The founders of Ndovu, an online investment platform [File] Last year, Wall Street was rattled by a market craze as retail investors banded together to drive up meme stocks in what came to be seen as a geeks’ revolution against hedge fund billionaires.
Overnight, GameStop, a retail chain store selling computer games that had been written off as a dying breed, came back to life.
Between January 1 and 28, 2021, GameStop’s share price soared 2,700 per cent from Sh1,949 to Sh54,579 in a frenzy driven largely by retail investors.
Fans of GameStop and online traders rallied on messaging boards and trading apps such as Robinhood to drive up the price and at some point, the app was forced to restrict purchases to steady the markets. READ MORE
The GameStop bubble served to illustrate the disruptive effects of online trading platforms that are increasingly becoming popular among novice investors with little time, resources or financial literacy to engage brokers and investment planners.
Solution for retail investors
Earlier this month Ndovu, an online investment platform, was launched in Nairobi as a solution targeting retail investors looking to invest in both local and foreign securities. Minimum investments start at Sh5,000. Ndovu is available on both Google Play and Apple App stores and uses blockchain technology and artificial intelligence to create investment profiles unique to each user based on their goals and preferences.
The start-up was co-founded by Radhika Bhachu, Gianpaolo De Biase and Ro Nyangeri, a former head of strategy at the Nairobi Securities Exchange (NSE).
“At Ndovu, we are playing a key role in financial inclusion by opening up the previously gated financial markets to all. We are also demystifying investments by breaking down financial jargon with an easy-to-use platform,” said De Biase, Ndovu’s chief technology officer.
Once users download the app and create an account, they are prompted to answer a series of questions about their financial goals. On their dashboard, they are provided with investment options ranging from government bonds, unit trusts, equity and commodity exchange-traded funds (ETFs).
“Our vision is to provide every African, regardless of income level or financial knowledge, with the right tools to grow their wealth,” said Ms Bhachu, Ndovu’s chief operating officer, who has previously worked for BlackRock, the world’s largest asset manager.“We believe educating our people on how to make their money work for them will bring us one step closer to reducing poverty on the continent,” she said.Ndovu […]
