The decision to sell or exit a tech startup typically fills investors and entrepreneurs in Africa with excitement, especially given the potential returns on investments. The recent proposal to buy the artificial intelligence startup InstaDeep from Tunisia has highlighted the significance of startup exits for both investors and founders. InstaDeep would be sold for $687M after over 9 years in business, making it possibly the most significant acquisition to have emerge from Africa. A total of £362 million in cash and BioNTech shares will be paid upfront for 100% of the outstanding InstaDeep shares, excluding the shares already owned by BioNTech, as part of the transaction. Shareholders in InstaDeep will also be qualified for future performance-based milestone payments totaling up to £200 million.
Although it took the founders of InstaDeep almost 9 years to develop such a valuable business, in this study we take into account the typical time it takes to develop a tech startup in Africa to the point where it is prepared for purchase or IPO (Initial Public Offerings), if the proper funding and management are used. We found that, on average, it would take an African tech startup roughly 6.5 or 7 years to mature up to the age of acquisition, although it may take up to 20 years in some situations, out of the total deals of 93 acquisitions and IPOs we analysed.
Read also Tunisian AI Startup InstaDeep Set For BioNTech SE Purchase At $684M
The following summarises our conclusions:
| S/N | NAME OF STARTUP | SECTOR OF STARTUP | PRIMARY COUNTRY OF OPERATIONS | YEAR FOUNDED | YEAR ACQUIRED | NUMBER OF YEARS BEFORE EXIT | NAME OF ACQUIROR/EXIT TYPE | PRIMARY COUNTRY OF ACQUIROR/ PLACE OF EXIT | NATURE/DESCRIPTION OF ACQUISITION/EXIT |
|---|---|---|---|---|---|---|---|---|---|
| 1 | Cars45 | Car-listing marketplace | Nigeria | 2016 | 2017;2020; 2021 | 1 | Frontier Car Group; OLX Group; JIJI | Germany; Netherlands; Nigeria (respectively) | Undisclosed |
| 2 | Underlie | Open Banking | Egypt | 2021 | 2022 | 1 | Fintech Galaxy | UAE | Undisclosed |
| 3 | Lamma | e-Grocery and Q-commerce | Tunisia | 2021 | 2022 | 1 | Appetito | Egypt | Undisclosed |
| 4 | Exits | M&A Marketplace | Egypt | 2022 | 2022 | 1 | PIE | Egypt | Undisclosed |
| 5 | Gyft | Mobile Gift Card | South Africa | 2012 | 2014 | 2 | FirstData | United States | Acquired for $54m |
| 6 | FwRun | Ecommerce | Egypt | 2019 | 2021 | 2 | Diggipacks | Saudi Arabia | Undisclosed |
| 7 | Surebet | Betting/Gaming | Kenya | 2019 | 2021 | 2 | TransAtlantic Capital | United States | Undisclosed |
| 8 | Delivroum | Food delivery | Togo | 2018 | 2020 | 2 | Gozem | Togo | Undisclosed |
| 9 | Shago Payments | Ecommerce payments solutions | Nigeria | 2019 | 2021 | 2 | Alerzo | Nigeria | Undisclosed |
| 10 | Sa3ar | Auto tech (car assessment) | Egypt | 2019 | 2021 | 2 | Contactcars.com | Egypt | Undisclosed |
| 11 | Stabus | Mobility | Ghana | 2019 | 2021 | 2 | Treepz (Formerly Plentywaka) | Nigeria | Undisclosed |
