Ugandan fintech startup awamo, which offers tech solutions to microfinance institutions, has raised a further US$1.7 million in funding to roll out its products across the East African country.
Launched in 2015, awamo offers a mobile, biometric Software as a Service (SaaS) core banking and credit bureau solution for unregulated microfinance providers in Sub-Saharan Africa, with its awamo 360 product easing the work of microfinance providers by digitising their business processes and enabling credit information sharing between lenders.
Credit information sharing, along with the startup’s mobile biometric authentication, increases security, transparency and reduces loan defaults in the microfinance sector.
The startup raised its first funding round of US$550,000 in August 2015, and has now secured an additional US$1.7 million to continue its development. Investors include the German Investment and Development Corporation (DEG) and angel investors Bernd Wendeln, founder of Germany’s first social venture capital fund, and Jochen Berger, founder of web hosting and server solutions firm intergenia.
“This funding round is an exciting step forward for awamo.” said chief executive officer (CEO) Benedikt Kramer.
“With the additional funds and backed by a highly experienced and hands-on supervisory board we are now in the best position to roll out awamo 360 in all of Uganda.”
awamo has also appointed new members to its supervisory board, who will advise the startup’s management and assist with their knowledge, experience and networks.