Kenyan Fintech Raise Shuts Down, Users Transition to Global Equity Giant Carta
Nairobi-based fintech innovator Raise, a platform dedicated to digitizing equity management for African startups, is set to cease its operations after seven years. This significant development will see Raise’s users seamlessly migrate to Carta, the prominent U.S.-based equity management platform. The closure underscores challenges faced by early-stage ventures attempting to build scalable business models within Africa’s nascent venture capital landscape.
The Journey of Raise: Ambition Meets Ecosystem Challenges
Founded in 2018 by Marvin Coleby, Tina Nyamache, and Eugene Mutai, Raise aimed to simplify critical financial processes for startups across Kenya and Nigeria. Its offerings included streamlined cap table management, efficient equity issuance, and robust due diligence. The startup initially garnered support from notable early-stage investors, including 500 Startups, Microtraction, and Launch Africa, signaling early confidence in its vision.
Despite this backing, Raise encountered significant hurdles in cultivating a sustainable and scalable business model within the African venture ecosystem. Marvin Coleby explained in a LinkedIn post that private equity opportunities were insufficient to sustain the platform long-term. This struggle highlights the complexities of operating specialized fintech in a market where venture capital maturity is still evolving.
As part of the transition, Raise arranged for a smooth user migration to Carta. Paid subscribers will automatically transition to Carta’s platform. Free-tier users can also move to Carta Launch, a no-cost solution for early-stage startups. Marvin Coleby will join Carta as their Head of Product for the Asia, Middle East, and Africa (AMEA) region, bringing valuable regional insight to the global platform.
The shutdown of Raise marks a pivotal moment for the Kenyan fintech scene and broader African tech community. It reminds us of the immense challenges involved in scaling specialized B2B fintech solutions in emerging markets. While Raise’s independent journey concludes, its legacy endures through user migration and its co-founder’s continued involvement. This transition could pave the way for a more integrated equity management infrastructure across Africa, as global players like Carta expand their footprint, potentially leveraging local expertise.
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