Nigerian fintech Risevest moves to acquire Kenyan Hisa

• Published On: 24 July 2024 at 19:45

Risevest, a Nigerian fintech startup that provides access to global investments and Nigerian equities, is now in talks to purchase Hisa, a Kenyan business that provides access to US stocks.

If the deal goes through, Risevest will expand into the Kenyan market after acquiring Chaka, a digital trading firm, in September 2023.

According to sources acquainted with the situation, conversations about the acquisition began in late 2023 and are still ongoing. While the particular terms of the proposed deal are unknown, Hisa, which received $250,000 in pre-seed funding in 2022 from investors like Ham Serunjogi and Majid Moujaled, was valued at $5 million post-money.

Risevest's founder and CEO, Eke Urum, acknowledged ongoing conversations with Hisa, emphasising that no definite deal had yet been reached. Hisa has yet to reply to demands for comment on the incident.

Risevest's acquisition of Hisa would allow it to extend its market position in Kenya without having to establish a new organisation or seek additional licenses. Eric Asuma founded Hisa in 2020, and it is licensed by the Capital Markets Authority of Kenya (CMA) and the Nairobi Securities Exchange (NSE). Kenya's fintech sector, particularly those offering global investment opportunities, is still in its early stages, with Hisa and Ndovu standing out against a background traditionally dominated by commercial banks with investment arms.

"There is potential in the market based on the numbers, and collaborating with a local team could improve our chances of success," said a Risevest official who spoke anonymously to TechCabal.

Risevest, backed by Ventures Platform and Techstars, is expected to service about 600,000 users, highlighting its position as a prominent player in the financial field with plans for regional expansion and market growth.