Startup Funding - Afrikan Heroes

South African Fintech Stitch Secures $25 Million Investment to Expand Payment Solutions

October 3, 2023

South African fintech company, Stitch, has secured a significant investment of $25 million in an extension round of funding. This round was led by Ribbit Capital, a global fintech investor, with participation from existing backers, including CRE Ventures, PayPal Ventures, and the Raba Partnership. This investment brings Stitch’s total Series A funding to a substantial $46 million.

Stitch is dedicated to providing an “end-to-end payments solution” designed to cater to the complex and evolving payment needs of its enterprise clients. Its services primarily revolve around enabling businesses to create, optimize, and scale financial products while offering API gateways to enhance online payment conversions and streamline payment operations.

The company has experienced substantial growth since its inception in 2021, with clients ranging from established enterprises to startups and small businesses. Its platform allows clients to access customers’ financial accounts and offer various services such as personal finance, lending, insurance, payments, and wealth management.

Why The Investors Invested

Ribbit Capital’s decision to lead the funding round for Stitch can be attributed to several factors. In the first place, Ribbit Capital has previously invested in successful African fintech startups, such as Chipper Cash and Wave, indicating a positive track record and familiarity with the African fintech landscape. This experience likely gave Ribbit confidence in Stitch’s potential for success.

Again, Stitch’s strong performance and traction in the market played a crucial role in attracting investment. As Stitch continues to process over 50 million transactions totaling $2 billion in total payment volume (TPV) this year, these impressive numbers validate the company’s growth and potential profitability. In the world of venture capital, concrete numbers often hold more weight, and this aligns well with Ribbit Capital’s investment strategy.

Additionally, Ribbit Capital’s understanding of the global fintech landscape and emerging markets is seen as invaluable to Stitch. As the company expands its services, having a knowledgeable investor with a global perspective can help navigate the challenges and opportunities in different markets.

A Look at Stitch

Stitch, founded in 2021, is a Cape Town-based fintech company co-founded by Kiaan Pillay, Natalie Cuthbert, and Priyen Pillay. The primary focus of Stitch is to provide end-to-end payment solutions to enterprise businesses in South Africa, with notable clients including MTN, Multichoice, the Foschini Group (TFG), Standard Bank’s SnapScan, and Yoco.

While the company primarily serves South African enterprises, it also has licenses to operate in other African countries, with a growing customer base in Nigeria. Stitch’s services have evolved from a quasi-data, quasi-bank-to-bank payments platform to a comprehensive payment service provider. Their platform allows customers to accept payments through various methods, manage and reconcile payments across different providers and geographies in a single dashboard with their PayOS feature, and disburse funds.

One notable aspect of Stitch’s strategy is its adaptability to the specific needs of its clients. The company has successfully provided a modular approach to adding new products and features, making it appealing to large enterprises that demand flexibility in their payment solutions.

As consumer internet companies in the U.S. and Europe look to enter the African market, Stitch plays a vital role by offering a range of payment options tailored to the local context, where credit cards may not be prevalent. This positions Stitch as a gateway to Africa for global enterprises.

How South African Crypto Startup VALR Processed $10B in 5 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 continent’s pioneers in this regard

Renew Capital Backs Ethiopia-based Micro-Insurance Startup Jamii.one in New Investment

October 2, 2023

Renew Capital, an Africa-focused impact investment firm, recently unveiled its participation as angel investors in Jamii.one, a pioneering micro-insurance startup dedicated to enhancing financial well-being in Ethiopia. Jamii.one is on a mission to transform Ethiopia’s financial landscape using a digital platform driven by community data.

The specific investment amount was not disclosed in the announcement. However, the collaboration between Renew Capital and Jamii.one is geared towards advancing financial inclusion throughout Ethiopia.

The genesis of Jamii.one dates back to 2018 when it was co-founded by a trio of visionary individuals, namely Charlotte Rønje (CEO), Daniel Brøndum Torp (CTO), and Tigist Bezu (COO). Jamii.one’s innovative approach hinges on its partnership with self-organized Ethiopian community groups known as “Idirs.” These community entities come together to pool monthly contributions, creating an informal cooperative-like insurance system that covers expenses related to funerals and other significant life events.

Jamii.one has harnessed the power of digitization to transform these financial contributions into a bridge, connecting unbanked communities with the formal banking sector. Tigist Bezu, co-founder and COO of Jamii.one, enthused about this unique synergy, saying, “When we entered the market, it didn’t take us long to introduce the Idir community to Jamii.one. After tailoring our product for Idir and enabling access to affordable group micro-life insurance, it was amazing to see the synergy of technology and community power.”

The Jamii.one mobile application has been thoughtfully designed to cater to individuals with low literacy levels. It boasts offline functionality and accommodates limited smartphone capabilities, making it accessible to a wider segment of the population.

Jamii.one Insurance — *Credits: Renew Capital*

Jamii.one’s revenue model is built on partnerships with insurance companies, allowing them to offer tailor-made insurance products to their users. As of now, Jamii.one has successfully onboarded 400,000 users onto its platform, with over 50,000 users benefiting from their insurance coverage.

This investment by Renew Capital in Jamii.one marks another significant milestone for the microinsurance startup, following a string of successful capital raises in 2023. In June, Jamii.one accomplished an impressive feat by raising $840,000 via Seedrs, a prominent UK-based online equity crowdfunding platform for startups. This achievement exceeded their initial fundraising goal by an astounding 295%. Moreover, in May 2023, Jamii.one secured a generous €150,000 grant from the Swiss Capacity Building Facility (SCBF).

Jamii.one has set its sights on an ambitious goal of reaching 2.3 million users and expanding its product portfolio, with a particular emphasis on offering health insurance products to the masses.

Renew Capital, an advocate for innovative companies with exponential growth potential, maintains a notable presence across multiple African nations, including Ethiopia, Rwanda, Uganda, Nigeria, Kenya, and Tanzania. The firm manages investments on behalf of the esteemed Renew Capital Angels, contributing to the continued growth and success of ventures like Jamii.one.

Jami.one Insurance Jami.one Insurance

Rwanda-based Ampersand Secures New Seven-Figure Funding from Leading Investors

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

Rwanda-based Ampersand Secures New Seven-Figure Funding from Leading Investors

September 29, 2023

Against the backdrop of UNGA Climate Week, Beyond Capital Ventures has announced a new investment in Ampersand E-Mobility, an electric motorcycle and transport energy solutions company based in Africa. Ampersand has made strides in offering East Africa’s substantial taxi motorcyclist community an economically competitive electric motorcycle with improved user experience, while requiring minimal adjustments from customers.

Ampersand’s triple-bottom-line approach makes it a standout in Beyond Capital’s portfolio, with significant environmental benefits, including the displacement of 2.5 tons of CO2 emissions annually for each motorcycle. On an individual level, customers save around $1,000 annually, leading to transformative changes in their lives. The investment from Beyond Capital Ventures has enabled Ampersand to scale up to 1,350 motorcycles on the road and a 36% gross margin. The company plans to expand further, potentially into other markets, as they embark on a rapid transition to electric mobility.

This latest investment follows Ampersand’s prior funding from AlphaMundi Group (AMG), which injected $1 million into the company. AMG’s investment was aimed at supporting Ampersand’s mission to provide clean and affordable mobility solutions across East Africa. With AMG’s backing, Ampersand has been expanding its motorcycle fleet and battery swap stations in Rwanda and Kenya.

This investment adds to a series of previous financial boosts for Ampersand, including support from organizations like StartupBootcamp, FactorE Ventures, Ecosystem Integrity Fund, TotalEnergies Venture arm, the Rwanda Green Fund, USAID’s Development Innovation Ventures, Shell Foundation, the UK FCDO’s Frontier Technology Livestreaming fund, the New Zealand Government, and a loan from Blue Haven Initiative’s Catalytic Fund.

Daniel Silva, Investment Manager at AlphaMundi Group, expressed enthusiasm for the partnership with Ampersand, highlighting the company’s potential to provide motorcycle taxi and delivery drivers with an efficient and affordable income-generating asset while contributing to a more sustainable transportation future. Ampersand’s Founder and CEO, Josh Whale, emphasized the importance of electrifying East Africa’s motorcycle taxis in the wake of COP27, underlining the urgency of bold and innovative actions.

Ampersand, headquartered in Kigali, Rwanda, stands as Africa’s premier integrated electric motorcycle and transport energy solution provider. Their business centers around a network of battery swap stations and a fleet of unique electric motorcycles, managed through a user-friendly app and software backend. Since their commercial launch in 2019, Ampersand’s electric motorbikes have covered over 20 million kilometers in 2022, leading to a 41% increase in daily income for motorcycle drivers and a substantial reduction in carbon emissions.

AlphaMundi Group Ltd, the organization behind AMG’s investment in Ampersand, has been actively engaged in impact investing since its inception in 2008. They have invested over USD 110 million in 57 impact ventures in Latin America and Africa, primarily through the SocialAlpha and AlphaJiri impact investment funds. These investments span a range of debt and equity transactions and are aligned with the Sustainable Development Goals.

The AlphaJiri Investment Fund LP (Mauritius) represents their foray into debt, mezzanine, and equity investments with a focus on resilience and growth in impact ventures related to Sustainable Food and Renewable Energy sectors. It’s designed with a climate-smart and gender-lens orientation, primarily targeting East Africa. AlphaMundi’s broader commitment to sustainable development also extends through the AlphaMundi Foundation, which aims to bolster the long-term commercial viability of SMEs in Africa and Latin America through structured blended finance products and gender-lens investing for climate field building.

Scan to Pay App by Ukheshe Now Offers Cryptocurrency Payments for South African Users

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

How Enza Capital Plans to Invest Its New $58 Million Fund in African Startups

September 28, 2023

Mike Mompi, co-founder and managing partner of Enza Capital

Enza Capital, a venture capital firm specializing in supporting startups focused on “organizing the offline online” and “digitizing key African industries,” recently announced the successful closure of two funds, raising a total of $58 million. This development marks a significant milestone for the Nairobi-based firm as it continues its mission to nurture and empower innovative companies in Africa.

In 2019, Enza Capital launched its first fund, which primarily targeted early-stage startups in the pre-seed and seed stages. This fund remains active and has made investments across a range of sectors, including fintech, logistics, health, human capital, and climate tech. Notably, the firm has expanded its investment horizon beyond early-stage companies and now participates in larger follow-on investments, particularly in Series B rounds.

Mike Mompi, co-founder and managing partner of Enza Capital, shared that the firm has made 48 investments in 31 different companies through both of its funds. These investments span across eight African markets, including Kenya, Uganda, Nigeria, Ghana, Ivory Coast, Senegal, Egypt, and South Africa.

Enza Capital’s investment portfolio includes companies like Guidewheel, a Kenyan climate tech startup that expanded to the U.S. and Mexico after receiving a Series A round led by Greycroft. Additionally, the firm provided early support to Kenyan fintech Shara, which is now gearing up for a Series A round led by Index Ventures. Enza Capital also co-led a Series A investment in Ivorian fintech Djamo and Kenyan insurtech Turaco from its second fund.

Enza Capital typically invests between $250,000 and $5 million in its portfolio companies, such as Autochek, Jumba, Craydel, Cloudline, and SeamlessHR. Furthermore, the firm offers the opportunity for these companies to access additional funding through Enza Growth Capital, an evergreen, later-stage investment vehicle capable of investing up to $20 million per company.

One of the standout features of Enza Capital’s approach is its commitment to long-term partnerships with portfolio companies. Mompi explained that their investment vehicles are designed to support startups from early stages through growth, allowing them to maintain a strong presence throughout their journey.

In a unique move, Enza Capital is launching a founder partner program, where founders and leadership teams of its portfolio companies become co-owners of the firm. The program allocates 10% of the firm’s carry pool back to the founders, based on factors such as referrals, initial check size, and follow-on investments. This initiative aims to strengthen trust and alignment between Enza Capital and its founders, fostering collaboration and shared success.

Enza Capital’s vision extends beyond its individual success, as the firm hopes to set a precedent for the African venture capital industry. Mompi emphasized that their shared ownership model, where the firm only wins when its founders succeed, reflects a commitment to building a supportive ecosystem for startups, acknowledging that many startups face challenges and may not achieve outsized returns.

Notably, Enza Capital stands out as one of the continent’s largest funds not backed by traditional African institutional investors, such as Development Finance Institutions (DFIs). While they anticipate more involvement from DFIs, traditional African LPs, global endowments, foundations, and pension funds in the future, the fact that they succeeded in raising funds without them underscores the growing mainstream acceptance of venture capital in Africa.

Enza Capital’s limited partners consist of a diverse group of investors, including private individuals, family offices, foundations, fund of funds, hedge funds, and venture capital funds, in addition to the founding partners. This broad range of support reflects the growing interest and confidence in Africa’s startup ecosystem and Enza Capital’s unique approach to nurturing and empowering innovative companies.

South Africa’s Root Secures $1.5M Boost from Invenfin for Global Expansion of Innovative Insurance Technology

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

South African Fintech Revio Raises $5.2M to Simplify African Payments

Revio, a South African fintech startup, has recently secured $5.2 million in seed funding. The investment amount, $5.2 million, came from a group of investors that includes Speedinvest, Ralicap, Everywhere VC, QED, and Partech. The intention behind this investment is to strengthen Revio’s efforts in addressing the fragmented payment landscape in Africa. Revio was founded by Ruaan Botha, who currently serves as the co-founder and CEO. The startup is focused on payment orchestration, streamlining the order-to-cash lifecycles for businesses in Africa. It connects businesses to over 70 payment methods and service providers, aiming to reduce payment failures that cost digital businesses billions in recurring revenue yearly.

Why The Investors Invested

The investors’ decision to commit funds to Revio can be attributed to several key factors. In the first place, the rapid growth of digital payments in Africa is a compelling market opportunity. With a projected value of $146 billion in 2023 and significant mobile money transactions, Africa presents unique challenges and opportunities in the payments space. Revio’s focus on addressing the fragmentation of the payments ecosystem, with over 280 licensed payment service providers and 42 currencies, aligns with the growing demand for payment solutions in this diverse market.

Again, Revio’s approach to payment orchestration is essential for businesses operating across multiple countries and accepting various payment methods. The need for such platforms is evident, as they simplify the complex process of handling payments and increase payment success rates. Revio’s API-driven approach offers merchants access to transaction routing, automated failover, real-time customer engagement workflows, and even a revenue recovery use case that addresses payment failures due to insufficient funds or abandoned authorizations.

Moreover, the participation of investors like QED and Partech, known for their growth-stage investments, in Revio’s seed round reflects the recognition of the startup’s product relevance and potential impact. This move sets a positive signal for the African startup ecosystem, encouraging early-stage investments even in challenging market conditions.

A Look at Revio

Revio is a relatively young startup, founded just two years ago. Ruaan Botha, the co-founder and CEO, leads the company. While Revio is based in South Africa, its reach extends beyond its home country to serve businesses across more than 25 African markets. The startup focuses on assisting companies in connecting to multiple payment methods and reducing payment failures, particularly targeting large-scale enterprises with complex payment needs.

The core value proposition of Revio is its ability to streamline the order-to-cash lifecycle for merchants. Through its API, it enables businesses to access a wide range of payment methods, facilitating transaction routing, automated failover, and real-time customer engagement workflows. Additionally, Revio’s innovative approach includes a revenue recovery use case, which leverages communication channels like email, SMS, WhatsApp, and push notifications to re-engage consumers and provide more convenient payment options.

Revio has seen remarkable growth, with a 1,000% increase in revenue over the past year. Its client base includes some of Africa’s largest insurers and telecom companies, such as Old Mutual, MTN’s aYo, Innovation Group, and Standard Bank. Looking ahead, Revio plans to target global retailers servicing the African market and expand its capabilities in cross-border reconciliation settlement. The recently secured capital will be instrumental in advancing the company’s technological capabilities and expanding its team, both locally and internationally. In conclusion, Revio’s mission is to address the ongoing challenges in the African payment landscape and unlock increased e-commerce and digital payment activity on the continent.

South Africa’s Pace Car Rental Secures Significant Funding on JSE Private Placements Platform

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

South Africa’s Root Secures $1.5M Boost from Invenfin for Global Expansion of Innovative Insurance Technology

Root, the pioneering force behind a low-code, API-first, end-to-end insurance technology platform, has unveiled a significant boost to its financial arsenal in a strategic move towards global expansion.

