Investors seem to have turned their attention to Savings and Credit Cooperative Societies in (SACCOS) in East Africa — notably Kenya, Uganda, Tanzania, Rwanda, etc. —following the relative success of the model in the countries. Ensibuuko, a Kampala-based fintech startup which operates a proprietary microfinance platform developed especially for SACCOs and savings groups, has landed $1m from global impact investor, FCA Investments.
“With this latest investment, Ensibuuko ups its competitive stance in Africa’s fintech space.” Ensibuuko’s Founder & CEO, Gerald Otim says.
Here Is What You Need To Know
- The investment will allow Ensibuuko to scale rapidly in Uganda and to expand to other markets.
- Ensibuuko also intends to make major improvements to its newer digital loan and microinsurance products, which target rural customers.
- This new raise brings total investments in Ensibuuko to $1.6 Million having closed a pre-seed round in 2017 from a group of Canadian angel investors.
Why The Investor Invested
In Uganda, SACCOS are popular and encouraged by both the government and churches–of which FCA Investments happens to be one. A majority of SACCOS participants are also rural farmers. Almost 70% of Uganda’s exports are agro-based and the agriculture sector employs 73.3% of the active labour force compared to services which employ 22.5% and industry only 4.2%. Most of these farmers rely on SACCOS to make their savings and raise funds.
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Currently, Ensibuuko provides digital financial services to over 200,000 rural customers in Uganda, a good traction for a startup that was founded in 2014. Ensibuuko’s emphasis on growing consumer value and dedication to promoting last-mile financial services were also particularly praised by Emmanuel Obwori, COO of FCA Investments.
FCA Investments, which is an “impact-first” investment firm has made a number of high-growth, impact-driven investments in Asia and Sub-Saharan Africa, including Uganda and, most recently, Somalia. Ensibuuko is the organization’s first fintech venture.
The impact investor was established in 2018 by Finn Church Aid (the largest Finnish international aid organization) to use long-term finance to unlock opportunities for underserved communities and improve job growth in developing countries by investing in impactful and scalable SMEs.
With this investment, Ensibuuko will also gain access to FCA Investments’ technological resources as well as a global network of partners, enabling it to develop internal capacity and create strategic partnerships across the Sub-Saharan African region.
A Look At What Ensibuuko Does
Ensibuuko is a microfinance company that runs a proprietary platform designed specifically for African credit unions (SACCOs) and savings groups. Ensibuuko has created digital products and services for SACCOs and savings groups since its inception in 2014, as well as the infrastructure that links them to a larger network of financial service providers such as telecoms, insurance, and banks. Ensibuuko has already established strong alliances and integrations with three of Uganda’s leading banks and microfinance institutions, as well as two of the country’s largest telecommunications firms.
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