In a significant move within the African fintech landscape, Nigerian-based investment platform Risevest has officially completed the acquisition of Kenya’s mobile investment platform Hisa. This acquisition is poised to reshape the investment landscape in both Kenya and Nigeria, particularly in terms of providing seamless access to U.S. stock markets and Exchange Traded Funds (ETFs) for African investors. Approved by Kenya’s Capital Markets Authority (CMA), the acquisition marks an important step for both firms as they aim to broaden the scope of investment opportunities on the continent.

Details of the Acquisition

Risevest, a Nigerian fintech startup renowned for offering U.S. stock investment opportunities to African users, has entered the Kenyan market through its acquisition of Hisa. Hisa is a mobile platform that enables Kenyan users to invest in U.S. stocks, ETFs, and other global financial instruments using mobile money. Hisa’s acquisition brings a new dimension to Risevest’s operations, especially given the mobile money integration, which is a dominant payment method in East Africa, particularly in Kenya.

Post-acquisition, Hisa is expected to retain its brand, staff, and operational structure, ensuring minimal disruption to its current business. This decision reflects Risevest’s intention to maintain Hisa’s local expertise and leverage its familiarity with the Kenyan market. TechCabal reported that Eric Jackson, Hisa’s CEO, will transition to the role of Chief Technology Officer (CTO) within Risevest, while Hisa’s co-founder, Eric Asuma, will take on the role of Strategy Advisor. Leah Njoroge, previously a Finance Associate at Hisa, will now become Head of Operations, reporting directly to Risevest CEO Eke Urum.

In the context of this acquisition, Urum stated that Risevest has no intention of changing Hisa’s brand name, emphasizing the strong resonance it has with Kenyan users. “We are not planning to make a lot of changes; it is time to understand the company, the culture, the context, and the market we are coming into,” Urum told TechCabal.

Expanding Investment Opportunities in Africa

This acquisition aligns perfectly with the shared vision of both companies to widen investment opportunities for Africans. Hisa, launched in 2020, has carved out a niche in democratizing access to global and local investments, particularly stocks, ETFs, and alternative investments such as bonds. Co-founder Eric Asuma stated that this acquisition is not just a financial transaction but a major step forward in fulfilling Hisa’s mission of providing borderless investment opportunities for Africans. “This move not only widens Hisa’s reach but will enable significant technology upgrades,” Asuma said. “We are grateful to our investors who believed in and supported our journey. The milestone is as much theirs as it is ours.”

The Risevest-Hisa deal is expected to bring enhanced resources to improve Hisa’s app stability, user experience, and the overall product offering. Both companies expressed excitement about the potential of combining their expertise and resources to create a more seamless and accessible investment experience for African investors. According to Hisa, the deal will allow them to leverage Risevest’s technology and operational strength to improve service delivery and expand product offerings, including new features tailored to meet the evolving needs of the African market.

The Hisa team also assured its clients that the acquisition will not disrupt existing relationships with partners such as Faida Investment Bank, which remains an integral part of Hisa’s investment operations. “We have also ensured that regulators and all our stakeholders were involved in our discussions and continue to endorse and support the work we do,” Hisa’s team said in a statement.

Africa’s Growing Fintech and Investment Landscape

The acquisition of Hisa by Risevest signals a growing trend of cross-border fintech expansion in Africa. As African economies become more integrated and mobile money platforms continue to thrive, fintech companies like Risevest and Hisa are seizing opportunities to provide access to global financial markets. In recent years, African fintech has witnessed exponential growth, fueled by increasing internet penetration, mobile technology, and a young, tech-savvy population.

Kenya, in particular, has become a hotbed for fintech innovation. Mobile money services, especially Safaricom’s M-Pesa, have revolutionized financial inclusion by providing millions of unbanked people access to digital financial services. By acquiring Hisa, Risevest is tapping into this mobile money ecosystem to offer a more accessible and convenient way for Kenyans to invest in global markets.

Meanwhile, Nigeria, Africa’s largest economy, continues to be a major fintech hub with companies like Risevest offering a bridge for African investors to access global markets. The acquisition marks Risevest’s first major entry into East Africa, reflecting a broader strategy to expand its services across the continent.

With African countries showing increased interest in fostering digital economies and investment platforms, there is a growing demand for fintech services that offer seamless cross-border financial solutions. The African Continental Free Trade Agreement (AfCFTA), which aims to boost intra-African trade and investment, could further accelerate this trend. By enabling businesses and individuals to access financial markets beyond their borders, companies like Risevest and Hisa are positioning themselves to capitalize on Africa’s growing appetite for investment diversification.

Hisa’s Journey and Vision

Founded in 2020 by Eric Asuma and Eric Jackson, Hisa has quickly emerged as one of Kenya’s most innovative fintech platforms. The company raised $250,000 in pre-seed funding from notable investors, including Faida Investment Bank, Estonia-based VC Startup Wise Guys, and Chipper Cash Founders Ham Serunjogi and Majid Moujaled. With this funding, Hisa was able to scale its operations and build a platform that resonates with Kenya’s young and growing middle class, many of whom are eager to invest in global markets.

Hisa’s vision is to create borderless investment opportunities for Africans, allowing users to invest in both local and international markets. The platform’s integration with mobile money, a ubiquitous payment method in East Africa, has been a key factor in its success. By allowing users to invest in U.S. stocks and ETFs using mobile money, Hisa has democratized access to global financial markets for everyday Kenyans.

The company’s acquisition by Risevest marks the beginning of a new chapter for Hisa as it seeks to expand its services and improve its technology infrastructure. The partnership with Risevest is expected to unlock new opportunities for Hisa’s users, enabling them to access a wider range of investment products and services. Additionally, the deal will allow Hisa to scale its operations and reach more African investors who are eager to diversify their portfolios.

Conclusion

The acquisition of Hisa by Risevest is a significant development in Africa’s fintech and investment landscape. By combining their expertise, resources, and market reach, the two companies are well-positioned to offer African investors seamless access to global financial markets. As fintech continues to grow on the continent, the Risevest-Hisa deal reflects the broader trend of African startups collaborating to unlock new opportunities for growth and innovation.

With the increasing integration of African economies and the rise of mobile money platforms, the future of fintech and investment in Africa looks promising. The partnership between Risevest and Hisa is just one example of how African fintech companies are working together to create a more inclusive and accessible financial ecosystem for the continent’s burgeoning population of investors. As the African market evolves, the demand for innovative investment solutions will only grow, and companies like Risevest and Hisa are at the forefront of this transformation.

photo source: Google

By: Montel Kamau

Serrari Financial Analyst

19th September, 2024