tappi, a digital commerce Software as a Service (SaaS) solution for small and medium-sized businesses, successfully secured $1.5M in an oversubscribed Pre-Seed funding round. The leading contributors were Mercy Corps Ventures and Chui Ventures, with participation from Digital Currency Group, SOSV, Resilience17, growX ventures, Orbit Startups, and Reflect Ventures. Angel investors and advisors from prominent global tech companies, such as Google, Salesforce, Zendesk, and the financial sector, also played a role in the investment.
This early-stage funding is intended to propel tappi’s mission of empowering SMEs across Africa by enhancing visibility and trust in the digital commerce ecosystem. Founded in 2022 by Kenfield Griffith and Louis Majanja, tappi focuses on digitizing Africa’s $20 billion SME market through innovative software solutions. The company offers affordable SaaS and enterprise-grade tools, starting as low as $2 per month, and collaborates with major mobile network operators and financial institutions. AI integration in operations facilitates a seamless online business profile creation process, with a particular focus on Kenya and Nigeria. Key components of tappi’s end-to-end digital commerce stack include Payments, Messaging, and AI, aiming to serve as the SEO backbone to boost revenue for SMEs across the continent.
Why The Investors Invested
Investors chose to allocate funds to tappi for several compelling reasons. The $1.5M investment aligns with tappi’s goal of expanding its footprint across Africa and empowering SMEs. The fact that major players such as Mercy Corps Ventures and Chui Ventures led the funding suggests a strong belief in tappi’s potential to address the untapped market in Africa’s informal SME sector. This sector, comprising approximately 44 million businesses, drives significant employment (60%) and GDP (38%) on the continent. The investment aims to fill the gap for these underserved businesses, especially those led by women, and enhance their resilience to external shocks, including those exacerbated by climate change.
The decision to invest is also substantiated by the findings of the 2023 Africa MSME Pulse Survey, which indicates a growing reliance on technology among SMEs. As over 25% of respondents plan to invest in e-commerce and website development, tappi is strategically positioned to meet this demand. The company’s ability to provide a holistic package for SMEs, including a verified digital presence and performance tracking, further justifies the investors’ confidence.
A Look At tappi
Founded in 2022 by Kenfield Griffith and Louis Majanja, tappi is at the forefront of digitizing Africa’s $20 billion SME market. The startup offers end-to-end digital commerce solutions, with a particular focus on small and medium-sized businesses. tappi provides SaaS and enterprise-grade tools, starting at an affordable $2 per month, and collaborates with major mobile network operators and financial institutions. The company, headquartered in Kenya and Nigeria, embeds AI in its operations to streamline online business profile creation through an intuitive chat experience.
Key features of tappi’s digital commerce stack include Payments, Messaging, and AI, aiming to serve as the SEO backbone for SMEs across the continent. The company has successfully captured verified reviews on $3 million consumer transactions and engaged with over 150,000 consumers since its inception. In addition to its strong presence in Kenya and Nigeria, tappi plans to double down on its current markets by building a robust sales force, forging strategic partnerships, and investing in talent acquisition and brand building. Notably, tappi’s existing relationship with MTN Nigeria has contributed to a 19% month-over-month growth in business ads and business data bundle subscriptions, showcasing the practical impact of the startup’s solutions.
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.