Charles Udoh - Afrikan Heroes

South African Fintech Stitch Launches Crypto Payment Option Amidst Soaring Cryptocurrency Adoption

November 21, 2023

Stitch, a fintech company based in South Africa, has recently unveiled a novel cryptocurrency-based payment solution. This new offering, titled “Pay with crypto,” empowers customers to make payments directly from their cryptocurrency wallets. The introduction of this payment method aligns with the escalating popularity of cryptocurrency in the local market, where an estimated 7.7 million South Africans are reported to possess cryptocurrency to date. This trend is mirrored on a global scale, reflecting an increasing interest in utilizing cryptocurrency for transactions involving goods and services.

In an official statement, Stitch highlighted that the implementation of this payment solution enables local merchants to accept cryptocurrency payments from customers seeking to purchase products and services. Junaid Dadan, the President of Stitch, remarked, “Cryptocurrency adoption in South Africa has been one of the highest in the world. There’s a massive audience that would prefer to use their crypto to make payments. We’re excited to offer Stitch clients an opportunity to reach and serve this audience, without the need to take on direct volatility risk, thanks to our ‘Pay with crypto’ method.”

Stitch, established in February 2021 as an application programming interface fintech startup, operates with offices in Cape Town, Johannesburg, and Lagos, Nigeria. The company specializes in creating infrastructure that facilitates businesses in connecting to users’ financial accounts, ensuring seamless transactions. Among its notable enterprise clients are companies such as MultiChoice, MTN, The Foschini Group, Standard Bank’s SnapScan, and Yoco.

The ‘Pay with crypto’ option presented by Stitch allows customers to either make a deposit or complete a transaction using cryptocurrency stored in their VALR or Binance wallets, or alternatively, send Bitcoin or Ethereum directly. Accessing this payment method is straightforward: customers choose ‘Pay with crypto’ at the checkout, select their preferred wallet and cryptocurrency, and Stitch handles the conversion of cryptocurrency to ZAR, settling the merchant in ZAR on the subsequent business day.

Stitch emphasizes that any business embracing digital payments can seamlessly integrate ‘Pay with crypto’ into its operations. This includes online marketplaces, e-commerce enterprises, gaming and trading platforms, as well as local and international travel service providers. Blake Player, Head of Growth at VALR, expressed enthusiasm about the collaboration, stating, “We’re excited to see yet another partner building on top of the VALR Pay API. The Stitch integration expands the options VALR customers have to spend crypto balances in South Africa in the e-commerce market. The interest we’ve had in working with the VALR Pay product has been amazing, and we’re expecting high growth in the volume of crypto payments as it becomes more widely accepted.”

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

Ivory Coast Set to Overtake Africa’s Leading Startup Nations with Approved Startup Act

The stage is set for startups in Ivory Coast to embark on a new phase. They are joining their counterparts in Tunisia, Senegal, Algeria, Congo, and Nigeria, who have recently secured legislation specific to their needs, more commonly referred to as the Startup Act. After years of campaigning, deliberation, and consultation, the country’s Senate’s Commission on Research, Science, Technology, and the Environment has unanimously decided, greenlighting the Startup Bill aimed at propelling the growth of digital startups. This landmark move, sealed on Tuesday, November 14, underscores the government’s dedication to nurturing the development and resilience of these innovative enterprises.

Ibrahim Khalil Konaté, the Minister of Digital Transition and Digitalization

Presenting the proposal to the upper echelons of the Ivorian parliament, a government envoy elucidated the bill’s overarching goal: to shepherd digital startups from their vulnerable inception to full maturity. The ultimate aspiration is to amplify their impact on reshaping the national economy and elevating the overall quality of life for citizens.

What Does the Bill Say?

Central to the legislation is a commitment to fostering innovation and providing vital support for digital startups in their nascent or burgeoning stages. This entails crafting a bespoke legal framework for the registration and accreditation of Ivorian digital startups. The bill also delineates a roadmap for supporting and aiding accredited startups, empowering them to play a pivotal role in the national economic landscape.

Ibrahim Khalil Konaté, the Minister of Digital Transition and Digitalization, struck an optimistic note regarding the proposed legal framework. He underscored the distinctive economic model of digital startups, still in its formative phase, and the associated challenges in defining market components and ensuring immediate profitability. Konaté highlighted the inherent uncertainties and risks faced by these ventures as they navigate uncharted territories.

What Difference Would it Make in Ivory Coast?

Although the West African country has not been receiving adequate attention from investors targeting the African startup ecosystem — the country received a meager $33 million (12th in Africa) in 2022 — all that seems set to change. This is so because of the current effects of similar legislations in Algeria, Tunisia, Senegal. Thanks to the positive image promoted by the legislations, these countries have witnessed significant improvements in funding accruing to startups — $150 million, $117 million, and $105 million respectively — , ranking just behind the continent’s top five: Nigeria, South Africa, Egypt, Kenya, and Ghana.

With a population of 27.48 million and the highest per capita income in West Africa ($2,486) — beating Nigeria, Ghana, and Senegal — the country seems set to make memorable marks on the continent’s startup ecosystem.

For the parliamentary group Rhdp, this legislative milestone, grounded in a consultative and inclusive approach, heralds the creation of a tailored incentive framework for the establishment and promotion of digital startups in Ivory Coast.

“Beyond these advantages, this bill will establish a specific support and governance framework for Ivorian digital startups, with the primary objective of accelerating socio-economic growth,” a spokesperson Rhdp says, noting that this will finally afford these startups the tailored support they need., lauding this innovative approach.

While this forward-looking initiative holds promising prospects, the Rhdp parliamentary group stresses the importance of heeding relevant and effective recommendations to stimulate innovation, economic growth, and competitiveness.

The final step for the bill to come into full effect is for the country’s president to grant his final approval.

Startup Act Ivory Coast Startup Act Ivory Coast

After a Major Exit in 2021, Investors Plot a Comeback in Morocco’s Cash Plus

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

African Startups Continue Acquisition Spree in Expansion Drive Amid Funding Drought

November 20, 2023

In a dynamic landscape where African startups navigate the challenges of funding scarcity, two notable acquisitions have recently unfolded, underscoring the resilience and ambition of the continent’s entrepreneurial spirit.

Neighbourgood’s Merger with Local Knowledge:

South African proptech startup Neighbourgood has made headlines with its acquisition of Cape Town-based traveltech startup Local Knowledge in a cash and equity deal valued at $1.5 million. Describing the move as more than a merger, Neighbourgood envisions a union of two visionary missions to redefine urban living and travel experiences.

The acquisition coincides with the launch of a viral tourism ad featuring comedian Trevor Noah, in partnership with the Tourism Business Council of South Africa (TBCSA). With a bold target of attracting 21 million visitors by 2035, TBCSA CEO Tshifhiwa Tshivhengwa aims to build on last year’s 5.8 million inbound international tourists.

Neighbourgood, established in 2020, currently provides around 1000 living and workspaces for tourists, predominantly in South Africa, and plans to deploy an additional 650 next year. Leveraging Local Knowledge’s expertise in connecting travelers with local communities, Neighbourgood aims to create The Experience Vertical — a platform offering personalized suggestions and exclusive insights into city life, curated by knowledgeable locals.

Murray Clark, Neighbourgood CEO, sees this acquisition as a significant milestone in the travel and hospitality industry, envisioning a future where travel is about building friendships and communities. Neighbourgood’s ambitious plans extend beyond Cape Town, with an expansion into California slated for next year.

Chimoney’s Strategic Move in Fintech:

On another front, Nigerian fintech startup Chimoney has quietly sealed an undisclosed deal to acquire Scrim App, a social payment app catering to Gen Z. Founded by Pleasant Balogun two years ago, Scrim App enables users to send payments via social handles and direct messages.

Uchi Uchibeke, Chimoney CEO, commends the brilliance behind Scrim’s concept and expresses confidence in its growth potential. The Scrim App is set to be relaunched in December 2023, powered by Chimoney’s API and Wallet as a Service (WaaS).

The relaunched Scrim App promises enhanced features, including earning opportunities, shopping with Scrim wallet balance, and global real-time payments. Users will have flexible withdrawal options, including transfers to bank accounts in over 100 countries, mobile money wallets in 17 countries, and engaging in cryptocurrencies across seven blockchains.

Uchibeke emphasizes the seamless integration of Scrim with Chimoney’s API, ensuring greater stability and reliability while preserving the Scrim name and brand. The collaboration is positioned to elevate Scrim to new heights, offering users a diverse range of financial options.

These acquisitions highlight the strategic efforts of African startups to expand their reach, diversify their offerings, and overcome funding challenges, signaling a promising trajectory for the continent’s entrepreneurial ecosystem. As these ventures unfold, the African startup landscape continues to be a focal point for innovation and growth.

Lessons Learned as Africa-focused FinTech Zazuu Shuts Down After Raising $2M

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

After a Major Exit in 2021, Investors Plot a Comeback in Morocco’s Cash Plus

In a strategic move signaling a comeback to the Moroccan financial landscape, investment fund Mediterrania Capital Partners, in collaboration with a consortium of investors, is eyeing a return to the capital of Cash Plus, a prominent payment institution in Morocco.

Mediterrania Capital Partners, known for its focus on SMEs and medium-sized enterprises in Africa, had previously entered the capital of Cash Plus in 2014, acquiring a significant 49% stake. However, the private equity firm exited its investment in February 2021. Now, it aims to re-establish its presence by jointly acquiring a majority stake in Cash Plus, according to an announcement made by the Competition Council of Morocco on Thursday, November 16.

The proposed acquisition involves a consortium of notable entities, including the International Finance Corporation (IFC), the FMO, and five other private entities. The specific share allocations for each participant have not been disclosed. The formation of a new company, MC IV Money, has been confirmed for the sole purpose of facilitating this investment in Cash Plus.

Mediterrania’s return to Cash Plus had been under speculation since early November, and the recent announcement confirms their intention to rejoin the shareholding structure. The private equity firm had previously sold its shares in Cash Plus in February 2021, following which it had hinted at potential reinvestment.

This investment initiative aligns with Mediterrania’s recent activities, including a €15 million investment from its latest fund, MC IV Fund. The fund has already seen successful investments in pharmaceutical company Laprophan and, notably, in Cash Plus. These moves underscore Mediterrania’s commitment to bolstering the financial landscape in Morocco.

Cash Plus, founded in 2004 and currently owned by the Tazi and Amar families, operates as a leading payment institution in Morocco. Offering a range of financial and para-financial services, from money transfer to bill payments, Cash Plus has been a significant player in the local financial market for nearly two decades.

The success of this proposed acquisition could reshape the ownership structure of Cash Plus and potentially enhance its capacity to expand and innovate within the dynamic financial services sector.

Senegalese Agtech Startup Tolbi Raises Funding to Drive AI-Powered Precision Agriculture

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

Nigeria’s Pricepally Secures $1.3M Seed Funding to Fuel Expansion and Group Buying Revival

November 19, 2023

Pricepally, a Nigerian online grocery store specializing in fresh produce and packaged food, has successfully secured $1.3 million in seed funding. This funding round was supported by various investors, including Samurai Incubate, a Japanese VC that had also participated in the startup’s 2021 pre-seed round, along with contributions from SOSV, ELEA, Hi2 Global, Chui Ventures, and ex-Unilever executive David Mureithi. Pricepally plans to utilize the funds to expand its operations beyond the three cities it currently serves in Nigeria and to reintroduce group buying, aligning with its commitment to providing affordable food options for consumers.

Pricepally’s business model involves sourcing fresh produce directly from farmers, some of whom are under contract, and obtaining packaged food from manufacturers. The negotiation of prices, combined with short supply chains, allows the startup to maintain affordable supplies. Luther Lawoyin, the CEO, emphasizes the importance of transparency in their operations, stating that the company’s growth and customer retention, with existing buyers contributing over 80% of revenues, are indicative of the value proposition.

The startup, founded in 2019 by Luther Lawoyin, Deepak Bansal, Mosun Lawoyin, and Jummai Abalaka, facilitates same- or next-day delivery through its digital channels, including an app and WhatsApp chatbot. While Pricepally outsources delivery services, it operates a network of fulfillment centers within the cities it serves.

