Startup Funding - Afrikan Heroes

Why Safaricom’s Spark Accelerator is Focusing on Fintech and Content Startups for its First Cohort

January 14, 2024

In a groundbreaking collaboration, Safaricom, M-PESA Africa, and Sumitomo Corporation, a Fortune 500 global trading and business investment giant, have unveiled the Spark Accelerator program. This initiative is designed to propel early-stage startups into growth and scalability, offering a unique blend of training, mentorship, funding, and market support.

The three-month accelerator program represents a strategic move by Safaricom, signaling its commitment to being a purpose-led technology company. CEO Peter Ndegwa emphasized that the revamped program goes beyond mere capital injection, aiming to address challenges that often hinder the growth of early-stage startups.

Focusing on Fintech and Content startups in its inaugural phase, the Spark Accelerator adopts an ecosystem-based approach. Leveraging expertise in market dynamics and emerging technology, a team of experts will guide and accelerate the selected startups, laying the foundation for continuous innovation.

Sumitomo Corporation, with its extensive business experience, joins the initiative to foster innovative businesses and contribute to the expansion of the startup ecosystem. Katsuya Kashiki, General Manager of the Smart Communications Platform Business Division, expressed the corporation’s commitment to supporting African economic development and human resource growth through the program.

Participating startups stand to benefit significantly, gaining access to technical support for developing mini-apps embedded into Safaricom’s M-PESA Super App. This opportunity opens doors to over 4 million customers using the app, as M-PESA already connects over 60 million customers and 5 million businesses across eight countries.

Sitoyo Lopokoiyit, Managing Director of M-PESA Africa, highlighted the potential for startups to create innovations that connect customers and businesses on M-PESA to more opportunities. The accelerator program aims to provide funding, technical expertise, resources, and mentorship to propel the next generation of tech startups in Africa.

Moreover, M-PESA Africa will offer expertise, market research, and insights, along with capacity support for startups seeking to expand beyond their borders. This support will extend beyond the initial three-month program, enabling startups to tap into the vast network of over 60 million customers and 5 million businesses across M-PESA’s eight markets.

The culmination of the accelerator program will be an investor demo day, providing startups with the opportunity to pitch for investment from Safaricom and partner venture capital firms. The implementation of the Spark Accelerator will be in collaboration with iHUB, a leading force in Kenya’s startup ecosystem and a subsidiary of Africa’s premier innovation hub, Co-Creation Hub (CcHUB).

Ojoma Ochai, Managing Director of CcHUB, expressed excitement about spearheading this collaborative effort. The Spark Accelerator, she noted, serves as a launchpad for forward-thinking founders to shape and scale their enterprises. Ochai encouraged startups with dynamic and impactful solutions to join the journey, emphasizing the collective effort to catalyze innovation and empower digital ecosystems.

The program has garnered support from additional partners, including Vodacom and AWS, further solidifying its potential to drive meaningful impact in the African tech startup landscape.

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.

Tanzanian Health-Tech Dawa Mkononi Secures Major Funding to Expand Healthcare Access

January 12, 2024

Dawa Mkononi, a pioneering Business-to-Business (B2B) pharmaceutical company, is thrilled to announce a significant milestone in its mission to enhance healthcare accessibility across the East African region. The company has successfully secured substantial funding from a consortium of esteemed investors, including Sanofi Global Health Unit Impact Fund, Pontem Ventures, Warioba Ventures, Villgro Africa, Axian Group, and other local venture capitalists.

This funding represents a crucial step forward for Dawa Mkononi, marking not only a financial boost but a resounding vote of confidence in the company’s vision and commitment to improving healthcare access. The investors’ guidance and partnership have played a pivotal role in the company’s growth and success.

“We extend our heartfelt gratitude to our investors, including Sanofi Global Health Unit Impact Fund, Pontem Ventures, Warioba Ventures, Villgro Africa, Axian Group, and other local VCs. Their unwavering support and belief in our mission have been instrumental in bringing us to this point,” said Joseph Paul, Co-founder/CEO at Dawa Mkononi.

Dawa Mkononi, which translates to “Medicine at your Palms,” leverages technology to advance universal health coverage by making pharmaceuticals readily available to pharmacies, hospitals, clinics, and drug shops in Tanzania. The company focuses on innovations around the pharmaceutical supply chain, addressing challenges faced by the medical supplies industry, such as delays in accessing stock, price fluctuations, and counterfeit supplies.

