle class.
“We believe making wealth management mainstream among first-time, retail investors has the potential to positively impact the financial future of any country, especially a country like Nigeria with young demography. Change in digital behaviour, innovation in digital infrastructure and continuous growth in the adoption of digital products have set the stage for a digital-first and scalable wealth management solution for the next generation. We are more than excited to have these tailwinds while we build Cowrywise,” the startup further said in the statement.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
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