Crypto startups in Nigeria may be summed up in one word: resilient. Despite the Central Bank of Nigeria scything off their financial operations with Nigerian commercial banks in the wee hours of February this year, the year still proved eventful for the bulk of them, both in terms of funding and the transaction volumes handled.
For instance, according to Paxful and LocalBitcoins data, Bitcoin’s P2P transaction volume in Nigeria would have surpassed $38 million in June 2021, up 8.7% from May. This volume might really be larger, according to the sources, because it excludes transactions from other major platforms like Binance and Remitano.
Also during this period, Nigeria was, once again, rated the second country most interested in bitcoin just behind El Salvador, according to data from Google trends.
But how did the startups catering to this hunger to own or trade in cryptocurrency fare in terms of funding in the West African country? Below is a table showing which crypto startups raised funds (reported) in 2021.
S/N
NAME
DESCRIPTION
COUNTRY
YEAR FOUNDED
AMOUNT RAISED
INVESTORS
1
Busha
Crypto exchange and investment management
Nigeria
2018
$4.2m
Cadenza Ventures, Blockwall Capital, CMT Digital, Greenhouse Capital, Raba Capital, etc.
2
Yellow Card
Crypto exchange
Nigeria
2016
$15m
Valar Ventures, Third Prime, Castle Island Ventures, Square, Blockchain.com Ventures, Coinbase Ventures, Polychain Capital, BlockFi, Fabric Ventures, Raba Partnership, MoonPay, GreenHouse Capital, etc.
3
African Blockchain Lab
Blockchain technology firm and the developer of the African crypto app VIBRA
Nigeria
2021
$6m
Lateral Frontiers VC, CRE Venture Capital, and Musha Ventures, as well as international blockchain investors Dragonfly Capital, Hashkey Capital, SNZ Capital, Fenbushi, Cadenza Capital, Head & Shoulder X, LeadBlock, Hash Global, Bonfire, Krypital, Despace, etc.
4
Payourse
Develops user-friendly products and solutions to help Africans accept cryptocurrency
Nigeria
2019
$600k
Micheal Ugwu, one of Africa’s largest NFT collectors, Flori Ventures, Olumide Soyombo’s Voltron Capital, and Allegory Capital; CELO co-founders Marek Olszewski and Rene Reinsberg, Kola Aina of Ventures Platform, Angel Touch Holdings, and Oluwatobi Anisere, etc.
5
Wicrypt
Blockchain-based WiFi sharing network
Nigeria
2018
$1.5m
Polygon creator Sandeep Nailwal, Cardano’s Occam, Inclusion Capital, Outlier Ventures, Chain Capital, Pluto Digital Assets, Onega Ventures, N7 Labs, and PolkaFoundary, etc.
6
Bitmama
Provides a secure blockchain infrastructure that allows users from all around Africa to conduct cryptocurrency transactions.
Nigeria
2019
$350k
Flori Ventures, Emergence Capital, Fedha Capital, etc.
7
Lazerpay
“Stripe” for crypto payments
Nigeria
2021
Undisclosed
Nestcoin, etc.
8
Nestcoin
Builds, operates and invests in crypto native products for everyday people
Nigeria
2021
Undisclosed
Undisclosed
9
AFEN Group
Uses blockchain technologies, specifically the Binance smart chain network, to provide solutions.
Nigeria
2021
$1m
Via NFT
10
Xend Finance
Decentralized finance (DeFi) platform for credit unions and cooperatives.
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
The country with the most acquired startups in Africa is still South Africa. While other African countries are catching up, particularly with the recent multimillion-dollar acquisitions in Nigeria, South Africa has seen a bigger number of acquisitions over the years. The table below provides some insight into how acquisitions have been made on the continent during the last few years. This data is updated on a half-yearly basis.
S/N
NAME OF STARTUP
SECTOR OF STARTUP
PRIMARY COUNTRY OF OPERATIONS
YEAR FOUNDED
YEAR ACQUIRED
NAME OF ACQUIRER
PRIMARY COUNTRY OF ACQUIRER
NATURE/DESCRIPTION OF ACQUIS
1
GetSmarter
Edtech
South Africa
2007
2017
2U
United States
Sold for $103-million plus $20-million in cash.
2
Kapa Biosystems
Life Science
South Africa
2006
2016
Roche
Switzerland
Acquired for for $445-million
3
Fundamo City
Fintech (Mobile financial services)
South Africa
1999
2011
Visa
United States
Acquired for $110 million
4
Nimbula
Enterprise (Cloud computing)
South Africa
2008
2013
Oracle
United States
Acquired for $110 million
5
Gyft
Mobile Gift Card
South Africa
2012
2014
FirstData
United States
Acquired for $54m
6
WooCommerce
Open source ecommerce plugin
South Africa
2011
2015
WordPress
United States
Acquisition estimated to be worth over $30 million
7
Quirk (Mirum)
Digital agency
South Africa
1999
2016
WPP
London, United Kingdom
Acquired for a reported R350 million to R400-million ($35million to $39 million) at the time of the sale.
