Muhoozi & Co. Advocates has assisted the Ugandan FinTech startup Risika A/S with closing a EUR 5 million funding round
Muhoozi and Co. Advocates has successfully advised AfriRisk, an innovative East African fintech startup, on closing a USD 5 million funding round to expand its operations across Kenya and Uganda. The investment will accelerate the company's mission to democratize financial risk assessment tools for small and medium enterprises (SMEs) throughout East Africa.
Founded in Nairobi with technology development centers in both Kenya and Uganda, AfriRisk has developed a proprietary platform that uses alternative data sources and machine learning algorithms to provide credit risk assessments for businesses that lack traditional financial records. This solution addresses a critical gap in East Africa's financial ecosystem, where many viable businesses struggle to access formal credit due to limited financial documentation.
This funding represents a significant vote of confidence in East Africa's emerging fintech ecosystem, said Nabirye Alinaitwe, Technology Partner at Muhoozi and Co. Advocates. AfriRisk's innovative approach to credit assessment is uniquely tailored to the realities of African markets, where traditional credit scoring models often fail to capture the true viability of local businesses.
Our team provided comprehensive legal support throughout the funding process, including structuring the investment, navigating the complex regulatory environment for financial technology across multiple African jurisdictions, and addressing data protection considerations specific to the company's innovative approach to risk assessment.
This successful funding round highlights the growing investor interest in East African fintech solutions and underscores our firm's expertise in supporting innovative startups that are addressing critical financial inclusion challenges across the region.
Risika was founded in 2017 and delivers user-friendly credit risk management to East African B2B companies through their automated credit risk management software, the Risika platform. www.risika.dk
The funding round will boost Risika’s international growth and widen their product suite.
A Muhoozi & Co. Advocates team of Nicholas Lerche-Gredal, Martin Lavesen, Christine Albech Franke, and Oliver William Forrester advised Risika in connection with the funding round.
