Charles Udoh - Afrikan Heroes

Cavex Gains $6M Funding Boost from E3 Capital for Carbon Initiatives in Africa

October 30, 2023

The Carbon Value Exchange (Cavex) has successfully completed its initial funding round raising $6M. The round was led by E3 Capital and with the participation of FSD Africa Investments (FSDAi). The goal of this funding is to expand its digital carbon financing platform for global scalability. The partnership between E3 Capital and Cavex will also extend an opportunity for E3 Capital’s existing and future portfolio companies to access the carbon markets through this platform.

E3 Capital’s commitment, through its second fund, the E3 Low Carbon Economy Fund (E3 LCEF I), will help Cavex launch an innovative platform that utilizes digital technology to enhance trust, fairness, and transparency in the voluntary carbon markets. Cavex is dedicated to providing access to vital carbon financing for small-scale projects throughout Africa. These projects often struggle to participate due to the high initial costs and time required for carbon credit validation, issuance, and brokerage.

Paras Patel, Managing Partner at E3 Capital

Nick Hughes, CEO and Co-Founder of Cavex, expressed optimism about the investment, stating, “This funding will demonstrate how digital technology can make climate finance accessible to many individuals, communities, and projects that are actively reducing or removing carbon emissions. Cavex has the potential to scale similar to the way mobile money revolutionized finance 15 years ago when Kenya and M-PESA led the global shift toward digital financial services. Moreover, Africa plays a significant role in the evolution of carbon markets, and it’s crucial that we find ways to distribute climate finance more equitably and with genuine socio-economic impact.”

Cavex’s digital platform offers a comprehensive solution that directly connects carbon credit buyers with high-quality projects in the Global South. It employs innovative digital technologies to validate project data, introduce visibility and traceability in project activities, and increase pricing transparency in a market that has been historically fragmented. The platform aims to positively impact the voluntary carbon markets through two key objectives: first, by using high-quality data to reduce participation costs and enhance market integrity, and second, by reducing reliance on intermediaries, ensuring a larger portion of credit sales revenue goes back to project owners and their supporters.

Paras Patel, Managing Partner at E3 Capital, emphasized the importance of expanding access to carbon financing for smaller projects, as it plays a crucial role in promoting inclusivity within the voluntary carbon markets. He stated, “We are delighted to support Cavex and their efforts to unlock verification, trading, and access to finance for projects in Africa. Through digital technology, Cavex’s platform brings integrity and price transparency to the sector, creating a much-needed market mechanism to ensure the equitable distribution of climate finance.”

Cavex is a digital marketplace and payment platform connecting buyers of carbon offsets to impactful projects in the Global South. The platform facilitates access to carbon financing for a wide range of small-scale projects, with a goal to channel over $500 million to projects by 2030. Their innovative model streamlines processes through digital technologies and data capture, reducing the time and costs associated with project validation and carbon credit transactions, and ensuring the majority of funds are directed towards projects and beneficiaries. Cavex is currently active in Kenya and Senegal.

E3 Capital is a prominent investor in early-stage businesses that facilitate digitized, decentralized, and decarbonized business models across Africa. Presently, E3 oversees two Pan-African funds: the Energy Access Ventures Fund, which focuses on energy access and productive use of energy, and the E3 Low Carbon Economy Fund, with a focus on climate tech and digital infrastructure. E3’s team is young, diverse, and dedicated to the future of the low carbon economy. With its core team based in Africa, E3 is uniquely positioned to help companies grow and scale while adhering to global sustainability goals. The team supports forward-thinking entrepreneurs who aim to bridge the gap between climate transition and growth in emerging markets, using green energy as a catalyst for their products and services.

Cavex Africa

Tunisian Fintech Startup My Easy Transfer Attracts $422K Investment to Empower the Tunisian Diaspora

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

Tunisian Fintech Startup My Easy Transfer Attracts $422K Investment to Empower the Tunisian Diaspora

With nearly 2 million Tunisians living abroad, the Tunisian diaspora has emerged as a crucial pillar of support for the national economy. In an era where remittances from expatriate workers are expected to reach TND 10 billion ($3.1 Billion) by the end of 2023, innovative ventures are surfacing to harness this invaluable resource. One such trailblazing endeavor is My Easy Transfer, a Franco-Tunisian fintech startup that recently secured a €400,000 investment (USD 422,770) from 216 Capital to revolutionize money transfers and financial services for the diaspora.

