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
What are the Benefits and Costs of Scaling-up the Commercial Production of Bioenergy in Africa?
Faculty of Harvard University and Africa.com Offer Online Course for Entrepreneurs in Food Systems
FTX was Becoming a Force for Normalizing Cryptocurrencies in Africa
Ethiopia Announces Its First Commercial Export of Electricity to Kenya
African Union Calls for Inclusive Tax Regulations
Entrepreneurship Holds the Key to Africa’s Wealth Creation
Creating Africa’s Cocoa Cartel
Harare Shifts the Goal Posts in Farmer Deal
Investing in Nigeria’s Property Boon
UjuziNet is Helping Farmers Better Manage their Operations
Isabel dos Santos Denies Trying to Escape the Law in Angola
Nairobi’s Concerns Halt Possible Export of Baobab