Local startup, Jamboo, raises US$600,000 from Diaspora Kapita, fresh off raising $420K elsewhere

For the few that may still not be familiar with Jamboo, it is a “UK based digital bank for African migrants residing in the U.K. and Europe which empowers migrants with access to banking and investment opportunities across Africa.”

It was founded by Zimbabweans and will cater to Zimbabweans and other African people in the Diaspora. Hence why we’re invested in their journey.

The last time we talked about Jamboo, which was less than a month ago, they had raised US$420,000 from a local businessman. A big deal we helped them celebrate.

Now, they have just gone on and raised even more capital.

Diaspora Kapita set to invest US$600,000 in Jamboo

Diaspora Kapita, a leading investment firm, has revealed its commitment to invest US$600,000 in Jamboo during its capital raise in the first quarter of 2024.

This strategic investment will place Diaspora Kapita at the forefront of creating a groundbreaking African wealth and investment platform.

Jamboo is the first-of-its-kind digital solution that provides banking and investment services to the African diaspora in the UK and Europe.

Vhusi Phiri, CEO of Diaspora Kapita, said: “This collaboration will be key for Zimbabwean investors who are seeking exposure beyond the country’s borders. For diaspora investors, it presents an opportunity to invest in, and a chance to own assets aligned with capturing value across the African Diaspora, aiming to transcend mere remittances and truly own the value chain.”

Takwana Tyaranini, CEO of Jamboo said: “Diaspora Kapita is a reputable company and this partnership will unlock a myriad of opportunities, providing a seamless avenue for the African diaspora to strategically invest their money and actively participate in shaping the economic landscape of the continent. 

“This innovative partnership underscores a commitment to fostering financial empowerment and growth within the African community, ushering in a new era of investment possibilities.”

The Jamboo app has been designed to give everyone the flexibility to grow their money and access it whenever they need. So far more than 2000 people have expressed interest to be beta testers. Recently, the demo app was sent to over 300 early stage investors and the company is looking forward to further enhancing the features and the framework before officially launching it.

The collaboration between Jamboo and Diaspora Kapita will revolutionise the investment landscape, providing a gateway for global investors to access lucrative opportunities within African economies. With Zimbabwean diaspora remittances alone exceeding US$2 billion, this initiative contributes significantly to the overall remittances to Africa, which now surpass US$100 billion.

Who is this Diaspora Kapita?

Diaspora Kapita CEO, Vhusi Phiri

In their words:

Established in 2014, Diaspora Kapita (DK) emerged as a catalyst for enabling investments by Zimbabweans residing abroad in collaboration with their counterparts back home. This dynamic organization boasts investments across various sectors, including financial services, contract mining, construction services, agriculture, and health services.

…
The primary aim of DK is to generate value for both groups while fostering Africa’s development by creating employment opportunities and actively contributing to the resolution of the continent’s challenges.

DK says unlocking the potential of remittance flows into Africa from its children living abroad presents a huge opportunity. They mention the fact that the African Diaspora remit over US$48bn annually with Zim Diaspora responsible for US$1.5bn of it.

Therefore DK enables Zimbabweans in the diaspora and those residing in the country to collaborate on co-investments and project execution.

DK lists an office in South Africa but the team appears to have all come from Zimbabwe.

Investors believe in the Jamboo idea

In the space of just a month Jamboo has announced just over a million dollars raised in capital. Investors clearly believe there is potential in this business idea.

Being resident in Zimbabwe, we do not understand the extent that African immigrants are underbanked and underserved in Europe. On this evidence, I’m starting to think the problem is massive.

The other side I had not considered is that Jamboo will also provide resident Zimbos with a simpler way to invest in other African countries as the Diaspora Kapita CEO put it. That’s huge cause how many of us know anything about the investment opportunities in Senegal for example.

In the years when the ZSE and VFEX aren’t performing well, a Jamboo that helps Zimbos look elsewhere would be welcome.

Validation?

It’s either the business model just makes sense or the Jamboo pitch deck is dripping with honey such that no eye can gaze upon the power point slides and not open up their wallet.

The first investor Rutenhuro Moyo, is a seasoned businessman who would not be hoodwinked. The second investor, Diaspora Kapita (DK) is in the business of evaluating investment opportunities and they thought Jamboo deserved US$600,000 of their money. That has to count for something.

The synergy made sense to DK and Jamboo because DK says they are all about “enabling investments by Zimbabweans residing abroad in collaboration with their counterparts back home.” Jamboo has the same goal.

Of course, this doesn’t remove the need to properly execute the idea. Jamboo recently sent their demo app to early investors and have 2000 people interested in beta testing it. The next few months are going to be crucial as they target a full launch in February or March.

We hope for success. We could do with some good news.

Also read:

• ‘Local startup’ raises $420,000 from local businessman, to launch demo by 20 December
• Zim co-founded digital bank to target underserved African diaspora with banking and investment opportunities
• 75% of jobs in banking sector lost since 2000, digitisation mostly to blame