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Kenyan fintech startup Chumz, which helps users set and achieve saving and investment goals through behaviour-based prompts and mobile money deposits, is testing its solution to go live in Rwanda after hitting 200,000 registered users in its home market.
Formed in late-2019, Chumz worked on a prototype in 2020, reaching out to the regulator for a license in late-2020 and receiving one a year later. The startup has built a goal-based mobile app that helps users save and invest money from their mobile money accounts, with as little as US$0.05.
The platform works by channeling funds collected from a user’s mobile money account to a licensed fund manager, who then offers a return to the fund. Earned interest is then redistributed to individual clients.
One of the unique features of Chumz is that it encourages users to save based on their behaviour.
“For instance, if a user spends money at a pub, the app suggests investing some of that money instead of spending it all. Similarly, if a user receives mobile money, the app prompts them to save some of the money. Our app offers an easy, convenient and accessible way for users to save and invest, helping them to reach their financial goals,” said Chumz co-founder Samuel Njuguna, who is also behind Kenyan mobile money startup Chura.
This innovative approach has been a success, with Chumz having hit 200,000 registered users in Kenya. It is now testing its solution to go live in Rwanda later this year.
“Our next big leap is to hit one million users in Kenya by 2026 and be operational in Uganda, Tanzania and Botswana by then as well,” Njuguna said.
The startup has also launched a new feature, the Superfan Challenge, where users save and invest based on their favourite football team’s performance.
“For example, if your team wins, the app prompts you to save a set amount,” Njuguna said.
Njuguna said the startup had identified an opportunity to serve the retail investment market, which was underserved by most fund managers, who primarily cater to institutional investors or high-net-worth individuals.
“We have seen segments such as parents using the app to educate their kids about financial literacy and at the same time create goals for them on the app,” Njuguna said. “A majority of the savers and investors are women.”