Investors have chosen to inject funds into Pricepally for several compelling reasons. The startup’s commitment to reducing the cost of food, ensuring availability, and maintaining predictable prices aligns with the pressing issue of food insecurity in Nigeria. By eliminating numerous layers of middlemen, Pricepally maintains control over the quality and supply of its products, offering fairer prices to consumers.

Furthermore, the strategic decision to reintroduce group buying is seen as a catalyst for growth. This approach allows retail customers to join forces, unlocking wholesale prices and potentially accelerating Pricepally’s market expansion. The startup’s emphasis on transparency has resulted in steady customer growth and high retention rates, showcasing its ability to address challenges in the Nigerian e-commerce landscape and build trust with consumers.

A Look at Pricepally:

Founded in 2019, Pricepally operates in Nigeria, with its founders being Luther Lawoyin (CEO), Deepak Bansal (CTO), Mosun Lawoyin (CXO), and Jummai Abalaka (COO). The startup focuses on three primary cities but aims to expand its reach with the recent funding. Pricepally’s core mission is to provide affordable, fresh produce and packaged food, sourced directly from farmers and manufacturers.

The startup’s unique selling points include a commitment to transparency, visible in its pricing strategies and supply chain management. By leveraging its sourcing strength and negotiating prices with farmers, Pricepally aims to contribute to solving Nigeria’s significant challenge of food insecurity. With a customer base primarily composed of retail buyers, the startup anticipates accelerated growth through the reintroduction of online group buying and the launch of April, a WhatsApp chatbot targeting the mass market in Nigeria. Rena Yoneyama of Samurai Incubate commended Pricepally’s execution ability, emphasizing the company’s success in navigating the challenges of e-commerce in Nigeria through improved service quality and customer trust.

Senegalese Agtech Startup Tolbi Raises Funding to Drive AI-Powered Precision Agriculture

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

Lessons Learned as Africa-focused FinTech Zazuu Shuts Down After Raising $2M

November 18, 2023

In a startling turn of events, Zazuu, the Africa-focused remittance aggregator, has announced its closure, sending shockwaves through the African financial technology sector. Founded in 2018 with a mission to empower African immigrants in navigating the intricate landscape of international money transfers, Zazuu managed to secure $2 million in a 2022 funding round. However, despite its valiant efforts, the company has succumbed to the relentless challenges posed by a formidable funding climate.

A Mission Unraveled by Financial Realities

Zazuu’s inception was marked by an admirable commitment to addressing the financial impediments faced by African immigrants, particularly those residing in the U.S. and the U.K. Operating in an environment where traditional financial systems often present formidable obstacles, Zazuu sought to provide transparency and choice in remittance options.

The reality, however, proved harsh as Zazuu grappled with the daunting task of securing growth funding to propel its mission forward. Despite achieving significant milestones such as obtaining regulatory approvals and establishing a diverse portfolio of remittance options, the unforgiving funding landscape emerged as the principal catalyst for Zazuu’s demise.

Navigating a Crowded Landscape

Zazuu entered a remittance space that has progressively become saturated and fragmented. The emergence of digital disruptors like NALA, Lemonade Finance, and Chipper Cash, alongside established players such as WorldRemit and Remitly, created a highly competitive environment. Zazuu attempted to carve a niche for itself by offering a comprehensive aggregator service, allowing users to discern rates and fees from over 17 service providers across multiple corridors.

The initial success of Zazuu as a chatbot, disseminating daily remittance rates on social media platforms, evolved into a full-scale aggregator. CEO Kay Akinwunmi underscored the company’s commitment to providing users with a transparent and unbiased view of their remittance options, aiming to shift power away from traditional financial institutions.

Challenges and the Harsh Reality of Closure

Despite Zazuu’s reported 2.3 times growth in its user base during Q1 2022 compared to the entire previous year, the platform grappled with challenges in a fiercely competitive market. While it aimed to alleviate pain points for service providers, such as high customer acquisition costs and churn, the company’s closure emphasizes the uphill battle faced by fintechs in balancing user growth and sustainable operations.

