Kili Ventures announces that it has invested in WafR, an innovative start-up that is transforming access to financial services in Morocco through a widespread network of informal traders. The company, led by CEO and founder Ismail Bargach, completed a $1.5m seed round that saw the participation of 18 investors from three continents.
WafR is revolutionising the Moroccan financial sector, where 89% of transactions still take place in cash (World Bank Global Findex 2021), only 33% of adults have a bank account (IMF Financial Access Survey 2023) and seven thousand specialised outlets offer financial services for a population of 38 million. In this context, the start-up has developed a proprietary technology that transforms the existing network of small merchants into financial service providers, democratising access to essential services such as phone top-ups, money transfers and cash-in/cash-out services.
With over 8,500 active monthly merchants out of a potential network of 100,000, WafR is experiencing 29% month-on-month growth. The startup is following a similar path to M-Pesa in Kenya, where mobile payments now account for 56.8% of the national GDP (Central Bank of Kenya 2023), demonstrating the huge transformational potential that fintech solutions can have on the African continent.
Bargach, brings significant experience in the Moroccan innovation ecosystem, including the role of country manager of the scaleup Heetch and the accelerator Seedstars, as well as a master’s degree from the MPS School of Business. ‘The world is moving from cash and traditional banking to mobile,’ Bargach explained in a note. ‘In Europe we see Revolut and N26, in Africa M-Pesa and Wave. Our vision is to become the bank account that everyone will use to send money and pay for any purchase”.
WafR operates in a potential market of USD 16.5 billion in Morocco, split between: phone top-ups: USD 1.5 billion (ANRT 2023), domestic remittances: USD 5 billion, international remittances: USD 10 billion (World Bank 2023). In a country where the use of bank cards does not exceed 9% of transactions, the startup is creating the financial infrastructure of the future.
Davide Rovera, managing partner of Kili Ventures, (pictured with Bargach) comments, “WafR perfectly represents the kind of innovation we seek to support in Africa: a technology solution that democratises access to essential services, led by an exceptional team with a deep understanding of the local market. As Kili Ventures’ first investment, we are particularly proud to support a startup that is already demonstrating a significant impact in the Moroccan market.”
The investment is part of a strong growth environment for African tech. In 2024, start-ups on the continent raised USD 3.2 billion through 534 deals (-7% in funding and -2% in number of deals compared to 2023). Fintech remains the leading sector (with 60% of total funding), followed by agriculture, health, mobility and cleantech. According to the Partech Africa report, despite macroeconomic challenges such as currency devaluations, high interest rates and persistent inflation, the African market has shown resilience with a moderate decrease compared to other emerging regions. Funding was mainly concentrated in Nigeria ($520M), South Africa ($459M), Egypt ($297M) and Kenya ($221M), which together account for 67% of total funding in 2024.
Kili Ventures continues to strengthen its dealflow in the African tech ecosystem, aiming to complete 6-10 new investments in 2025. Investors interested in joining the Kili Ventures network and participating in upcoming investment rounds can learn more about the next deal scheduled for February 2025 here.
ALL RIGHTS RESERVED ©