8
Buni.tv
Entertainment
Kenya
2009
2016
Trace Tv
Nigeria
Undisclosed
9
Baxi
Fintech (Digital agent network)
Nigeria
2014
2021
MFS Africa
South Africa
Undisclosed
10
Devcorp
Enterprise
Morocco
2014
2021
ABA Technology Group
Morocco
Undisclosed
11
Picup
Logistics
South Africa
2014
2021
Karooooo
Singapore
Acquired for $4.8m
12
FwRun
Ecommerce
Egypt
2019
2021
Diggipacks
Saudi Arabia
Undisclosed
13
WaystoCap
B2B Ecommerce
Morocco
2017
2021
MaxAB
Egypt
Undisclosed
14
CallPay
Fintech
South Africa
2014
2021
Undisclosed
Undisclosed
Acquired at a valuation of ($6.8m)
15
Eventtus
Events management
Egypt
2012
2021
Bevy
United States
Undisclosed
16
Cars45
Car-listing marketplace
Nigeria
2016
2017;2020; 2021
Frontier Car Group; OLX Group; JIJI
Germany; Netherlands; Nigeria (respectively)
Undisclosed
17
Giraffe
Recruitment
South Africa
2015
2021
Harambee Youth Employment Accelerator
South Africa
Undisclosed
18
WizzPass
Visitor Management
South Africa
2015
2021
FM:Systems
United States
Undisclosed
19
Tareeqi
Bus tracking
Egypt
2018
2021
eMushrif
Oman
Undisclosed
20
Digiduka
Fintech
Kenya
2019
2021
MarketForce
Kenya
Undisclosed
21
DabaDoc
e-Health
Morocco
2014
2021
Orange MEA; AXA CIMA
Morocco
Undisclosed
22
WayaWaya
AI and Machine Learning
Kenya
2016
2021
Ajua
Kenya
Undisclosed
23
Lawtrust
IT security
South Africa
2006
2021
Altron
South Africa
Acquired for $17m
24
Ubusha Technologies
Identity Security Solutions
South Africa
2003
2019
Altron
South Africa
Undisclosed
25
Mangwee
Fintech (Mobile payments)
Zambia
2018
2021
Zeepay
Ghana
Undisclosed
26
ParceNinja
Ecommerce logistics
South Africa
2013
2021
Imperial Logistics
South Africa
Undisclosed
27
Surebet
Betting/Gaming
Kenya
2019
2021
TransAtlantic Capital
United States
Undisclosed
28
Delivroum
Food delivery
Togo
2018
2020
Gozem
Togo
Undisclosed
29
Luno
Blockchain
South Africa
2013
2020
Digital Currency Group (DCG)
United States
Undisclosed
30
DPO Group
Ecommerce
Kenya
2006
2020
Network International Holdings plc
United Arab Emirates
Undisclosed
31
Beyonic
Fintech (Payments)
Uganda
2006
2020
MFS Africa
South Africa
Undisclosed
32
Conversio
Digital Marketing
South Africa
2014
2020
CM Group
United States
Undisclosed
33
Harmonica
Dating
Egypt
2017
2020
Match Group
United States
Undisclosed
34
Shago Payments
Ecommerce payments solutions
Nigeria
2019
2021
Alerzo
Nigeria
Undisclosed
35
Paystack
Fintech (Payments)
Nigeria
2016
2020
Stripe
United States
Acquired for over $200m
36
Sa3ar
Auto tech (car assessment)
Egypt
2019
2021
Contactcars.com
Egypt
Undisclosed
37
Cheki (Nigeria, Uganda, Kenya)
Auto tech
Nigeria, Uganda, Kenya
2010
2021
Autochek
Nigeria
Undisclosed
38
Savi.ng
Fintech (Wealth management)
Nigeria
2018
2021
PiggyVest
Nigeria
Undisclosed
39
Exchange4Free
Fintech (Cross-border payments)
South Africa
2008
2021
AZA Finance
Kenya
Undisclosed
40
eLimu
Edtech
Kenya
2012
2020
CcHub
Nigeria
Undisclosed
41
Bottles App
Logistics (on-demand Delivery)
South Africa
2016
2020
Pick n Pay
South Africa
Undisclosed
42
Sendwave
Fintech (Cross-border payments)
Kenya
2014
2020
WorldRemit
United Kingdom
Acquired for $500m
43
Apposit
Enterprise (Software development)
Ethiopia
2017
2020
Paga
Nigeria
Undisclosed
44
StarterHub
Community
Egypt
2015
2019
RiseUp
Egypt
Undisclosed
45
Mobisol
Off-grid energy
Kenya
2011
2019
Engie
Kenya
Undisclosed
46
iHub
Innovation Hub
Kenya
2010
2019
CcHub
Nigeria
Undisclosed
47
Surf Kenya
Wi-fi
Kenya
2015
2019
BRCK
Kenya
Undisclosed
48
Amplify
Fintech
Nigeria
2016
2019
OneFi
Nigeria
Undisclosed
49
OLX Africa
Classifieds
Nigeria
2012
2019
JiJi
Nigeria
Undisclosed
50
Konga
Ecommerce
Nigeria
2012
2018
Zinox
Nigeria
$10m (Reportedly)
51
Kngine
AI
Egypt
2008
2018
Samsung Electronics
South Korea
Undisclosed
52
QuickHelp
AI (chatbot)
Nigeria
2015
2018
1001 Squared Artificial Intelligence
Canada
Undisclosed
53
Cape Networks
SaaS
South Africa
2013
2018
HP
United States
Undisclosed
54
Wezart
Arts marketplace
South Africa
2016
2020
African Fashion International
South Africa
Undisclosed
55
TopCheck
Ecommerce
Nigeria
2015
2018
Silvertree
Nigeria
Undisclosed
56
Stabus
Mobility
Ghana
2019
2021
Treepz (Formerly Plentywaka)
Nigeria
Undisclosed
57
Okuhle Media
Digital media
South Africa
2003
2021
Trace
France
Undisclosed
58
Fundall
Fintech
Nigeria
2019
2021
Emerging Africa Group
Nigeria
Undisclosed
59
QuickCash
Fintech
Côte d’ivoire
2010
2021
E-Settlement
Nigeria
Undisclosed
60
Disha
One no-code tool for content creator
Nigeria
2019
2021
Interswitch
Nigeria
Disha planned to shut down on December 31, 2021, save for the acquisition. Deal amount undisclosed.
61
Nafham
Social startup for free crowdsourced educational content
Egypt
2012
2021
Tyro
Egypt
Undisclosed
62
FarmTrust
Blockchain-enabled ecommerce
Tunisia
2018
2021
LAMMA
Tunisia
Undisclosed
63
Quench
Ecommerce and last-mile delivery service
South Africa
2016
2021
The Foschini Group
South Africa
Undisclosed.
64
SwitchPay
Fintech providing alternative payments options to merchants and retailers.
South Africa
2018
2021
Adumo
South Africa
Undisclosed
65
Crossfin
Card and mobile-enabled payment transactions
South Africa
2017
2021
The EMMF I and ARC consortium
South Africa
$94.3m
66
MainOne
Data center infrastructure
Nigeria
2010
2021
Equinix
United States
$320m
67
Filkhedma
Homes services
Egypt
2014
2021
SweepSouth
Egypt
Undisclosed
68
Thawte
SSL and code signing certificates
South Africa
1995
1999
Verisign
United States
US $575 million
69
ClaimSync
End-to-end claims processing platform
Ghana
2011
2013
GenKey Solutions
Netherlands
Undisclosed
70
Saya
Developer of mobile messaging apps for feature phones
Ghana
2011
2014
Kirusa
United States
Undisclosed
71
Paynet Group
Multi-institutional payments provider.
Kenya
2003
2014
Interswitch
Nigeria
Undisclosed
72
Jobberman
Recruitment
Nigeria
2009
2015
Ringier One Africa Media (ROAM)
South Africa
Undisclosed
73
NgCareers.com
Recruitment
Nigeria
2009
2020
Jobberman
Nigeria
Undisclosed
74
Weza Tele
Financial products, including mobile loans and retail credit cards.
Kenya
2011
2015
AFB
Ghana
$1.7 million
75
Fawry
Financial services backed by tech
Egypt
2008
2015
Egyptian-American Enterprise fund, Helios Investment Partners and the MENA Long-Term Value Fund
Egypt; United Kingdom
$100m
76
Vanso
Mobile and security-focused financial technology provider
Nigeria
2005
2016
Interswitch
Nigeria
Undisclosed
77
One Africa Media
Online marketplaces in the employment, auto, property and travel sectors.
South Africa
2012
2016
Ringier
Switzerland
Undisclosed
78
Popcorn Training
Cybersecurity awareness training provider
South Africa
2012
2018
KnowBe4
United States
Undisclosed
79
3elagi
On-demand Pharmacy delivery
Egypt
2017
2020
Ibnsina Pharma
Egypt
Undisclosed
80
Oltio (formally MTN Mobile Money South Africa)
Pioneered and patented several mobile payments and banking solutions,
South Africa
2004
2018
Mastercard
United States
Undisclosed
81
Teacha!
Online media hub for teachers
South Africa
2016
2020
Snapplify
South Africa
Undisclosed
82
Simulation Engineering Technologies
Creating computer simulation models of complex systems.
South Africa
2004
2018
4Sight Holdings
South Africa
Undisclosed
83
RetailTower
Ecommerce product that helps online merchants sell across multiple shopping engines
Ghana
2010
2018
Kudobuzz
Ghana
Undisclosed
84
AccTech Systems
A professional services firm specializing in Microsoft ERP & CRM and Sage ERP & CRM business solutions.
South Africa
1994
2018
4Sight
South Africa
Undisclosed
85
Dynamics Africa Services
An ISV Partner focusing on Microsoft Dynamics NAV and GP Enterprise solutions.
South Africa
2014
2018
4Sight
South Africa
Undisclosed
86
Media Works
Online-based Adult Education and Training (AET) provider
South Africa
1996
2018
FutureLearn Pty Ltd.
South Africa
Undisclosed
87
Teranga Solutions
A mobile and cloud-based platform for hospitality firms
Senegal
2013
2018
HotelOnline
Kenya
Undisclosed
88
Mubawab
A free to use real estate ad site in arab countries
Morocco
2013
2018
Emerging Markets Property Group (EMPG)
Dubai, UAE
Undisclosed
89
OrderTalk
Develops online ordering software and solutions for the restaurant, takeout, and hospitality industry.
South Africa
1998
2018
Uber Eats
United States
Undisclosed
90
VTN Communications
A provider of voice solutions
South Africa
2011
2018
HeroTel
South Africa
Undisclosed
91
Smart Integration
An integrated automation company.
South Africa
2004
2018
Ulwembu Business Services
South Africa
Undisclosed
92
iSPartners
Business intelligence
South Africa
2001
2018
Altron
South Africa
$16 million
93
Takealot.com
Online shopping
South Africa
2010
2018
Naspers
South Africa
Undisclosed
94
PropSys
Property management solutions for the real estate industry on hosted and on-premises platforms
South Africa
2003
2018
MRI Software
United States
Undisclosed
95
MacroLan
Internet Service Provider that delivers dedicated fibre broadband connectivity.
South Africa
1997
2018
SEACOM
Mauritius
Undisclosed
96
Eazi.com
Proptech
South Africa
2017
2018
Pam Golding Property group
South Africa
Undisclosed
97
Bamba Group
A real-time data gathering platform that engages and access the 1.5B people in the emerging markets via mobile feature phonesa
Kenya
2013
2018
Maximeyes Group
United Kingdom
Undisclosed
98
Clarotech Consulting
An Information and Communications Technology (ICT for short) company offering consulting, products and support services
South Africa
2001
2018
Logicalis
South Africa
Undisclosed
99
Open Connect
Provider of carrier, redundant light and last mile dark fibre services to leading Mobile Operators, ISP’s
Malawi
2016
2018
Harith General Partners
South Africa
Undisclosed
100
Steeple
Low-commission digital agency for property sales
South Africa
2012
2018
PropertyFox
South Africa
Undisclosed
101
TPAY MOBILE
End to end mobile payments platform that maximizes conversions and minimizes risk
Egypt
2014
2018
Helios Investment Partners
United Kingdom
Undisclosed
102
DCBEgypt
Direct carrier billing service provider
Egypt
2014
2017
TPay Mobile
Egypt
Undisclosed
103
WeBuyCars
Offers free online valuations and sale of cars
South Africa
2001
2018
Transaction Capital
South Africa
$116m
104
Crossgate
Payment solutions
South Africa
2007
2018
Crossfin
South Africa
Undisclosed
105
Magnetic Software
Agency Management Platform
South Africa
2012
2018
Silversoft
South Africa
Undisclosed
106
Conor Solutions
Customer solutions provider
South Africa
2007
2018
Adapt IT Holdings Limited (Adapt IT)
South Africa
107
FibreCo
Open access dark fibre network, providing infrastructure, connectivity and services
South Africa
2009
2018
SEACOM
Mauritius
Undisclosed
108
Medco Plast
Packaging and containers company.
Egypt
2011
2018
Indorama Ventures
Thailand
Undisclosed
109
Simfy Africa
Music Streaming
South Africa
2010
2018
MTN
South Africa
Undisclosed
110
Badr
Data solutions and web development company
Egypt
2006
2018
Incorta
United States
Undisclosed
111
Compuscan
Provides consumer and commercial credit information
South Africa
1994
2018
Experian SA
South Africa
Undisclosed
112
Interpay Africa
A payment processor that connects merchants in Ghana to local and international payment
Ghana
2014
2018
Emergent Technology Holdings LP
United States
Undisclosed
113
Founa
Ecommerce
Tunisia
2012
2018
Magasin Général
Tunisia
Undisclosed
114
Fintec Lab
B2B technology provider to major banking and insurance enterprises in South Africa
South Africa
2015
2018
ABSA Bank
South Africa
Undisclosed
115
Touchsides
Uses technology and big data insights to help brands and retailers win and retain loyal customers in high-growth markets
South Africa
2014
2019
Heineken
Netherlands
Undisclosed
116
Teraco Data Environments
A carrier, cloud and vendor neutral data centre provider
South Africa
2008
2019
Berkshire Partners
United States
Undisclosed
117
DotModus
Cloud computing, data analytics and machine learning.