Zazuu’s closure prompts a reflective examination of the volatile funding climate within the fintech space. Despite raising a commendable $2 million in 2022, the company found itself unable to secure the necessary funding for sustained operations. This underscores the capricious and competitive nature of the landscape that even promising startups must navigate.

Lessons Learned from Zazuu’s Demise

Fintech Challenges in Bridging Financial Disparities

Zazuu’s closure shines a spotlight on the arduous terrain of the remittance landscape, particularly in sub-Saharan Africa. Despite the increasing inflow of remittances, the World Bank reports that the region remains the most expensive for sending and receiving money, with an average cost of 8% for a $200 transfer compared to the global average of 6%. Zazuu’s demise underscores the persistent difficulties in devising effective solutions to address these challenges.

The Struggle for Transparency in Remittance Services

While Zazuu entered the scene as a transparent aggregator, aiming to empower users by providing a comprehensive view of remittance options, its closure suggests that achieving transparency and altering consumer behavior in the remittance space remains an uphill battle. Analysts from the World Bank’s Remittance Prices Worldwide emphasize the vital role of transparency in reducing remittance costs.

Market Fragmentation and Fintech Competition

Zazuu’s experience in a highly fragmented remittance market, teeming with both digital upstarts and established players, highlights the significance of sustainable strategies for fintechs entering such crowded domains. The company’s initial success as a chatbot informing users of daily remittance rates underscores the challenges posed by fierce competition.

In all, Zazuu’s closure serves as a stark reminder of the ruthless realities faced by fintech startups, navigating a complex landscape fraught with challenges. The lessons learned from Zazuu’s demise will undoubtedly reverberate throughout the industry, prompting a reevaluation of strategies and a heightened awareness of the delicate balance between user growth and sustainable operations.

Zazuu Shuts Down Zazuu Shuts Down Zazuu Shuts Down

African Fintech Zazuu Raises $2M For Its Cross-border Payment Marketplace

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

Senegalese Agtech Startup Tolbi Raises Funding to Drive AI-Powered Precision Agriculture

In a significant stride for African agriculture, Tolbi, a cutting-edge Senegalese startup, has announced a pivotal investment from Fuzé. This funding marks a turning point for the agtech sector in the region, as Tolbi’s innovative solutions promise to revolutionize farm management and environmental sustainability.

Tolbi’s groundbreaking approach incorporates satellite imagery and artificial intelligence to deliver precise insights for farmers, empowering them to optimize practices, increase yields, and reduce operational costs. The startup’s commitment to sustainable agriculture is further exemplified by its creation of a marketplace facilitating the estimation and trading of carbon credits, allowing farmers to economically benefit from environmentally conscious farming practices.

The infusion of capital from Fuzé is poised to catapult Tolbi’s expansion throughout Africa and drive the development of advanced features for its digital solution. This strategic investment underscores Fuzé’s confidence in Tolbi’s potential and its positive impact on the African continent.

Mouhamadou Lamine KEBE, CEO & Founder of Tolbi, expressed enthusiasm about the partnership: “We are thrilled to welcome Digital Africa to our investment round. Their alignment with our vision and impactful initiatives in Agtech will undoubtedly accelerate Tolbi’s growth. With their robust financial and technical support, our team is poised for rapid scalability and progress.”

Ali Mnif, CIO of Digital Africa, echoed the sentiment: “We take pride in announcing our investment in Tolbi. Mouhamadou and his team have developed an innovative technology that seamlessly integrates climate considerations with smart agriculture solutions. With a seasoned team of researchers and specialists, Tolbi is well-positioned to lead the charge in transforming African agriculture.”

Tolbi stands as a pan-African climate-Agtech pioneer, harnessing the power of satellite imagery and AI for precision agriculture. The startup also operates a marketplace facilitating carbon credit estimation and trading in the voluntary market.

Tolbi is a Senegalese agtech startup founded in 2022, dedicated to advancing precision agriculture in Africa. Through the integration of satellite imagery and artificial intelligence, Tolbi empowers farmers with data-driven insights to enhance productivity and environmental sustainability.

