In a strategic move to broaden its influence and operational reach in the African fintech landscape, Rise, a prominent Nigerian fintech firm specializing in global investment access for its customers, has successfully acquired Hisa, a burgeoning investment startup based in Kenya. This acquisition marks Rise’s second significant deal within a year and comes with the approval of Kenya’s Capital Markets Authority (CMA). As a result of this acquisition, Rise is now authorized to operate within the Kenyan market, opening up new opportunities for growth and expansion.
Continuity and Operational Integration
Following the acquisition, Hisa will continue to operate under its established brand, and there will be no immediate changes to its operational structure. The company’s staff will remain intact, and the day-to-day operations of Hisa will proceed as usual. Rise CEO Eke Urum emphasized this point, stating, “We like the Hisa name because it resonates well with Kenyans so we have no plans on changing it.” Urum further noted, “We are not planning to make a lot of changes; it is time to understand the company, the culture, the context, and the market that we are coming into.”
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Transaction Details and Financial Structure
While specific financial details of the transaction were not disclosed by Rise, sources familiar with the deal indicated that the acquisition was structured with a combination of stock and cash. This approach is reflective of the nuanced financial strategies often employed in such significant mergers and acquisitions.
Leadership Changes and Team Structure
As part of the integration process, notable changes have been made in the leadership of Hisa. Eric Jackson, who was previously the CEO of Hisa, will transition to the role of Chief Technology Officer (CTO). This position had been vacant following the departure of Eric Asuma, Hisa’s co-founder and former CEO. Asuma, who also founded the business publication Kenyan Wall Street, will continue to contribute to Hisa as a strategy advisor.
Leah Njoroge, who has a background as an investment analyst at Kenyan Wall Street and a finance associate at Hisa, has been appointed as the new Head of Operations. In this role, Njoroge will oversee the operations of Hisa and manage the seven employees currently on the team. Njoroge will report directly to Eke Urum, who will include Hisa in his broader portfolio of acquired startups.
Future Plans and Team Expansion
Looking ahead, Hisa has indicated plans to expand its leadership team once operational improvements become evident. The potential for bringing in external leadership to enhance the team will be considered as part of this growth strategy. However, for the time being, operations will continue as they were prior to the acquisition.
Investor Involvement and Status
The acquisition involved key investors such as Faida, a Kenyan investment bank, and prominent figures like Ham Serunjogi and Majid Moujaled, co-founders of Chipper Cash. While Rise has not confirmed whether any of Hisa’s investors have exited the company post-acquisition, Eke Urum has verified that Faida remains an active investor.
In summary, the acquisition of Hisa by Rise represents a significant development in the fintech sector, reflecting a strategic effort to expand into new markets and leverage existing local expertise. The focus will be on maintaining continuity while exploring opportunities for growth and improvement in the Kenyan market.
1 Comment
Innocent Amadi
“We are not planning to make a lot of changes; it is time to understand the company, the culture, the context, and the market that we are coming into.”
Absolutely love that take. Less arrogance, more respect.
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