Kyanda is a Kenyan fintech startup that offers Digital Financial Services to businesses, SMEs and citizens. It allows users to make cheap and fast money transfers, purchase airtime, and pay bills, among other things, says Collins Kathuli, the co-founder and CEO.
Kyanda launched its first money transfer app in Kenya in August 2020 during the Covid-19 pandemic. The company has previously sought to raise investor funding and recently launched operations in South Africa.
But what is Kyanda? And who’s the force powering this nascent fintech?
Below, we answer these and more questions from Collins Kathali, the co-founder and CEO of one of Kenya’s innovative tech startups.
Tell us a bit about Kyanda
Kyanda is a fintech startup offering an Omnichannel Payment Solution to serve businesses and individuals.
The services offered cut across Utility Bill Payments, Payment Collections & Disbursements to/from Mobile Money Wallets, Bank Accounts and Card Payments.
Who founded the company, and what are their professional backgrounds?
Kyanda was founded by Collins Kathuli and Emmanuel Manani.
How is Kyanda financed?
What, in your opinion, are the dynamics shaping the fintech industry?
According to IMARC, the mobile money market as of 2021 was at Ksh 5 trillion. We are targeting just 2 per cent of the value annually. We are 60 per cent mark with 40 per cent remaining to hit our goal.
In Kenya, 56 per cent of the total population performs at least 70 per cent of their transactions in cash due to the high charges they will incur whilst accessing the same services through Online/Payments systems.
This gives Kyanda a unique selling point to offer its services to businesses (SMEs, large enterprises) and individuals to digitize their day-to-day transactions quickly, quickly and efficiently.
Why did you start Kyanda? What opportunities did you seek to tap into?
To build a Payment ecosystem that would be used greatly across Kenya and Africa. A Platform that would serve over 10 million people yearly, becoming the next Africa’s Best payment ecosystem. An ecosystem that would generally impact the underbanked and the unemployed.
What are the issues that Kyanda seek to address?
Financial inclusion allows individuals to send and receive payments and a gateway to other financial services, facilitating day-to-day living and catering to one’s needs, long-term goals and unexpected emergencies.
However, most users with access to financial services tend to pay a lot more for transaction costs, making the cost of transacting money, money transfer, paying bills and utility payments extremely high.
Many FinTech companies & banks have considered lowering transaction costs, but to users, that is still high. The best solution to such a problem is to completely cut off the costs to make it manageable, decreasing the risk of poverty.
What are the USPS of Kyanda Limited?
Our competitive advantages are:
- We have agents in the country which enable customers to visit any nearby agent to have their funds deposited or withdrawn, avoiding the Telco’s reliance.
- We have an All-in-One API Account for businesses to enable them to have simplified access to powerful payments and utility vending APIs.
- We have enabled cheap and easy access to our services through key offline mobile payment technologies such as SMS/USSD, NFC and others.
Who forms your clientele base?
Out of the 66.6 million registered mobile money customers, 48 per cent comprises the average customer.
We aim to serve approximately 500,000 average customers, among other frequent customers monthly, in our drive to process over 10 million unique transactions annually.
Our customers mostly consist of any gender and age who have access to a smartphone and need to transact money.
What does Kyanda need to grow?
To achieve our strategic plan, we’re seeking to raise $1 million for our pre-seed round.
What is your growth strategy?
- Product expansion, infrastructure that connects bank, mobile money, and offline data into a single API to help in decision making.
- Establish Kyanda’s presence in Senegal, Uganda, Ethiopia, Ghana, Benin, Togo, Zambia, Cameroon and Eritrea.
- Talent acquisition: Acquisition of 25,000 agents/merchants on the platform through Sales Agent strategy.
- Partnership growth to enhance the number of transactions to nearly 10 million transactions.
In which countries are you looking to establish your presence?
Senegal, Uganda, Ethiopia, Ghana, Benin, Togo, Zambia, Cameroon, and Eritrea.
What are your plans for the coming 12 months?
- Closing the seed round of $1 million.
- Include diaspora remittance for both individuals and businesses within Kenya and South Africa.
- Acquire Payment Service Provider License.
- Purchase and distribute Kyanda PDQs/POS to expand the agency network.