South Africa
2010
2019
Dynamic Technologies
South Africa
Undisclosed
118
TravelCar
Mobility solutions platform
Tunisia
2012
2019
PSA
France
Undisclosed
119
MediaMark
Information services solutions
South Africa
1996
2019
Kagiso Media
South Africa
Undisclosed
120
ConnectMed
E-health
Kenya
2016
2019
Merck
Germany
Undisclosed
121
ArqamFC
Sports data
Egypt
2017
2019
StasBomb
England
Undisclosed
122
IoT.NXT
Internet of things
South Africa
2015
2019
Vodacom
South Africa
Undisclosed
123
SureSwipe
Delivers a simple, accessible and secure solution to payment acceptance
South Africa
2008
2019
Crossfin, Apis Growth Fund I
South Africa
Undisclosed
124
CompareGuru
Independent insurance comparison platform
South Africa
2013
2019
SureStart
South Africa
Undisclosed
125
Heartbeat Adventures
Travel
Kenya
2014
2019
Cloud9xP
Kenya
Undisclosed
126
Empty Trips
Digital freight marketplace
South Africa
2002
2019
RCL Foods
South Africa
Undisclosed
127
ROK Film Studios
Production studio
Nigeria
2013
2019
Canal+ Group
France
Undisclosed
128
eClat Healthcare
Hospital management solutions
Nigeria
2012
2019
Gulf Capital
Dubai, UAE
Undisclosed
129
Yuppiechef
Online retailer of kitchen and homeware products
South Africa
2006
2021
Mr. Price Group
South Africa
Undisclosed
130
MENABytes
Media
Egypt
2017
2019
RiseUp
Egypt
Undisclosed
131
Daily Dish
Delivery
South Africa
2012
2019
TCapital
Norway
Undisclosed
acquired startups Africa acquired startups Africa acquired startups Africa acquired startups Africa acquired startups Africa acquired startups Africa
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
African startups are continuing to expand across the continent and beyond. According to the table below, more Nigerian and South African startups are expanding than their counterparts in other African countries, with Ethiopia becoming the newest market of interest for startups. Fintech and mobility are the two major sectors that are recording the most expansions.
S/N
AFRICAN STARTUP
SECTOR
BASE COUNTRY OF OPERATIONS
COUNTRY EXPANDED INTO IN 2021 (AS AT DECEMBER 9TH)
1
mPharma
Healthtech
Ghana
Ethiopia; Uganda
2
Aza Finance
Fintech
Kenya
South Africa
3
Gozem
Ride-hailing
Togo
Gabon; Cameroon
4
Andela
Edtech
New York, USA
Latin, South America
5
SWVL
Ride-hailing
Egypt
Saudi Arabia; Europe, Latin America, and the Asia-Pacific region (through Shotl acquisition); Latin America (through ViaPool acquisition)
6
GOMYCODE
Edtech
Tunisia
Morocco; Senegal
7
FairMoney
Fintech
Nigeria
India
8
Autochek
Car listing
Nigeria
Ghana; Kenya; Uganda (Via acquisition of the Cheki brand)
9
Daystar Power
Solar energy
Nigeria
Togo
10
ZeePay
Fintech
Ghana
Zambia
11
Catch
Ride-hailing
Ethiopia
Kenya
12
AURA
Security
South Africa
Kenya
13
Paystack
Fintech
Nigeria
South Africa
14
Flutterwave
Fintech
Nigeria
Ethiopia
15
Termii
Communications-as-a-service
Nigeria
Cote D’ivoire
16
Little Cab
Ride-hailing
Kenya
Ethiopia
17
Helium Health
Healthtech
Nigeria
Kenya; Middle East (Via Meddy’s acquisition)
18
M-KOPA
PAYG solar/ asset financing
Kenya
Nigeria
19
Nawah Scientific
Life Science
Egypt
Jordan
20
SweepSouth
Cleaning services
South Africa
Nigeria; Kenya
21
Moov Africa
Mobility
Nigeria
South Africa
22
Chipper Cash
Fintech
Ghana/USA
South Africa
23
MarketForce
B2B Retail Distribution
Kenya
Nigeria; Ethiopia, Ghana, Tanzania, Rwanda, and Uganda
24
Sendy
Logistics
Kenya
Ivory Coast (through Kamtar investment)
25
Ukheshe
Fintech
South Africa
Asia-Pacific
26
BznsBuilder
Business Relation Management
Egypt
Indonesia
27
TymeBank
Digital bank
South Africa
Philippines
28
Vezeeta
Health tech
Egypt
Nigeria, Ghana, Kenya
29
Autocheck
Auto tech
Nigeria
Uganda, Kenya (through Cheki acquisitions)
30
Copia Global
Ecommerce
Kenya
Uganda
31
Treepz (Formerly Plentywaka)
Mobility
Nigeria
Ghana (through Stabus); Uganda (via Ugabus)
32
Flutterwave
Fintech
Nigeria
Ethiopia; East Africa (through partnership with Amole and Airtel)
33
Bento
Digital payroll platform
Nigeria
Kenya, Rwanda, Ghana
34
ImapliPay
Financial health platform for gig economy
Kenya
South Africa
35
Homzart
Furniture marketplace
Egypt
Saudi Arabia
36
Capiter
Fintech
Egypt
Dubai, UAE
37
Ampersand
Mobility
Rwanda
Kenya
38
MED
E-health
Tunisia
Morocco
39
Stitch
Fintech API
South Africa
Nigeria
40
JUMO
Fintech
South Africa
Tanzania
41
Moove
Mobility Fintech
Nigeria
South Africa
42
Flow
Prop-tech
South Africa
Australia
43
Sabi
B2B marketplace
Nigeria
Kenya
44
WorkPay
HR Payroll solutions
Kenya
Nigeria
45
Peach Payments
Fintech
South Africa
Mauritius
46
Klasha
Ecommerce
Nigeria
Ghana
47
Bboxx
Solar Energy
Togo
Nigeria
48
MFS Africa
Fintech
South Africa
Nigeria
Based on reported expansions.
The Patterns Behind The Expansion
The majority of African startups’ expansions this year were accomplished through acquisitions in other countries. Mobility startups across the continent were most likely to expand through acquisition (Autochek; SWVL; Treepz, among others).
