Startup Funding - Afrikan Heroes

Egyptian Startup Pearl Semiconductor Raises $4.5M from Leading Investors

October 12, 2023

Shorouk Partners made a significant announcement regarding its strategic investment in Pearl Semiconductor, an innovative Egyptian startup focused on semiconductors. This financial infusion saw the company secure $4.5 million in funding, with prominent participants such as Sawary Ventures, Qatar’s QBN Capital, and a group of angel investors contributing to the financing round.

Semiconductors, as the cornerstone of contemporary technology, facilitate the creation of essential devices and solutions that have seamlessly woven into our daily routines. Shorouk Partners emphasized that its foray into this uncharted territory was not solely a decision based on the immense growth potential in this sector, which is expertly navigated by the formidable team at Pearl Semiconductor. It also underlines the firm’s unwavering commitment to bolstering the emerging technology landscape in Egypt and beyond.

The collaboration between Shorouk Partners and Pearl Semiconductor transcends the realm of a promising investment in a semiconductor company poised for global leadership. It serves as a testament to the ongoing revolutionary movement in Egypt, which aspires to harness the untapped engineering prowess within the nation and the broader region.

Shorouk Partners expressed, “It is imperative to recognize the profound influence of Ayman Ahmed, a semiconductor expert and the CEO of Pearl Semiconductor, in tandem with his esteemed university mentor and industry veteran, Dr. Hisham Haddara, who serves as the Chairman of Pearl Semiconductor.” This pioneering company has been actively involved in Egypt’s semiconductor industry for over three decades, culminating in the recent establishment of Pearl Semiconductor. Their groundbreaking efforts, dating back to the early 1990s, set the stage for a flourishing semiconductor ecosystem in Egypt, enabling the nation to introduce cutting-edge innovations to the global market.

The startup was founded by Ayman Ahmed in the year 2020.

Salient Predictions Secures $2.9 Million in Funding to Disrupt Weather Forecasting for East African Farmers

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con

South African Startup Cue Raises $500K to Scale Its AI-Driven Customer Service Solutions

African-tech-startup-funding-rises-51-to-195M-in-2017

South African startup Cue is set to expand its AI-driven customer service solutions after successfully raising $500,000 (approximately R10 million) in funding. The undisclosed investor’s support signifies a major milestone for Cue, which specializes in AI-driven solutions that empower businesses to improve their customer service channels through the use of chatbots and live chat on platforms like WhatsApp and various social media platforms.

The company, which recently expanded its operations to the UK, has experienced rapid growth over the past year due to the surging demand for its AI platform. This platform seamlessly integrates chatbots and live chat into clients’ business applications. With the newly acquired funding, Cue plans to extend its operations in both the local market and the UK, further enhancing its AI capabilities across various self-service channels, including WhatsApp, Messenger, and web chat. The aim is to provide rapid, flexible, and personalized customer service experiences while significantly reducing wait times and operational costs for businesses. Notably, Cue has already delivered impressive results to clients in various industries, including well-known companies like King Price Insurance, Affinity Health, Mancosa, and Save Hyper.

Cue has seen substantial growth in its workforce, with a more than 500% increase in employees from 2018 to the present. They have also built a robust client base, serving over 300 clients over the years. This recent round of funding is expected to further accelerate growth in both of these key areas.

The surge in cloud storage solutions and the introduction of generative AI chatbots, such as ChatGPT, GPT-3.5, MidJourney, and Stable Diffusion, has greatly accelerated the adoption of AI across various industries. As companies continue to identify innovative use cases, AI adoption is on the rise. According to research by Grand View Research, the global generative AI market was valued at $10.14 billion in 2022, and it is anticipated to grow at a compound annual growth rate of 35.6% from 2023 to 2030. Key drivers for this growth include the increasing application of technologies such as super-resolution, text-to-image conversion, and text-to-video conversion, as well as the growing demand to modernize workflow processes across various industries.

