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Cowrywise Secures $3 Million Pre-Series A Funding To Scale Its Wealth Management Platform

Fintech

News

Jan. 28, 2021, 2:56 p.m.

Cowrywise, a Nigerian fintech startup that offers digital wealth management and financial planning solutions, has announced that it has secured $3 Million in a pre-Series A funding round led by Quona Capital with participation from Sahil Lavingia, Tsadik Foundation and a syndicate of Nigerian angel investors locally and in the diaspora.

The investment will be used to expand the company’s product offering, support the onboarding of more fund managers, and build out its investment management infrastructure.

Cowrywise was founded in 2017 by Razaq Ahmed and Edward Popoola to easily provide access to goal-oriented savings and investment products with more competitive performance rates compared to those of the traditional banking system.

With 19 mutual funds currently available through its platform, the startup says it uses algorithms to recommend investment options that are designed to meet the needs of each consumer. Users can start saving and investing with as little as ₦100 ($0.25).

Ahmed, the Chief Executive Officer of Cowrywise, explained the rationale behind starting the company; “The majority of Nigerians under 35 years old have limited access to quality savings and investment products despite historically high levels of digital connection. The ability to save and invest to build wealth is critical for Nigerians in particular, because they are young and major purchases typically require a full capital commitment upfront, making forward-looking savings and investment products a critical component of reaching financial goals”.

“The Cowrywise platform is designed to solve this problem through a combination of free wealth advisory and consumer education paired with savings and investment offerings that can advance financial inclusion”.

He further added that the platform has currently moved from 2,000 in 2018 to 220,000 users as at now.

Also, since 20% of mutual funds in Nigeria have already been onboarded on Cowrywise, the company’s next immediate focus is to onboard the other 80% and make the entire mutual fund industry easily accessible to more retail investors in Nigeria.

In June 2018, Cowrywise closed an angel round of $50,000 led by Microtraction. In August 2018, it raised a $120,000 seed round from Y Combinator and another seed round from Kairos by December of the same year.

It received undisclosed funding from K-50 Ventures in April 2019, before receiving an $80,000 grant from global accelerator, Catalyst Fund.

The latest addition to the investment brings Cowrywise’s total funding between $3.3 million to $3.5 million since its launch.

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Dorcas

Dorcas Benewaa Author

Dorcas is an upcoming journalist. She loves the creative arts and loves to write about startups, digital arts and issues in the tech sector.

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