Nigerian startups, unlike those in other African countries, were more diverse in their regional expansions, expanding across western, eastern, southern, and even outside Africa.
Expansions from Sub-Saharan Africa to North Africa, and vice versa, were rare, with both regions preferring to expand towards the Middle East rather than into each other’s.
While Kenya and Uganda are the most popular destinations for expanding startups in East Africa, Nigeria and Ghana are the most popular destinations in West Africa, and South Africa is the most popular destination in Southern Africa.
The majority of the expansions are driven by startups in mobility, fintech, solar energy, and e-health.
Startups Africa 2021 Startups Africa 2021
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Sudan has returned to the African startup funding table after 27 years of international economic isolation, mostly sponsored by the US. Fawry, Egypt’s top financial services company, became the first venture investment company to set up shop in the Northeast African country a week ago, leading a $5 million investment round in Asloug.com, a classifieds and marketplace startup.
Fawry’s investment followed a major agreement, last year, by the country to pay $335m to the victims of the 1998 bombings of the US embassies in Kenya and Tanzania, which were carried out by al-Qaeda. The agreement had as one of its objectives, to remove Sudan from the list of state sponsors of terrorism. This invariably allowed the country to rejoin the global financial system after nearly three decades as a pariah.
But the first sign that Sudan has truly been reintegrated into the global financial system is the issuance, in April this year, of the country’s first local Visa card by the United Capital Bank (UCB).
Visa, which has its headquarters in San Francisco, is going even further, with plans to open a local presence in Sudan as the country’s transitional government works to digitize and reintegrate the economy.
“We are pleased to be part of Sudan’s growth journey in the global economy, and we have been working closely with our partner, UCB, to provide their Visa cardholders with a reliable, convenient, and secure payment option that is accepted globally,” Ahmed Gaber, Visa’s General Manager for North Africa, said, at the issuance of the first visa card. “Sudan is a promising market that is witnessing many positive economic developments, and we look forward to continue bringing Visa’s world class payment technology to support our partners and the Sudanese government in their drive towards achieving financial inclusion and economic growth for Sudan,”
Investment In asloug.com Is The First Telltale Of Sudan’s Gradual Economic Comeback; And Represents An Early Mover Advantage For Investors
For a country with the cheapest internet data rate in Africa — about ₦27 ($0.068) to access 1GB of data for 30 days, if you are in Nigeria —investment in asloug.com by Fawry and a host of other investors was relatively a less difficult one, for obvious reasons.
Sudan has over 30% of its 44 million population (representing about 13.70 million people) using the internet. Although with a meagre GDP per capita of $595, the country’s economic growth is largely predicated on its booming youth population. The average age in Sudan is 20, with 63% of the population being just under 24 years of age.
These indices help to explain why alsoug, a platform where sellers can list everything from real estate and autos to services and commodities, has already garnered over two million downloads since its launch in 2016.
Therefore, the fact that Fawry, which had previously focused on Egyptian startups such as delivery platform Bosta, fast-growing F&B platform Elmenus, and social commerce marketplace Brimore, has chosen Sudan as its first international investment destination speaks to the post-Pariah hope for economic certainty.
“I hope this investment is the first of many and that the huge potential of the tech sector in Sudan is fully realized in the coming years,” Alsoug co-founder and CEO Tarneem (Nina) Saeed said, about the investment.
However, it must be noted that the investment by Fawry and other investors is all shades of economic and political strategies and calculations. The company which is one of the pioneers in digital payments in Egypt is looking to replicate its Egyptian success in Sudan. Although it presently runs a payments app through Sudan’s Faisal Islamic Bank, Fawry plans to engineer the expansion of asloug.com’s products beyond its current constitution — classifieds and marketplace — to payments via the Cashi payments infrastructure.
“Fawry’s strategic partnership with alsoug leaves it ideally placed to help guide the platform’s rollout of a countrywide payments system, a feat which Fawry has already managed through a scalable, robust, and best-in-class technology platform,” Fawry’s CEO Ashraf Sabry was quoted as saying.
Another interesting insight into Fawry’s strategic entry into Sudan could be gleaned from its choice of team to invest in. Asloug is led by a well-connected female founder, Nina Saeed. Saeed is the CEO of the Saeed Industrial & Commercial Group, one of Sudan’s oldest and most reputable industrial conglomerates. She was previously a lawyer with Allen & Overy LLP’s Projects, Energy and Infrastructure Group and a graduate of the London School of Economics and Political Science. Saeed has also provided advice to a number of international institutions, including the World Bank. She is also the executive director of the US-Sudan Business Council, a non-profit private sector organization dedicated to enhancing and encouraging meaningful engagement and exchange between business and civil society in Sudan and the United States.
A New Investment Law May Make The Ultimate Difference
Although the gradual rebirth and liberalization of the Sudanese economy is essentially premised on its commitment to a $56bn debt relief program agreed with the IMF in June this year, Sudan’s latest investment law enacted this year and which replaced the old investment act of 2013, may make the ultimate difference.
The new investment law, among other things, provides that:
All the investments established in the Sudan, shall enjoy just and fair treatment.
Sudan shall ensure to the foreign investors a treatment similar to that of the national investors.
Invested funds shall not be subject to any arbitrary measures, or any discriminatory decisions.
In collaboration with the competent agencies, investment projects will be exempted from customs tariffs on capital equipment imports.
The investment project will be excluded from business profits tax for a period of not more than five years from the start of commercial production, unless the regulations stipulate otherwise.
The value added tax exemption for investment project capital equipment will be based on a list approved by the Ministry.
Non-Sudanese investors will be granted residency for the length of the project, subject to the terms of the laws governing it and any rules that may be enacted.
Administrative fees or returns on investment projects will not be imposed unless the country’s Ministry of Investment and International Cooperation approves them.
The investment law has the potential to significantly improve the economic climate in the Northeast African country. Sudan was ranked 171st out of 190 economies in the World Bank’s Doing Business 2020 report, which rates countries based on their ability to provide a business-friendly environment. Rwanda is placed 38th, with Ethiopia coming in at 159th.
Where Does The Future Go From Here?
Whether or not the future remains bright for other startups founded by less-connected Sudanese locals would be left for time to test. Nazar Arabi, a co-founder of GO Digital Services and a former MTN Sudan employee, feels that this future is possible.
