FinAccess, a Kenyan software solutions provider that digitises farming cooperatives and community banks, also known as Savings & Credit Cooperative Organizations (SACCOs) in the region, has announced a $500,000 pre-Series A fundraising round from South African venture capital firm HAVAÍC.
The $20 million Universum Core African Fund of HAVAÍC will contribute to the investment in FinAccess. This fund is dedicated to supporting early-stage, post-revenue seed, and later-stage growth Series A start-ups founded in Africa that use technology to address local, regional, and global challenges while having an impact on the markets they serve.
“Financial inclusion for underserved Africans is at the heart of FinAccess’ business model. Digitisation ultimately releases credit and other vital financial services so farmers can increase their productivity and efficiency. We are very excited to partner with HAVAÍC and bring our software solutions to more African communities,” CEO of FinAccess Barclay Paul Okari said about the funding.
HAVAÍC’s investment in FinAccess will be used to broaden its product offerings in Kenya and other East African regions. The firm is presently running live experiments in Uganda, and in the upcoming months, Zambia, Rwanda, and Tanzania will follow.
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FinAccess has previously raised from Musha Ventures, Uncovered Fund, Red Hook Capital as well as Katapult.
Why HAVAÍC Invested
The World Bank estimates that agriculture employs 53% of people in Africa, however despite this substantial contribution to job creation, banks only lend to agriculture 1% of the time. Farmers who cannot access bank financing typically use SACCOs and co-ops, which are formed when communities get together to pool and invest savings.
“FinAccess is 100% aligned with [HAVAÍC’s] investment thesis to make an impact by supporting early-stage, high-potential companies that solve real-world challenges through technology. We look forward to supporting their unfolding growth journey across Kenya and beyond,” HAVAÍC Partner Rob Heath.
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A Look At What FinAccess Does
FinAccess was founded in 2017 and offers two main products. The first is FinCore, a microbanking platform created to support back-office functions. The second Grobox is a data visibility tool for dairy cooperatives that keeps tabs on milk production to aid in decision-making and improve financing availability.
Mango Engine, a digital platform that drives new methods of lending and saving for co-ops and other social savings groups, is the startup’s third product.
Finaccess SACCO Finaccess SACCO
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh