Propel, a Berlin and Lago-based HR-tech startup with offices in Lisbon and Lagos, recently secured a €2.5 million (~$2.74 million) funding round. The investment was led by No Such Ventures, an Amsterdam-based venture capital firm. Other participants in the funding round included APX (Axel Springer & Porsche), Golden Egg Check, and Future of Learning Fund.
The €2.5 million investment will be used to support Propel’s growth initiatives, including scaling its community platform, developing new tools for its value stack, and expanding its network of communities.
Why the Investors Invested
The major reasons why investors chose to invest in Propel are as follows:
- Africa’s Growing Tech Ecosystem: Africa’s tech ecosystem has been experiencing significant growth, attracting billions of dollars from local and foreign investors. This, coupled with the region’s burgeoning talent pool, including software developers, UI/UX designers, and other tech professionals, makes it an attractive market for investment.
- Sustainable Talent Pipelines: The investors were impressed by Propel’s unique ‘Community as a Service’ model, which enables global companies to access talent from tech communities. This model provides a responsible, sustainable regenerative approach to talent acquisition, emphasizing collaboration and shared value. The investors saw this approach as a differentiating factor and believed it had the potential to disrupt traditional hiring practices.
- Market Demand for Remote Talent: The COVID-19 pandemic has accelerated the shift to remote work globally. As companies seek cost-effective hiring solutions and diverse talent pools, the importance of the open talent economy, particularly in Europe, has become evident. Investors see an opportunity in Propel’s ability to connect tech communities with companies driven by diversity, equity, and inclusion mandates, thereby meeting the market demand.
A Look at Propel
Propel was founded in 2020 by Sunkanmi Ola, Seun Owolabi, and Abel Agoi. The startup’s primary markets are Berlin, Lisbon, and Lagos, where it has established offices. Propel specializes in developing tools and services for tech talent communities, such as developer groups, talent incubators, and training schools. These tools address the last-mile challenges faced by these communities, facilitating connections to jobs, financial services, and various benefits.
Currently, Propel collaborates with over 100 tech communities across 15 countries, serving a combined membership of approximately 400,000 individuals. Noteworthy communities in Propel’s ecosystem include SheCodeAfrica, Ingressive for Good, Niyo Network, Datafest, People In Product, Friends of Figma, and various Google Developer Groups. These communities vary in size, location, gender distribution, and tech stack, reflecting the diversity within Propel’s network.
In addition to its revenue-generating activities, Propel aims to have a positive and tangible impact on the growth of millions of people. The startup provides communities with a plug-in platform that addresses their last-mile challenges, enabling them to focus on their core competencies and deepen local connections.
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Propel’s inclusive approach and commitment to responsible talent sourcing have garnered recognition and support. To date, the startup has raised over €3 million in funding, including the recent €2.5 million investment. This capital infusion will enable Propel to scale its community platform, introduce new tools to enhance its value stack, and expand its ecosystem of communities. Notable investors, such as No Such Ventures and the Google Black Founders Fund, have expressed confidence in Propel’s mission and growth potential.
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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