“Sudan has the potential to become the start-up hub of Africa,” Arabi was quoted as saying. “Today, 35 million Sudanese (77%) use mobile phones, including 8.5 million smartphones, and 34% of the country has 4G coverage. South African telecoms giant MTN, which is present in the country, had nearly 9.8 million subscribers at the end of March 2021. However, Kuwait’s Zain is in first place with 16.6 million subscribers in 2021, ahead of Sudatel (also present in Senegal), which is majority state-owned.”
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Mobility 54, a corporate venture capital firm owned by Toyota Tsusho, the trading arm of Japan’s Toyota Group, is steadily establishing itself as a force to be reckoned with in the African startup investing environment. The VC, which is just two years old, has made roughly eight investments in African firms and has recently committed over $12 million to Samurai Incubate, another Japanese venture capital company set up in 2020 to invest in African startups.
Investment in Samurai Incubate is a rare, bold move by Mobility 54 towards diversifying its portfolio, to cover startups in other sectors outside of mobility.
With locations in Paris, France; Tokyo, Japan; and Nairobi, Kenya, Mobility 54, which was established through a partnership between Toyota Tsusho Corporation (“TTC”) and its subsidiary CFAO SAS (“CFAO”), is going to be a great force in the coming years as the Toyota Group changes its investment strategies in Africa.
How Toyota Tsusho Invests In African Startups
According to Richard Bielle, Toyota Tsusho’s Division Chief Executive Officer Africa Division, Toyota’s investment pattern in Africa through Mobility 54 is to invest in startups in the African MaaS field, and to support the development of industries centered on mobility.
But that pattern has expanded with time as other sectors outside of mobility continue to draw the firm’s attention.
Recently, it entered into investment partnership with Samurai Incubate to expand its original investment mandate.
Through the partnership, Toyota Tsusho —via Mobility 54 — invested about $12 million in Samurai Incubate.
The partnership will target startups raising Pre-Series A rounds in Nigeria, Kenya, South Africa, Egypt, among other countries. The average ticket size for investments will range between 100k to $735k for startups developing solutions in the finance & insurance, logistics, medical & healthcare, retail and e-commerce, energy, agriculture, transportation and mobility, and entertainment sectors.
“In line with the “WITH AFRICA FOR AFRICA” philosophy, the Africa Division will contribute to Africa’s economic growth and industrialization, and respond to its expanding middle class, with the goal of establishing the №1 presence in Africa,” Bielle said.
Toyota Tsusho Invests Mostly Through Convertible Notes
Generally, Toyota Tsusho usually prefers to invest in African startups through convertible notes. Consequently, a majority of its previous investments had been carried out under a convertible bond/note structure.
A convertible bond is a form of borrowing by a company in which the borrowing company pays the lender fixed amount of interests or dividends until the borrowed amount is due for repayment. It is convertible because both the dividends/interests and the total amount borrowed can be converted into common stock or equity shares in the company, in this case Data Integrated. This conversion from the bond to stock happens at specified times during the life of the bond and is usually at the discretion of the bondholder, in this case Toyota Tsusho.
Partnership With CFAO Ensures Toyota’s Investments Reaches Africa’s 54 Countries, Including More Than Ever Before, The French-speaking Areas
Toyota’s ownership of 97.4% stake in CFAO S.A., a French-listed distribution company, has ensured that it is able to explore Africa’s length and breadth, no matter the language spoken.
“Through the alliance between Toyota Tsusho, which has created a network based on the automobile distributor business, primarily in southeast Africa, and CFAO, which has a history of more than a century and a solid presence in western and Francophone Africa, we will conduct efficient and strategic business throughout the continent,” Toyota Tsusho Group noted in a statement.
This partnership has ensured that Mobility 54 has most recently made sustained investments in startups located in Francophone Africa, such as Senegal’s Kai Senegal, Ivory Coast’s Moja Ride, among others.
S/N
Startups/Companies Invested Into
Country of Investment
Year Startup Was founded
Sector/Description of Startups
Year Of Investment
Amount of Investment
1
AiCare
Kenya
2020
InsurTech/Provider of telematics insurance system for insurance companies in Kenya.
May, 2021
Undisclosed
2
Data Integrated
Kenya
2012
Mobility/Provides operation management systems for bus operators in Kenya
October, 2020
Undisclosed
3
Samurai Incubate
Japan
2008; Began investing in Africa in 2018.
Africa-focused Japanese early stage investor. Fund will target healthcare and retail, MaaS startups raising Pre-Series A rounds in Nigeria, Kenya, South Africa, Egypt, among other countries.
April, 2021
$12m
4
Tugende
Uganda
2012
A technology-enabled asset finance company
October, 2020
Lead investor in $6.3m Series A round. Toyota Tsusho invested $4m out of the sum
5
Sendy
Kenya
2019
Mobility/Sendy allows its users to move almost anything from point A to B at the touch of a button.
Fintech/ A solution that offers more than 230 digital services (mobile money, agency banking, money transfer, purchase of telephone credit, etc.) and accepts all forms of payments.
June, 2021
Undisclosed
8
Moja Ride
Ivory Coast
Renamed Moja Ride in 2020. Operated as Moja Wallet since 2017.
Mobility/ Allows commuters to schedule and pay for trips online while also allowing independent transportation providers to manage their fleet, routes, and payment methods.
March and June, 2021
Undisclosed
9
WhereIsMyTransport
South Africa
2016
Mobility/ a big data platform for sustainable mobility in emerging markets, which connects and collects data and integrates this information on its open data platform.
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
The World Intellectual Property Organization (WIPO) has released the 2021 edition of the global innovation index (PDF.). As usual, Mauritius ranks 1st in Africa and 52nd in the world, maintaining its previous global position in 2020. The 2021 edition which presented the worldwide innovation landscape and annual performance rankings of some 130 economies, found that governments and enterprises in many parts of the world have scaled up their investments in innovation during the COVID-19 pandemic.
“It is likely that innovation divides will be accentuated in the coming years, across economies, sectors and companies. Innovation ecosystems in many emerging economies have become fragile and will need to be supported by targeted policies. While sectors such as ICT, software and pharmaceuticals have increased spending on R&D in 2020, others such as hospitality and automobiles, have reduced their R&D investments over the same period. This imbalance will need to be corrected as the future winners in all sectors will have to be innovative in terms of both new technologies and business models,” the report noted.
The ranking of innovation results is based on 80 indicators in several sectors, including business development, political environment, infrastructure, etc.
In Africa, the following countries are the most innovative.
Mauritius
The report ranked Mauritius 52nd in the world and 1st in Africa. According to the report, while institutions in Mauritius— covering political and operational stability; government effectiveness; regulatory quality; rule of law; ease of doing business — rank 21st in the world in terms of innovation, the sophistication of the Mauritian markets — covering ease of access to credit; venture capital deals; domestic industry diversification; market capital capitalisation — is ranked the 29th in the world. In fact in terms of market sophistication, Mauritius is only second to South Africa which ranks 23rd in the world.
However, the country ranks low — 111st in the world — in terms of the sophistication of the businesses — that is, as regards the quality of its knowledge workers; innovation linkages, research talent in businesses, etc. South Africa ranks 51st in the world in this regard.
The East African country also ranks 71st in the world in terms of human capital and research — which covers education; tertiary education; research and development (R&D), etc. Tunisia is the highest in Africa at 35th in this regard.
South Africa
South Africa ranks 61st in the world and 2nd in Africa. The country’s institutions are the 55th most innovative in the world. At 23rd, its markets are also the most sophisticated in Africa. In terms of human capital and research, the country is the 67th in the world and 3rd in Africa, behind Tunisia and Namibia (which is ranked 57th in the world).
The country’s worst performance is the area of infrastructure where it is ranked 83rd in the world. Mauritius is the best performer in Africa— 65th in the world — in terms of the innovativeness of its infrastructure, which covers ICT access; ICT use; government’s online service; e-participation; electricity output; logistics performance; environmental sustainability, among others. Mauritius is followed by Cape Verde.
Tunisia
Following South Africa is Tunisia which is ranked 71st in the world and 3rd in Africa. The country’s human capital and research sector Africa’s number 1, ranking only 35th in the world, ahead of countries like Luxembourg, Malaysia or India. The human capital and research sector covers Tunisia’s expenditure on education; government funding to its pupil, secondary schools; school life expectancy, years; reading, maths and science; pupil-teacher ratio, secondary; tertiary enrolment; graduates in science and engineering; tertiary inbound mobility; researchers; gross expenditure on R&D; global corporate R&D investors; university ranking, etc.
The country also ranks 1st in Africa and 55th in the world in terms of knowledge and technology outputs, which covers patents; scientific and technical articles; labor productivity growth; new businesses; software spending; ISO 9001 quality certificates; high-tech manufacturing; intellectual property receipts; production and export complexity; high-tech exports; ICT services exports, etc.
At 75th, the country’s institutions are also innovative. However, its worst performance is in the area of the sophistication of its businesses in which it ranked 114th in the world. This is closely followed by the sophistication of its markets which is ranked 98th globally.
Morocco
Morocco is ranked 77th in the world and 4th in Africa. The country’s best performance is in the area of knowledge and technology outputs, where it is ranked 67th in the world and 4th in Africa, behind Tunisia, South Africa and Kenya.
However, its worst performance is in the area of the sophistication of its businesses in which it ranks 105th globally. This is followed by the sophistication of its markets which is ranked 91st worldwide.
Kenya
Ranked 76th in the world and 5th in Africa. Kenya’s strengths are in the area of market sophistication where it ranks 54th in the world and 3rd in Africa, behind South Africa and Mauritius; and knowledge and technology outputs, where it is ranked 65th in the world.
Its worst performance is, however, in the area of infrastructure where it is ranked 114th in the world. In terms of human capital and research, the country also performed badly, ranking 92nd in the world.
Cape Verde
Cape Verde is 89th in the world and 6th in Africa. The country is the second best performer in Africa — 66th in the world — in terms of the innovativeness of its infrastructure, which covers ICT access; ICT use; government’s online service; e-participation; electricity output; logistics performance; environmental sustainability, among others.
The country also ranks 59th in the world and third in Africa in terms of creative output, which covers trademarks by origin; global brand value; industrial designs by origin; ICTs and organizational model creation; cultural and creative services exports; national feature films; entertainment and media market; printing and other media; manufacturing; creative goods exports; online creativity etc.
The country’s worst areas of performance are in the sophistication of its market, where it is ranked 128th in the world. It also performed badly in the area of knowledge and technology outputs, ranking 122nd in that regard.
Tanzania
The United Republic of Tanzania is the 7th in Africa and 90th in the world. Tanzania is a star in Africa in terms of its creative outputs, ranking 44th globally and second in Africa, behind just Mauritius.
Its worst performance areas are in human capital and research, where it ranks 125th in the world; as well as in the area of business sophistication, where it ranks 119th in the world.
The remaining three in Africa’s top ten are:
Egypt — 94th in the world and 8th in Africa
Namibia — 100th in the world and 9th in Africa
Rwanda — 102th in the world and 10th in Africa.
Africa’s most populous country Nigeria ranks 118th in the world and 19th in Africa, behind Senegal, Botswana, Malawi, Madagascar, Ghana, Zimbabwe, Cote d’ivoire, Burkina Faso, in that order.
Below is a tabular representation of the ranking across all the performance indicators.
S/N
African Country
Overall global ranking
Institutions
Human capital and research
Infrastructure
Market Sophistication
Business sophistication
Knowledge and technology outputs
Creative outputs
1
Mauritius
52
21
71
65
29
111
93
31
2
South Africa
61
55
67
83
23
51
61
79
3
Tunisia
71
75
35
89
98
114
55
80
4
Morocco
77
74
82
84
91
105
67
70
5
Kenya
85
80
92
114
54
77
65
95
6
Cape Verde
89
88
95
66
128
74
122
59
7
Tanzania
90
103
125
105
109
119
100
44
8
Egypt
94
114
93
92
96
106
70
104
9
Namibia
100
73
57
112
92
112
119
105
10
Rwanda
102
54
114
101
93
82
96
117
most innovative countries Africa 2021 most innovative countries Africa 2021 most innovative countries Africa 2021 most innovative countries Africa 2021
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
Togo is Africa’s king of crypto and decentralized finance (Decentralized Finance or DeFi). The Chainalysis organization, which is known for its global indices in the field, has disclosed this in its latest report. The West African country has shone once more in the DeFi study, after being ranked third in Africa and ninth globally in the 2021 Chainalysis Crypto Adoption Index.
It is, in fact, the only African country among the top 20. It is also one of the few representatives of emerging markets, with established economies such as the United States, China, and Russia dominating the rankings. A situation that contrasts with the one in which these great nations are lagging behind on crypto adoption.
The 2021 Chainalysis DeFi Adoption Index calculates metrics based on on-chain cryptocurrency value received by PPP-weighted DeFi platforms per population, total retail value received by DeFi platforms, and individual DeFi platform deposits. The index also reflects the growing importance of institutional investors in the DeFi market.
The DeFi Adoption Index, like its 2021 crypto adoption index, is intended to emphasize countries with the strongest grassroots adoption by individuals rather than those sending the biggest raw value of cash.
Emerging markets are driving cryptocurrency adoption, according to Chainalysis, with individuals resorting to them out of necessity.
DeFi adoption, on the other hand, has been predominantly driven by experienced cryptocurrency traders and investors looking for fresh sources of alpha, despite the fact that the index is weighted to encourage grassroots adoption.
DeFi Africa Togo DeFi Africa Togo
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
After being cracked down by Chinese authorities over allegations of breach of data privacy rules, China’s leading ride-hailing platform, Didi, has aggressively started its expansion mission in Africa.
“We are bringing a global experience and the best technology to ensure safety for our passengers and drivers. Our innovative features include facial recognition for drivers, SOS buttons for riders and drivers linked to the local police, 24/7 support via a dedicated safety hotline, preview information for riders and drivers, and safety training for drivers, among others,” Carina Smith-Allin, DiDi head of public relations and communications for Sub-Saharan Africa said.
Here Is What You Need To Know
DiDi was launched in South Africa on August 23 in three Gauteng cities: Johannesburg, Ekurhuleni, and Pretoria. The Gauteng expansion follows the opening of offices in Cape Town and Gqeberha (Port Elizabeth) earlier this year by the Uber and Bolt competitor, which is sponsored by Softbank.
DiDi made its Middle East and North Africa debut last Sunday, beginning in Egypt.
Following the recent introduction of Russian-owned e-hailing startup InDriver in Egypt, which competes with Bolt and Uber, the company’s entry into the market is likely to increase competition.
DiDi offers three services in South Africa: DiDi Go, a low-cost option for budget-conscious riders; DiDi Express, a standard service for those seeking a mix of price and comfort; and DiDi XL, with a capacity of up to seven seats, for those who require more space.
The DiDi Express has an R15 base cost and a R10 per kilometer distance rate. The service will compete with Uber’s standard rate, which begins at R7.50/km, and Bolt’s standard rate, which begins at R6.00/km.
The cost of DiDi Go varies depending on the province.
DiDi’s user onboarding process involves a thorough verification process that links the user’s app profile to their social media presence.
Uber owns a 12.5% interest in Didi, putting it the company’s second-largest shareholder behind SoftBank.
Didi is one of China’s largest firms, and the Beijing government is attempting to keep it under control by investing in state-owned enterprises.
In Egypt, drivers will receive a financial reward if they make 10 trips during the first week of registration starting from September, 13, 2020, and the driver will receive a reward of £25 for each successful new user invitation, plus a system of tiered rewards that the “Captain” receives when he reaches a certain number of invites (150 pounds coupon).
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer
The need to expand into the African market as part of its global expansion agenda has led to the acquisition of South African buy now pay later fintech startup Payflex by Australia Securities Exchange (ASX)-listed Zip. Payflex was founded in 2018 with the objective to help consumers to shop now and pay later, interest-free. It launched with Superbalist.com in 2019 and is now offered at over 1,000 online merchants.
Zip, for its part, is a leading player in the digital retail finance and payments industry. The company offers point-of-sale credit and digital payment services to the retail, home, health, automotive and travel industries.
With a presence in 12 markets across five continents, Zip plans to grow the South African business and expand into other African markets with sizable underbanked, digitally savvy populations that will benefit from innovative payment solutions. With that in mind, it has announced its intention to fully acquire Payflex.
“The growth of Payflex over the past few years has demonstrated the demand for buy now, pay later in South Africa. Zip’s acquisition will boost the speed and scale of Payflex’s expansion and allow merchants and shoppers to benefit from Zip’s world-class products, platform and global reach. It is also a significant vote of confidence in the all-South African Payflex team, which will remain unchanged and focused on growing the business,” said Paul Behrmann, founder and chief executive officer (CEO) of Payflex.
Larry Diamond, Zip managing director and CEO, said the last year had been “truly transformational” for Zip as it continued to deliver, despite the most exceptional global economic conditions.
“We started the year with a clear strategy for global expansion, and we have seen record growth, ending the year with US$5.8 billion in total transaction volume, and more than 7.3 million customers and 51,000 merchants around the world,” he said.
“The shift away from the unfriendly world of credit cards that was the genesis of Zip’s Australian business, and its proven to be a global phenomenon. Millennial and Gen Z customers are consistently demonstrating their appetite for the simpler, fairer payment options that Zip is providing. This global play supporting customers and global retailers alike provides a real point of difference as we strive to become the first payment choice and a trusted and innovative, global payments brand.”
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
In their report on electronic commerce in the ECCAS (Cameroon, Central African Republic, Congo, Gabon, Chad, Equatorial Guinea, Sao Tome, DR Congo, Rwanda, Burundi, and Angola) for 2021, the GSMA (global body that brings together telecom operators) and the Economic Commission for Africa (ECA), have provided some data on social commerce (the use of social media for e-commerce transactions) in Cameroon.
“The importance of social commerce is particularly evident in emerging electronic commerce markets (…) where it represents the bulk of electronic commerce activity. A survey conducted in Cameroon found that 88% of those surveyed had purchased items through WhatsApp, while 68% had purchased through Facebook,” the report says.
According to the same source, social commerce allows SMEs to formalize some aspects of their business while operating in markets that lack some of the regulatory and infrastructure features associated with electronic commerce. This can provide more value to participants in the informal sector, which is estimated to number roughly 2 billion people globally.
“Research by the GSMA has found that more than a third of social commerce providers target women, rural or low-income groups as their primary user base,” the report says.
One of the major limits of social commerce, according to the report, is that most platforms are not yet intended to conduct end-to-end transactions. As a result, they’ll need more help with logistics, delivery, and payments, which might cause friction in the online shopping experience for both merchants and customers.
WhatsApp’s supremacy in social commerce in Cameroon contrasts with Facebook’s popularity. Indeed, according to the findings of a research published on March 1, 2018 by Médiamétrie, the French leader in media studies, 64.6 percent of those polled choose Facebook, which always comes first, followed by Google+, Instagram, and Twitter.
Whatsapp Cameroon Whatsapp Cameroon
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning writer