Introduction
Risevest, a leading Nigerian wealth management platform, is reportedly in talks to acquire Hisa, a Kenyan-based fintech startup that enables users to buy US stocks. This potential acquisition aligns with Risevest's strategy to expand its footprint across Africa and further enhance its service offerings.
Risevest's Growth Journey
Founded in 2014, Risevest has established itself as a robust platform providing access to Nigerian stocks and international investments. The company has successfully acquired Chaka, a digital trading startup, in September 2023, marking its first major acquisition. With a user base of approximately 600,000, Risevest is backed by prominent investors, including Ventures Platform and Techstars.
Hisa's Emergence in Fintech
Hisa, established in 2020 by Eric Asuma, is licensed by the Capital Markets Authority of Kenya (CMA) and the Nairobi Securities Exchange (NSE). The startup offers Kenyans access to global investment opportunities, competing with established players like Ndovu. Valued at $5 million post-money, Hisa secured $250,000 in pre-seed funding from several angel investors in 2022.
Strategic Importance of the Acquisition
If the acquisition is completed, it will allow Risevest to expand its operations into the Kenyan market, leveraging Hisa's existing infrastructure and regulatory licenses. This strategic move will enable Risevest to bypass the complexities of establishing a new entity and obtaining new licenses in Kenya, providing a quicker route to market penetration.
Potential Alignments and Market Opportunities
Eke Urum, Founder and CEO of Risevest, emphasized the company's interest in exploring potential alignments with other companies, including Hisa. "We are always looking to get into talks with other companies to find potential alignments," Urum stated. However, he also noted that no agreement has been reached yet with Hisa, and the Kenyan fintech has yet to issue any official statement.
Bamboo's Expansion and Competitive Landscape
The talks of Risevest's potential acquisition of Hisa come nearly a month after Bamboo, another Nigerian online stock platform, commenced operations in South Africa. This trend highlights the growing interest and competition among African fintech companies to expand their services across the continent.
Market Position and Local Collaboration
By acquiring Hisa, Risevest aims to gain a significant market share in Kenya. One of Risevest's executives mentioned, "The market is there based on the numbers, and I believe working with a local team might be the best chance of cracking it." This approach underscores the importance of local partnerships in navigating new markets and achieving business growth.
