Financial services provider Power Financial Wellness has raised Sh376 million ($3 million) seed funding with proceeds set to finance the platform’s expansion in Kenya and Zambia.
The funding round was led by DOB Equity, Bolt by QED Investors, Quona Capital, Zephyr Acorn and Norrksen Accelerator.
Founded in 2020, Power has operations in Kenya and Zambia and has offices in the United States and India.
The fintech startup, which is owned by Frictionless Enterprises Limited describes itself as a digital platform for employees and gig workers aiming to improve their financial well-being.
Through partners, the company allows workers to access earned wages, long-term loans, insurance and savings.
Power collaborates with banks, lenders, asset managers and insurance underwriters in our markets to provide products to clients through its Power platform.
The fintech aims to expand across the continent with the goal of connecting working individuals with affordable and appropriate financial services.
“There is an urgent need to develop a more holistic set of financial solutions that improve financial health and well-being, for both formal workers and the growing gig economy,” said Power co-founder and CEO Brian Dempsey.
“There is a growing global workforce that is unprotected, financially stressed and unhealthy. We help individuals regain control of their financial well-being by connecting them to affordable and appropriate financial services by providing a full digital banking platform connecting financial service providers, companies and their workforces.”
In Kenya, the company engages customers directly and has already hired over 70 employers and gig platforms covering a pool of 40,000 workers.
Power’s infrastructure includes a mobile application for employees and workers, a workforce deduction management system for staff and a digital core banking engine connecting into regulated financial services providers.
“There is a massive and untapped opportunity to provide niche and relevant financial services to a demographic of the population often overlooked or underserved by existing providers,” noted QED Investors Partner and Head of Africa Gbenga Ajayi.
“The concerning deterioration in financial health and increased prevalence of predatory financial instruments, present an opportunity for transparent, holistic and beneficial financial solutions,” added Anne Njuki, an investment professional at DOB Equity.