According to Christina Mark, Customer Service Head at Dawa Mkononi, the company’s operations primarily target pharmacies, health facilities, and other registered B2B clients. The company employs a data-driven approach to improve access to medicine distribution and make medicines more available and affordable.

“Dawa Mkononi provides an easy platform for medical shops to conveniently purchase medicine and medical equipment. Our mobile application, available on both IOS and Google Play, allows customers to access a variety of medicines and medical equipment. With embedded FinTech-driven payment options, customers can pay directly, making the process faster, safer, and more convenient,” explained Christina Mark.

The company’s commitment to addressing critical issues in the healthcare sector, such as delays, price stability, and counterfeit products, has gained significant traction. Currently operating in Dar es Salaam and Mwanza, Dawa Mkononi has already attracted over 1,000 active healthcare businesses purchasing from its platform in Dar es Salaam alone.

The funds raised will propel Dawa Mkononi towards expanding its reach to more locations, unlocking access to medicines in the most remote African communities. The company is steadfast in its mission to make a substantial, positive impact on healthcare accessibility and distribution.

Founded in 2020, Dawa Mkononi is a leading Business-to-Business (B2B) pharmaceutical company in Tanzania, utilizing technology to advance universal health coverage. The company focuses on innovations around the pharmaceutical supply chain, aiming to improve access to medicine distribution and make medicines more available and affordable.

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.

Axian Group Invests in Egyptian Startup Bosta to Fuel Expansion in Delivery Optimization Technology

Axian Group, a leading investment firm, has recently announced its strategic investment in Bosta, the pioneering Egyptian startup revolutionizing the delivery processing and logistics landscape in Egypt and Saudi Arabia. Leveraging cutting-edge technology, Bosta’s platform optimizes first, middle, and last-mile delivery, providing unmatched efficiency and convenience to its users.

Founded in 2017 by Mohamed Ezzat and Ahmed Gaber, Bosta has become a cornerstone in the delivery services sector, catering to the needs of thousands of online businesses in Egypt. The startup’s innovative approach ensures a seamless distribution process, offering a guaranteed next-day delivery service across the globe. To date, Bosta has successfully delivered over 10 million shipments, solidifying its position as a leader in the industry.

Bosta’s unique delivery model relies on a network of independent drivers who are compensated for each successful delivery, effectively handling the first and last mile. The middle mile, for inter-city couriers, is managed through a fleet of leased vans.

Following a successful pre-Series B fundraising round, Bosta expanded its operations to Saudi Arabia in 2022. This significant milestone was achieved through a strategic investment round led by Khwarizmi Ventures, with participation from existing investors and Hassan Allam Holding.

Axian Group’s investment signifies a strong commitment to supporting Bosta’s growth and advancing its mission to redefine the delivery and logistics landscape in the region. As Bosta continues to pioneer advancements in technology and delivery services, this collaboration marks a significant step toward transforming the e-commerce and logistics sectors in Egypt and Saudi Arabia.

Update: Avanz Capital, and Beltone Holding are other investors aside Axian Group in the latest funding round in Bosta. Bosta stands out as the market leader in Egypt, serving more than 25,000 businesses since its inception.

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.

Badili Africa Secures Significant Investment to Propel Expansion of its Refurbished Digital Device Ecosystem

January 11, 2024

E3 Capital’s Low Carbon Economy Fund has taken the lead in the seed funding round for Badili Africa, a re-commerce startup specializing in refurbished digital devices. The investment aims to support Badili’s mission of sustainably addressing Africa’s digital divide by providing affordable access to top-tier smartphone brands through local refurbishment in Kenya, Uganda, and Tanzania. By leveraging the E3 Low Carbon Economy Fund, this financial infusion is expected to enhance Badili’s operational efficiency and facilitate its expansion into new markets beyond East Africa, ultimately contributing to the improvement of Africa’s digital infrastructure.

Badili Africa’s innovative approach involves offering quality devices at a fraction of the price of new models, thereby making them accessible to a broader consumer base. The investment from E3 Capital underscores its commitment to fostering digital innovation while promoting environmental sustainability. Paras Patel, Managing Partner at E3 Capital, emphasized the positive climate impact of Badili’s business, highlighting that refurbished phones can reduce associated CO2eq emissions by 87% compared to new models.

