Kenyan fintech startup Chumz, known for its innovative approach to helping users achieve saving and investment goals, is gearing up for expansion into Rwanda after reaching 200,000 registered users in Kenya. With a mission to make financial planning more accessible through behavior-based prompts and mobile money deposits, Chumz is set to launch in Rwanda as it builds momentum in East Africa.
Founded in late 2019, Chumz initially focused on developing a prototype and securing regulatory approval. By 2021, the startup had obtained a license to operate and launched its mobile app, allowing users to save and invest as little as $0.05 directly from their mobile money accounts. The funds are managed by licensed fund managers who generate returns, which are then distributed back to users.
One unique aspect of Chumz is its behavior-driven approach to encourage saving. The app prompts users to save or invest in real-time based on their spending habits. For instance, if a user makes a purchase at a pub, Chumz suggests saving part of that amount instead. Similarly, when a user receives mobile money, the app nudges them to allocate a portion for savings.
“Our app provides an easy and accessible platform for users to save and invest in a way that aligns with their goals,” said Samuel Njuguna, Chumz co-founder and also the mind behind Kenyan mobile money startup Chura. “We’ve seen great success with this model, with 200,000 users already registered in Kenya, and now we’re testing our solution to go live in Rwanda.”
Chumz’s expansion plans are ambitious. Njuguna shared that the startup aims to reach one million users in Kenya by 2026 and expand into Uganda, Tanzania, and Botswana by then. As part of its growth, Chumz recently introduced the “Superfan Challenge,” a feature that links users’ savings goals with their favorite football team’s performance. For example, if a team wins, the app prompts fans to save a set amount, adding a fun, interactive aspect to financial planning.
In addition to personal savings, Chumz has identified a gap in the retail investment market that typically caters to high-net-worth or institutional clients. “We’ve noticed significant engagement from parents using the app to teach financial literacy to their children, as well as a strong interest among women,” Njuguna added.
