Umba
Overview
Umba is a digital financial technology company focused on providing accessible and affordable banking solutions across Africa, with a primary focus on Kenya and Nigeria. Founded in 2018 by Tiernan Kennedy and Barry O’Mahony, Umba operates as a platform offering free current accounts, peer-to-peer money transfers, and tailored lending solutions. Headquartered in Nairobi, Kenya, Umba has successfully raised approximately $17.8 million in several funding rounds, the latest being a $5 million debt facility announced in 2025.
Recent Developments
- April 2025: Umba secured $5 million in debt funding from Star Strong Capital to expand its lending operations and enhance its financial product offerings across East and West Africa.
- February 2024: FairMoney, a Lagos and Paris-based digital bank, was in talks to acquire Umba for $20 million in an all-stock transaction, indicating a strategic move to expand FairMoney’s presence in Kenya.
- April 2024: The Kenyan operation of Umba reported a sixfold increase in revenue due to a growing demand for vehicle financing and SME loans.
- February 2023: Umba launched operations in Kenya after acquiring Daraja Microfinance Bank, obtaining a microfinance banking license from the Central Bank of Kenya to offer full banking services.
- October 2022: Umba raised $15 million in a Series A funding round led by Costanoa Ventures. The funding aimed to support Umba’s expansion into new African markets including Egypt and Ghana.
Company Information
| Attribute | Information |
|---|---|
| Founding Date | 2018 |
| Headquarters | Nairobi, Kenya |
| Founders | Tiernan Kennedy and Barry O'Mahony |
| Revenue | Not publicly disclosed |
| Profits | Not publicly disclosed |
| Key Investors | Star Strong Capital, Costanoa Ventures, Nubank, Monzo Co-founder Tom Blomfield |
| Industry | Digital Banking, Fintech |
| Number of Employees | 51-200 |
Early History
Umba was established with the vision of bridging the financial services gap prevalent in Africa by offering affordable, digital-first banking solutions. Initially set up in Nigeria, Umba entered the market with a focus on digital lending by providing instant peer-to-peer money transfers and credit services through a mobile application. The startup quickly gained traction due to its low-cost, transparent service model, ensuring accessibility for underserved populations. Early on, Umba attracted significant venture capital interest, raising a $2 million seed fund in 2020, which enabled the expansion of its platform capabilities.
Company Profile and Achievements
Umba operates with a customer-centric approach, aiming to provide a unified platform for managing finances effectively. Its key services include free bank accounts, quick money transfers, bill payments, and lending services tailored for individual and business needs.
- Strategic Expansion: Umba has extended its operations from Nigeria to Kenya, acquiring Daraja Microfinance Bank, which provided the necessary regulatory backing for offering expanded banking services.
- Technological Adaptation: The company utilizes sophisticated data analytics for credit scoring, thereby enhancing risk assessment and credit allocation.
- Funding Milestones: Umba's ability to secure substantial capital, including a $5 million debt and a $15 million equity round, highlights strong investor confidence in its business model and growth potential.
Current Operations and Market Position
Umba is positioned as a competitive digital bank within the African fintech landscape, providing essential banking services devoid of the traditional banking fees. As of 2025, Umba's services pivot on expanding its lending portfolio predominantly in vehicle and SME financing. The company currently leverages its digital platform to serve underbanked regions across Kenya and Nigeria with plans to venture into new markets such as Egypt and Ghana.
Conclusion
Umba embodies the evolving fintech scene in Africa, addressing crucial gaps in banking services with innovative digital solutions. With a solid foundation laid in strategic markets like Kenya and Nigeria, Umba is well-placed to capitalize on the growing demand for digital banking. As African economies continue to embrace digital transformation, Umba's targeted expansion and consistent funding success suggest a promising future trajectory, positioning it as a key player in the drive toward greater financial inclusion across the continent.