Cue was founded in 2015 by Rhett Trickett, Ryan Egnos and Richard Nischk.

South Africa’s TymeBank Reaches 8 Million Customer Milestone in Just Four Years

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con

South African Freight Platform Linebooker Secures $3.5M from ARC Investments

October 11, 2023

African Rainbow Capital Investments (ARC) has been an investor in Linebooker since 2017. In the latest round of investment, ARC injected approximately R67 million ($3.5M) into Linebooker, increasing its stake to just over 70% in the company. The primary purpose of this investment is to support Linebooker’s accelerated growth strategy. This strategy is aimed at enhancing Linebooker’s technology and operational capabilities to better serve its customers, especially in the areas of communication with transport companies and managing larger transport volumes. The majority of the investment will be allocated to technology improvements, while a smaller portion will be used for operational and personnel enhancements.

Why the Investors Invested

The decision by ARC to invest further in Linebooker is grounded in several key factors. In the first place, Linebooker has shown substantial growth potential over the years, with its annual revenues doubling in the past three years. This growth, in part, has been attributed to the ongoing challenges faced by Transnet, the state-owned transport company, in providing reliable transport solutions. In sectors such as mining, retail, farming, and manufacturing, Linebooker has filled the void created by Transnet’s inability to meet the transportation needs of these industries.

Additionally, Linebooker operates in diverse transport sectors, including fast-moving consumer goods (FMCG) and mining bulk. While FMCG operations were less affected by Transnet’s issues, the recent expansion into the mining sector has seen increased customer engagements due to the rail infrastructure’s unreliability. This diversification has helped Linebooker maintain strong growth rates even in the face of Transnet’s challenges.

ARC’s investment is also motivated by the immense potential within the South African transport industry. With a market size of approximately R270 billion ($14.2 Billion) , there is substantial room for growth. Even if Transnet were to resolve its issues and improve its services, the overall market size is large enough to accommodate significant players. Therefore, ARC’s decision to invest further in Linebooker is based on the belief that the company can continue to expand and capture a larger portion of this growing market.

Cost of transport has risen 22% due to fuel hikes, inflation shock coming: Naude Rademan, Linebooker - YouTube — *Naudé Rademan is the CEO of Linebooker. Credits: Linebooker*

A Look at Linebooker

Linebooker is an online freight platform that connects customers in need of transporting large goods with trucks and other transportation services. The company was founded in 2017 and has experienced rapid growth, with its annual revenues doubling over the past three years.

According to CEO Naudé Rademan, the company’s primary focus is on solving transportation challenges for various industries, including mining, retail, farming, and manufacturing. Linebooker has gained credibility and trust in the market by providing reliable transport solutions, particularly in cases where Transnet has failed to meet the transportation needs of these industries.

Linebooker’s partnership with ARC Investments has been instrumental in its growth, with ARC now holding just above 70% of the company’s ownership. This latest injection of R67 million in capital from ARC is intended to further enhance Linebooker’s technology and operational capabilities, allowing it to serve its customers more efficiently and handle larger transport volumes.

In the long term, Linebooker’s goal is to continue expanding its market share within the R270 billion transport industry and to improve its technology and platform to offer better pricing and supply for its customers while reducing carbon emissions by optimizing transportation routes. Overall, Linebooker’s success is built on its adaptability, strong partnerships, and a commitment to solving transportation challenges in South Africa.

Linebooker freight Linebooker freight

Sanari Capital Strategizes Deployment of Newly Secured $65 Million Fund in Africa

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the con

Egyptian Insurtech Amenli Closes $1 Million Funding Round with Key Investors

Egyptian insurtech innovator, Amenli, has successfully concluded a substantial $1 million equity funding round, with Alter Global at the helm, and support from Qatar Insurance Corporation’s (QIC) corporate VC arm, Digital Venture Partners (DVP). This promising startup, founded in 2020 by Adham Nauman, Omar Ezz El Din, and Shady ElTohfa, has been making waves by tailoring insurance plans for individuals, families, and SMEs in alignment with their specific needs.

