Ingressive Capital, a $10 million VC fund targeting early-stage startups across Sub-Saharan Africa, announced its investment in Nigerian rental financing startup Kwaba.
According to a recent report by Business Day, About 60 percent of tenants will not be able to pay their house rents in Nigeria in the coming months due to the impact of the pandemic and its crippling effect on household income, jobs and earning powers of people in Lagos. According to Estate Agency Professionals, six out of every 10-renters will default on their rent payment or struggle to pay because they cannot pay.
Kwaba is looking to mitigate this by offering complete rental services to renters, for those in search of new apartments or those renewing their existing rent. It offers quick funds at affordable rates and renters can access further credit facilities to purchase properties.
Uwem Uwemakpan, Director of Fund Operations at Ingressive Capital said: “By investing in Kwaba, we are helping the banked and the unbanked in Nigeria to have access to loans and credits that would give them a better life. COVID financially impacted lots of Nigerians negatively and there has been a surge in the need for credit and we are glad that we can help make people’s lives a little better and provide shelter indirectly through Kwaba. We are glad to be a part of this innovation changing the housing industry in Nigeria.
Kwaba helps low and middle-income earners split their annual rent into convenient monthly instalments, making rent payment less stressful and quicker to meet up with.