Umba, a U.S.-based digital bank with a focus on emerging markets, has purchased a controlling stake in Daraja, a microfinance institution that accepts deposits in Kenya, for an undisclosed amount. According to Kenya’s central bank, the acquisition of Umba’s 66.6% stake is anticipated to hasten Daraja’s digitization. Umba has so far raised $17.5 million from investors including Tom Blomfield, co-founder of Monzo, Lachy Groom, ACT Venture Partners, Lux Capital, Palm Drive Capital, Banana Capital, Streamlined Ventures, and Costanoa Ventures. Daraja will increase Umba’s visibility in the nation’s competitive financial market and provide an opportunity to provide more specialized services while also providing a lifeline to the microfinance industry.
US-Based Fintech Umba Buys Majority Stake in Kenya’s Daraja Microfinance Bank