US-based Fintech UMBA Buys 66.06% Stake in Kenya’s Daraja Microfinance
Delaware-based fintech UMBA Inc. has acquired a 66.06% stake in Daraja Microfinance Bank Ltd. following approval by the Central Bank of Kenya on May 23, 2022.
In April 2022, Umba raised $15 million in a pre-series A round for expansion beyond Nigeria to Kenya, Ghana and Egypt.
UMBA operates a non-deposit-taking credit business in Kenya through its subsidiary UMBA Technology Limited. In Nigeria, it operates in partnership with a licensed bank to offer digital banking services.
Daraja MFB was granted a licence by the Central Bank of Kenya on January 12, 2015, to carry out community microfinance bank business within the Dagoretti Division of Nairobi County.
“The investment by UMBA will strengthen Daraja MFB’s business model. In particular, it will support the digitalization of Daraja MFB as it moves to providing ‘anytime anywhere’ services to its customers. This is aligned to CBK’s vision of a microfinance banking sector that works for and with Kenyans,” the CBK said in an emailed statement.
According to TechCrunch, Umba has so far raised $17.5 million from investors like Tom Blomfield, the co-founder of Monzo, Lachy Groom and ACT Ventures, Lux Capital, Palm Drive Capital, Banana Capital and Streamlined Ventures participated, and Costanoa Ventures.
In February 2022, Branch International acquired an 84.89% stake in Century Microfinance Bank.