The funding injection is set to catapult Amenli into a new growth phase. It will empower the company to amplify its workforce, enhance its product portfolio, and bolster its brand presence in the market.

Alter Global, a distinguished international VC firm focusing on emerging markets, led the funding round with notable enthusiasm. Represented in the region by Heba Ahmad, Alter Global expressed excitement about partnering with Shady and the Amenli team and announced their second investment in Egypt. Allen Taylor, a Partner at Alter Global, articulated their admiration for Amenli’s vision to transform Egypt’s presently underserved insurance sector, where penetration remains below 1%. Taylor remarked that Amenli has already constructed a robust technological infrastructure, providing them with a competitive edge in distribution and product innovation, thereby elevating the insurance experience for both individuals and SMEs.

Amenli has earned the endorsement of the Financial Regulatory Authority in Egypt (FRA) and has made accessible a wide array of affordable insurance products, catering to individuals, families, and SMEs. Moreover, the company has established smooth channels for handling client claims, ensuring efficiency and expeditious service.

YC-backed Amenli raises $2.3M to provide insurance to Egyptian consumers | TechCrunch

With the infusion of funds, Amenli is gearing up to introduce new products that cater to both existing and emerging customer segments, addressing previously unmet insurance requirements. The company also plans to diversify its distribution channels to maximize efficiency and outreach. Furthermore, Amenli will intensify its focus on the B2B2C sector, leveraging its proprietary Insurance API to solidify its reputation as a trustworthy and innovative leader within the industry, staying true to its 2024 vision.

Lars Gehrmann, Group Chief Digital Officer at Qatar Insurance Company (QIC), commented on the alignment of Amenli’s vision with DVP’s Corporate Venture Capital (CVC) commitment to promoting insurtech innovation through early-stage investments within MENA. He expressed QIC’s eagerness to support Amenli’s growth and inventive approach to insurance in Egypt and beyond.

Amenli’s decision to secure additional funding coincides with a pivotal moment in the company’s trajectory. They have experienced remarkable growth, expanding fivefold in comparison to the same period in the previous year. This achievement is attributed to their commitment to product quality and the increased efficiency and impact delivered by Amenli’s core platform technology. With strong unit economics across their retail business, which includes services for both individuals and SMEs, they have exceeded targeted gross profit margins by an impressive 100% in H1 2023. Consequently, Amenli is shifting its focus towards business expansion, profitability, and positive cash flow generation.

Shady ElTohfa, CEO and Co-Founder of Amenli, underscored the significance of this strategic milestone, describing the funding round as a substantial validation and a resounding vote of confidence for the company. He emphasized that the backing of prominent investors, including Alter Global, QIC DVP, and Basil Al Moftah, all of whom possess extensive experience in the tech and insurance sectors, reinforces their belief in Amenli’s vision and their ambitious expansion plans.

Othmane Bennis, Head of CVC at DVP, highlighted Amenli’s technological prowess, lauding the company for establishing itself as a prominent insurtech player. Through a tech-driven, digital-first approach and building on their substantial traction in Egypt, Amenli is poised to rapidly expand access to insurance in underserved markets, thereby advancing financial inclusion and security in the region.

Shady ElTohfa also shared his vision for the future, stating, “During the upcoming phase, we are focused on expanding our team, strengthening our product offerings, and building a robust brand to deliver unmatched value to our clients. Our dedicated efforts revolve around providing tailored insurance solutions to our client base, empowering them through accessible payment options such as BNPL, convenient onboarding, and KYC processes, and ensuring a seamless claims process.” Amenli is well-positioned to revolutionize the insurance landscape in Egypt and beyond, and this funding round marks a significant step in that direction.

