Nigerian startup Kwaba, which helps low and middle-income earners to split their annual rent into convenient monthly installments, has raised a funding round from Ingressive Capital to help it scale.
Kwaba makes rent payment less stressful, and also offers further services such as apartment search, quick funds at affordable rates, and further credit facilities for the purchase of properties.
The startup, which earlier this year took part in the LABS by ARM accelerator, banking US$20,000 in funding and additional growth support, has now raised funding from Ingressive Capital, a US$10 million VC fund targeting early-stage startups across Sub-Saharan Africa.
Kwaba will use the investment to expand its reach and give more people access to its solution, especially during these trying times post-COVID-19. Estimates suggest that about 60 per cent of tenants will not be able to pay their house rents in Nigeria in the coming months due to the impact of the pandemic, a problem that Kwaba believes it has the solution to.
“By investing in Kwaba, we are helping the banked and the unbanked in Nigeria to have access to loans and credits that would give them a better life. COVID-19 financially impacted lots of Nigerians negatively and there has been a surge in the need for credit and we are glad that we can help make people’s lives a little better and provide shelter indirectly through Kwaba. We are glad to be a part of this innovation changing the housing industry in Nigeria,” said Uwem Uwemakpan, director of fund operations at Ingressive Capital.