Charles Udoh - Afrikan Heroes

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

December 20, 2023

Twiga, the Kenyan startup renowned for its innovative approach connecting farmers with food vendors, has successfully raised $35 million in convertible bonds. The fundraising effort comes at a critical juncture for the company, following recent challenges, including a court dispute with a supplier and the announcement of a six-month sabbatical by CEO Peter Njonjo.

The convertible bonds, a form of debt that offers interest payments and the option for conversion into equity, were secured from private equity investors Creadev and Juven. Both firms, known for their previous investments in Twiga, played a crucial role in providing the undisclosed amount of funding. The financial infusion is earmarked to settle outstanding payments to suppliers and bolster Twiga’s operations.

Creadev, a subsidiary of the Mulliez Family Association, and Juven, a Goldman Sachs spinoff, have demonstrated their commitment to Twiga by participating in this latest funding round. However, both private equity firms did not provide comments regarding the investment at the time of this report.

The fundraising effort follows recent reports of a court dispute with Incentro, a cloud service vendor, seeking liquidation proceedings to recover outstanding debts. Private negotiations are ongoing between the concerned parties to resolve the dispute amicably.

Amidst the fundraising news, CEO Peter Njonjo’s decision to take a six-month sabbatical has sparked speculation within the tech community about potential internal dynamics. While some investors and industry observers suggest the timing could indicate a change in leadership, sources close to the matter maintain that Njonjo continues to enjoy a positive relationship with Creadev, emphasizing their ongoing support for Twiga.

Twiga, a B2B company co-founded by Peter Njonjo and Grant Brooke in 2014, has faced challenges in adapting to the evolving business landscape. The company recently underwent significant changes, including a 30% staff reduction and a shift in its commercial model, opting for independent sales contractors over an in-house sales department.

Despite Twiga’s impressive track record of raising over $150 million in equity and debt since 2017, the company has acknowledged the complexities of operating in an increasingly challenging business climate. Rising inflation and currency devaluation across Africa have added to the difficulties faced by B2B e-commerce startups.

Twiga, with its asset-light model, continues to navigate these challenges as it seeks to digitize the informal market for fast-moving consumer goods and packaged foods. The company remains backed by investors such as Genevieve Capital, Creadev, Juven AHL Venture Partners, and Omidyar Networks.

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

Moroccan Startups Have a New Path to Investment, Backed by the IFC

In a bid to bolster North Africa’s burgeoning tech start-up sector, the International Finance Corporation (IFC) is joining forces with Moroccan public finance institution TAMWILCOM. The partnership aims to provide advisory support to a Moroccan start-up accelerator, selected collaboratively by IFC and TAMWILCOM, fostering an environment conducive to attracting both local and international investments. This initiative is a crucial step towards addressing the stark disparity in funding, with Morocco currently capturing less than 1% of the record-breaking $5.4 billion African tech start-up investment in 2022.

The agreement, signed today, builds upon The World Bank’s earlier commitment to fund TAMWILCOM, empowering the institution to establish a financing program dedicated to supporting Morocco’s entrepreneurial ecosystem. This collaborative effort signifies a strategic move to bridge the financial and technical support gap, essential for sustaining and amplifying Morocco’s vibrant start-up scene.

Tamwilcom, having recently announced the launch of the Innov Invest Fund (F2I) in July 2023, demonstrates its steadfast commitment to nurturing innovation and supporting startups. The F2I initiative aims to financially back 800 innovative projects and startups over a five-year period, showcasing a comprehensive approach to cultivating a supportive environment.

As part of this initiative, Tamwilcom has initiated a campaign to identify and label support structures responsible for implementing a new range of financing products targeting innovative entrepreneurs. The Call for Expression of Interest (EOI), open from June 28th to July 17th, seeks to select up to twenty support structures operating in various stages, including “ideation,” “incubation,” and “pre-acceleration.” These structures are expected to present clear value propositions catering to one or more of these segments, aiming to enhance the success rate of supported startups and generate employment opportunities.

The comprehensive approach extends to the “acceleration” segment, which will be addressed subsequently through a dedicated offering. Tamwilcom’s commitment to providing a continuum of support reflects in its strategy to facilitate the growth of startups, enabling them to secure independent funding through fundraising activities.

To maximize the impact of the new offering, Tamwilcom plans to establish partnerships with key stakeholders within the ecosystem. These partnerships will be selected through a competitive process based on calls for expression of interest. Additionally, the institution intends to develop synergies with other public and private initiatives, emphasizing the importance of strong demand from startups and the diversification of their innovative strategies for the success of these endeavors.