In a testament to their ongoing partnership, Invenfin, the venture and growth capital arm of South Africa’s Remgro Limited, has demonstrated renewed faith in Root’s vision by injecting an additional $1.5 million into the company. Root’s Co-founder, Louw Hopley, expressed his enthusiasm, saying, “Our enduring collaboration with Invenfin, dating back to their initial investment two years ago, has been incredibly rewarding. Their continued support speaks volumes about their confidence in our growth trajectory as we gear up for international expansion.”

With eyes set firmly on the United Kingdom and the broader European market, Root seeks to capitalize on the evolving landscape of insurance. Invenfin’s strategic infusion of capital is poised to expedite this ambitious endeavor. Hopley further elucidated, “This is an opportune moment for Root, as insurers increasingly recognize the pivotal role of innovative partner insurance channels, notably embedded insurance. They are eager to invest in the robust, API-centric technology we provide to swiftly and confidently access these markets. We’re genuinely thrilled about the exciting prospects that lie ahead for our company in the coming years.”

Root, founded in South Africa in 2016, has been a trailblazer in the low-code platform arena, enabling the creation of contemporary digital insurance products, designed for widespread distribution through direct, affinity, and embedded channels. The company had previously secured investments, including a notable one from Invenfin, in 2021, but details of that previous investment round remain confidential.

The Investment Executive at Invenfin, Theo van den Berg, shared his perspective, remarking, “Root perfectly embodies the kind of enterprise that aligns with Invenfin’s investment philosophy — a dynamic team crafting a globally competitive product that has already demonstrated success in the South African market and exhibits immense global potential. Root’s vision, which centers on the future of embedded insurance, resonates with our belief that companies can offer consumers more accessible, contextual, and affordable insurance solutions. We eagerly stand behind Root as they embark on their growth journey in the UK and beyond.”

Kenya’s Businesses Poised for Huge Pan-African Trade Growth

As Root’s coffers swell with this latest financial infusion, the stage is set for an ambitious foray into the UK and European markets. This renewed partnership with Invenfin reaffirms their commitment to revolutionizing the insurance landscape on a global scale, backed by a robust, API-driven technological foundation. The journey ahead holds immense promise for Root, making it a company to watch in the ever-evolving insurance sector.

Ivorian Startup Arnio Secures Pre-seed Funding for Electric Mobility Solutions

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

SunCulture Secures $12 Million Funding Boost for Sustainable Agriculture in Kenya

September 27, 2023

The African energy finance platform known as Nithio has recently made a substantial investment in SunCulture, a company specializing in solar irrigation and farming technology solutions. This financial backing comes through Nithio’s investment entity, Nithio FI, which operates under the Productive Use Appliance Financing Facility (PUAFF). PUAFF is a program designed to promote the adoption of productive use appliances throughout Africa and is managed by the international non-profit organization Collaborative Labeling and Appliance Standards Program (Clasp), in collaboration with Nithio and support from the Global Energy Alliance for People and Planet (GEAPP).

Nithio’s investment forms part of a syndicated debt facility totaling $12 million, primarily led by Mirova Sunfunder and funded through their solar energy transformation fund, Mirova, employing their Gigaton strategy. Triodos Investment Management also contributes to this initiative. This financial support is intended to assist SunCulture in financing inventory and receivables for its Kenyan subsidiary, specifically focusing on its productive-use renewable energy products, related appliances, and irrigation equipment.

The primary objective of this investment is to empower SunCulture to expand its customer base, with a particular emphasis on aiding smallholder farmers who require affordable and dependable access to energy and water for their agricultural endeavors.

On September 26th, Nithio CEO Kate Steel emphasized, “SunCulture’s products have a proven impact on increasing agricultural productivity, income, and resilience for smallholder farmers. Through our investment, we aim to support SunCulture’s growth and scale, and contribute to the broader mission of GEAPP to accelerate the adoption of productive use appliances in Africa.”

SunCulture, established in 2012, was founded to address the persistent challenges faced by smallholder farmers, including labor-intensive manual irrigation and dependence on increasingly unpredictable rainfall for their crops. Over time, the company has developed, manufactured, financed, and serviced Internet of Things-enabled solar energy systems and irrigation equipment tailored for smallholder farmers. These innovations have helped farmers reduce costs and enhance productivity.

As a result of these efforts, SunCulture has been able to offer both direct sales and pay-as-you-grow financing through their distribution networks, resulting in the sale of over 45,000 units to date. Furthermore, SunCulture has introduced VeraSol tested non-battery and battery-equipped solar irrigation systems and expanded its market presence through international market entry, joint ventures, and governmental partnerships.

SunCulture CEO Samir Ibrahim stated, “Through this support, SunCulture is primed to deepen its footprint within Kenya, responding to the urgent calls for food security, poverty alleviation, and climate resilience. This partnership empowers SunCulture to place game-changing tools in the hands of vulnerable smallholder farmers, supporting climate mitigation and adaptation at the individual, community, and national levels.”

PUAFF’s core mission revolves around increasing access to high-quality productive use appliances that enhance economic opportunities and well-being for off-grid and weak-grid consumers. The financing facility offers various forms of support, including procurement subsidies, capacity-building grants, distributor debt financing, and advisory services that focus on credit systems development for PUA companies and distributors.

Eligible appliances within PUAFF’s scope encompass energy-efficient, income-generating devices such as refrigerators, solar water pumps, agroprocessing equipment, sewing machines, among others. Recent recognition of 18 companies in East, West, and Central Africa through procurement subsidies and capacity-building grants underscores PUAFF’s dedication to catalyzing positive change. PUAFF’s financial initiatives are expected to reduce the cost of appliances for end-users by offering discounts on bulk solar appliance purchases and providing financing options to distributors, enabling them to offer products on credit.

Makena Ireri, the director of demand, jobs, and livelihoods at GEAPP, expressed, “The initiative aligns with our mission of promoting sustainable energy solutions that will avert future carbon emissions, while enabling increased access to clean energy and improving livelihoods through economic growth. By lowering the cost of high-quality, energy-efficient appliances and providing financing, we’re enabling jobs and livelihoods for thousands of people, supporting a low-carbon future.”

SunCulture Funding SunCulture Funding SunCulture Funding

How African VC P1 Ventures Plans to Deploy Its Newly Closed $25M Fund

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

Ivorian Startup Arnio Secures Pre-seed Funding for Electric Mobility Solutions

Arnio, the Ivorian startup specializing in electric vehicle development and charging station technology, is pleased to announce the successful closure of a recent pre-seed fundraising round with undisclosed six-figure (USD) investments from local private investors, Eero Invest & Cozbaz Co.

The funds raised will be allocated towards the final stages of development and testing for Arnio’s electric vehicle and charging station. Additionally, a portion of the funding will support the recruitment of new engineers. Arnio’s mission centers on advancing sustainable urban mobility solutions and making electric charging more accessible.

Started in 2019 by Jean Hontinfinde, Chief of Design and Engineering, and Alfred Zebi, Chief Financial Officer, Arnio is committed to reducing carbon emissions through innovations in urban transportation. Their flagship product, the “Arnio Hypercharge,” is designed to address the growing demand for electric vehicle charging infrastructure.

Globally, the transportation sector accounts for a significant portion of greenhouse gas emissions, and Africa, with a high prevalence of gasoline-powered vehicles, is poised for a transition to electric vehicles in the near future. This aligns with the global shift towards renewable energy and sustainable transportation.

Arnio aims to meet the urban transportation needs of the region with its minimalist electric vehicle charging station, which has been under development for over six months. The company plans to unveil its first functional prototype by the end of the current year.

“We embarked on this journey with a focus on creating a distinctive design and technology tailored to the Ivorian and African ecosystem,” stated Jean Hontinfinde, Chief of Design and Engineering. Arnio is dedicated to developing solutions from the ground up, with a vision to contribute to the automotive industry and innovation ecosystem in Africa.

In the long term, electrification is expected to play a crucial role in reducing vehicle emissions in cities worldwide. Arnio is committed to being part of this transformation by delivering sustainable solutions that cater to local needs while contributing to global environmental efforts.

How African VC P1 Ventures Plans to Deploy Its Newly Closed $25M Fund

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

South Africa’s Pace Car Rental Secures Significant Funding on JSE Private Placements Platform

In a strategic move to enhance its financial standing and expand its fleet, Pace Car Rental, a South African car rental startup has successfully raised a substantial amount of debt through the JSE Private Placements (JPP) platform. This milestone achievement not only allows Pace Car Rental to refinance its operations at a more favorable rate but also provides the means to invest in additional fleet assets, solidifying its position in the car rental industry.

The JPP platform, a subsidiary of JSE Limited, has emerged as an innovative means for raising private capital. To date, JPP has facilitated 36 deals, collectively raising an impressive R6.1 billion (320M USD) in capital, while investors utilizing the platform boast over R18 billion (944M USD) in deployable capital.

Sam Mokorosi, Head of Origination and Deals at the JSE, expressed the significance of the JPP platform, stating, “JPP is an alternative way for companies and infrastructure projects to raise capital or attract investment. With this platform, we’re building a future-fit capital market that pairs up private debt and equity issuers with investors, including venture capital funders.”

Pace Car Rental, a pioneering car rental business, is renowned for offering cost-effective transport solutions throughout South Africa. The company boasts ownership of a custom value chain, including maintenance, warranty issuance, tracking, and monitoring services. Grenville Salmon, Managing Director of Pace Car Rental, emphasized the transformative impact of their services, saying, “Pace helps people get that first access to the transport they need to get that sales job, start that new business, create other jobs, earn a living, transport their kids to a better school, educate their families, and get the show on the road. So many success stories start at Pace.”

Pace Car Rental expressed its pride in collaborating with JPP and, by extension, the JSE to expand its capabilities and find ideal investment partners. This funding infusion is set to accelerate the company’s mission to provide accessible and affordable transportation solutions to a wider audience.

JPP’s services are delivered in collaboration with Globacap, a UK-based capital markets technology company in which the JSE holds a minority stake. Globacap has revolutionized the securities landscape, streamlining asset creation and transferability. Currently, the platform digitally manages over $10 billion worth of private share and debt instruments for more than 80 companies and 4,300 investors.

Sam Mokorosi emphasized the JSE’s commitment to supporting companies like Pace Car Rental, stating, “We’ll continue to support companies like Pace — robust organizations that, regardless of size, are agile and are paving the way for their respective sectors.”

With the successful debt raise on the JPP platform, Pace Car Rental is primed to further strengthen its market presence and continue its mission of making transportation accessible and affordable for all.

Introducing the Fresh Faces of African AI Startups Handpicked by Microsoft

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

How African VC P1 Ventures Plans to Deploy Its Newly Closed $25M Fund

September 26, 2023

P1 Ventures, a prominent Pan-African venture capital firm, has successfully achieved the initial closing of its second fund, securing a substantial $25 million. This substantial capital injection is the result of significant investments from some of Africa’s largest industrial conglomerates, private companies, fund of funds, and general partners from prominent global funds located in the United States and Europe.

Mikael Hajjar, the founder and general partner of P1 Ventures, said that the firm anticipates achieving a final fund close by early next year.

P1 Ventures was originally launched in 2020 by Mikael Hajjar and Hisham Halbouny, who also serves as a general partner. Their first fund, described as a “proof of concept fund,” allocated $11 million to 24 innovative ventures, with a primary focus on sectors such as e-commerce, fintech, insurtech, health tech, and SaaS.

While this second fund represents the firm’s inaugural institutional fund, it will continue to concentrate on these high-potential sectors while introducing artificial intelligence (AI) as a new addition. One of the first investments from this fund is in Nkoloso.ai, a Zambian startup that utilizes satellite imagery and AI to collect and monitor agricultural land data. P1 Ventures has also backed two AI startups and five other portfolio companies from this fund, demonstrating its commitment to advancing technology across Africa.

Hajjar is a strong advocate for the transformative potential of AI in African markets, particularly in agriculture and fast-moving consumer goods (FMCG). He believes that AI can help Africa leapfrog traditional infrastructure challenges, much like mobile money revolutionized financial services. Furthermore, AI has the capacity to facilitate the development of African products with global reach.

“We believe that AI will be Africa’s next big leapfrog opportunity. So when you think how fintech transformed the continent and allowed it to disrupt the banking sector, we believe AI will do the same with sectors like retail, healthcare, and the creative economy,” said Hajjar.

He emphasized the export potential of AI-driven businesses, citing successful examples like Egypt-born Instabug and BioNTech-subsidiary InstaDeep, which have global customer bases in the U.S. and Europe.

P1 Ventures, with offices in Lagos and Cairo, recently initiated an Entrepreneur In Residence program, with Nkoloso.ai being one of its beneficiaries. Both founders leverage their operational experience to manage this venture studio, which aims to incubate four more startups over the next four years, led by founders capable of achieving product-market fit and scaling their ventures.

Hajjar proudly underlines P1 Ventures’ “contrarian” approach to VC investments in Africa, emphasizing their willingness to support underdog startups and invest in less-explored markets. Their early investments in Francophone Africa markets have paid off, with startups like Yassir in Algeria, Chari in Morocco, and Djamo in the Ivory Coast emerging as the most well-funded startups in their respective countries. Yassir, the firm’s initial investment, has even become one of the most valuable startups in Africa and the Middle East.

Although P1 Ventures primarily focuses on seed-stage investments, it considers itself a multistage investor and occasionally participates in Series A and B rounds when opportunities arise. Hajjar credits their institutional track record and active involvement in helping companies secure follow-on investments, talent, and expansion strategies as key factors in their success.

P1 Ventures’ portfolio includes 29 early-stage investments in 10 countries since its inception, featuring companies like Gameball, an Egyptian software company, and General Atlantic-backed healthtech Reliance Health. The firm’s portfolio companies have managed to secure 35 times more follow-on funding for every dollar invested, a testament to the value it brings beyond capital.

Hajjar, the first Mauritanian to launch a fund, expressed his commitment to empowering the next generation of African entrepreneurs, backing underdog founders, and nurturing them into regional or global success stories. He envisions P1 Ventures as the premier VC for Africa, drawing parallels to the success of Index Ventures in Europe and Kaszek in Latin America.

Before entering the world of angel investing in 2014 and establishing P1 Ventures in 2021, Hisham Halbouny held positions at Man Capital, a subsidiary of Mansour Group, and EFG Hermes, one of the largest investment banks in MENA. Mikael Hajjar, a Stanford MBA graduate and engineer, gained experience at Google, Zum, and Areva.

In addition to the founders, P1 Ventures benefits from an advisory group composed of experienced investors and operators, including Emil Michael, former chief business officer of Uber, and Bernard Dalle, a founding team member of London-based Index Ventures. Dalle noted, “Innovation across the African continent is booming, and P1 is ideally positioned to help African entrepreneurs at the earliest stages build valuable and enduring businesses.”

In summary, P1 Ventures plans to deploy the newly closed $25 million fund in several strategic ways:

Investing in Early-Stage Startups: P1 Ventures will continue its focus on early-stage investments, primarily in sectors such as e-commerce, fintech, insurtech, health tech, SaaS, and now, artificial intelligence (AI). The fund will be used to make equity investments in promising startups in these sectors, providing them with the necessary capital to grow and scale their businesses.

Supporting AI Initiatives: The fund will be used to invest in AI-driven startups and technologies across various industries, including agriculture and fast-moving consumer goods (FMCG). P1 Ventures believes that AI has the potential to transform these sectors in Africa and aims to support startups that leverage AI to address critical challenges.

Entrepreneur In Residence Program: P1 Ventures has initiated an Entrepreneur In Residence program, and part of the fund will likely be allocated to support and incubate startups through this program. This includes providing funding, mentorship, and resources to early-stage companies led by founders capable of achieving product-market fit and scaling their products.

Geographical Diversification: The fund will enable P1 Ventures to expand its geographical footprint beyond its current locations in Lagos and Cairo. This may involve identifying and investing in startups in new African markets with untapped potential.

Follow-On Investments: While P1 Ventures primarily focuses on seed-stage investments, they also engage in Series A and B investments opportunistically. The fund could be used to participate in subsequent funding rounds of portfolio companies, ensuring they have the necessary capital for growth and expansion.

Value-Added Services: P1 Ventures prides itself on offering more than just capital to its portfolio companies. The fund will be used to provide value-added services, including mentorship, access to networks, and assistance in securing follow-on investments, talent acquisition, and expansion strategies.

Continued Contrarian Approach: P1 Ventures intends to maintain its contrarian approach to venture capital investment in Africa by identifying and supporting underdog startups and investing in less-explored markets. The fund will enable them to continue this strategy of backing promising but often overlooked ventures.

Strategic Partnerships: P1 Ventures has a network of advisors and partners, including experienced investors and operators. Part of the fund may be allocated to building and strengthening strategic partnerships that can benefit portfolio companies.

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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