Nigeria’s wealth management startup Cowrywise has raised a $3M pre-series A round 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.
The round was led by Quona Capital with participation from Gumroad CEO Sahil Lavingia, Tsadik Foundation and a syndicate of Nigerian angels. This is Quona’s first investment in Nigeria and sows its belief in the investment worthiness of the Nigerian startup ecosystem.
According to Johan Bosini, partner at Quona Capital, “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. 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”.
Launched in January 2017 by Razaq Ahmed, the personal finance management platform has raised $120,000 from YCombinator and $50,000 from the early-stage venture firm, Microtraction.
Cowrywise solves the problem of access by using a combination of free wealth advisory and consumer education paired with savings and investment offerings that can advance financial inclusion.
“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,” said Razaq Ahmed, the firm’s CEO. “This funding round strengthens our vision of making wealth management accessible to everyday people in Nigeria and moves us a step closer to our medium-term pan-African ambition. It means a lot to have the support of great investors who share our vision of democratising access to savings and investment products. “
Ahmed adds that the new funding will enable Cowrywise 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.
The firm aims to make wealth management mainstream among first-time, retail investors in a move that will positively impact the financial future of any country, especially a country like Nigeria with young demography.
Cowrywise is now partnering with Lotus Capital, Afrinvest, ARM, United Capital, Meristem Wealth Management and many more that will be onboarded on its mutual fund platform.
“It is a privilege to be connected to a network of global investors supporting an amazing pool of innovators around the world. We are leveraging that vantage position to solve local problems with the potential to create value that transcends generations for millions of Nigerians and Africans,” concluded Ahmed.
Last year, Catalyst Fund announced a new $15 million commitment to advance financial inclusion for underserved people across the world. The fund announced it would support the growth of 30 additional startups over the next three years across five key emerging markets: Kenya, Nigeria, South Africa, India, and Mexico.
