Risevest, a prominent Nigerian wealth management platform, is reportedly set to acquire Hisa, a Kenyan fintech startup that enables users to invest in US stocks. This potential acquisition marks a significant step for Risevest as it seeks to expand its operations into Kenya, following its recent acquisition of Chaka, a digital trading startup, in September 2023.
Founded in 2014, Risevest has established itself in the Nigerian market by providing users access to local stocks and international investment opportunities. The planned acquisition of Hisa, which was founded in 2020 by Eric Asuma and is valued at approximately $5 million, aligns with Risevest’s strategy to broaden its reach in the East African market. Hisa has gained traction in Kenya by offering users a platform to access global investing opportunities, competing against established players like Ndovu.
The discussions regarding the acquisition began in late 2023, although no formal agreement has been reached yet. Eke Urum, the Founder and CEO of Risevest, expressed the company’s interest in exploring potential alignments with Hisa, emphasizing that they are always open to conversations with other companies. Meanwhile, Hisa has not yet issued any public statement regarding the ongoing negotiations.
The move comes at a time when the fintech landscape in Kenya is thriving, driven by a tech-savvy population and a growing demand for financial inclusion. The Kenyan fintech sector has seen significant growth, largely fueled by the success of mobile money services like M-Pesa, which has revolutionized financial transactions in the region. Risevest’s entry into this market could enhance its competitive edge and allow it to leverage Hisa’s existing user base and market knowledge.
By acquiring Hisa, Risevest can enter the Kenyan market without the lengthy process of registering a new entity or obtaining new licenses from regulatory bodies. This strategic advantage positions Risevest to capitalize on the burgeoning fintech ecosystem in Kenya, where the demand for investment platforms is on the rise.
Moreover, the acquisition aligns with a broader trend of Nigerian fintech companies expanding their operations across Africa. Just a month prior, Bamboo, another Nigerian online stock platform, launched its operations in South Africa, signaling a growing interest among Nigerian fintech firms to tap into new markets.
The potential acquisition of Hisa also reflects a shift in the investment landscape in Africa. As more fintech companies emerge, the competition for market share intensifies, prompting firms to seek strategic partnerships and acquisitions to enhance their offerings. Risevest’s move could inspire other fintech companies to consider similar strategies to expand their reach and diversify their services.
However, challenges remain. The fintech sector in Kenya, while growing, is still relatively new and dominated by traditional banks with investing subsidiaries. Risevest will need to navigate this competitive landscape carefully and ensure that it can differentiate itself from existing players.
Risevest’s reported acquisition of Hisa represents a significant step in its growth strategy, allowing it to expand its footprint in the East African market. As the fintech landscape in Kenya continues to evolve, the success of this acquisition will depend on Risevest’s ability to leverage Hisa’s strengths and address the unique challenges of the market. With the right approach, this move could pave the way for further growth and innovation in the African fintech ecosystem.
