Kenya-based fintech, Kwara, has bagged $4 million in a new seed round from investors like Breega and SoftBank to build neobank for credit unions.

The startup was launched in 2019 to help credit unions (savings and credit cooperatives societies, SACCOs) in the East African country navigate to digital platforms by providing them with its proprietary backend-as-a-service (BaaS) software.

Kwara's trajectory has been steep, as the company's clientele shot up from two to 50 in just over two years of its establishment.

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The startup is now moving a step further to build the next-generation neobank that will give credit union members access to instant loans and third-party services such as insurance, as the startup moves to offer end-to-end solutions to its clients.

The startup has raised $4 million in a seed round to build a neobank app that will enable individuals to sign up with their preferred credit unions to access various financial services.

Speaking about the company's model, Cynthia Wandia had earlier disclosed: “We want to make credit unions as efficient as they can be by giving their members the kind of neobank experiences they wish to have.”