The inception of My Easy Transfer dates back to March 2022, when brothers Ismail and Jabrane Khenissi, both IT and finance professionals with extensive careers in major international banks across the UK, France, and Africa, decided to channel their expertise into serving their community and their homeland. Their vision was clear: simplify money transfer services for the Tunisian diaspora, making it easier, more secure, and cost-effective.

In just one year, My Easy Transfer has witnessed remarkable growth, attracting over 10,000 customers and establishing itself as a beacon of financial innovation within the diaspora. The company’s mission is to transform the landscape of money transfer and financial services, offering a faster and more efficient solution to its users.

Dhekra Khelifi, a Partner at 216 Capital, expressed her belief in My Easy Transfer’s potential, saying, “My Easy Transfer has huge potential to change the money transfer landscape and provide faster and more cost-effective solutions for users.” The recent investment marks a significant milestone in the startup’s journey, allowing it to further develop its platform to encompass a wide array of payment solutions.

The ultimate goal is to become the premier payment super-app for the Tunisian diaspora, integrating services such as money transfers, mobile top-ups, and payment of local bills, all within a single, user-friendly mobile application. This ambitious expansion plan is not limited to Tunisia alone; My Easy Transfer intends to forge new partnerships within Tunisia, explore new markets across Africa, including countries like Morocco, Mali, and Senegal.

Ismail Khenissi, co-founder of My Easy Transfer, stated, “We want to offer every Tunisian living abroad the opportunity to manage all their financial transactions to Tunisia from their smartphone using our platform.” The startup’s commitment to simplifying the financial lives of the diaspora is poised to be a game-changer in how expatriates manage their finances and support their families back home.

Founded in Tunis in 2021, 216 Capital has been at the forefront of venture capital investment in technology companies. Specializing in seed and pre-seed investments, the firm has been dedicated to supporting determined and creative entrepreneurs who are building disruptive businesses. Their investment in My Easy Transfer is a testament to the startup’s innovative approach and its potential to significantly impact the lives of the Tunisian diaspora.

As the Tunisian diaspora continues to grow and play a pivotal role in the nation’s economy, the emergence of My Easy Transfer and the support of 216 Capital represent a beacon of hope and progress for those living abroad. With their vision of simplified, efficient, and secure financial services, the future is brighter than ever for the Tunisian expatriate community, who can now look forward to more seamless and cost-effective money transfers and financial management.

My Easy Transfer Tunisia My Easy Transfer Tunisia

Black Friday to Create an Extra R26.6-Billion in Retail Turnover 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

Ivory Coast Implements VAT on Online Sales Platforms and Digital Services

October 29, 2023

In a move to bolster its tax revenue, Ivory Coast has recently announced a significant change in its tax policy. Online sales platforms and digital services in the country will now be subject to the Value Added Tax (VAT). This decision, issued by the General Tax Directorate (DGI), marks a substantial shift in the country’s fiscal landscape.

The affected operations span a wide range of digital services, including online advertising, data services, online marketplaces, digital content, online gaming, cloud computing, social media platforms, search engines, and both business-to-consumer (B2C) and business-to-business (B2B) transactions.

Notably, the DGI’s announcement includes a definition of “online markets,” describing them as services through which a digital platform directly connects service providers with potential clients, thus facilitating transactions between the parties involved. These markets encompass various services, such as online food delivery and the online rental of accommodations and vehicles.

Businesses impacted by this new tax policy will be required to declare and pay VAT in either euros or US dollars, using designated foreign currency bank accounts. These account details will be provided on the official DGI website.

The implementation of this tax policy change is set to take effect within a six-month timeframe from the date of the announcement. This adjustment is consistent with Ivory Coast’s broader fiscal strategy to increase its tax base and adapt to the evolving digital economy.

This new tax measure was originally introduced in the fiscal appendix to the 2021–899 Finance Act of December 21, 2021, for the year 2022. It specifically targets online service sales and commissions collected by digital platforms that do not have professional facilities within the Ivorian territory.

The decision to levy VAT on online sales and digital services reflects the global trend of countries adapting their tax policies to address the challenges and opportunities presented by the digital age. Ivory Coast’s move aligns with international efforts to ensure that the digital economy contributes its fair share to the national tax revenue.

