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What Challenges Remain for African Fintech Companies?

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.