Sanari Capital Strategizes Deployment of Newly Secured $65 Million Fund in Africa

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

What Southbridge Investments and On.Capital Intend to Achieve with Their $100 Million New Fund for African Cleantech

October 9, 2023

In a strategic partnership, Southbridge Investments and On.Capital have unveiled their visionary $100 million fund, strategically designed to fuel cleantech innovation across the African continent. This partnership represents a significant leap forward in advancing universal energy access and enhancing climate resilience, with a special focus on underserved regions. The collaboration leverages the collective expertise and resources of both firms, united by their commitment to driving innovative, sustainable energy solutions and fostering inclusive economic growth.

The Energy Go-Getters Fund, as it’s aptly named, will target investments across a spectrum of cleantech businesses, ranging from nascent startups with promising technologies to well-established companies poised for expansion. By harnessing the potential of clean and renewable energy sources, the fund aims to make substantial contributions to Africa’s sustainable development goals while delivering attractive returns for its investors.

Dr. Frannie Léautier, CEO of Southbridge Investments, emphasized the significance of this endeavor, stating, “We firmly believe that Africa holds vast potential in harnessing its renewable energy resources to meet its energy, employment, and carbon targets, ushering in a brighter and more sustainable future for its people. This joint venture with On.Capital not only underscores our commitment to responsible investing but also highlights our confidence in Africa’s potential as a global leader in the renewable and digital energy sector.”

Emmanuel Beau, CEO of On.Capital and founding Partner of Energy Access Ventures, a $90 million smart infrastructure fund, expressed his enthusiasm, saying, “Through the Energy Go-Getters Fund, we provide essential early-stage and scale-up equity to champions of energy access, particularly in underserved markets. As Go-Getters, we are on the ground, alongside our entrepreneurs, committed to overcoming new and challenging situations. We are determined to Go-Get universal access to energy done! We are thrilled to embark on this journey with Southbridge Investments, as we combine our resources and collective expertise to continue driving innovation, job creation, and environmental stewardship across the continent.”

Both Southbridge Investments and On.Capital have established themselves with a proven track record of successful investment strategies, value creation, and an unwavering commitment to responsible business practices. This joint venture solidifies their dedication to generating a positive impact through sustainable investments.

The launch of this dedicated fund management platform marks a significant milestone in the partnership between Southbridge Investments and On.Capital as they work together to accelerate Africa’s journey towards a more sustainable energy landscape.

SouthBridge Investments (SBI) operates as the investment and asset management arm of SouthBridge Group, a Pan-African advisory and investment entity with operational hubs in Abidjan, Casablanca, Kigali, London, and Paris. The firm is helmed by a team of seasoned professionals, including founders Donald Kaberuka and Lionel Zinsou, along with CEO Frannie Leautier and COO Emeryc Kpenou.

SBI endeavors to deliver a uniquely Pan-African investment service imbued with on-the-ground operational experience. It directly manages a range of investment vehicles tailored for African markets and advises partners and clients on investment opportunities and issues across the continent.

SBI’s overarching mission is to actively participate in realizing Africa’s potential by channeling investments into distinctive opportunities. The firm sets itself apart with distinctive features, including an unparalleled team comprising some of the most seasoned professionals in the African investment industry, an exceptional network spanning Africa and the globe, premium access to deal flow across all regions of the continent, and an unwavering focus on long-term value creation.

Smart Capital for Peace and Prosperity On.Capital, headquartered in Paris, functions as an advisory, fundraising, and investment enterprise established with the goal of unleashing capital, talent, and innovation in frontier markets. Recognized as a Climate Champion for its efforts in climate resilience by the Boston Consulting Group for COP27, On.Capital has received support from the United Nations Environment Program Seed Capital Assistance Facility for fundraising efforts related to the Energy Go-Getters Fund. On.Capital specializes in smart infrastructure and responsible commodities for impact.