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 Digital VAT Ivory Coast Digital VAT

Black Friday to Create an Extra R26.6-Billion in Retail Turnover in South Africa

Ghana’s Injaro Backs Local FinTech Zeepay with $2M Investment

October 28, 2023

Injaro Investment Advisors, a Ghanaian private capital fund manager, has made a significant announcement regarding their investment in Zeepay Ghana Limited, a wholly Ghanaian-owned global mobile finance service (MFS) provider. This investment amounts to a substantial $2 million equity infusion into Zeepay as part of their Series A.5 fundraising round.

This momentous step represents Injaro’s inaugural investment from its Injaro Ghana Venture Capital Fund (IGVCF). In doing so, they are joining a consortium of international investors who are participating in Zeepay’s ongoing fundraising efforts. Zeepay is a pioneering player in the digital termination of remittance (DTR) sector and the mobile money market, extending its reach to more than 20 countries across the globe.

Since its establishment in 2014, Zeepay has specialized in facilitating cross-border payments directly into mobile wallets, serving regions spanning Africa and the Caribbean. The core vision of Zeepay revolves around fostering financial inclusion and revolutionizing cross-border payments, particularly in underserved, low-income markets.

The equity investment by Injaro holds the promise of fueling Zeepay’s expansion across multiple countries and reinforcing its presence in these new markets. Injaro’s statement underlines that this investment aligns perfectly with IGVCF’s strategic approach, which focuses on collaborating with Ghanaian small and medium-sized enterprises (SMEs) demonstrating credible growth potential. These enterprises often operate in sectors like Inclusive Financial Services, Food and Agribusiness, Education, Healthcare, Manufacturing, and Industrial Services.

Andrew Takyi-Appiah, Co-Founder and Managing Director of Zeepay — *Andrew Takyi-Appiah is the Co-Founder and Managing Director of Zeepay. Images: Zeepay*

Jerry Parkes, the Managing Director of Injaro Investment Advisors, expressed his enthusiasm about the partnership with Zeepay, which is spearheaded by Andrew Takyi-Appiah, a dynamic and visionary young Ghanaian entrepreneur. Parkes described their joint aspiration to build a successful Ghanaian multinational and become a frontrunner in the fintech industry.

Parkes emphasized the importance of financing Zeepay with Ghanaian capital, which ensures that the investment’s profits circulate within the local economy, fostering a virtuous cycle of economic development. He added that this investment signifies a significant initial step towards establishing connections between Ghana’s pension funds and remarkable local businesses that are pivotal drivers of Ghana’s economic growth.

Andrew Takyi-Appiah, the Co-Founder and CEO of Zeepay, expressed his delight at having a Ghanaian local private equity investor on board. He regarded this as a testament to the strength of their brand, especially in the prevailing economic conditions. Takyi-Appiah also highlighted the investment’s symbolic importance in demonstrating Ghana’s confidence in its own businesses and thanked Injaro for translating that belief into a tangible reality.

As a testament to Zeepay’s outstanding performance, the company currently holds the top position in Ghana’s Club100 list and stands as the second-largest mobile finance service (MFS) provider in the country in terms of revenue. Their achievements were further acknowledged as they were named the “Brand of the Year” at the 2023 EMYAfrica Awards.

In 2022, Injaro Investments, an Africa-focused private equity and private credit fund manager, announced the launch of its third fund of USD20 million, backed by local pension funds and a first of its kind for Ghana. According to Jerry Parkes, CEO of the fund, the fund is created to support mission-focused SMEs.

Established in 2009, Injaro Investments (Injaro) is a private equity firm focused on SME investments in Africa. The fund’s investment approach is built on the provision of finance, business assistance, and capacity building to highpotential SMEs.

The fund has invested largely in business concepts that fundamentally benefit small scale farmers across West Africa, with several of them being located in relatively poor Sahelian countries. The portfolio therefore comprises enterprises in the poultry value chain, seed cultivation, and shea butter processing.

“Our investment in Nafaso, a company in Burkina Faso, tells one of the more inspiring stories. The founder, who started out as a subsistence farmer, grew to become the largest seed producer in Burkina Faso and is now a regional supplier of seeds with exports across ECOWAS member states, including Liberia and Nigeria. The company had created significant impact (over 350,000 beneficiaries) and grown its top line by three times over the investment period. Our most recent achievement was when the London Stock Exchange published its inaugural edition of the Companies to Inspire Africa report. 11 out of 300 featured companies in the report were in the agriculture sector, and 5 of them were part of the Injaro portfolio — Agricare, Comptoir 2000, Faso Kaba, Nafaso, and Proveto,” Jerry Parkes said.

Zeepay Injaro

Ghana’s Injaro Investments Launches $20m Pension-Backed VC Fund

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

Farewell to WhereIsMyTransport: South African Startup Closes After Seven Years

October 27, 2023

In a heartfelt LinkedIn post, Devin de Vries, the CEO and founder of South African mobility startup WhereIsMyTransport, announced the company’s cessation of operations. The news marks the end of a remarkable journey aimed at enabling freedom of movement in emerging markets, and it comes after the startup was unable to secure the necessary funding to continue its operations.

A Long, Hard Journey

WhereIsMyTransport began as a humble venture, with Devin de Vries and a small team operating out of a garage, surrounded by friends who believed in their vision. From these modest beginnings, the company’s trajectory was nothing short of extraordinary. Eight years ago, they secured their first round of funding, and in the intervening years, they grew into a robust organization with a presence in 22 countries and a team of 200 employees, supported by thousands of gig-mappers. Their efforts culminated in providing transit data for over 50 cities across four continents, benefiting millions of consumers and tens of millions of transit users.

The startup’s mission was clear: to empower people everywhere to get where they want to go. They specialized in mapping both formal and informal public transport networks, using this data and technology to enhance public transportation, making it more reliable, predictable, safe, inclusive, and accessible for the residents of densely populated megacities in Africa, South Asia, Southeast Asia, and Latin America.

WhereIsMyTransport CEO Devin de Vries — *Devin de Vries was the CEO of WhereIsMyTransport. Credits: WhereIsMyTransport*

A Grateful Farewell

In his LinkedIn post, Devin de Vries expressed his gratitude to the investors who had supported WhereIsMyTransport along the way. He recognized that without their backing, their groundbreaking work would not have been possible. He also extended his thanks to the dedicated team that passionately and committedly worked towards the mission of empowering people to reach their desired destinations.

The South African startup’s most recent high-profile investment came in the form of a US$7.5 million funding round, with notable participants including Google, Toyota Tsusho Corporation, and others. This investment aimed to further the company’s global expansion efforts and enhance its data collection capabilities to translate complex data into actionable information for commuters.

A Change of Course

Devin de Vries reflected on how WhereIsMyTransport had to pivot and evolve over the years to achieve its vision. He noted that they initially attempted to create solutions for individual groups within the transportation ecosystem but found that these efforts fell short of addressing the core problem they sought to solve: making transport information accessible to the right people at the right time and place. This realization led them to embark on a much grander endeavor — a platform that could unite the entire transport ecosystem.

Despite the challenges they faced and the need to leave their humble garage headquarters, WhereIsMyTransport’s journey continued with the ambition to become the definitive source for information on the public transport networks of emerging markets. Their products served as tools for cities, operators, and passengers to coordinate, integrate, and access vital data, ultimately making public transport more reliable, predictable, safe, inclusive, and accessible.

A Final Note

With this shutdown, WhereIsMyTransport joins a growing list of African startups that have shut down in recent time -54gene, Dash, Sendy, among others. While their journey has come to an end, it leaves a legacy of dedication to improving public transportation for millions in emerging markets. It’s a testament to the persistence and vision of entrepreneurs like Devin de Vries, who are willing to start over and over again to make a meaningful impact on the ecosystem.

AAIC Investment Expands AHF2 with $87 Million Injection for African Startups

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

UK’s REPP Board Invests $50 Million in REPP 2 for Africa’s Renewable Energy Future

The Green Climate Fund (GCF) has given its approval for the allocation of $50 million in equity to REPP 2, a novel debt fund that offers an opportunity to invest in the rapidly expanding renewable energy sector in sub-Saharan Africa. REPP 2 is being developed by Camco, a climate and impact fund manager, with a target fund size of $250 million. This fund is designed to generate substantial climate, economic, and gender-related impacts while also ensuring sustainable returns for its investors.

Recent research highlights a significant challenge in sub-Saharan Africa, where approximately 590 million people lack access to electricity. The International Energy Agency estimates that $22 billion is required annually to provide reliable energy access throughout the continent by 2030, in alignment with the UN’s Sustainable Development Goal 7.

Simultaneously, Africa is grappling with an escalating series of climate-related challenges, and its nations need an estimated $2.8 trillion by 2030 to fulfill their Nationally Determined Contributions under the Paris Agreement.

REPP 2 has been structured as an innovative blended finance facility, leveraging a combination of public, private, and commercial funding to invest in small-scale and decentralized renewable energy projects in sub-Saharan African countries. Through its private sector approach and a strong focus on supporting communities vulnerable to climate change, the fund is expected to make 35 to 40 investments over its lifetime. These investments will support the development of decentralized renewable energy sources and enhance the resilience of national grid infrastructure, thereby promoting economic development in sub-Saharan Africa.

It is anticipated that REPP 2 will provide new or improved access to clean, reliable, and affordable power to 7.7 million people across Africa. This will not only increase economic opportunities but also enhance access to productive energy-related activities. Furthermore, the fund aims to mitigate 12.7 million tonnes of carbon dioxide equivalent in greenhouse gas emissions over the lifetimes of its projects. Additionally, it intends to invest $70 million in projects aligned with 2X’s gender lens investing criteria and mobilize $786 million in third-party funding to promote green growth in target countries.

The blended finance structure of REPP 2 represents an evolutionary advancement from the $120 million REPP facility, which was previously fully funded by the UK’s Foreign, Commonwealth, and Development Office. This development follows the signing of an indicative term sheet by the REPP board for a junior equity investment of up to $50 million from REPP into REPP 2.

AAIC Investment Expands AHF2 with $87 Million Injection for African Startups

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

Sukhiba Connect Secures $1.5 Million Investment to Enhance WhatsApp-Based Commerce in Africa

Sukhiba Connect, a burgeoning social commerce startup, has garnered significant attention due to its innovative approach to bridging the gaps in the social commerce market in Africa. This forward-looking company recently secured $1.5 million in seed funding, led by CRE Ventures and joined by notable investors such as Antler, EQ2 Ventures, Goodwater Capital, Chandaria Capital, and several angel investors.

The investment amount of $1.5 million serves as a testament to the potential of Sukhiba Connect’s vision. Notably, the primary intendment behind this funding is to support the expansion of Sukhiba Connect beyond its native Kenya. The startup aims to capitalize on the burgeoning popularity of WhatsApp in Africa, especially in countries like Kenya, Ethiopia, South Africa, Egypt, and Nigeria, where WhatsApp has become the default messaging channel for mobile users.

Sukhiba Connect’s mission is to transform the social commerce landscape by streamlining the end-to-end buying experience on WhatsApp. It offers businesses a B2B conversational commerce tool that empowers them to connect with customers, manage orders, accept local payment methods like M-Pesa, and provide a seamless shopping experience directly within the WhatsApp platform. This approach aims to enable businesses, especially manufacturers and distributors, to serve a vast network of micro, small, and medium-sized enterprises (MSMEs), including retailers, within their ecosystem.

Why the Investors Invested:

The decision to invest in Sukhiba Connect is underpinned by several compelling reasons. In the first place, WhatsApp’s widespread adoption in African countries, coupled with its robust user base, provides a unique opportunity for businesses and customers to connect easily. However, while WhatsApp has some commerce-related features, it lacks the comprehensive functionality required to facilitate seamless transactions. Sukhiba Connect aims to bridge these gaps in functionality and localization, thus opening up an untapped market.

Again, Sukhiba Connect addresses the critical aspect of trust in African commerce. African customers heavily rely on trust, which is often built through relationships, especially between salespeople and retailers. Sukhiba Connect’s innovation is not about replacing these relationships but enhancing them. By introducing features that enable businesses to assign sales routes and offer tailored in-app support, the startup ensures that the trust-building relationships remain intact while facilitating efficient transactions.

Furthermore, the potential for using WhatsApp as a Customer Relationship Management (CRM) tool, with features such as routing, sales staff management, view mapping, and monitoring, presents a substantial value proposition for businesses. This comprehensive approach to B2B commerce, coupled with its adaptability for B2C commerce, has garnered investor interest.

A Look at Sukhiba:

Sukhiba Connect, co-founded in 2021 by Ananth Gudipati (CEO) and Abhinav Solipuram (CTO), began its journey as a community commerce platform that aggregated orders from buyers and facilitated bulk purchases from manufacturers. However, the company pivoted in the middle of 2022, shifting its focus to conversational commerce.

Sukhiba Connect’s primary market is Kenya, where WhatsApp usage is exceptionally high, making it the de facto messaging platform for mobile users. As it expands, the startup is eyeing other African markets, including Ethiopia, South Africa, Egypt, and Nigeria, all of which exhibit substantial WhatsApp adoption and commerce potential.

The core of Sukhiba Connect’s offering is its B2B conversational commerce tool, which empowers businesses to conduct transactions, manage orders, and engage with customers directly through WhatsApp. It caters to major manufacturers and distributors, enabling them to serve a broad network of MSMEs, including retailers.

In conclusion, Sukhiba Connect is at the forefront of transforming social commerce in Africa, leveraging the ubiquity of WhatsApp and innovative software solutions to address the unique needs of the market. With recent funding and a strategic vision, the startup is poised to reshape the social commerce landscape in the region.

Egypt’s OBM Education Secures Six-Figure Investment from Saudi Startup Studio

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

AAIC Investment Expands AHF2 with $87 Million Injection for African Startups

October 26, 2023

AAIC Investment Pte. Ltd., headquartered in Singapore and led by CEO Susumu Tsubaki, is thrilled to announce that the Africa Innovation & Healthcare Fund (“AHF2”), managed by AAIC Investment, has gained new support from prominent financial institutions and publicly-listed companies. The combined size of AHF1 and AHF2 now stands at an impressive $87 million, with a strong focus on nurturing the growth of innovative African companies that promote sustainable economic development and address critical social challenges.

In a strategic move, the Development Bank of Japan (DBJ), QR Investment Co., Ltd (part of the Hokkoku Financial Holdings Group), TOPPAN Holdings Inc., and other prominent entities have committed to invest in the Africa Innovation & Healthcare Fund. These new investors will leverage their networks and resources to facilitate collaborations between Japanese enterprises and AHF2’s portfolio companies, creating exciting co-investment opportunities for businesses in Africa.

AAIC Investment first blazed a trail in 2017 with the launch of Japan’s inaugural African fund, the Africa Healthcare Fund (AHF1), which primarily supported 30 healthcare-focused companies, closely aligned with the Sustainable Development Goals (SDGs). AHF2, the fund in focus, has concentrated its investments on 15 companies specializing in digital healthcare and emerging technologies such as remote diagnosis, artificial intelligence (AI) diagnostics, pharmaceutical distribution, FinTech, and InsurTech. These investments have been pivotal in driving the growth of African startups, particularly in the wake of the COVID-19 pandemic.

With the successful second closing of AHF2, the collective assets managed by AAIC Investment in AHF1 and AHF2 now amount to approximately $87 million (equivalent to approximately 13 billion yen). This remarkable achievement brings the total number of supported companies to an impressive 45, showcasing a steadfast commitment to fostering innovation and economic growth in Africa.

Distinguished companies such as Asahi Intecc Co., Ltd., Eisai Co., Ltd., Ohara Pharmaceutical Co., Ltd., and Marubeni Corporation have already joined the ranks of AHF2 investors, further highlighting the fund’s significance in the realm of African innovation.

Here are some notable comments from the investors who have joined AHF2:

Yoshio Yamaguchi General Manager of Growth & Cross Border Investment Department, Development Bank of Japan Inc. “Through AHF2, we are investing in startups with cutting-edge technology, particularly in the healthcare sector. In Africa, a continent grappling with diverse social challenges, we see the potential for AHF2 to drive transformative economic and social development, akin to a leapfrog. We anticipate AAIC Investment’s support for Japanese companies’ global expansion, which, in conjunction with local investment activities, will contribute to the sustainable growth of African economies and societies.”

Fumio Hamano President, QR Investment Co., Ltd. “African countries, poised for future economic growth, grapple with numerous social challenges that must be addressed for their well-being. Our investment in AHF2 aligns with our shared goal of achieving ‘sustainable economic growth’ and ‘solutions to social issues’ in Africa. We aspire to play a pivotal role in advancing the development of both African nations and Japan through collaboration with Japanese enterprises.”

Takao Ikeda Managing Executive Officer, Global Business Division, TOPPAN Holdings Inc. “We have chosen to invest in AHF2 due to our strong interest in the burgeoning African market. We believe this fund leads the African healthcare sector by selecting companies from a diverse range of countries and viewpoints. We look forward to the value that our technology and solutions will bring, fostering new businesses and enhancing corporate value through collaborations with AHF2 portfolio companies.”

Overview of AHF2

Fund Name: Africa Innovation & Healthcare Fund
Target Countries: Various nations across Africa, with a keen focus on Kenya, Nigeria, South Africa, and Egypt.
Target Sectors: Medical and healthcare, along with technology-driven companies in social infrastructure fields including finance, insurance, and logistics.
Investment Stages: Series A and B
Ticket Size: Ranging from $200,000 to $5 million

Overview of AAIC Investment

Company Name: AAIC Investment Pte. Ltd.
Headquarters: Singapore
CEO: Susumu TSUBAKI
Year of Incorporation: 2013
Main Business: Established in 2013, AAIC Investment is the fund management arm of AAIC Holdings. It initially supported the Corporate Venture Capital (CVC) efforts of Japanese corporations in 2014, before venturing into Africa with the launch of the Africa Healthcare Fund (AHF1) in 2017. In 2022, AAIC Investment introduced the Africa Innovation and Healthcare Fund (AHF2). As of September 2023, AAIC Investment has invested in 45 companies through AHF1 and AHF2.

Flourish Ventures Secures $350 Million to Fuel Emerging Market Fintechs, Including 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

Egypt’s OBM Education Secures Six-Figure Investment from Saudi Startup Studio

Egypt’s educational technology startup, OBM Education, is set to embark on an exciting journey of expansion and innovation with a substantial equity investment of six figures from Value Makers Studio | Saudi Startup Studio. This significant infusion of capital not only signifies OBM’s ambitions to revolutionize student guidance across the Middle East and North Africa (MENA) but also marks the entry of VMS into the Egyptian market.

Founded by Omar El-Barbary and Ezz El-Din Farag in 2020, OBM has been at the forefront of reshaping student guidance in the MENA region. Their mission is to help pre-university students choose their college majors, offer valuable career guidance, and provide essential training programs. At the core of their offerings lies the transformative “Taleb” app, which has been a game-changer for high school students.

According to Omar El-Barbary, Founder and CEO of OBM, VMS’s new investment is quite strategic for the company’s ambitious expansion plans.

VMS | Saudi Startup Studio’s decision to invest in OBM underscores their commitment to supporting innovative educational startups. This new partnership is set to create an exciting synergy that will reshape student guidance and education technology in Egypt and the broader MENA region.

The collaboration between VMS and OBM promises more than just financial backing. It represents a shared vision of empowering students and revolutionizing education. Both entities are dedicated to enriching educational experiences in the MENA region and providing the tools and guidance needed to ensure students’ success.

As OBM embarks on this transformative phase of growth and development, the educational landscape in Egypt and the wider MENA region is poised to witness groundbreaking changes. Stay tuned for further updates and exciting collaborations that will emerge from this game-changing investment, as OBM and VMS together work to empower the next generation of students.

OBM Education

Customer Funds at Risk: Togo’s Moov Money Flooz Asks Customers to Reset Security Code

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

Investment or Equity: The Hurdle Startups in Egypt Must Overcome on New Shark Tank TV Show

The second season of Shark Tank Egypt, an influential program conducted under the patronage of the Ministry of Communications and Information Technology, has returned. Shark Tank Egypt seeks to assume its role as a beacon of hope for the Egyptian entrepreneurial landscape, aiming to identify the next generation of innovators, creators, and visionaries spanning diverse industries. These enterprising individuals aspire to avail themselves of a unique opportunity to materialize their ambitious projects or further bolster their existing endeavors. The program has garnered the support of a panel of distinguished investors, who have collectively pledged 10.5 million pounds (USD 339,000) to back promising Egyptian startups.

The roster of investors comprises luminaries from the realms of business and industry, including Ahmed Al-Suwaidi, President and CEO of ELSEWEDY ELECTRIC, Ayman Abbas, Chairman of the Board of Directors of “Antro Holding” Group, Abdullah Salam, CEO of Nasr City Construction and Housing Company, Mohamed Farouk, Chairman of the Board of Directors of Mobica Company, and Mohamed Ismail Mansour, co-founder and Chairman of the Board of Directors of Infinity Group. These individuals stand poised to facilitate the advancement of Egypt’s most promising entrepreneurial talents.

Blooms: Cultivating the Future Generation

Saif Ramadan, the founder of Blooms, an enterprise with a 13-year legacy, specializes in the cultivation of children’s culture and skills. Through a range of meticulously tailored programs and immersive experiences, both within and beyond Egypt’s borders, Blooms endeavors to instill in children qualities such as determination and leadership. Notably, one of their programs delves into the domain of AI coding, thereby acquainting the youth with the intricacies of computer programming. Possessing a present valuation of EGP 120,000 and having realized revenues totaling EGP 4 million in the past year, Saif Ramadan sought an investment of EGP 8 million in exchange for a 20% equity stake in the enterprise.

Although Muhammad Farouk expressed interest in introducing Blooms’ services within his educational institutions, he refrained from extending an investment offer. Similarly, Mohamed Mansour acknowledged the merit of the concept but abstained from submitting a proposal. Contrariwise, Ahmed Al-Suwaidi proposed a collaborative investment alongside Ayman Abbas and Abdullah Salam, offering a 50% equity stake in exchange for providing a dedicated operational facility. However, Abbas expressed reservations concerning the relatively sluggish growth of the company over its 13-year history, while simultaneously questioning the enterprise’s lofty valuation. Consequently, Abbas opted not to make an investment offer.

In a deviation from his peers, Abdullah Salam took a distinct approach, forging a partnership with Al-Suwaidi. They committed to the establishment of a central headquarters and a cumulative investment of EGP 4 million over the span of four years, all in exchange for a 50% equity stake. Saif Ramadan concurred with this compelling offer, thus demonstrating the potential synergy between Blooms and these seasoned investors.

Crazy Tuna: Navigating the Digital Wave

Islam Al-Badry and Omar Sharif introduced their vision for Crazy Tuna, a company specializing in the sale of tuna and fish products. Over time, they successfully transformed a humble website into Egypt’s preeminent platform for showcasing these maritime delicacies, with sales in 2022 reaching approximately EGP 960,000 and a net profit of EGP 180,000. Requesting EGP 2.5 million in exchange for a 20% equity stake, their intention was to utilize the investment to enhance the quality of their products compared to imported alternatives. The entrepreneurs also encouraged the investors to place a greater focus on the untapped potential of the tuna market.

Abdullah Salam extended an offer to invest EGP 2.5 million in exchange for a 30% equity stake, structured as a combination of an interest-free loan, a cash infusion, and an agreement to purchase the company’s products. Conversely, Ahmed Al-Suwaidi proposed to invest EGP 2.5 million in exchange for a 40% equity stake, with Mohamed Farouk aligning with his proposition. The entrepreneurs behind Crazy Tuna found the offer presented by Al-Suwaidi and Farouk to be compelling, ultimately culminating in a successful agreement.

SYMPL: Simplifying Payment Processes

In conclusion, Mohamed Al-Feki, the co-founder and CEO of SYMPL, entered the Shark Tank with a request for EGP 15 million in exchange for a 2% equity stake in his company. SYMPL offers “buy now, pay later” services, thereby allowing customers to procure essential goods and services with the convenience of installment payments. Al-Feki emphasized the development of tailored payment plans for customers and the introduction of a direct debit card. The company has recorded transactions totaling EGP 260 million, boasts a portfolio of 750 brands, and serves a clientele of 45,000 customers. This substantial investment is anticipated to ensure the company’s sustained growth, with expectations of achieving profitability by 2024 and an audacious objective of reaching 85,000 customers.

While Muhammad Mansour and Abdullah Salam refrained from submitting investment offers due to the perceived high valuation, Mohamed Farouk defied this trend by proposing an investment of EGP 15 million spread over two years in exchange for a 30% equity stake in the company. Ayman Abbas followed suit with an identical offer, although he stipulated a demand for a 4% equity stake, which the entrepreneurs ultimately declined.

The resurgence of Shark Tank Egypt for its second season has yet again underscored Egypt’s flourishing entrepreneurial spirit and the steadfast commitment of its seasoned business leaders to nurture innovation. The investments transacted today are poised to invigorate the growth of these budding startups, profoundly influencing Egypt’s business landscape. With a promising lineup of entrepreneurs and a host of pioneering concepts, the stage is impeccably set for further economic advancement and innovation within the land of the Pharaohs.

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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