| 12 | Disha | One no-code tool for content creator | Nigeria | 2019 | 2021 | 2 | Interswitch | Nigeria | Disha planned to shut down on December 31, 2021, save for the acquisition. Deal amount undisclosed. |
| 13 | DoctorOnline | Healthtech | Egypt | 2020 | 2022 | 2 | CheckMe | Egypt | Undisclosed |
| 14 | Talabeyah | B2B Ecommerce | Egypt | 2020 | 2022 | 2 | MNT-Halan | Egypt | Undisclosed |
| 15 | Gallop Express | Logistics | Egypt | 2020 | 2022 | 2 | GLT Express | Saudi Arabia | Undisclosed |
| 16 | Circle | Proptech | Egypt | 2020 | 2022 | 2 | Milango | Egypt | Undisclosed |
| 17 | Digiduka | Fintech | Kenya | 2019 | 2021 | 3 | MarketForce | Kenya | Undisclosed |
| 18 | Mangwee | Fintech (Mobile payments) | Zambia | 2018 | 2021 | 3 | Zeepay | Ghana | Undisclosed |
| 19 | Harmonica | Dating | Egypt | 2017 | 2020 | 3 | Match Group | United States | Undisclosed |
| 20 | Savi.ng | Fintech (Wealth management) | Nigeria | 2018 | 2021 | 3 | PiggyVest | Nigeria | Undisclosed |
| 21 | Apposit | Enterprise (Software development) | Ethiopia | 2017 | 2020 | 3 | Paga | Nigeria | Undisclosed |
| 22 | Amplify | Fintech | Nigeria | 2016 | 2019 | 3 | OneFi | Nigeria | Undisclosed |
| 23 | QuickHelp | AI (chatbot) | Nigeria | 2015 | 2018 | 3 | 1001 Squared Artificial Intelligence | Canada | Undisclosed |
| 24 | TopCheck | Ecommerce | Nigeria | 2015 | 2018 | 3 | Silvertree | Nigeria | Undisclosed |
| 25 | Fundall | Fintech | Nigeria | 2019 | 2021 | 3 | Emerging Africa Group | Nigeria | Undisclosed |
| 26 | FarmTrust | Blockchain-enabled ecommerce | Tunisia | 2018 | 2021 | 3 | LAMMA | Tunisia | Undisclosed |
| 27 | SwitchPay | Fintech providing alternative payments options to merchants and retailers. | South Africa | 2018 | 2021 | 3 | Adumo | South Africa | Undisclosed |
| 28 | Flo by Saada | Ecommerce | Kenya | 2019 | 2022 | 3 | Elloe | Kenya | Undisclosed |
| 29 | Fatura | B2B Ecommerce | Egypt | 2019 | 2022 | 3 | EFG Hermes Holding | Egypt | Undisclosed |
| 30 | Radar | HR And Payroll | South Africa | 2019 | 2022 | 3 | Firepay | South Africa | Undisclosed |
| 31 | PayJustNow | ‘Buy Now, Pay Later’ | South Africa | 2019 | 2022 | 3 | Weaver Fintech | Mauritius | Undisclosed |
| 32 | Tareeqi | Bus tracking | Egypt | 2018 | 2021 | 3 | eMushrif | Oman | Undisclosed |
| 33 | WooCommerce | Open source ecommerce plugin | South Africa | 2011 | 2015 | 4 | WordPress | United States | Acquisition estimated to be worth over $30 million |
| 34 | WaystoCap | B2B Ecommerce | Morocco | 2017 | 2021 | 4 | MaxAB | Egypt | Undisclosed |
| 35 | Paystack | Fintech (Payments) | Nigeria | 2016 | 2020 | 4 | Stripe | United States | Acquired for over $200m |
| 36 | Bottles App | Logistics (on-demand Delivery) | South Africa | 2016 | 2020 | 4 | Pick n Pay | South Africa | Undisclosed |
| 37 | StarterHub | Community | Egypt | 2015 | 2019 | 4 | RiseUp | Egypt | Undisclosed |
| 38 | Surf Kenya | Wi-fi | Kenya | 2015 | 2019 | 4 | BRCK | Kenya | Undisclosed |
| 39 | Source Beauty | Fashion Ecommerce | Egypt | 2018 | 2022 | 4 | ECC Group | Egypt | Undisclosed |
| 40 | DilenyTech | Artificial Intelligence | Egypt | 2018 | 2022 | 4 | Astute Imaging | USA | Undisclosed |