Nigerian Tech Investment Firm Marks Landmark Stock Exchange Debut

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

VFD Group Plc Lists on Nigerian Exchange, Commemorates with Closing Gong Ceremony (NGX)

In an extraordinary financial journey that has propelled it to a valuation of over $260 million in total assets, VFD Group, a Nigerian investment company, has officially made its debut on the Nigerian Exchange Limited (NGX). The company, which initially commenced operations in 2009 with a humble $3,250 in capital from a group of 35 visionary investors, celebrated its listing on the Main Board of the NGX, leaving behind its three-year stint at the Lagos-based over-the-counter securities exchange NASD OTC.

Unlike conventional investment banks that manage assets on behalf of others, VFD Group adopts a proprietary investment-focused approach, strategically targeting companies for direct market gain. This unique approach has propelled them to new heights in the financial realm.

A total of 190,027,365 shares, each priced at $0.32 per unit, were added to the NGX, translating to a market value of $59.98 million. The company’s extensive investment portfolio encompasses more than 40 companies, with some of them already listed on the NGX.

VFD Group’s ascent in the financial world gained further momentum with its acquisition of a significant stake in the NGX Group, representing 5.2% of the bourse’s issued shares.

Listing on the standard exchange not only provides VFD Group with access to increased capital but also enhances its visibility among potential investors. The company has ambitious plans to raise $16.25 million through rights offerings as part of its larger $42.25 million equity and debt fundraising strategy to fortify its capital base.

At the Facts Behind the Listing ceremony held at the Nigerian Exchange building in Lagos, CEO Nonso Okpala shared his insights, stating, “This is a momentous occasion for VFD Group. Our journey from a boutique investment firm to a publicly traded company on the Nigerian Exchange reflects the dedication and hard work of our entire team. We are excited about this new chapter and the opportunities it brings to further strengthen our market position.”

Echoing these sentiments, VFD Group Chair Olatunde Busari expressed enthusiasm, saying, “We are excited to join the distinguished ranks of companies listed on the Exchange, and we are confident that this step will provide us with the resources we need to continue our growth trajectory and serve our shareholders even better.”

VFD Group’s investment portfolio extends to several Nigerian tech companies, including Minerva Tech, PiggyVest, ErrandPay, and VerifyMe. This momentous listing marks a significant milestone in the company’s journey towards further financial growth and market prominence in Nigeria’s dynamic tech and investment landscape.

Terragon Partners Microsoft to Take African Businesses to New Heights

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Application Deadline Extended: MEST Africa Challenge Welcomes More Startups

October 7, 2023

MEST Africa, the entrepreneurial institution renowned for its support of startups in Africa, has extended the application deadline for the MEST Africa Challenge. This extension is aimed at encouraging a wider range of applications from early-stage technology startups based in Ghana, Nigeria, Senegal, Kenya, and South Africa. The competition offers an opportunity for these startups to showcase their innovative business ideas. The application period is now open until October 16, 2023.

The MEST Africa Challenge offers substantial benefits to participants, with the winner receiving a USD 50,000 equity investment to help accelerate their business growth. Additionally, the winner and other standout participants gain access to MEST Africa’s global network, which can lead to valuable partnerships, mentorship, and potential investment opportunities. This platform is designed to help startups advance to the next level of growth and gain recognition on a global scale.

Ashwin Ravichandran, Portfolio Advisor and MEST Africa Challenge Lead, emphasized the organization’s commitment to inclusivity, stating, “We have seen significant interest from entrepreneurs across Africa, and in response, we have extended the application deadline. This ensures that all innovative startups have a fair opportunity to be part of this transformative journey. We’ve witnessed the positive impact this challenge has had on past winners, and we’re excited to discover the next startup that will make a mark in the African tech scene.”

In 2022, the MEST Africa Challenge crowned Senegal’s B2B e-commerce startup, Kwely, as the winner, further solidifying its reputation as a platform for exceptional startups from across the African continent. Past participants have included startups like Tanzania’s Kilimo Fresh, Ghana’s OZE, South Africa’s Snode Technologies, Kenya’s Waya Waya, and Nigeria’s Accounteer, all of whom have contributed to the vibrant entrepreneurial landscape in Africa.

To be eligible for the MEST Africa Challenge 2023, startups must meet certain criteria, including a minimum monthly recurring revenue of $5,000, cumulative funding raised of $1 million or less, existence for three years or less, at least six months of recurring revenue, a founding team of at least two members, and registration in Delaware (preferred). Demonstrated traction in key markets, including Ghana, Kenya, Nigeria, South Africa, and Senegal, is also important.

Entrepreneurs looking to showcase their startups and unlock their potential are encouraged to apply for the MEST Africa Challenge at apo-opa.info/3rL7v4H.

MEST, an African-wide software and entrepreneurship training program, seed fund, and incubator, plays a significant role in nurturing technology startups across the continent. Founded in Ghana in 2008 by Jorn Lyseggen, MEST offers a comprehensive 12-month program that provides training in software development, business skills, and communication to emerging tech talent in Africa. MEST not only provides seed funding for promising ideas but also supports the growth of its portfolio companies.

To date, MEST has trained over 2,000 entrepreneurs from various African countries and funded more than 80 startups in sectors such as Agritech, Fintech, SaaS, eCommerce, Digital Media, and Healthcare, among others. MEST is funded by the Meltwater Foundation, the nonprofit arm of Meltwater, a global leader in social and media intelligence headquartered in San Francisco.

CrossBoundary Access and Mobile Power Announce $10 Million Initiative for MOPO Hubs in Nigeria

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Senegal’s Data-Driven Startup Lengo AI Attracts Investors for African Retail Revolution

October 5, 2023

Lengo AI, a SaaS startup based in Senegal, has announced a pre-Seed investment round led by Acasia Ventures, an Egypt-based venture capital firm. This funding round also saw the active participation of Ventures Platform, P1 Ventures, Launch Africa, Voltron Capital, and several other venture capital firms and individual angel investors.

The infusion of capital from this investment will be instrumental in Lengo AI’s expansion strategy. It will enable the company to grow its technology and sales teams, advance the artificial intelligence (AI) component of its product, and facilitate its entry into untapped African markets.

Max Smith, Roger Xavier Macia, and Ismaila Seck — Lengo AI

Why the Investors Invested

The investors’ decision to allocate capital to Lengo AI can be attributed to several compelling factors:

Untapped Market Potential: Lengo AI’s innovative approach addresses a pressing need in Africa’s informal retail sector. By leveraging AI and real-time data, it provides a solution to the challenge of limited market visibility for FMCG brands. Investors recognize the vast untapped potential in this market and its potential for explosive growth.

Experienced Leadership: Lengo AI boasts a leadership team with a combination of skills and experience. Max Smith brings a wealth of knowledge in sales and market research across the African landscape, while Roger Xavier Macia, formerly the Chief Commercial Officer (CCO) at Jumia in Senegal, offers deep insights into the local retail landscape. Ismaila Seck, with a PhD in machine and deep learning, adds expertise in AI and technology development. This blend of expertise instills confidence in investors regarding the startup’s ability to execute its vision.

Scalable Business Model: Lengo AI’s unique approach, combining “Lengo Eagles” (field agents) with AI, offers a scalable business model that can effectively bridge the gap between retailers and FMCG companies. This scalable model positions Lengo AI for rapid expansion and increased market penetration.

Positive Market Traction: The company’s early achievements, including real-time market monitoring for over 2,000 products and the mapping of thousands of corner shops in Dakar and other cities, provide tangible evidence of its market impact. Such traction serves as validation for investors.

Collaborative Investment Ecosystem: The participation of multiple prominent venture capital firms in this funding round signifies a collaborative effort to support Lengo AI’s ambitious business plan. Investors believe in the potential for synergistic growth by pooling resources and expertise.

