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Cape-based VC backs Kenyan FinTech to scale in the East

By , ITWeb
Kenya , Africa , 05 Oct 2022
Rob Heath, Partner at HAVAÍC.
Rob Heath, Partner at HAVAÍC.

Cape Town-headquartered venture capital firm HAVAÍC has tapped its US$20-million Universum Core African Fund to complete a third investment in Kenyan FinTech Tanda.

The investment is part of an ongoing pre-series A round in partnership with three other investors, including DFS Lab.

In a statement released by HAVAÍC, the VC said Tanda was established in 2018 and “has built one of Africa’s largest open agent networks accessible to all financial service providers.”

“Over the past four years, the company has processed over 4 million transactions and served more than 30,000 businesses, 800,000 people, and over 100 developers, including Twiga Foods and Bento,” reads a section of the statement.

The VC firm added that with its support, Tanda plans to address two of Africa’s most significant growth challenges: digitising retail payments to mobilise faster, cheaper and more convenient transactions, and providing small businesses and unbanked Africans with access to vital financial services.

The investment enables the company to invest in key strategic partners, accelerate product development, and scale in Kenya and East Africa over the next 15 months.

Tanda founder and CEO Geoffrey Mulei said, “Our new products and growing distribution will open up opportunities for Tanda and our ecosystem partners to continue solving challenges for the majority of Africans locked out of the formal financial services ecosystem. We also look forward to deepening our customer relationships and growing into new and exciting African markets.”

Rob Heath, Partner at HAVAÍC, added: “Tanda is a huge win for tech companies in Africa. With no access to financial services, people and merchants in Africa deal almost exclusively in cash. Tanda’s tech enables them to pay and receive cash in exchange for digital services that would otherwise have been out of reach.”

“We are so pleased our journey with Tanda continues. And we cannot wait to see what the future holds.”

The investment is preceded by two prior rounds in 2020 and 2019, when HAVAÍC was the first investor to back Tanda.

The VC’s investment portfolio includes FinAccess, ShopEx and Talk360, among a portfolio of 17 early-stage African tech firms. According to the company, in 2021 the portfolio raised US$110-million in fresh capital and increased revenue by 160%.

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