Charles Udoh - Afrikan Heroes

SWVL’s Latest Scorecard: A Bounce in Earnings Overshadowed by Revenue Challenges

December 27, 2023

Mostafa Kandil, Swvl’s co-founder and CEO

In the ever-evolving landscape of tech-driven mobility solutions, Swvl Holdings Corp has recently presented a financial scorecard that showcases a noteworthy rebound in earnings, but not without casting shadows over its revenue performance. The Nasdaq-listed company, a prominent player in enterprise and government mobility solutions globally, is making headlines for its resilience amid economic headwinds, yet questions linger about the sustainability of its financial turnaround.

Earnings vs. Revenue: A Delicate Balance

The latest financial report for the first half of 2023 unveils a stark contrast between Swvl’s earnings and revenue. While the company boasts positive figures in operating cash flow and net profits, the revenue picture paints a less rosy scenario. The figures present a financial narrative where earnings are the shining star, but revenue remains a stumbling block.

Earnings in the Spotlight:

One cannot ignore the commendable achievements in Swvl’s earnings. Operating cash inflows of $2.2 million in H1 2023, compared to the staggering outflows of $76.8 million in H1 2022, highlight a strategic pivot that merits applause. The gross profit of $1.8 million in H1 2023, in contrast to the gross loss of $2.7 million in H1 2022, signals a significant boost in operational efficiency. The operating profit’s impressive shift from a loss of $56.0 million to a profit of $13.4 million showcases the effectiveness of the portfolio optimization program initiated last year.

Most striking is the reversal in net profit, transforming from a daunting net loss of $161.6 million in H1 2022 to a positive net profit of $2.1 million in 2023. CEO Mostafa Kandil attributes this success to the team’s adept handling of a macroeconomic downturn, crediting the completion of the portfolio optimization strategy.

Revenue Woes:

However, the celebration of earnings is tempered by the less-than-stellar revenue figures. Swvl reports a decrease in revenue from $21,671,391 to $11,116,013, signaling challenges in generating top-line growth. The drop raises critical questions about the company’s market positioning, the impact of its strategic decisions, and the adaptability of its business model.

The sale of subsidiary Urbvan, representing approximately 7% of Swvl’s IFRS revenues, for gross proceeds of $12 million, adds another layer to the revenue puzzle. The move prompts industry observers and investors to ponder the implications for future revenue streams and the overall strategic direction of SWVL.

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Algeria Commences Tax Convention With Japan

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.

T-Vencubator Unveils Game-Changing Fund and Incubator for Egyptian Tech Startups

In a groundbreaking move to bolster innovation and entrepreneurship in Egypt, the T-Vencubator Fund has been officially unveiled. Pioneering a fusion of venture capital funds and business incubators, this initiative is exclusively dedicated to supporting companies offering technological solutions to address the real challenges facing Egyptian society.

The T-Vencubator Fund represents a golden opportunity for local startups leveraging technology to confront the multifaceted challenges prevalent in Egyptian society. It introduces a novel approach by supporting entrepreneurs with both venture capital and comprehensive incubation support essential for their growth. The term “Vencubator,” a blend of Venture Capital and Incubator, encapsulates this innovative concept.

Reem Safi, the Founder and CEO of T-Vencubator Fund, emphasized the timely nature of the fund’s launch. In a global context where startups play a pivotal role in developing economies, Safi sees investing in these companies as a national duty, given Egypt’s track record of startup success in recent years.

Safi stated, “We believe that technology can address many of the issues facing Egyptian society. Egyptian minds harbor innovative ideas capable of tackling these problems. We are not just injecting financial investments into startups; we are investing in exceptional talent that will shape Egypt’s future.”

Detailing the investment plan, Safi outlined the focus on promising companies with robust ideas providing technological and AI-driven solutions to societal challenges. Specific companies and investment amounts will be disclosed throughout 2024.

Hazem El Samra, Head of Growth and Marketing at T-Vencubator Fund, expressed pride in launching the first investment fund and business incubator with a distinctly Egyptian character. Emphasizing key selection criteria, he noted, “We focus on innovative ideas grounded in the latest technological solutions capable of addressing the real challenges in our community.”

El Samra continued, “Inspiring ideas based on technology deserve to be highlighted. While financial investment is crucial, practical support rooted in knowledge and experience is equally vital, forming the core philosophy of the T-Vencubator Fund.”

Egypt currently leads the Middle East in startup funding volume, underscoring the country’s market size and the significance of an Egyptian success partner. Such a partner, as T-Vencubator aims to be, provides crucial elements for the success of Egyptian companies, including financial support, mentorship, a local vision, technological infrastructure, and necessary human resources for innovation and success.

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.

Top 5 Predictions in the Enterprise IT Space for 2024

Technological development is often the result of aspiring to augment the experiences of its consumers. Over the past few years, this notion has only been reaffirmed, with tech powering users through lockdowns, recessions, and other crises. 2023 has been a transformational year, with both existing technologies and novel innovations revolutionising the way organisations work. In 2024, enterprises will continue to embrace further updates to technological measures that design a better digital environment for everyone.

“Although the need to implement a digital-first experience has been constant, the ways by which it can be realised varies periodically. In 2024, we believe that your organisation would benefit from a unified approach of deploying new tech and focusing on demanding aspects of business — such as privacy, LLMs, and orchestration,” said Rajesh Ganesan, President at ManageEngine.

Here are ManageEngine’s top five predictions for trends in 2024 that will help organisations root themselves in the bedrock of this new age of work.

1. Privacy and AI governance will become a top business priority

Although 2023 has witnessed numerous regulations across geographies — including the EU’s AI Act, the UAE’s Data Protection Act, India’s Digital Personal Data Protection (DPDP) Act, — these are indicators that a further inflow of similar policies is imminent. With AI being integrated into every aspect of business, disruptive technologies (such as deepfakes and augmented reality) threaten privacy and pose significant risks. These technologies should be placed under a keen watch for both public and private use. As an effort to ensure ethical, transparent, and fair use of the technology, AI governance will become paramount importance to businesses. We also believe that privacy will be the core of every business going forward, and protecting it will become the responsibility of every individual in the organization.

2. Enterprises will be keen to adapt to purpose-built LLMs rather than general-purpose LLMs

Ever since the advent of AI, businesses have leveraged its capabilities to fulfil predictive analysis and automate low-skill tasks. However, the narrow applications of AI and its immense engineering difficulties call for AI training models that can cater to all aspects of a business. Enterprise-focused large language models (LLMs) help both employees and customers alike achieve deep-nested conversations with the enterprise’s offerings and align better with evolving software tools. By adapting such models, enterprises will be better able to deploy their vast amount of knowledge to address both their creative and redundant workloads. It will also empower organizations to protect their data, reduce biases in their data, and provide detailed audit reports to understand AI decisions.

3. The power of orchestration will span the entire enterprise

In recent times, many businesses have turned to digital transformation to carry out their core functions online. This transition has presented the challenge of fragmentation — splitting data into organisational silos and hampering the flow of information. Enterprises are likely to overcome the issue of fragmentation by harnessing the power of orchestration, which allows for the construction of interconnected digital pipelines that lead to workflow automation and streamlined operations. By adopting this user-friendly and accessible technology, organisations will be prepared to make complex tasks achievable and survive in the digital realm.

4. The digital-first experience will evolve to the secure digital-first experience

Having moved on from traditional work methodologies, we will observe organisations integrate contemporary IT management tools to provide a holistic and safe digital journey. In 2024, we believe enterprises will also adopt an identity-centric approach, ensuring that only authorized individuals are granted access and permissions, therefore safeguarding their identities and data. Going a step further, cloud infrastructure and entitlement management (CIEM) will be implemented to increase granular visibility and minimize threats by providing a comprehensive view of identities and entitlements across diverse cloud environments. Together, such solutions will bolster security and enable a worry-free digital experience for the end users.

5. Cyber resilience will become a strong business differentiator

Today’s technological landscape presents a series of challenges for modern companies that stunt progress. These challenges include the geopolitical climate, technological disruption, cyberthreats, competitive pressure, and many other factors, all of which could be more easily faced when strategic plans are in place. In 2024, we will see companies actively invest in such plans that bring about the tools, solutions, and culture necessary to enhance their overall cyber-resiliency posture. Consequentially, cyber resilience will emerge as a key business differentiator, enabling organizations to succeed in the complex global market.

ManageEngine envisions that these IT forecasts will help organizations seamlessly pace themselves with an imminent transformation in work culture. By staying attuned to emerging trends and technologies, organisations will be enabled to capitalise on opportunities and remain competitive in this ever-evolving digital ecosystem.

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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.

Central Bank of Nigeria Lifts Ban on Crypto Transactions Through Banks

December 22, 2023

In a significant policy shift, the Central Bank of Nigeria (CBN) has announced the lifting of the ban on cryptocurrency transactions carried out through banks. The decision was communicated through a circular titled “GUIDELINES ON OPERATIONS OF BANK ACCOUNTS FOR VIRTUAL ASSETS SERVICE PROVIDERS (VASPs),” issued to all banks and financial institutions.

The CBN had initially imposed a ban in February 2021, citing concerns about money laundering, terrorism financing, and the lack of regulatory frameworks for virtual assets. However, recognizing the global trend towards regulating virtual asset service providers (VASPs), including cryptocurrencies, the CBN has revisited its stance.

The circular outlines that the Financial Action Task Force (FATF) emphasized the need for VASPs regulation to prevent the misuse of virtual assets for illicit activities. Moreover, recent legislative developments, such as Section 30 of the Money Laundering (Prevention and Prohibition) Act, 2022, and rules issued by the Securities and Exchange Commission (SEC) in May 2022, have acknowledged and provided a regulatory framework for VASPs in Nigeria.

The new guidelines supersede previous circulars from 2017 and 2021, but it reiterates that banks and financial institutions remain prohibited from holding, trading, or transacting in virtual currencies on their own account. Financial institutions are now mandated to comply immediately with the provisions of the new guidelines.

Crypto bank Nigeria — *Yemi Cardoso is Nigeria’s new Central Bank Governor.*

This announcement marks a departure from the CBN’s earlier stance when, in 2021, it issued directives instructing all commercial banks and financial institutions to close down bank accounts associated with cryptocurrencies. The ban was a response to perceived risks and vulnerabilities associated with cryptocurrency transactions, as expressed in a letter signed by Bello Hassan, Director of Banking Supervision, and Musa I. Jimoh, Director of Payment Systems Management Department.

In a related development in 2020, Nigeria’s Securities and Exchange Commission (SEC) declared that all virtual crypto assets issued in Nigeria are securities, unless proven otherwise. The SEC mandated the registration of individuals or entities providing blockchain-related and virtual digital asset services, broadening the scope to include advising on cryptocurrencies and rendering custodian or nominee services.

The regulations also specified a three-month window for Digital Assets Token Offerings (DATOs), Initial Coin Offerings (ICOs), and Security Token ICOs to submit necessary documents for registration. Additionally, the SEC outlined the process of registration and possible exemptions for offerings through crowdfunding portals or other exempt methods.

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What Does The New Crypto Regulation In Nigeria Mean For Crypto Traders?

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.

MaxAB and Wasoko Merge for Survival Amid Funding Crunch: Exploring Key Motivations

There are currently ongoing merger talks between Egyptian B2B e-commerce startup MaxAB and Kenyan-based e-commerce player Wasoko, Bloomberg reports. Multiple sources have confirmed the ongoing negotiations, emphasizing that the terms of the deal remain undisclosed, and the agreement has not been finalized. As the negotiations progress, a closer examination unveils the profound motivations driving this potential collaboration.

Addressing Funding Scarcity in B2B E-commerce

The merger discussions arise against the backdrop of a challenging landscape for B2B e-commerce companies in Africa, grappling with funding scarcity. Wasoko, in particular, recently underwent a significant round of layoffs in response to financial constraints, accentuating the pressing need for strategic alliances to navigate these challenges effectively.

Optimizing Resources and Achieving Synergies

Sources indicate that both MaxAB and Wasoko recognize the potential for resource optimization and synergies in a combined entity. By merging operations, the two companies aim to pool their strengths, leveraging each other’s assets and capabilities to create a more resilient and efficient B2B e-commerce platform.

Strategic Geographic Expansion

The merger presents a strategic opportunity for both entities to expand their geographic footprint. Wasoko, having exited West Africa, sees this collaboration as a means to consolidate its presence in East Africa and explore new markets. Simultaneously, MaxAB, which had envisaged expansion into Saudi Arabia, may find the combined entity to be a more robust platform for realizing its regional ambitions.

Navigating Market Dynamics and Achieving Profitability

The challenges faced by Wasoko, including its recent market exits and significant layoffs, underscore the imperative for B2B e-commerce companies to adapt swiftly to market dynamics. The merger is viewed as a strategic move to enhance operational efficiency, achieve profitability, and fortify the joint entity against uncertainties in the competitive landscape.

Unlocking Funding Potential

While Wasoko secured a substantial funding round last year, the merger discussions reveal a nuanced financial backdrop. The release of funds contingent on meeting milestones has fueled the need for additional resources, making the merger an avenue to unlock potential funding and strengthen the financial foundation of the joint entity.

Creating a B2B Powerhouse

The merger positions MaxAB and Wasoko as a formidable force in the B2B e-commerce arena, connecting suppliers with a vast network of traditional and informal retailers across multiple markets. This strategic alignment is envisioned to create a powerhouse capable of providing a comprehensive suite of services to a combined network of over 450,000 merchants in eight African countries.

As the negotiations progress, the core motivations behind the MaxAB and Wasoko merger underscore a shared commitment to overcoming industry challenges, optimizing resources, and strategically positioning themselves for sustained growth and resilience in the dynamic B2B e-commerce landscape of Africa. The outcome of these talks holds significant implications for the future trajectory of B2B e-commerce in the region.

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 Cloudline Secures $6M to Propel Emissions-Free Autonomous Flight Vision

South African aerospace startup Cloudline recently secured $6 million in funding through a seed round. The investment was led by Schmidt Futures, a philanthropic venture founded by ex-Google CEO Eric Schmidt and Wendy Schmidt. Other prominent investors in this round include pan-African funds like the Raba Partnership, Verod-Kepple Africa Ventures, 4Di, and various venture firms. Cloudline, founded by Spencer Horne six years ago, envisions leading the global frontier of carbon emissions-free autonomous flight.

Spencer Horne’s initial intent, dating back to the company’s inception, was to develop a transport system connecting isolated communities to the global supply chain. This was to be achieved through the use of lighter-than-air uncrewed aerial vehicles for delivering large payloads. The founder’s childhood fascination with trains and a passion for transportation technology, especially aviation, drove him to contribute to this field. The startup’s unique approach involves autonomous airships that offer a cost-efficient alternative to drones, helicopters, and satellites.

Why The Investors Invested

Investors committed to Cloudline’s vision for several compelling reasons. In the first place, Cloudline addresses a critical gap in the market by providing long-distance real-time data and extended flight times for large regions. The startup’s autonomous airships, powered by helium and solar energy, stand out for their range, endurance, and efficiency. This innovative solution allows for emissions-free, cost-effective flights, covering over 400 km with a 40 kg payload for 10 hours. Cloudline’s first-mover advantage in the relatively uncompetitive airship market positions it strongly.

Again, investors recognize the breakthrough potential of Cloudline’s platform in reaching remote or disaster-affected areas, enabling them to become accessible and affordable. The company’s focus on hardware, particularly integrating software for airship autonomy, establishes a robust intellectual property that proves challenging for potential competitors to replicate. The success of drone companies, according to Horne, hinges not just on functional drones but on delivering value through a viable business model.

A Look At Cloudline

Founded in 2016, Cloudline is the brainchild of Spencer Horne, a Harvard alum with a background in mechanical engineering. The startup, headquartered in Cape Town, South Africa, operates in a relatively uncompetitive market due to its emphasis on hardware, specifically autonomous airships. Cloudline’s technology allows for comprehensive data capture through various sensors, including visual, infrared, and lidar, in a single flight.

The company’s primary markets include governmental institutions seeking multi-sensor payloads for aerial monitoring, as well as organizations involved in nature conservation, coastal monitoring, and reforestation. Cloudline’s success lies in its beachhead strategy, developing solutions in Africa for the continent as its initial customer base before expanding globally. The startup’s commitment to emissions-free technology, combined with its unique value proposition, has quickly gained traction among customers and investors alike.

Egyptian EdTech iSchool Secures $4.5 Million Funding to Fuel Sub-Saharan Africa Outreach

Why Algeria’s Taxi Union Is Filing a Complaint Against Local Startup Yassir

In a bid to address longstanding concerns, the Algerian taxi union is demanding an increase in taxi fares and taking legal action against the ride-sharing platform Yassir. The National Union of Taxi Transporters (SNTT) sent a letter to the Minister of Transport on December 18, highlighting that taxi fares have remained unchanged since 2012.

The SNTT argues that the lack of fare adjustments is putting a strain on taxi drivers, particularly in light of efforts to increase salaries for civil servants and retirees. Affiliated with the UGTA, the union contends that despite being regulated, taxi pricing fails to meet the needs of Algerian workers and retirees, emphasizing the necessity to address the challenges faced by their profession.

Alongside concerns about the escalating operational costs for taxi drivers, the union is raising issues regarding the “illegal competition” posed by clandestine transporters and ride-sharing applications. These applications, which have proliferated in recent years across Algeria, are accused of creating an unfair playing field for traditional taxi services.

In a proactive move, the SNTT has also lodged a complaint against Yassir. In their letter, the union suggests a solution to alleviate the burden on taxi drivers, proposing a scheme that allows them to acquire vehicles without taxes. This, the union argues, would enable taxi drivers to implement a “reasonable” increase in fare prices.

The situation highlights the evolving landscape of transportation services in Algeria, with traditional taxi services grappling with economic challenges and seeking regulatory adjustments to ensure their sustainability in the face of emerging competition.

Yassir Taxi union

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

Egyptian EdTech iSchool Secures $4.5 Million Funding to Fuel Sub-Saharan Africa Outreach

December 21, 2023

In a recent funding round led by VentureWave Capital, Egyptian-based educational technology firm iSchool has successfully raised $4.5 million, drawing support from prominent investors such as OneStop Capital UK, Webit Investment Network, and Oraseya Capital, the Venture Capital arm of the Dubai Integrated Economic Zones Authority.

Company Overview

iSchool, founded in 2018 by Muhammad Gawish, Ebrahim Youssef, Mustafa Abdelmon’em, and Osama Ghareb, has emerged as a dynamic force in the education technology sector. Specializing in live gamified classes led by expert coding instructors, iSchool caters to students aged six to 18, offering a comprehensive curriculum that spans AI, VR, app development, game development, and web development.

Rapid Growth and Unique Approach

The platform’s unique approach, blending live instruction with gamification and international accreditation, has fueled iSchool’s rapid growth. Originating as a solution for the lack of technology education access in the MENA region, iSchool has achieved a remarkable 72% customer retention month over month. With over 26,000 live learners and more than 1,000,000 training hours delivered, the company has worked with 35 schools, managing national-level initiatives in Egypt, Saudi Arabia, and the United Arab Emirates.

Global Expansion Plans

Buoyed by the recent funding, iSchool aims to expand its footprint into six additional countries in the MENA region. The capital infusion will also support technological scaling for the ‘Online Coding Platform’ and pave the way for extending its gamified online classroom app service throughout Sub-Saharan Africa.

Global Presence and Team Expansion

iSchool Holdings, the parent company, is establishing its presence in Ireland, marking a significant step towards global expansion. Plans are underway to grow a new team in Dublin to support the company’s ambitious goals.

Founder’s Vision

Muhammad Gawish, co-founder and CEO of iSchool, expressed his vision, stating, “Our mission is to empower today’s generations to become tomorrow’s technology leaders, beginning in the Middle East and Africa and spreading to the rest of the world. Using dynamic technology and a deep understanding of the end-to-end live class process, we are growing a simple idea into a product that we believe can improve the lives of millions of people.”

Investor Enthusiasm

Kieran McLoughlin, Managing Partner of VentureWave Capital, praised iSchool’s impact on education in the Middle East and Africa, stating, “This investment aligns perfectly with our mission to achieve social progress by supporting transformative entrepreneurs. We are delighted to play our part in iSchool’s ambitious plans to bring their unique educational model to new markets and empower the next generation of technology leaders.”

iSchool’s success in securing substantial funding underscores the growing importance of innovative education technology in the global landscape, particularly in regions where access to quality tech education is limited. As the company gears up for expansion, eyes are on iSchool to continue transforming the educational experience for thousands of students across the Middle East, Africa, and beyond.

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Investors Rally Behind Twiga with $35M Funding Injection Amid Operational Challenges

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

Rwanda’s Ampersand Secures $19.5M Investment to Scale Operations

December 20, 2023

Ampersand, Africa’s pioneering electric transport energy company, has secured a total of $19.5 million in funding, with a significant portion, $7.5 million, obtained as new debt from the Africa Go Green Fund (AGG) managed by Cygnum Capital. The purpose of this capital injection is threefold: firstly, to ramp up production of electric motorcycle batteries, secondly, to expand the existing battery swap station network, and thirdly, to accelerate research and development efforts focused on battery technology, software enhancements, and the improvement of battery-swap systems.

Specifically, Ampersand plans to utilize the equity funds to expedite product development, while both debt and equity will be channeled towards the expansion of Ampersand’s battery swap network. This expansion is crucial to meet the surging demand from delivery and taxi motorcycle riders in Africa who are keen on transitioning from traditional fuel to electric motorcycles. R&D initiatives will primarily target the development of Ampersand’s next-generation batteries and advancements in battery-swap technology.

Why the Investors Invested

The infusion of funds into Ampersand can be attributed to several compelling factors. Foremost, the company has demonstrated a successful track record since its inception in 2016, being the first in Africa to deploy electric motorcycles in May 2019. Over the past four years, Ampersand’s motorcycles have collectively covered an impressive 180 million kilometers, resulting in a substantial reduction of 8,000 tons of carbon emissions. The company presently serves 1,700 electric motorcycle riders, facilitating 140,000 monthly battery swaps in Kigali and Nairobi.

Investors, led by the Ecosystem Integrity Fund (EIF) alongside Acumen and Hard Edged Hope Fund, recognize the significant impact Ampersand has had in pioneering sustainable, affordable, and reliable mobility solutions in Africa. The confidence in Ampersand’s business model, technology, customer-centric approach, robust unit economics, and competitive advantage has motivated both existing and new investors to support the company during a challenging fundraising environment. Moreover, the alignment of Ampersand’s mission with the broader green transition in Africa has further bolstered investor confidence.

A Look at Ampersand

Founded in Kigali, Rwanda, in 2016, Ampersand is Africa’s premier electric transport energy company. The company, co-founded by Josh Whale and Alp Tilev, has been instrumental in introducing electric motorcycles to the continent, fostering a shift towards sustainable transportation. Ampersand’s primary markets are in Rwanda and Kenya, where it operates 32 battery swap stations, serving 1,700 electric motorcycle riders.

The startup has gained recognition for its commitment to affordability and environmental sustainability. Ampersand’s battery fleet, manufactured in Africa, is hailed as a global leader in cost per kilometer and uptime for light-electric vehicles. The company’s goal is ambitious, aiming to serve one million vehicles daily by 2030, thereby contributing to the growth of a green economy and the creation of green jobs. Ampersand’s innovative approach has earned it a place in the Start Up Energy Transition’s 2023 SET100 List and the 2023 Secretary of State’s Award for Corporate Excellence in Sustainable Supply Chains.

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

Ghana-based Startup Degas Raises $6.7 Million to Empower Small Farmers

Degas, the innovative startup dedicated to improving the livelihoods of small farmers in sub-Saharan Africa, has announced the successful completion of a funding round, securing ¥970 million (approximately $6.7 million). The investment round saw participation from prominent investors, including Animal Spirits, Global Catalyst Partners Japan, Hakuhodo DY Ventures, Nanto CVC (operated by Nanto Bank and Nanto Capital Partners), and Primal Capital.

This latest funding round builds upon Degas’ earlier achievements, having secured ¥240 million in the first close of the seed round in November 2020, with contributors such as Primal Capital, Akatsuki’s Heart Driven Fund, and others. Subsequently, in January 2023, the company secured ¥1 billion in a round with notable participants, including Deepcore, Monex Ventures, Inclusion Japan, and Ikemori Venture Support.

Since its establishment in 2018 by Doga Makiura, recognized by TED as “one of the 12 young people around the world in 2014,” Degas has been providing crucial financial services to over 46,000 small farmers in sub-Saharan Africa. Leveraging its mobile app and localized operations, the company addresses the financial needs of small farmers overlooked by traditional financial institutions, utilizing data collection and AI-based credit decisions.

The newly acquired funds will propel Degas towards its mission of expanding its existing farmer finance business and introducing two new initiatives. The company plans to recruit experts in carbon credits and data analysis to spearhead the decarbonization business, issuing high-quality carbon credits. Simultaneously, Degas aims to establish a marketplace for academic loans, farm machinery leasing, and mobile phone contracts.

Degas, with major offices in both Ghana and Japan, remains committed to its vision of empowering small farmers and fostering sustainable agricultural practices. The company’s innovative approach to financial inclusion and commitment to leveraging technology for positive social impact has garnered support from investors who share its dedication to making a meaningful difference in the lives of those in need.

A Look at Degas

Degas, founded in 2018 by Doga Makiura, is a Tokyo-based startup committed to improving the livelihoods of small farmers in sub-Saharan Africa. Through its mobile app and localized operations, Degas provides financial services to small farmers using data collection and AI-based credit decisions. The company aims to drive positive change by empowering small farmers and promoting sustainable agricultural practices.

Degas farmers Ghana

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