The launch of the Innov Invest Fund marks the commencement of Tamwilcom’s strategic plan from 2023 to 2026. The institution envisions adapting its financing offering to meet the evolving needs of the ecosystem while ensuring the continuity of support for startups through appropriate guidance, accelerating the maturation of innovative projects. This collaborative effort by IFC and TAMWILCOM signifies a crucial step towards unlocking the full potential of Morocco’s dynamic start-up landscape.

Moroccan startups IFC Moroccan startups IFC

Remittance Flows Continue to Grow in 2023 Albeit at Slower Pace

CDG Invest Unveils Eight Promising Startups Selected for the 7th Edition of the 212 Founders Program

December 19, 2023

CDG Invest, through its investment arm 212 Founders, proudly announces the selection of eight innovative startups for the 7th edition of the renowned 212 Founders program. The investment committee meticulously reviewed nearly 300 applications, choosing companies operating in diverse sectors such as Fintech, DeepTech, BioTech, Afritech, and more. Notable among the selected startups are Premium Technology and Services, PCS Agri, Fungu’it, Tickie, AltBiotech, TrackLab, and Cryptr.

Nawfal Fassi Fihri, the Director of the 212 Founders program, highlighted the unique nature of this edition, emphasizing its position in supporting startups aspiring to grow in Morocco. Fihri stated, “This position reinforces our presence as a Moroccan support and investment program ready to support projects from the diaspora in Europe.” The selected startups will receive individualized mentoring, specialized training, and networking opportunities to connect with investors and partners.

Since its inception in 2019, the 212 Founders program has successfully realized 18 seed and Series A fundings, allocating a total of 97.2 million dirhams (MDH) (9.6 Million USD). Phase 1 (Seed) of the project is allocated 7 MDH, while phase 2 (Series A) is allocated 10 MDH.

In a strategic move to boost the global presence of Moroccan and African startups, 212 Founders pioneers an innovative program providing both guidance and financing. The program is open to high-potential individuals with at least a Minimum Viable Product (MVP) and emphasizes innovation, scalability, and a strong ambition for internationalization in Africa or the Middle East.

The program, financed by CDG Invest, operates on a non-profit basis with a mission to bring forth globally impactful startups tied to Morocco and Africa. During the incubation phase, startups can secure Seed funding ranging from €200k to €700k. As startups progress to acceleration, 212 Founders stands ready to co-invest up to €1M during a Series A funding round, collaborating with other venture capital funds.

The 212 Founders program unfolds in three distinct phases: Project Sourcing, Incubation (6 months), and Acceleration (12 months), focusing on large-scale deployment and preparing startups for a Series A funding round.

Historically based in Casablanca, Morocco, 212 Founders has expanded its reach to Paris, France, ensuring equal access to mentorship, support, and resources for startups in both locations. The program’s operations remain consistent, promoting entrepreneurship and innovation in the region.

Startups in the program have the opportunity to develop internationalization strategies towards MENA and Africa, leveraging the strategic advantages of Morocco, such as a pool of tech talents and development resources. This holistic approach aims to foster entrepreneurship and innovation, creating a thriving ecosystem for startups in both Casablanca and Paris.

CDG Invest 212 Founders

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.

Tingo Group in Crisis: CEO Faces SEC Fraud Charges Amidst Company’s Downfall

In a startling sequence of events, Tingo Group, a once-thriving fintech entity, is now caught in the throes of a deepening crisis. The latest blow comes as the company’s CEO, Dozy Mmobuosi, faces serious fraud charges filed by the US Securities and Exchange Commission (SEC). This development marks the culmination of a series of allegations, regulatory interventions, and market turbulence, spelling out a grim narrative for the embattled company.

The saga began on June 6, 2023, when Hindenburg Research, a reputable short seller, released a damning report that pierced through the veneer of Tingo Group’s success. The report alleged financial improprieties, casting doubt on the legitimacy of Tingo’s reported user base, pointing to licensing irregularities, and raising questions about the veracity of the company’s financial practices.

The aftermath of Hindenburg’s revelations was swift and brutal. Tingo Group’s stock prices plummeted by an alarming 60%, triggering a seismic shock in the market. Investors, once optimistic about the fintech giant’s future, found themselves facing unprecedented uncertainty, with growing concerns over the integrity of their investments.

