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.
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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.
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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.