| 41 | Mowarrid | B2B Marketplace | Egypt | 2018 | 2022 | 4 | Sary | Saudi Arabia | Undisclosed |
| 42 | Crossfin | Card and mobile-enabled payment transactions | South Africa | 2017 | 2021 | 4 | The EMMF I and ARC consortium | South Africa | $94.3m |
| 43 | Nimbula | Enterprise (Cloud computing) | South Africa | 2008 | 2013 | 5 | Oracle | United States | Acquired for $110 million |
| 44 | WayaWaya | AI and Machine Learning | Kenya | 2016 | 2021 | 5 | Ajua | Kenya | Undisclosed |
| 45 | Cape Networks | SaaS | South Africa | 2013 | 2018 | 5 | HP | United States | Undisclosed |
| 46 | Quench | Ecommerce and last-mile delivery service | South Africa | 2016 | 2021 | 5 | The Foschini Group | South Africa | Undisclosed. |
| 47 | SWVL | Mobility | Egypt | 2017 | 2022 | 5 | IPO via SPAC (Nasdaq) | USA | |
| 48 | Sky.Garden | Ecommerce | Kenya | 2017 | 2022 | 5 | Lipa Later Group | Kenya | Buy-out following bankruptcy |
| 49 | Giraffe | Recruitment | South Africa | 2015 | 2021 | 6 | Harambee Youth Employment Accelerator | South Africa | Undisclosed |
| 50 | WizzPass | Visitor Management | South Africa | 2015 | 2021 | 6 | FM:Systems | United States | Undisclosed |
| 51 | Conversio | Digital Marketing | South Africa | 2014 | 2020 | 6 | CM Group | United States | Undisclosed |
| 52 | Sendwave | Fintech (Cross-border payments) | Kenya | 2014 | 2020 | 6 | WorldRemit | United Kingdom | Acquired for $500m |
| 53 | Konga | Ecommerce | Nigeria | 2012 | 2018 | 6 | Zinox | Nigeria | $10m (Reportedly) |
| 54 | ParkUpp | Local Parking Marketplace | South Africa | 2016 | 2022 | 6 | Docklands Ventures | South Africa | Undisclosed |
| 55 | Buni.tv | Entertainment | Kenya | 2009 | 2016 | 7 | Trace Tv | Nigeria | Undisclosed |
| 56 | Baxi | Fintech (Digital agent network) | Nigeria | 2014 | 2021 | 7 | MFS Africa | South Africa | Undisclosed |
| 57 | Devcorp | Enterprise | Morocco | 2014 | 2021 | 7 | ABA Technology Group | Morocco | Undisclosed |
| 58 | Picup | Logistics | South Africa | 2014 | 2021 | 7 | Karooooo | Singapore | Acquired for $4.8m |
| 59 | CallPay | Fintech | South Africa | 2014 | 2021 | 7 | Undisclosed | Undisclosed | Acquired at a valuation of ($6.8m) |
| 60 | DabaDoc | e-Health | Morocco | 2014 | 2021 | 7 | Orange MEA; AXA CIMA | Morocco | Undisclosed |
| 61 | Luno | Blockchain | South Africa | 2013 | 2020 | 7 | Digital Currency Group (DCG) | United States | Undisclosed |
| 62 | OLX Africa | Classifieds | Nigeria | 2012 | 2019 | 7 | JiJi | Nigeria | Undisclosed |
| 63 | Filkhedma | Homes services | Egypt | 2014 | 2021 | 7 | SweepSouth | Egypt | Undisclosed |
| 64 | JUMIA | Ecommerce | Nigeria | 2012 | 2019 | 7 | IPO (Nasdaq) | USA | |
| 65 | Accounteer | Accounting | Nigeria | 2015 | 2022 | 7 | Float | Ghana | Undisclosed |
| 66 | ParceNinja | Ecommerce logistics | South Africa | 2013 | 2021 | 8 | Imperial Logistics | South Africa | Undisclosed |
| 67 | Mobisol | Off-grid energy | Kenya | 2011 | 2019 | 8 | Engie | Kenya | Undisclosed |
| 68 | Tactful AI | Artificial Intelligence | Egypt | 2016 | 2022 | 8 | Dstny | Belgium | Undisclosed |
| 69 | UCOOK | Meal Kit Delivery | South Africa | 2014 | 2022 | 8 | Silvertree Holdings | South Africa | $12.3M |
| 70 | iHub | Innovation Hub | Kenya | 2010 | 2019 | 9 | CcHub | Nigeria | Undisclosed |
| 71 | Nafham | Social startup for free crowdsourced educational content | Egypt | 2012 | 2021 | 9 | Tyro | Egypt | Undisclosed |
| 72 | InstaDeep | Artificial Intelligence | Tunisia | 2014 | 2023 | 9 | BioNTech SE | Germany | $684M |
| 73 | GetSmarter | Edtech | South Africa | 2007 | 2017 | 10 | 2U | United States | Sold for $103-million plus $20-million in cash. |
| 74 | Kapa Biosystems | Life Science | South Africa | 2006 | 2016 | 10 | Roche | Switzerland | Acquired for for $445-million |
| 75 | eLimu | Edtech | Kenya | 2010 | 2020 | 10 | CcHub | Nigeria | Undisclosed |
| 76 | Kngine | AI | Egypt | 2008 | 2018 | 10 | Samsung Electronics | South Korea | Undisclosed |
| 77 | Cheki (Nigeria, Uganda, Kenya) | Auto tech | Nigeria, Uganda, Kenya | 2010 | 2021 | 11 | Autochek | Nigeria | Undisclosed |
| 78 | QuickCash | Fintech | Côte d’ivoire | 2010 | 2021 | 11 | E-Settlement | Nigeria | Undisclosed |
| 79 | MainOne | Data center infrastructure | Nigeria | 2010 | 2021 | 11 | Equinix | United States | $320m |
| 80 | Retail Capital | Fintech (SME Funder) | South Africa | 2011 | 2022 | 11 | TymeBank | South Africa | Undisclosed |
| 81 | Fundamo City | Fintech (Mobile financial services) | South Africa | 1999 | 2011 | 12 | Visa | United States | Acquired for $110 million |
| 82 | Eventtus | Events management | Egypt | 2012 | 2021 | 12 | Bevy | United States | Undisclosed |
| 83 | Exchange4Free | Fintech (Cross-border payments) | South Africa | 2008 | 2021 | 13 | AZA Finance | Kenya | Undisclosed |
| 84 | DPO Group | Ecommerce | Kenya | 2006 | 2020 | 14 | Network International Holdings plc | United Arab Emirates | Undisclosed |
| 85 | Beyonic | Fintech (Payments) | Uganda | 2006 | 2020 | 14 | MFS Africa | South Africa | Undisclosed |
| 86 | Lawtrust | IT security | South Africa | 2006 | 2021 | 15 | Altron | South Africa | Acquired for $17m |
| 87 | Ubusha Technologies | Identity Security Solutions | South Africa | 2003 | 2019 | 16 | Altron | South Africa | Undisclosed |
| 88 | Quirk (Mirum) | Digital agency | South Africa | 1999 | 2016 | 17 | WPP | London, United Kingdom | Acquired for a reported R350 million to R400-million ($35million to $39 million) at the time of the sale. |
| 89 | Genric Insurance | Insurtech | South Africa | 2005 | 2022 | 17 | Old Mutual | South Africa | Undisclosed |
| 90 | Gumtree | Online Classified Ads | South Africa | 2005 | 2022 | 17 | Adevinta | Norway | Undisclosed |
| 91 | Okuhle Media | Digital media | South Africa | 2003 | 2021 | 18 | Trace | France | Undisclosed |
| 92 | orderTalk | Foodtech | South Africa | 1998 | 2018 | 20 | Uber Eats | United States | Undisclosed |
| 93 | SPEED | B2B e-commerce | Egypt | 1997 | 2022 | 25 | X-ERA | UAE | Undisclosed |
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard