Selected Rwandan fintech startups are set to benefit from an acceleration programme by way of addressing their needs for skills, partnerships, access to capital and markets as well as navigating the regulatory environment.
Dubbed FinTecHub, the programme is implemented by the Rwanda ICT Chamber in Private Sector Federation in partnership with the UN Capital Development Fund (UNCDF) Rwanda, the Government of Rwanda and Kigali Innovation City.
It supports innovative early-stage companies through a combination of bespoke technical assistance, access to market and flexible milestone-based grants, linkage to mentors and other potential partners that can accelerate the startups’ business growth, according to officials.
The second cohort of startups to benefit will be selected through a competitive application process that examines the growth level, sustainability, scalability, and inclusivity of the digital financial solutions that the applicants are developing as criteria.
Fintech startups meeting the above criteria are highly encouraged to apply via https://fintechub.rw/.
"We want to support our startups so that they are able to grow their customer base and raise money to grow. We accelerate and facilitate them in different ways, help them to get to the point where they are able to improve their competitiveness and investment readiness as well as their scalability of markets,” said Alex Ntale, the CEO of ICT Chamber which oversees the programme implementation.
Roselyne Uwamahoro, UNCDF Rwanda Programme Coordinator noted that the FinTecHub project is part of the agency’s goals to advance Inclusive Digital Economies.
"We are working to nurture a culture of innovation to help fintechs in Rwanda develop solutions that are needed by financial markets to adapt to the fast-changing dynamics and the evolving needs of customers unleashed by new technologies,” she said.
She said the supported startups will promote financial inclusion and ease access to different financial services and products for low income earners and vulnerable populations.
It will also create more jobs, she said.
How the first cohort benefitted
The application for the second cohort comes after the first cohort of four fintech startup companies have graduated from a six-month acceleration programme.
All the four fintech startups received technical support and a milestone-based grant worth between $5,000 and $20,000 to improve their businesses post-training.
These startups include BeneFactors Ltd, a Rwandan factoring company, providing tailored working capital solutions to firms where future payments from your buyers are sold to a third party, and the factor for cash and can work with pending invoices or purchase orders for delivery.
Hepta Pay Ltd with bill payment application serving the East African Region helps to pay for utilities bills, to top-up airtime and to load any mobile money online.
Raisin Ltd deals in online ticketing platform for event management and works with Tap&Go as transport E-ticket and also online bus booking.,
Exuus is taking Village Savings and Loan Associations (VSLAs online and helping low income communities become more financially resilient.
They are currently being supported by mentors who have expertise in strategy, leadership, talent management and technology, impact investing and customer acquisition.
"Working with FinTechHub has enabled us to streamline our data with the help of an excellent mentor, as well as helped us raise some issues to the policymakers with the emphasis we would not have achieved on our own.
"Additionally, being part of a cohort has allowed us to learn from our peers and get support and encouragement on the startup journey during a challenging time of Covid-19,” notes Sara Oon, the CEO of BeneFactors.
Victoria Munguti, the Managing Director of Hepta Pay Ltd, another graduate startup, said the programme has helped her company to think of new revenue streams.
"We were trained on investment strategies and investor identification, as well as market penetration strategies for our projects. In addition, FinTechHub helped us a lot in doing in-depth research regarding our upcoming product related to retail management systems for the SMEs sector,” she said.
Angelo Munezero, Public Digitization Analyst at the Ministry of ICT and Innovation said that fintech startups acceleration program will contribute to the country’s ambition to transform 80 percent of Rwandans embrace digital payments by 2014 and have all people financially included.
"This will be possible by incubating innovative solutions to promote digital payments for all categories of people,” he said.