A Look at Lengo AI

Lengo AI, founded in 2022 by a dynamic team comprising Max Smith, Roger Xavier Macia, and Ismaila Seck, is a pioneering data-driven operating system designed specifically for the informal retail sector in Africa. The startup aims to bring a data-driven revolution to this sector by providing actionable insights and intelligence to fast-moving consumer goods (FMCG) brands. These insights are derived from the vast network of corner shops that constitute a staggering 90 percent of retail purchases across the African continent.

The company operates out of Dakar, Senegal, and has identified its primary focus as empowering FMCG brands with actionable insights drawn from the vast network of corner shops that constitute the majority of retail transactions in Africa.

The startup’s unique value proposition lies in its hybrid approach, combining field agents known as “Lengo Eagles” with advanced AI technology. This approach allows it to provide real-time performance data on product sales, benefiting both retailers and FMCG companies.

Lengo AI’s software-as-a-service (SaaS) platform also introduces the concept of the “Lengo Club,” designed to empower shopkeepers by providing insights into customer behaviors, alerts about new products, and a loyalty point system. On the corporate end, the platform helps local FMCG companies optimize their resources and offers purchasing behavior data to international companies looking to invest in the African market.

As of now, the company has mapped out over 30,000 corner shops across various cities. Max Smith serves as the CEO, leveraging his extensive background in sales and market research across Africa. Roger Xavier Macia, the CCO, brings his experience from Jumia in Senegal, and Ismaila Seck, the CTO, is a respected figure in Senegal’s AI community, holding a PhD in machine and deep learning.

Paratus Says it Will Offer SpaceX’s Starlink in Africa

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Egypt’s MoneyHash Secures New Financial Backing for Its Payment Solutions Expansion

October 4, 2023

Egyptian fintech firm MoneyHash has successfully secured additional funding from Tom Preston-Werner, co-founder of GitHub and former CEO, as part of an undisclosed seed funding round. This investment signifies Preston-Werner’s inaugural foray into the Middle East market and his second venture into the African market. The seed financing round is anticipated to conclude in the forthcoming weeks.

MoneyHash, established in late 2020 by Nader Abdelrazik, Mustafa Eid, and Anisha Sekar, offers companies the opportunity to tailor a payment infrastructure that precisely aligns with their unique requirements. Tom Preston-Werner, renowned for his significant contributions to the technology landscape, particularly as the founder of GitHub, a leading software platform that transformed developers’ collaborative capabilities in application development, has turned his attention toward early-stage startups. His objective is to assist them in devising solutions that address tangible real-world challenges.

Having previously invested in Stripe, Preston-Werner possesses a keen interest in technology infrastructure products, with a specific focus on tools and development environments. His investment in MoneyHash underscores his unwavering belief in the importance of product quality and its capacity to tackle a pivotal issue for customers across emerging markets.

“I was profoundly impressed by the technical excellence and product vision exhibited by MoneyHash, as well as the founders’ profound comprehension of the payment landscape in Africa and the Middle East,” he stated. “This region is experiencing rapid growth, and it is only natural to invest in infrastructure products crafted by exceptional teams. Nader and his team have attracted a remarkable pool of tech talent, and I am thrilled to embark on this journey with them.”

Tom Preston-Werner, now an investor in MoneyHash, brings his technical prowess and innovative mindset to drive the company’s product development forward. Co-founder Mustafa Eid expressed enthusiasm regarding Preston-Werner’s involvement, citing his interest in both investing and actively participating in their journey as a testament to the team’s dedication and product-oriented approach over the past few years.

MoneyHash has taken on the substantial challenge of addressing a prevalent issue in the region — over 30% of digital payments experience failure due to the fragmented and intricate payment ecosystem prevalent in the Middle East and Africa. This complexity incurs significant costs for merchants throughout the region. With the digital payments market projected to exceed $150 billion by year-end, MoneyHash’s fully integrated suite of products offers businesses the means to incorporate multiple payment processors and methods, optimize payment workflows and recurring revenue, mitigate fraud and payment failures, streamline reconciliation procedures, and efficiently manage diverse payment requirements.

Their overarching mission revolves around empowering medium to large enterprises in emerging markets. MoneyHash simplifies the complexities associated with payment infrastructure, workflows, and operations, equipping these businesses with a competitive edge to foster growth and expand their customer bases.

Starlink Chooses Jumia for Retail Distribution Across African Markets

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Egyptian Deeptech Startup Intella Secures $3.4 Million in Pre-Series A Funding

Intella, a deeptech startup headquartered in Saudi Arabia with Egyptian roots, has successfully concluded a pre-Series A funding round, securing a substantial $3.4 million. The primary investors in this round include HALA Ventures and Wa’ed Ventures, the venture capital arm of Aramco, with additional contributions from Sanabil 500 and INSEAD’s alumni angel network, among others. This infusion of capital will serve a dual purpose: supporting Intella’s expansion into the Saudi market and facilitating the development of AI models tailored specifically for the Middle East and North Africa (MENA) region.

Why the Investors Invested

The investors’ decision to contribute to Intella’s funding round is underpinned by several compelling factors. In the first place, the relocation of Intella’s headquarters from Cairo to Riyadh in 2023 aligns strategically with Saudi Arabia’s growing tech and AI landscape. The Kingdom is rapidly becoming a hub for technological advancements, and investors recognize the potential for significant growth and innovation in this market. As Nour Altaher, CEO and Co-founder of Intella, noted, this move perfectly complements their expansion plans.

In addition to its strategic location, Intella boasts impressive achievements in AI technology. The startup subjected its system to rigorous testing, logging over 30,000 hours of Arabic audio. The results, particularly with Intella Voice, are remarkable, with a staggering 95.73% accuracy rate. This surpasses well-established tech leaders like Google’s speech-to-text, Open AI’s whisper, Meta’s seamless M4T, and IBM Watson. This technological prowess positions Intella as a frontrunner in the field of Arabic voice technology.

Moreover, Intella is not content with merely offering transcription services. It is venturing into audio analytics, encompassing functions such as summarization, sentiment analysis, topic extraction, and call scoring. This demonstrates their commitment to pushing the boundaries of what AI can achieve in the realm of voice technology in the MENA region.

The investors, led by HALA Ventures, recognize Intella’s pivotal role in bridging the gap between the Arab-speaking world and global AI advancements. They view Intella’s mission as crucial in ensuring the region remains relevant in the ever-evolving landscape of technological trends. This aligns with the growing demand for specialized Arabic voice technology, positioning Intella favorably to cater to the unique needs of the Middle East.

A Look at Intella

Intella, founded in 2021 by Nour Altaher and Omar Mansour, is a deeptech company headquartered in Saudi Arabia. Its core focus is on providing real-time, on-demand market research services to businesses across various sectors. As part of its strategy for growth and innovation, Intella relocated its headquarters from Cairo to Riyadh in 2023 to tap into the burgeoning tech and AI scene in Saudi Arabia.

Intella’s unique selling point lies in its exceptional AI technology, particularly in the domain of Arabic voice. Through rigorous testing and development, they achieved a remarkable 95.73% accuracy rate in Arabic audio processing, outperforming global tech giants. Intella’s offerings extend beyond transcription to encompass advanced audio analytics, including summarization, sentiment analysis, topic extraction, and call scoring.

The startup’s mission is to connect the Arab-speaking world with the forefront of AI progress, ensuring that the region remains a significant player in the global tech landscape. With the infusion of $3.4 million in funding, Intella is well-positioned to expand its presence in the MENA region, enhance its product portfolio, and solidify its leadership in voice technology innovation. The demand for specialized Arabic voice technology is on the rise, and Intella is poised to meet these needs and contribute to the region’s technological advancement.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard