Ndovu, an investment platform that provides easy access to financial markets, is looking to expand to other countries within the next three years after launching in Kenya on Wednesday.
The expansion plans are projected to happen in three years aimed at onboarding over 1,000,000 in addition to its current users.
The platform will enable its users to invest their money in a globally diversified portfolio.
“Ndovu, which is available on both the Google Play and Apple App stores, provides users with easy access to global financial markets. It was founded upon the realization that current investment options in Kenya lock out the vast majority due to complexities in market access and high management fees,” the company said in an emailed statement.
According to its co-founders Radhika Bhachu, Ro Nyangeri, and Gianpaolo De Biase, Ndovu takes off in a Kenyan market where the aggregate value of wealth under management by different collective investment schemes stood at KSh117 billion ($81.02 billion) in June 2021, having grown from KSh56 billion ($493million) in September 2017, as per data from the Capital Markets Authority (CMA).
“Our idea was born out of our passion to improve financial lives across Africa. Our vision is to provide every African, regardless of income level or financial knowledge, with the right tools to grow their wealth. We believe educating our people on how to make their money work for them will bring us one step closer to reducing poverty on the continent,” Radhika said.
By using Ndovu, which is regulated by the Capital Markets Authority (CMA), users can invest as little as KSh5,000 ($50) in local and global investments.
“If you were to save $100 per month for 10 years in a bank account paying 2% per annum, you would earn $13,200.
On the other hand, if you invest $100 per month for 10 years using Ndovu, into the S&P 500 fund, you could earn approximately $23,500,” said Ro.
Ndovu enters a wealth-tech industry that is still in its infancy in Africa. Traditional players in the region are yet to adopt the innovations that would enable them to serve a diverse portfolio of clients.
“At Ndovu, we are playing a key role in financial inclusion by opening up the previously-gated financial markets to all. We are also demystifying investments by breaking down financial jargon with an easy-to-use platform” said De Biase.
It is its innovation that has seen Ndovu secure investor confidence through undisclosed pre-seed funding from 4DX Ventures, Plug and Play Tech Center, Future Africa, and Oui Capital.
Walter Baddo, Co-founder and General Partner, 4DX Ventures, said: “The opportunity to create frictionless and low-cost investment products for all Africans remains an important mission that we believe in.”