There are strong arguments backing the prevalent trend of African fintech startups expanding operations from a product perspective, adding new verticals rather than moving into new geographies. That is according to Johan Bosini, partner at fintech-focused VC firm Quona Capital, who was speaking on the latest episode of Disrupt Podcast in the wake of his company leading a US$3 million pre-Series A round for Nigerian startup Cowrywise, a digital wealth management and financial planning solution. Quona liked the fact Cowrywise was working with regulated asset classes and pursuing a partnership model, as well as its focus on education. And all of this in a large addressable market. Cowrywise will use the funding to add to its product suite, as many fintechs are doing. Bosini sees a trend. “A lot of lending businesses are looking at becoming challenger banks, with a lot of payments businesses it is the same,” he said. This is somewhat of a change of direction, with African startups in a number of spaces having previously chosen to move into new markets rather than verticals. In fintech, and especially in Nigerian fintech, it is different.
SOURCE: DISRUPT AFRICA
More Stories
Mauritius’ Party Scene is Opened
Wining in Cape Town
Lagos Packs a Punch when it Comes to Culture
A Culinary Experience in Ghana
A Taste of West Africa and Beyond
This Photographer is Capturing the Femininity of Congo’s La Sape Movement
Sierra Leone Chef Wins the Nobel of Gastronomy Prize
Power of African Fashion Celebrated in Landmark Exhibition at the V&A
Harare’s New Scheme to Curb an Economic Collapse
Africa’s Airspace Faces Steep Competition
Not Enough Females Operating in the African Venture Capital Space
The Digital Economy as an Important Driver of Long-term Growth in Africa