Tunisian venture capital firm 216 Capital has taken a significant step towards fostering digital transformation in Africa with its recent announcement that it has led a $500,000 funding round for pan-African startup ProXalys Inc. The fintech company, based in the United States (New York) and Senegal, focuses on the digitalization of the informal sector and aims to facilitate the migration of informal businesses to formal channels.
ProXalys Inc has expanded its operations to Tunisia and is making waves with its latest product, “ProBoutiK,” designed to revolutionize operational methods for informal businesses. This application includes features for invoicing tracking, financing offers, and a supply marketplace, enhancing the ability of informal entrepreneurs to sell and meet working capital needs.
The $500,000 funding round comprises three funds, with 216 Capital leading with $300,000. Support is also provided by Haskè Ventures and Digital Africa (through the FUZE program). ProXalys Inc plans to leverage this funding to accelerate the Go-To-Market strategy for “ProBoutik” and strengthen its DATA & AI teams in Tunisia and Senegal, establishing a strong presence in both sub-Saharan Africa (from Dakar) and the North African region (from Tunis).
ProBoutiK’s commitment to the digitalization of the informal sector positions the startup uniquely in the landscape of online payment solutions. This promises competitiveness and responsibility on a continental scale, especially considering the challenges faced by the informal trade in Africa, which includes over 60 million micro-businesses with a funding requirement exceeding $400 billion.
These businesses, generally unregistered since inception, encounter challenges in managing accounts receivable, bookkeeping, and e-commerce. ProBoutiK addresses this gap by introducing an application that allows entrepreneurs from the informal sector to handle these aspects through a unified platform built on a multifunctional wallet.
Hassen Arfaoui, Principal Investment Manager at 216 Capital, expressed enthusiasm about the collaboration, stating, “Proxalys Inc. through its product ProBoutik represents a significant contribution to digitalization and financial inclusion in Africa’s informal retail sector. The collaboration reflects a shared belief in the necessity of financial inclusion and digital transformation to drive sustainable economic development in the region.”
Founded in 2022 by Senegalese entrepreneur Thierno Sakho, ProXalys Inc emerged from Sakho’s extensive experience in financial markets, corporate banking, and insurance. The company aims to centralize digital payments, transforming informal businesses into formal enterprises and creating an economic environment conducive to their growth.
In a similar vein, 216 Capital, founded in Tunis in 2021, is a seed and pre-seed venture capital firm specializing in technology companies. It invests with determined and creative entrepreneurs building disruptive businesses, reaffirming its commitment to building a better future for Africa. The firm aims to make a real and lasting impact, stimulate economic growth, and foster positive change in communities affected by this value creation.
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.