Nigerian fintech startup, CowryWise, has joined the prestigious YCombinator Summer 2018 Batch. With this development, the Fintech has joined a growing list of Nigerian and African start-ups that have participated in the YCombinator startup programme.
Previous participants include the likes of PayStack and Flutterwave and Kobo360, a logistics startup that will also be joining CowryWise in the YCombinator Summer Batch programme.
.@razaqahmed1: “This acceptance into YC is a validation of our commitment to our customers while we focus on our goal of bringing wealth management services to young Africans irrespective of their income level.”
— Cowrywise (@cowrywise) July 21, 2018
Founded in 2017 by Razaq Ahmed and Edward Popoola, the news comes as a big boost to the innovative startup. CowryWise is a fintech company that helps its users save their money by investing in high-yield government bonds.
Congratulations to @razaqahmed1 and @edwardpopoola as @ycombinator backs @cowrywise to make it easier to save and democratise wealth management for an average African.https://t.co/MaZf1BausC pic.twitter.com/8zvazeZWEF
— microtraction (@microtraction) July 21, 2018
“There’s more value in keeping the money in government treasury bills” than in the bank, says Ahmed. Using its mobile app, users can sign up with their email and phone numbers and link their bank accounts with their CowryWise accounts.
Since its creation, the startup has helped to process over $1.5 million for its customers. That’s an impressive feat, but it still means that the company is very far off from its competitors, such as PayLater.ng and PiggyBank.
You can also do this by saving with @PiggyBankNG or @cowrywise . These are electronic saving platforms. Here you can put your money on lock up until you are ready to spend or invest it.
— Lendo (@LendoAfrica) July 23, 2018
How it Compares…
PiggyBank represents the biggest competition. For one thing, unlike CowryWise, PiggyBank has a more solid grasp on the market. In 2017, it processed over N500 million naira for its customers. And this year, the young startup raised $1.1 million from investors to grow its expand its operations.
PayLater.ng’s savings offering, called PayVest, is quite new. It was only launched this month. However, it banks on the popularity of the PayLater.ng app, which already has quite a number of users. And this is its biggest edge. So for CowryWise, entry into the YCombinator is a big boost and a more potent way to announce itself to the competition.
“This acceptance into YC is a validation of our commitment to our customers while we focus on our goal of bringing wealth management services to young Africans irrespective of their income level”, says Razaq Ahmed.
We are building a community of young wealthy Africans; one with room for everyone.
Tell a friend ✌🏾 pic.twitter.com/QXwqW4zXYI
— Cowrywise (@cowrywise) July 17, 2018
As a member a YCombinator member, the CowryWise gets $120,000 investment, in return for 7% of the company. The startup also receives to support and mentorship from YCombinator’s network of investors, business people, among others.
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