Synatic, a data automation software startup based in Johannesburg, has raised $1 million in a seed funding round to enable it to expand its customer base in the United States as well as develop its low-code data platform. The investment was led by UW Ventures and featuring Allan Gray and E Squared.
“We believe there is a wealth of talent and experience in SA, which offers us a great opportunity to build world-class products. We have found product-market-fit and required capital to expand the team, deepen our tech and grow our US customer base,” Martin Naude, CEO of Synatic said.
Why The Investors Invested
Based in South Africa, Umkhathi Wethu Ventures (UW Ventures) has actively been investing in South African startups as far back as 2019. The VC, which invests in multi stage, insurtech, wealth management and other sectors, had previously invested in South Africa’s Inclusivity Solutions, Healthcent, among others.
Both UW Ventures and Allan Gray have been co-investing in almost the same startups since 2019. The Cape Town-based Allan Gray had equally participated in investments for South African startups Inclusivity Solutions, and Healthcent.
E Squared on its own, has also been actively investing in South Africa since 2018. The VC recently made a R9.2-million ($612k) investment in WeThinkCode, a South African edtech startup. The VC supports Allan Gray Fellows at different stages of their business cycle. The support includes patient capital as well as post-investment assistance.
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In all Allan Gray, Africa’s largest privately owned investment management company founded by deceased South African billionaire, Allan Gray, and which is focused on generating long-term wealth for investors, appears to be the uniting force for other investors in this round.
“Synatic have built a world-class product that sits at the intersection of a large and rapidly growing SaaS market, the proliferation of the API economy, and drive-by businesses to unlock value from and monetise their data. We were attracted to Martin’s compelling product vision and the early validation from partners and customers, and we believe the business is well-positioned to become an enduring company,” Harry Apostoleris, director of UW Ventures said.
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A Look At What The Startup Does
Synatic, which was founded in 2017, aims to help companies grow by offering a creative and user-friendly data platform. The tech startup, which is still bootstrapped, now claims to have over 40 clients in Africa, Australia, and the United States. Financial service companies including Tokio Marine, Community Bank, and EasyEquities make up the bulk of its business clients.
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