One of the greatest problems faced by early stage companies in Senegal is inadequate funding. Although Senegal has been receiving a fair share of the investments going into the African startup ecosystem, investors seem mostly to favour fintechs and expat founders. However, with the passage of the Startup Act in the West African country, things are looking relatively different and positive. In a major shift of things, a delivery startup, Yobante Express, founded about three years ago by a local Oumar Basse, has broken a major record, announcing a $1.2m seed funding round.
The investment is record-breaking for a few reasons. First is that this is the first time a sizeable amount would be going to a home-grown startup, in a country where mobility and fintech companies have drawn in most of the investments. Second is also that this is one of the few cases, where external investors would be backing a startup with roots in Senegal — investments in Senegalese startups outside of fintechs and mobility have often been led by local venture capital firms. Third, Oumar Basse has proved with this investment that, indeed, Senegalese founders are investable like their counterparts elsewhere.
A graduate of the Cheikh Anta Diop University of Dakar, Basse previously ran Nano Air, Senegalese startup that provides rural farmers with a device to remotely manage their irrigation systems.
But perhaps for incorporating Yobante Express in Delaware and currently operating, apart from Senegal, in five African markets of South Africa, Botswana, Zimbabwe, Nigeria and Ghana, there may still be a strong case against the influence of Senegal in assisting the startup in landing the latest deal.
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The fact that the startup has been active in the African startup ecosystem has also proved helpful towards the latest investment. In 2019, it took part in the Startupbootcamp AfriTech accelerator program in Cape Town.
Investors in this round are serial investor Launch Africa Ventures as well as Grenfell Holdings, R-Ventures, Libertad through its investment arm Aguila Investments and a pool of local and international angel investors.
Yobante Express, which is also planning Series A round of funding by the end of the year, will reach critical mass in South Africa and Nigeria using the latest funding.
“We plan to carry 2 million parcels in 2021,” said Basse. “This bridge round is to fund rollout in South Africa and Nigeria, including building operations, developing the network of relay points and carriers, and acquiring customers.”
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What attracted investors to Yobante is not far-fetched: it had had an annual revenue run rate of $8 million and carried 1.2 million parcels.
A Look At What Yobante Express Does
Founded in 2018, Yobante Express is an online marketplace that connects local carriers with local businesses to improve national, cross-border, and last-mile delivery to emerging countries. It enables local businesses to grow their sales and uses relay points to ship items promptly with the best local carriers.
Yobante funding Yobante funding
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