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Tag: Hisa

  • Nigerian fintech giant Risevest enters Kenyan market

    Nigerian fintech giant Risevest enters Kenyan market

    Risevest, a Nigerian investment business, acquired Kenya’s Hisa stock trading platform to strengthen its fintech foothold in Africa. Rise’s second acquisition in less than a year after its September 2023 acquisition of Chaka, a digital trading platform. The partnership boosts Rise’s dominance and highlights the sector’s cross-border building up.

    After acquiring Hisa, Rise can enter the Kenyan market without new permits. This allows stock trading for Kenyan investors. Rise may capitalise on Kenya’s booming investment scene, powered by smartphone penetration and a rising middle class.

    Read also: 11th Africa Fintech Summit kicks off in Kenya

    What challenges face fintechs entering african markets? 

    As Nigerian fintech competitors like Bamboo enter new markets, Rise’s entrance into Kenya comes amid increased rivalry. Bamboo started in South Africa, reflecting the growing competition among African fintech businesses for the continent’s fast-growing digital financial industry.

    After the acquisition, Rise will gain market expertise from Hisa and be able to tailor its products and services to local investors. Brand, management, and staff will remain with Hisa to ensure a smooth transfer and continuity of operations. Hisa’s local market insight helps Rise start quickly.

    What drives Risevest’s acquisition strategy? 

    Rise’s acquisition pace shows its desire to become a premier pan-African investment platform. Rise looks to overgrow by targeting important markets and exploiting acquired companies’ skills. Its performance shows that the African fintech sector is maturing, with businesses garnering significant investment and moving internationally.

    Read also: Opay, others to charge N50 levy on electronic money transfers in Nigeria

    Kenyan Wall Street claimed that Rise had been in talks with Hisa for months before the transaction. According to these sources, Rise wants to join the Kenyan market by buying Hisa rather than beginning from scratch. Strategic partnerships and acquisitions are crucial in Africa’s fintech industry, where regulatory hurdles and market intricacies can hamper new entrants.

    Hisa takeover will help Rise grow and expand across East Africa. Its ambitious expansion strategy and focus on accessible investment products allow the company to capitalise on the continent’s growing demand for digital financial services. As African banking evolves, Rise’s success drives other global enterprises.

  • Risevest acquires fintech company Hisa to enter Kenya

    Risevest acquires fintech company Hisa to enter Kenya

    The Kenyan fintech firm Hisa, which allows users to purchase US equities, is apparently in the process of being acquired by Risevest, a Nigerian wealth management platform that gives its users access to both foreign and Nigerian stocks.

    Upon completion of this acquisition, the Nigerian fintech company, established in 2014, will be able to expand into Kenya. This will be the company’s second acquisition, following the acquisition of the digital trading startup Chaka in September 2023.

    This development comes on the heels of a significant move by Bamboo, a fellow Nigerian online stock trading platform, which launched its operations in South Africa nearly a month ago. The expansion into the South African market marked a notable milestone for Bamboo, and it’s worth noting that Risevest’s entry into Kenya closely follows this move.

    Read also: Fintech Platform Sycamore Takes Top Prize at NSIA Innovation Awards

    Interestingly, the deal that led to Bamboo’s South African foray, first initiated in late 2023, is still an ongoing conversation. This suggests that the discussions and negotiations surrounding the expansion are still in progress, and the full implications of this deal are yet to be fully realised.

    The timing of Risevest’s Kenyan expansion, so soon after Bamboo’s South African launch, raises questions about the competitive dynamics in the African fintech landscape. As both companies expand their reach and offerings, it will be fascinating to observe how they navigate the opportunities and challenges presented by this increasingly crowded market.

    Risevest’s CEO Eke Urum’s Insights on Seeking Potential Alignments

    Eke Urum, founder and CEO of Risevest, stated that the startup is always looking to get into talks with other companies, including Hisa, to find potential alignments when the publication contacts for comments regarding the acquisition.

    Urum pointed out that Hisa and himself had not yet agreed. Hisa, however, has not yet released a statement.

    With support from Techstars and Ventures site, Risevest is thought to have 600,000 members on its site.

    Hisa was valued at $5 million post-money, following $250,000 in pre-seed funding in 2022 from several angel investors.

    Read also: TerraPay acquires $95 million debt to finance low-cost remittance transactions across Africa

    Risevest Acquires Hisa to Tap into Kenya’s Growing Investment Market

    The fintech startup, which is still relatively new in a sector long dominated by commercial banks with investing subsidiaries, offers Kenyans access to global investing opportunities. Ndovu is one of Hisa’s significant competitors.

    The Nairobi Securities Exchange (NSE) and the Capital Markets Authority of Kenya (CMA) have granted licences to Hisa, founded by Eric Asuma in 2020.

    By acquiring the Kenyan online stock platform, RiseVest will gain market share in the East African nation without registering a new entity and obtaining new licences from regulators.

    One of Risevest’s executives said that the market is there based on the numbers, and he believes working with a local team might be the best chance of cracking it.