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Cowrywise, one of Nigeria’s leading digital savings and investment startups has announced that it has closed a $3 million pre-series A funding round. This was made public by its CEO, Razaq Ahmed, in a blog post on its website.

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The funding round was led by Quona Capital, a venture capital firm that invests in growth-stage fintech startups. This is its first investment in Nigeria. Sahil Lavingia, CEO of Gumroad, also participated in the round, as did the Tsadik Foundation and a syndicate of Nigerian angel investors. It had previously received funding from such sources as Microtraction and Y-Combinator.

Founded in 2017, Cowrywise provides savings and investment services to Nigerians through its mobile application. The platform’s selling point is its attractive interest rates on savings and the collection of mutual fund offerings that it makes accessible to regular people.

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Cowrywise currently has over 200,000 users. Razaq says that the new funding will allow the startup to expand its product offerings, build its investment management infrastructure, bring on more fund managers, and hire more talent. Actions that it may take shortly could include increasing the number of mutual funds available on Cowrywise. At the moment, the platform has mutual funds from five partners listed on it: Afrinvest, ARM, Lotus Capital, Meristem Wealth Management, and United Capital.

“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,”

he opined. Johan Bosini, speaking on his firm’s decision to invest in Cowrywise, said that they believed in the potential of Nigeria’s wealth-tech space to positively impact the lives of its citizens.

“In a market of 200 million people, we think this will be very impactful for individuals to have more control over their financial future,”

Bosini said. Featured Image Source: Nairametrics

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This article was first published on 29th January 2021

ikenna-nwachukwu

Ikenna Nwachukwu holds a bachelor's degree in Economics from the University of Nigeria, Nsukka. He loves to look at the world through multiple lenses- economic, political, religious and philosophical- and to write about what he observes in a witty, yet reflective style.