In response to these grave allegations, Tingo Group’s independent directors took a proactive stance. On August 30, 2023, they initiated a comprehensive internal investigation, enlisting the expertise of independent counsel and a top-tier legal firm to scrutinize the claims made by Hindenburg Research. The company aimed to address the allegations head-on and provide clarity to stakeholders amid the escalating crisis.

However, matters took a decisive turn on November 14, 2023, when the US Securities and Exchange Commission (SEC) stepped in, suspending trading in Tingo Group and its subsidiary, Agri-Fintech Holdings. The SEC cited concerns regarding the adequacy and accuracy of publicly available information, casting a dark shadow over the company’s operations.

The climax of Tingo Group’s ordeal has now unfolded with the SEC filing charges of “massive fraud” against CEO Dozy Mmobuosi. The charges allege Mmobuosi orchestrated a scheme to fabricate financial statements and engage in fictitious transactions through Nigerian subsidiaries, totaling billions of dollars.

Turbulence Continues: Nasdaq Keeps Tingo Group Further Suspended Amid New Query

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 Healthtech Chefaa Secures $5.25 Million Investment for Saudi Expansion

December 18, 2023

Egyptian healthtech Chefaa recently secured a $5.25 million investment in a funding round co-led by Newtown Partners (South Africa) and Global Brain (Japan). Other notable investors include GMS Capital Partners LLC (US), Verod-Kepple Africa Ventures (Nigeria), and M3, Inc. (Japan). Founded in 2017 by Rasha Rady and Doaa Aref, Chefaa is a female-led e-pharmacy platform that aims to provide an end-to-end healthcare experience.

The primary purpose of this substantial investment is to fuel Chefaa’s expansion, particularly in Saudi Arabia, where it has recently launched operations in eight cities. The funds will be utilized to strengthen its presence in the kingdom and scale various models designed to digitize the healthcare supply chain. The investment is strategic, aligning with Chefaa’s mission of leading the safe digital transformation of healthcare through a patient-centric and comprehensive approach.

Why The Investors Invested

Investors committed a significant amount to Chefaa based on its demonstrated success and growth in the challenging healthcare sector. The reasons for this investment are rooted in Chefaa’s ability to improve healthcare accessibility in Egypt and its successful entry into the Saudi market. Investors expressed confidence in Chefaa’s innovative strategies, citing its commitment to innovation, data leverage, and impactful partnerships with major pharmaceutical players.

Newtown Partners, represented by Managing Partner Llew Claasen, emphasized their conviction in the capabilities of Chefaa’s founders and the massive opportunity to improve healthcare access in the Gulf Cooperation Council (GCC) and Sub-Saharan Africa (SSA) through digitization.

Global Brain Corporation’s Director of Investment Group, Hiroto Sorita, acknowledged Chefaa’s growth in a challenging business climate, affirming the company’s position as a leading patient-centric service provider in the region. GMS Capital Partners LLC CEO Yezan Haddadin highlighted Chefaa’s commitment to innovation and its impact on reshaping the future of healthcare delivery in the region.

Verod-Kepple Africa Ventures Partner Ryosuke Yamawaki expressed the firm’s belief in Chefaa’s unique position to transform the retail pharmaceutical supply chain in Africa, underscoring its potential to become a critical business infrastructure in the broader Gulf region.

A Look at Chefaa

Founded in 2017 by Rasha Rady and Doaa Aref, Chefaa is an Egyptian healthtech startup specializing in e-pharmacy. The platform operates as a patient-centric pharmacy benefits platform, offering an end-to-end healthcare experience. Chefaa recently expanded its operations into Saudi Arabia, operating in eight cities.

Chefaa’s mission is to lead the safe digital transformation of healthcare by prioritizing market needs, overcoming continuous challenges, and designing new services and features aligned with its vision and mission. The startup has garnered investor confidence through its impactful strategies, commitment to innovation, and measured impact on healthcare accessibility. CEO Doaa Aref expressed gratitude for investor support, emphasizing their shared passion and belief in Chefaa’s vision and mission.

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’s Koa Secures $15M in Series B Funding to Transform Cocoa Industry Through Upcycling

Swiss-Ghanaian start-up Koa secured a substantial equity investment of US$15 million in its recent Series B funding round. The Land Degradation Neutrality (LDN) Fund from Mirova, along with the Regenerative Growth Fund 1 managed by Zebra Impact and Mirabaud, led the round with a notable US$9 million investment. The remaining funds were contributed by various new investors, complemented by continued support from existing shareholders, including Haltra, who led Koa’s Series A equity round in 2021.

The injection of funds is earmarked for scaling up Koa’s innovative cocoa upcycling strategy. This strategy involves leveraging a newly inaugurated cocoa fruit factory in Ghana to increase production tenfold, extending cocoa fruit upcycling, and promoting regenerative and climate-smart agricultural practices. Koa aims to share its upcycling technologies with an additional 10,000 cocoa smallholders, addressing the challenges of food waste and fostering sustainability within the cocoa industry.

Why The Investors Invested

The primary drivers behind the investors’ decision to commit significant funds to Koa are rooted in the transformative impact of the startup’s operations and its alignment with sustainable finance goals:

Mirova’s LDN Fund sees Koa as a catalyst for sustainable and fair economic development in emerging countries. The LDN Fund aims to address substantial investment needs in such regions, and Koa’s initiatives, reducing food waste and providing additional income to local producers, resonate with this ambition.

The Regenerative Growth Fund 1, managed by Zebra Impact and Mirabaud, focuses on investing in nature tech solutions. Recognizing the challenges posed by nature loss and climate change, the fund sees Koa as a strategic player in transforming the cocoa value chain, aligning with their broader goal of supporting innovative solutions to global environmental challenges.

A Look at Koa

Founded in 2017, Koa has emerged as a trailblazer in the cocoa industry, particularly in West Africa. The startup, with its Swiss-Ghanaian roots, has unlocked a new value chain by innovatively upcycling cocoa fruit, notably the previously discarded cocoa pulp. Collaborating with cocoa smallholders in Ghana, Koa simultaneously reduces on-farm food waste, generates additional income for farmers, and introduces unique ingredients to the food and beverage industry.

Factory Inauguration and Strategic Expansion: The recent inauguration of Koa’s new cocoa fruit factory in Ghana signifies a pivotal moment for the company. This facility serves as the cornerstone for scaling up production, cooperating with an additional 10,000 cocoa farmers, and intensifying regenerative agriculture practices. The Series B funding is crucial for Koa to facilitate these expansions, develop more cocoa fruit products, and broaden its marketing and distribution efforts.

Koa’s strategic expansion revolves around promoting sustainability in the cocoa value chain. By focusing on regenerative agriculture, the startup aims to enhance the resilience of cocoa farms, simultaneously addressing issues of soil fertility deterioration and the high carbon footprint associated with traditional cocoa farming in West Africa.

Koa’s endeavors align with broader industry trends, where sustainability in chocolate and cocoa ingredients is becoming increasingly prominent. The upcycling trend, rescuing ingredients that would otherwise go to waste, is a key aspect of Koa’s approach. Beyond cocoa, the company’s initiatives contribute to reducing waste in food value chains, addressing the global imperative for sustainable resource use in the production of food and beverage products.

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 E4E Africa Secures $30 Million in First Close for Fund II, Expanding Impact Across Sub-Saharan Africa

December 16, 2023

E4E Africa, a venture capital fund driven by entrepreneurs and based in South Africa, has successfully concluded the initial phase of its E4E Africa Fund II, raising a total of US$30 million. Launched in July 2020 and supported by the SA SME Fund, E4E Africa’s first fund made 11 investments in various startups, including Pineapple in insurtech, SweepSouth in home services, and Qwili in the digital marketplace. The fund focuses on supporting exceptional entrepreneurial teams that are developing highly scalable and impactful businesses in key sectors across Sub-Saharan African economies, with specific attention to fintech, education, job tech, e-health, and energy solutions. E4E Africa emphasizes founder-centric support and leverages its network of experienced entrepreneurs to provide value.

The second fund, E4E Africa Fund II, aims for a total size of US$30 million and has now achieved its first close. E4E Africa is actively seeking additional interest from both local and international investors to further expand its influence and reach. Bas Hochstenbach, managing partner at E4E Africa, expressed enthusiasm about the first close, stating that it empowers them to support outstanding founders and capitalize on exceptional investment opportunities stemming from their robust relationships with founders and seasoned African entrepreneurs.

Already, E4E Africa Fund II has made investments in three companies: Kwara, a Kenyan core banking platform provider; TUNL, a South African tech-enabled export shipping provider; and a rapidly growing business in Kenya disrupting the traditional embedded finance landscape. Bakang Komanyane, principal at E4E Africa, highlighted the impressive performance of the Fund II portfolio and teased an upcoming follow-on investment in the coming weeks, showcasing the fund’s commitment to nurturing and supporting thriving businesses.

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.

Techstars Unveils 12 Promising Startups in Second Cohort for Lagos-based Accelerator Program

December 15, 2023

In a strategic move to bolster Africa’s startup ecosystem, Techstars, renowned as one of the continent’s most active investors, has revealed its second cohort for the Lagos-based accelerator program. This initiative, conducted in collaboration with Nigerian accelerator ARM Labs, will infuse a total of $120,000 in funding into a diverse range of startups spanning Ghana, Nigeria, and East Africa.

Techstars, a global accelerator boasting a portfolio of over 3,000 companies, is set to play a pivotal role in the growth trajectory of these startups. The 12 selected enterprises, four of which have at least one female co-founder, will not only benefit from substantial financial backing but will also receive cash-equivalent support exceeding $400,000. This encompasses hosting, accounting, legal assistance, and various other benefits amounting to over $5 million.

Oyin Solebo, Managing Director of ARM Labs Lagos Techstars Accelerator, emphasized the contemporary challenges faced by founders, stating, “The current market dynamics mean that founders need a combination of financial support as well as technical assistance and access to networks in order to build resilient businesses.”

After a remarkable 2022 where nearly $5 billion was raised in the African tech space, 2023 saw a funding slowdown. The funding winter led to a more cautious investment approach among investors. However, Techstars remains undeterred, extending its support to startups beyond the realms of fintech and proptech. This cohort reflects a diversified portfolio, encompassing fintech, logistics, e-commerce, healthtech, renewable energy, and the future of work.

“Our second cohort truly showcases, and perhaps also epitomizes, the wealth of talent, innovation, and ingenuity that can be found within the African tech ecosystem,” added Solebo.

In addition to the financial backing, the cohort will receive invaluable mentorship from prominent figures in Africa’s tech ecosystem. The roster includes Tunde Kehinde, CEO of Lidya; Bode Abifarin, COO at Flutterwave; Tingting Peng, Chief Capital and Strategy Officer at Moove; Kevin Simmons, a partner at LoftyInc; Lola Esan, a partner at EY; and Yischai Beinisch, the Head for Shell’s West African Emerging Market Power.

The selected startups, ranging from asset-light marketplaces to e-commerce platforms and healthcare solutions, will also tap into the expansive Techstars network, comprising 10,000 founders, alumni, and mentors.

Meet the innovative startups in this cohort:

24Seven: An asset-light marketplace facilitating small businesses with credit-based inventory ordering and one-hour doorstep delivery.

Beauty Hut: An e-commerce platform enabling users to shop from their favorite beauty brands via a web store and mobile app.

Eight Medical: An end-to-end platform connecting users to emergency medical resources, reducing waiting times significantly.

GetEquity: Facilitating access to investment opportunities by SEC-accredited providers through investment aggregation.

JumpnPass: A mobile self-checkout platform allowing shoppers to scan product barcodes, pay for items, and skip queues.

One Plan: Assisting workers in Africa’s informal economy to create affordable financial plans for retirement, credit, and insurance.

PBR Life Sciences: Providing pharmaceutical, consumer healthcare, and medical device companies with access to high-quality market data.

PressOne Africa: Offering businesses deeper insights into phone conversations through a communication platform.

Rana: Democratizing access to clean and reliable solar systems for SMEs and residential customers through affordable subscriptions.

Surge Africa: Enabling instant cross-border transfers and reducing fees for individuals, micro-entrepreneurs, and MSMEs.

Swoove: Empowering logistics companies in emerging markets with dispatch automation, fleet management, and tracking.

Veend: Enabling individuals and businesses with verifiable income to access funds on-demand.

The accelerator program is set to culminate in a Demo Day on February 22nd, 2024, offering an exclusive platform for founders to showcase their progress and innovations.

Techstars Lagos

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.

Qawafel Launches to Assist Tunisian Startups Expand Across Africa

As part of the Qawafel project, dedicated to supporting the internationalization of Tunisian startups and SMEs on the African continent, a call for projects is open to Tunisian support structures. These structures are invited to design programs aimed at supporting startups in their internationalization efforts. Each structure can benefit from a grant ranging from 75,000 to 120,000 euros.

The objective of this project is to contribute to job creation, the inclusive economic development of Tunisia, and its integration into the markets of the African continent. It is important to note that the deadline for the submission of applications is set for January 29, 2024, at 2:00 PM, and this must be done through the qawafel.tn website.

For those interested, an information session on the project is scheduled for Thursday, January 11, at 10:00 AM at The Dot.

This project, funded by the French Development Agency (AFD) and implemented by Expertise France, represents a promising opportunity to strengthen the Tunisian entrepreneurial fabric by promoting its expansion on the scale of the African continent.

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 Fashion Startup Maka Draws Investor Confidence with $2.65M Pre-Seed Funding

December 14, 2023

Maka, the African fashion and beauty e-commerce platform, recently secured a $2.65 million pre-seed funding round. The primary contributors to this round were Pan-African venture capital firms, 4DX Ventures and Janngo Capital, with additional support from Palm Drive Capital, angel investor Jonathan Shipman, founder of EVP and Twitch founding member, and executives from delivery platform Wolt. This funding injection comes as the startup’s response to the challenges faced by consumers in the fashion e-commerce landscape, particularly in Africa.

Maka was founded in 2021 by Diana Owusu-Kyereko, the ex-CEO of Jumia Ghana and ex-CCO of Jumia Kenya. The startup originated as an interactive social commerce platform, addressing the complexities of the fashion buying process experienced during the pandemic. Owusu-Kyereko identified a trust deficit in online shopping and the lack of a centralized platform for diverse consumer needs. This insight prompted the birth of Maka, aiming to create a one-stop-shop for fashion enthusiasts, especially millennials and Gen Zers in Africa.

Why the Investors Invested:

Investors were drawn to Maka for its strategic positioning in the evolving African e-commerce market. The surge in technology adoption among Africa’s younger demographic, contributing to the growth of e-commerce penetration from 13% in 2017 to 28% in 2021, provides a significant opportunity for Maka. Maka’s focus on targeting millennials and Gen Zers in this largely untapped market aligns with the shifting consumer trends and represents a strategic opportunity for growth. The startup aims to connect with a broader consumer base, focusing on the fashion sector and the burgeoning creator economy.

Maka addresses critical challenges in the fashion e-commerce landscape, particularly in Africa. Investors were attracted to the startup’s innovative solutions to two fundamental problems: the trust deficit in the online buying process and the struggle creators face in monetizing their influence. The incorporation of video content to build trust between users and creators stood out as a unique and effective approach, differentiating Maka from conventional e-commerce platforms.

The decision to focus on a user-generated content model was seen as a strategic move by investors. Unlike platforms relying solely on big creators, Maka’s scalable base of creators, where every customer can become a creator, provides an infinite pool of individuals generating video content. This approach enhances scalability and user engagement, as demonstrated by the rapid creation of over 2,000 reviews in just two months. Investors recognized the power of this model in fostering a sense of community and trust within the platform.

Diana Owusu-Kyereko’s leadership and industry expertise, gained from her previous roles as the CEO of Jumia Ghana and CCO of Jumia Kenya, played a pivotal role in attracting investment. Investors were confident in Owusu-Kyereko’s ability to navigate the complexities of the e-commerce landscape in Africa. The founder’s vision of creating a centralized platform to meet diverse consumer needs and empower both consumers and creators resonated with investors seeking a strategic and visionary leader.

A Look at Maka

Founded in 2021 by Diana Owusu-Kyereko, Maka operates as an African fashion and beauty e-commerce platform. Owusu-Kyereko, having previously held leadership positions at Jumia, initiated Maka as a response to the complex and challenging fashion buying experience during the pandemic. The platform serves as an interactive social commerce space, allowing users to discover products tailored to their styles through live try-on hauls, reviews, and user-generated content.

Maka, in its two years of existence, claims to have garnered over 500,000 downloads. The startup recently shifted its model to focus on user-generated content, resulting in over 2,000 video reviews in just two months. The platform incentivizes users with a rewards system, earning points for video reviews that can be converted into cash for shopping on the platform. The funding secured in the pre-seed round will be utilized to expand the team, enhance technology, and deepen the platform’s presence in Ghana and Nigeria.

Fatoumata Bâ, founder and executive chair of Janngo Capital, expressed confidence in Maka’s vision, emphasizing the potential growth and impact the startup could have at the intersection of e-commerce, creative, and cultural industries in Africa. Janngo Capital led the funding round, foreseeing the sectors jointly poised to grow substantially by 2050, generating significant GDP and job opportunities across the continent.

South Africa’s Entersekt Strengthens Global Focus with Modirum 3-D Secure Acquisition

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.