Kili Ventures, an Italian investment syndicate focused on African startups, has announced its first investment in WafR, a Moroccan fintech company aiming to improve access to financial services through a network of small, informal traders. The startup, co-founded by CEO Ismail Bargach and Reda Sallak in 2021, secured $1.5 million in seed funding from 18 investors spanning three continents.
WafR is addressing Morocco’s highly cash-dependent economy, where 89% of transactions are still conducted using physical currency, only 33% of adults hold a bank account, and bank card usage remains below 9% of transactions (World Bank Global Findex 2021, IMF Financial Access Survey 2023). The startup’s proprietary technology turns small merchants into financial service providers, allowing them to facilitate mobile phone top-ups, money transfers, and cash-in/cash-out transactions.
The startup has so far onboarded 8,500 active monthly merchants, with ambitions to expand to a network of 100,000 retailers. It is currently growing at 29% month-on-month, following a trajectory reminiscent of Kenya’s M-Pesa, which now processes mobile payments equivalent to 56.8% of Kenya’s GDP (Central Bank of Kenya 2023).
Bargach, who previously served as country manager for ride-hailing company Heetch and worked with the accelerator Seedstars, said in a statement, “The world is shifting from cash and traditional banking to mobile. We’ve seen this with Revolut and N26 in Europe, and M-Pesa and Wave in Africa. Our vision is to become the primary financial account for sending money and making payments.”
The market opportunity for WafR is substantial, with Morocco’s financial transactions industry valued at $16.5 billion. This includes $1.5 billion from mobile phone top-ups (ANRT 2023), $5 billion in domestic remittances, and $10 billion in international remittances (World Bank 2023).
Davide Rovera, managing partner at Kili Ventures, underscored the strategic nature of the investment, stating, “WafR exemplifies the type of innovation we seek to support in Africa — technology-driven solutions that democratize access to essential financial services. The team has a deep understanding of the local market, and we are confident in their ability to drive meaningful change.”
Kili Ventures is planning to expand its presence in the African investment landscape, with a target of six to ten new deals in 2025. The syndicate has indicated that its next investment round is scheduled for February 2025, with opportunities for new investors to participate.
As Morocco’s digital financial ecosystem evolves, WafR’s backers are betting on its ability to accelerate financial inclusion and provide an alternative to traditional banking. Whether it can replicate the success of similar mobile-first fintech models elsewhere in Africa remains to be seen, but early signs indicate significant demand for its services.