Rishabh Lawania, CEO and Co-Founder of Badili, expressed pride in welcoming E3 Capital as the lead investor in their seed round, anticipating a significant impact on both the business and the lives of consumers seeking affordable and environmentally friendly electronics. The partnership is seen as a crucial step towards achieving Badili’s goals and solidifying its position in the industry.

Founded in 2021, Badili Africa operates in Kenya, Tanzania, and Uganda, formalizing the grey market for refurbished phones by aggregating, repairing, and reintroducing used devices through various channels. On the other hand, E3 Capital, as a leading investor in early-stage businesses across Africa, manages the E3 Low Carbon Economy Fund, focusing on climate tech and digital infrastructure. The investment aligns with E3 Capital’s commitment to supporting forward-thinking entrepreneurs in emerging markets, ensuring growth without compromising global sustainability ambitions.

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.

Seedstars Africa Ventures Unveils $30M Fund to Propel African Startups

Seedstars Africa Ventures has secured a significant milestone with a $30 million capital injection from EIB Global, an entity linked to the European Investment Bank. This marks a pivotal moment as the first substantial institutional investment for the venture firm’s inaugural pan-African capital fund.

The infusion of funds comes on the heels of an $8 million backing from LBO France, the fund’s anchor investor. Seedstars Africa Ventures aims to finalize its fund at an impressive range between $80 million and $100 million. The primary focus is to support seed and Series A startups, extending assistance with follow-on funding up to Series B. This strategic move addresses a crucial capital gap, bolstering startups beyond the confines of traditional accelerator programs.

Collaborating with Seedstars Group, an emerging markets accelerator, the VC firm’s partners Maxime Bouan, Tamim El Zein, and Bruce Nsereko-Lule leveraged the infrastructure and market access provided by Seedstars to launch the fund. This ambitious initiative is designed to be pan-African from its inception, delivering hands-on support to portfolio companies through a targeted early-stage investment strategy.

The enlarged fund size, notably substantial for the African landscape, is envisioned to offer “capital well suited to the needs of entrepreneurs.” Seedstars Africa Ventures aims to bridge funding gaps in regions beyond the prominent Egypt, Kenya, Nigeria, and South Africa quartet. Moreover, the firm is committed to providing operational and business support to founders.

Bouan expressed the rationale behind the initiative, stating, “When the team launched in 2020, there was very little capital available beyond acceleration, so there was a clear need to provide more capital at this stage.” The intent is to strengthen the continuum of capital by offering different funding types tailored to entrepreneurs’ maturity levels and catalyzing both international and local follower investor capital.

Seedstars Africa Ventures plans to make initial investments ranging from $250,000 to $2 million, with follow-on funding extending up to $5 million, across up to 30 startups. The firm aims to enhance the startup ecosystem by providing entrepreneurs access to Seedstars’ tools, networks, and visibility. This combination of capital and robust early-stage support remains relatively rare on the continent.

While the fund maintains a sector-agnostic approach, it exhibits a keen interest in startups addressing fundamental needs such as education, healthcare, utilities, and those enhancing goods, services, and efficiency. The firm expresses openness to tech startups while not shying away from innovative brick-and-mortar businesses gaining advantages from digitalization.

Seedstars Africa Ventures plans to allocate up to 50% of the fund to Francophone Africa, identifying it as an investment hotspot due to lower competition, significant market opportunities, and attractive deals compared to more mature Anglophone regions.

Edward Claessen, EIB head of the regional hub for East Africa, emphasized the importance of supporting funds like Seedstars Africa Ventures in Africa, citing their pivotal role in fostering startup ecosystems. Backed by the EU’s ACP Trust Fund and Boost Africa program, the investment aligns with the goal of supporting founders who contribute to job creation and economic growth.

Already having invested in four businesses, including Poa Internet in Kenya, Beacon in Nigeria, Shamba Pride in agritech, and Bizao in payments, Seedstars Africa Ventures is poised to accelerate its investments following this substantial capital infusion.

Beyond the pan-African fund, the Seedstars Group has previously invested in 26 companies in Africa through its Seedstars International Ventures Funds I and II.

Empowering Africa’s Smallholder Farmers: Zebra CropBank Secures Investment for Innovative Agritech Solutions

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.

Norrsken Accelerator Unveils 2024 Program: $125,000 Investment, Unicorn Mentors, and Top Investors Await African Startups

In a move to bolster the African tech ecosystem, