Blog - Afrikan Heroes

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

December 22, 2023

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.

iSchool Egypt iSchool Egypt iSchool Egypt

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

Simbi Wabote’s Legacy in Nigerian Content Development and Africa Oil and Gas

December 20, 2023

By NJ Ayuk

Earlier this month, the African energy sector learnt of Simbi Wabote’s replacement from his position as executive secretary of the Nigerian Content Development and Monitoring Board (NCDMB). He was appointed to the position by President Muhammadu Buhari in September 2016. Wabote’s abrupt exodus (which was not explained) has sparked a range of reactions, highlighting the complexity of his legacy in championing domestic participation in the oil and gas industry.

We at the African Energy Chamber (AEC) were disheartened to hear of this development. Throughout his years of service, Wabote demonstrated an unwavering commitment to fostering local content policies that not only benefited Nigerians but also created opportunities for other Africans. He did not use local content as a wedge issue to drive resource nationalism, but instead promoted intra-African collaboration and worked with his counterparts in other African countries to support their local content initiatives. Nigeria lead and shared lesson learned.

We greatly respect Wabote’s push for transparency in local content and contracting issues, as well as his advocacy for Africa’s oil and gas industry: He never shied away from speaking out for a just energy transition.

Wabote can take pride in his achievements with the NCDMB. By encouraging a balanced, market-friendly approach to local content, he fostered a generation of African entrepreneurs.

Championing Local Content

Wabote was no stranger to developing local content in complex situations when he arrived at NCDMB.

He spent 26 years at Shell Petroleum Development Company (SPDC) Nigeria Limited where he rose to the position of general manager of business and government relations for Shell Companies in Nigeria (SCiN). During his time with the company, he held numerous senior positions inside and outside of the country and spent years overseeing the development of local content strategy and framework, including a stint as the general manager of local content for Shell companies worldwide.

As the NCDMB executive secretary, Wabote was tasked with steering strategic national programs to build capacity and locate industry activities within Nigeria. His global experience was key in re-engineering the board’s business processes to achieve maximum impact on the country’s content development.

Wabote’s success with the NCDMB included establishing a number of highly impactful funds. With the creation of the USD350 million Nigerian Content Intervention Fund (NCIF,) for example, Wabote and the NCDMB were able to provide affordable credit for Nigerian oil and gas service companies and local contractors.

“This contributed greatly in addressing the challenge of affordable capital which hamper the growth of many indigenous service providers,” Wabote wrote in a 2022 opinion piece published by Premium Times.

Under Wabote’s leadership, the NCDMB also launched a fund to drive local manufacturing of oil and gas industry equipment and components, a research and development fund to solve energy industry problems, and a working capital fund to help oil and gas companies overcome the damaging effects of the COVID-19 pandemic.

I applaud these efforts, along with the NCDMB’s USD40 million Women in Oil and Gas Intervention Fund, created in partnership with the Nigerian Export-Import (NEXIM) Bank to benefit oil and gas firms where women hold majority shares or manage the companies.

Throughout Wabote’s tenure on the board, he pushed for increased indigenous participation in oil and gas contracts, and drove investments in local manufacturing and skills development. He forged strategic collaborations with international oil companies, universities, and training institutions to enhance local capacity building and technology transfer. And he implemented initiatives to improve transparency in NCDMB operations and combat corruption within the oil and gas sector.

Overcoming Challenges That Remain

Despite Wabote’s NCDMB work toward policy advancements, critics argue that the actual implementation of local content requirements has fallen short, with loopholes and lack of enforcement hindering progress. Concerns exist about the unequal distribution of benefits from local content initiatives, with larger companies often benefiting more than smaller enterprises and local communities.

Wabote created an environment where the NCDMB cannot pick winners and losers and pit industry sectors against each other in order to achieve sustainable local content goals. We saw him push to drive up Nigeria’s and Africa’s competitiveness, our oil and gas sector cannot continue to be faced with over overregulation that sometimes hurts businesses when it comes to creating jobs and opportunities for everyday people.

The AEC hopes that Wabote’s successor, Felix Ogbe, will continue the efforts toward robust local content development, building upon Wabote’s initiatives while addressing implementation gaps and any other concerns.

We would love to see the board continue to foster inclusivity and empower local communities. And we are anxious to see whether the new leadership will uphold the high standards of transparency and combatting corruption that are essential to maintain public trust and ensure the effectiveness of local content initiatives.

”(President) Tinubu expects this highly qualified body of experts to discharge their duties with a patriotic resolve to significantly enhance indigenous industry participation in the energy sector,” the President’s media advisor said in a statement regarding the new board members, adding that the Tinubu administration has a mandate to achieve 70% indigenous content in Nigeria’s energy industry during the president’s years in office.

Let’s hope that this comes to fruition and that the NCDMB continues to build upon the foundation Wabote supported throughout his leadership.

NJ Ayuk, Executive Chairman, African Energy Chamber (www.EnergyChamber.org)

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

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

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

MTN Partners With Starlink, AST for African Connectivity

MTN Group has launched multiple satellite trials across Africa, with Starlink, AST SpaceMobile and Lynk Global as some of its partners. MTN is running the trials to test the feasibility of different forms of satellite broadband connectivity across the continent. The telecommunications group has partnered with low-Earth orbit (LEO) satellite service providers including Elon Musk’s Starlink and AST SpaceMobile in exploring satellite technology for direct-to-cellular connectivity and backhaul connectivity.

“Multiple initiatives are under way, including upcoming direct-to-cell trials with Lynk Global in South Africa and Ghana. Discussions are also taking place with providers like AST SpaceMobile for trials in Nigeria and South Sudan,” said MTN Group chief technology and information officer Mezan Mroué. “Concurrently, there are ongoing engagements with SpaceX’s Starlink, with enterprise-grade trials under way in Rwanda and Nigeria. In parallel, we are advancing discussions with Eutelsat OneWeb for a planned pilot in South Africa,” said Mroué.

A partnership with Starlink is not possible in South Africa because the American multinational is yet to launch operations here. There has been much speculation regarding SpaceX’s apparent reluctance to enter the local market, including licensing conditions for black economic empowerment, but the company has never given any formal commentary on the matter.

Mobile operators sometimes geostationary satellites for backhaul connectivity, but the satellites’ distance from Earth (around 35 000km) increases latency and the power required to send signals back and forth. Direct-to-mobile connectivity, on the other hand, aims to connect remote subscribers via satellite without them needing to change their mobile device. Vodacom Group CTO Dejan Kastelic was recently quoted as saying that direct-to-mobile satellite connectivity is going to be a “game changer” for mobile telecommunications. “There is a race going on now to see who will be first to provide direct-to-mobile connectivity,” said Kastelic.

Vodacom is following a two-pronged approach similar to MTN’s. For backhaul connectivity, Vodacom has partnered with Amazon-owned Project Kuiper, while its parent Vodafone Group’s 5% stake in AST SpaceMobile is an indicator of its confidence in direct-to-mobile solutions.

A third use-case that MTN is exploring is the use of satellite to connect remote internet-of-things devices to its network. The mobile operator has partnered with Washington-based Omnispace, a company founded in 2012 that has made significant inroads into space-based IoT networks and 5G.

“The companies will explore combining MTN’s terrestrial mobile networks with Omnispace’s non-terrestrial network, leveraging 3GPP standards to service consumer mobile and enterprise IoT services. We will also consider opportunities to work together in developing and growing an ecosystem of devices and software,” said Mroué.

MTN said its partnerships with satellite service providers are mostly based on a shared revenue model, but that each agreement is negotiated on a case-by-case basis.

Despite the promise of broader coverage that satellite connectivity brings, Mroué noted that without stronger smart device penetration, connectivity rates would still remain low on the continent. “As excited as we are by the LEO opportunity, it is important to note that most LEO satellite providers will be offering 4G as the mainstream technology, which means that we need to continue our work to get affordable 4G devices to customers,” he said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

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

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

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

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