POLITICS & INSTITUTIONS - ECONOMY

Fintech: Koosmik secures $2m for digital wallet



The Koosmik digital wallet aims to become a digital service provider for unbanked populations Shutterstock

The Koosmik digital wallet aims to become a digital service provider for unbanked populations Shutterstock

Luxembourg finech firm Koosmik has raised $2m in growth capital in its second seed financing round, aimed at pushing for its expansion in Togo.

The digital wallet firm was founded in 2016 as a financial inclusion initiative offering savings, transfer and payment services via mobile and digital banking. A first funding round in 2017 raised more than $1m, enabling the firm to open an office in Lomé Togo, as well as establish a base in Luxembourg.

The second round was raised from Batipart International and Alpharatz as well as other business angels in France, Belgium, Luxembourg, Turkey and Morocco.

Koosmik is one of Luxembourg’s leading fintech firms, having received a special jury prize at the Paris Fintech Forum in February 2019. In December 2018, the firm formed a partnership with Algoreg, another Luxembourg startup, to help push its roll out in Africa.

Why Togo

Togo is a country of 7.6 million people where 78.29% of the adult population has a mobile phone, according to Koosmik. In contrast, just 46% of the population has a bank account. Koosmik aims to leverage the country’s national development plan enhancing social development and inclusion through technology to expand its product. Its goal is to ultimately become a digital service provider for unbanked populations.