Tolbi Fuzé Tolbi Fuzé

Moroccan Startup Chari Secures Major Funding from UM6P Ventures for B2B ECommerce Expansion

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

Swoop Funding Introduces New Funding Options for Startups in South Africa

November 17, 2023

Swoop Funding, a leading global player in business funding solutions, proudly declares its official entry into the South African market, as of November 16, 2023. This strategic move has been made possible through robust collaboration with industry leaders Sage and Enterprise Ireland, solidifying Swoop’s commitment to addressing social, political, and economic challenges in South Africa.

The company’s expansion into South Africa represents a significant stride in its dedication to combatting high unemployment rates and fostering economic growth. Swoop aims to empower South African businesses by providing seamless access to a variety of funding solutions tailored to their unique needs.

Ciaran Burke, Co-founder of Swoop Funding

At the core of Swoop’s mission is the resolve to offer comprehensive financial support, responding to the urgent demand highlighted by a survey indicating that 96% of South African small- and medium-sized businesses seek assistance with Access to Finance[1]. Swoop bridges this gap by connecting businesses with a diverse array of funding options, including loans, equity investment, and grants. This holistic approach ensures that businesses can access the most suitable finance to spur their growth and sustainability.

The decision to establish a presence in South Africa is reinforced by strategic partnerships with Sage, a global leader in accounting software and business technology solutions, and Enterprise Ireland, a key player in Irish economic development. These collaborations underscore a shared commitment to nurturing innovation, growth, and sustainability within the South African business landscape.

Ciaran Burke, Co-founder of Swoop Funding, expresses enthusiasm about the venture, stating, “We are thrilled to introduce Swoop to South Africa, a country teeming with potential and a vibrant entrepreneurial spirit. Our platform is designed to be a catalyst for positive change, offering a lifeline to businesses facing financial challenges.”

Swoop’s participation at AfricaCom, alongside industry leaders from Sage and Enterprise Ireland, as well as Ireland’s Ambassador to South Africa, HE Austin Gormley, showcased a collaborative effort and shared commitment to supporting South African businesses on their path to success.

Already making a positive impact in the local business community, Swoop has successfully funded enterprises such as Growing Paper, a South African company producing handmade, biodegradable paper embedded with seeds. This early success underscores the platform’s efficacy in addressing the diverse funding needs of businesses across various sectors.

Ambassador Austin Gormley expressed strong support for Swoop’s entry into the South African market, welcoming the arrival and acknowledging the contribution they will make by addressing critical challenges and creating meaningful opportunities for local businesses.

Swoop Funding is a global platform dedicated to facilitating simplified access to funding for businesses. Their mission is to empower all businesses and drive economic growth by seamlessly connecting them with a comprehensive range of funding options, including loans, equity investment, and grants.

Nairobi-Based Bio-Logical Raises $1M Seed Funding to Empower Smallholder Farmers and Combat CO2 Emissions

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

South Africa’s Welltec Group Secures $5.4M Funding, Eyes Global Impact in FinWellTech Revolution

Legacy Africa Capital Partners’ (LACP) Fund 1 has recently injected a substantial R100 Million ($5.4M) investment into Welltec, a prominent Financial Wellness Technology (FinWellTech) firm. This investment aims to fortify Welltec’s market standing and facilitate the expansion of their customized financial wellness programs targeted at financial and fintech organizations. The timing is crucial, given the challenging financial landscape in South Africa, marked by soaring debt levels and economic strains. Welltec’s FinWellTech software is designed to craft configurable, personalized financial wellness programs, offering a lifeline for individuals navigating the complexities of personal loans in the face of economic adversity. The investment is strategic for LACP, aligning with their commitment to fostering innovation in the financial technology space, and is a testament to Welltec’s adept and diverse management team.

Weltech founders, Johannes Jonck, Richard Charrington, Gert Jonck, and Obed Tongoane

Why the Investors Invested

The investment decision is anchored in Welltec’s potential to address the pressing financial challenges faced by South Africans. LACP recognizes Welltec’s capacity to make significant impacts in the FinWellTech domain, emphasizing the leadership prowess of Johannes Jonck, Richard Charrington, Gert Jonck, and Obed Tongoane. The financial struggles of South Africans, as highlighted by PwC’s 2023 Employee Financial Wellness Survey, underscore the demand for effective financial management solutions. Welltec’s products directly target this need by providing tools for managing personal finances, tracking spending, and setting realistic financial goals. The investment from LACP not only supports Welltec’s mission to alleviate employee over-indebtedness but also propels the company towards becoming a leader in the Financial Wellness Technology sector.

A Look at Welltec

Founded in September 2020, Welltec Group is a FinWellTech startup operating in South Africa. The founders, Johannes Jonck, Richard Charrington, Gert Jonck, and Obed Tongoane, lead a company with a primary focus on automating the complex process of restructuring consumer debt. The Welltec platform employs a rule-based decision-making logic that tailors debt restructuring plans to each consumer’s unique situation, distinguishing itself from other service providers in its product agnostic and client-centric approach. Welltec’s commitment to addressing local financial challenges aligns with LACP’s dedication to nurturing homegrown South African solutions. By focusing on financial wellness and technology, Welltec not only tackles critical financial issues but also contributes to the growth and development of the tech industry, making a meaningful impact on the economy and society.

Welltec South Africa Welltec South Africa

Grindstone and Anglo American Foundation Unveil First Cohort of Green Tech Startups in South Africa

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

Flat6Labs Intensifies Sub-Saharan African Entry with New Partner for its $95M Africa Seed Fund

In a strategic move aimed at fortifying its presence in the dynamic African startup landscape, Flat6Labs (www.Flat6Labs.com), the preeminent seed venture capital firm in the Middle East and North Africa (MENA) region, proudly welcomes Christine Namara as a Partner for its Africa Seed Fund. With over a decade of extensive experience in private equity, startup operations, and venture capital, Namara brings unparalleled expertise and a vast network to Flat6Labs’ recently unveiled US $95 million Africa Seed Fund (ASF), dedicated to nurturing early-stage tech startups across the African continent.

The Africa Seed Fund will concentrate its investments in three key regions: North Africa, West Africa, and East Africa, signaling Flat6Labs’ expansion into the East and West African markets. Namara’s regional proficiency will play a crucial role in establishing and managing this expansion, ensuring seamless integration with local startup ecosystems. Over the next five years, ASF aims to invest in over 160 early-stage startups operating in the technology sector in Africa.

Describing herself as “vigorously pan-African,” Namara boasts extensive experience within the African technology ecosystem. Her journey includes transitioning from the operational side to the dynamic world of venture capital. In her previous roles at two prominent high-growth startups in East Africa, Namara honed her skills in B2B sales, people management, and product management. Before joining Flat6Labs, she led capital ventures at a reputable accelerator for early-stage startups in Africa. This diverse background has provided Namara with an intricate understanding of the multifaceted challenges and opportunities that early-stage entrepreneurs encounter in the ever-evolving African tech landscape.

In her role at Africa Seed Fund, Namara takes on a pivotal position in identifying, nurturing, and supporting innovative startups. Her extensive experience in private equity and venture capital equips her with unparalleled knowledge and strategic insights, making her an invaluable asset to the fund’s mission.

“With innovation as our compass and collaboration as our engine, I am honored to join Flat6Labs, a pioneering force in shaping Africa’s entrepreneurial landscape. Together, we will embark on a transformative journey, unlocking the vast potential of startups across the continent. In this interconnected world, every idea has the power to change lives. I am excited to champion these innovations, catalyzing progress and leaving a lasting impact on communities in Africa and beyond,” Namara states.

Dina el-Shenoufy and Ramez El Serafy, General Partners of Africa Seed Fund, emphasize that Namara’s appointment is a significant milestone in the company’s African expansion journey. Her wealth of knowledge, combined with her extensive regional network, will be invaluable as the team continues to support and nurture innovative startups on the continent through the Africa Seed Fund. The fund is anticipated to have a substantial impact on the continent, potentially creating more than 14,000 jobs, supporting over 1,200 founders with 20% female participation, and generating revenue exceeding US$700 million.

Leading Accelerator and Investor, Flat6Labs, Expanding to the Rest of Africa

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