Startups that succeed in raising funds during this time of economic downturn will increasingly be showing resilience in the face of adversity. Following this line is Ugandan online investment advisory startup XENO which has raised a US$150,000 pre-seed funding round to power its continued growth. The funding, which has brought the startup’s total fundraising to US$430,000, will power the growth of this pioneering Ugandan startup.
“For the astute investor, a downturn is an opportunity to invest in quality companies with strong fundamentals on the cheap….There has never been a better time to invest in the equity markets. Downturns give way to recovery. Always,’’ said Aeko Ongodia, founder XENO.
Here Is All You Need To Know
- The pre-seed funding round in the startup came from Nordic Impact Funds.
- The startup plans to use the funding to fund its growth, with XENO having recently partnered MTN Uganda to make professional investment advice and management available to its subscribers.
- The latest funding brings the startup’s total investment secured so far to US$430,000.
Why The Investor Invested
Nordic Impact Funds is an East Africa-focused social impact fund investing in mid-stage gender smart and climate smart businesses, particularly in the agribusiness, education, health and basic services sectors, which are scalable economically and are viable models for impact.
“Our conviction is that financially viable businesses, led by dedicated social entrepreneurs, play a crucial role in achieving self-sustained large scale and long term social impact. These businesses offer underserved people opportunities for jobs and income, and a choice of needed services and products that improve the quality of their lives,” the fund stated on its website
“We invest in companies with proven impact and profitability that are in the process of scaling their business model. We like to invest with more than capital and be active partners to the companies we invest in,’’ it further added.
A Look At What Startup Xeno Does
Launched in 2017 by Aeko Ongodia, XENO uses artificial intelligence (AI) to help people plan, save, and invest their money in a diversified investment portfolio.
The startup’s platform takes into account a user’s personal circumstances, financial goals and risk tolerance to automatically devise a recommended investment portfolio, and claims its risk profiling and portfolio-compiling algorithm is one of the first of its kind in Africa.
The firm invests client funds through four unit trust funds — XENO Uganda Money Market Fund, XENO Uganda Bond Fund, XENO Uganda Domestic Equity Fund, and XENO Uganda Regional Equity Fund — in partnership with KCB Bank Uganda as trustees and Stanbic Bank Uganda as custodian.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer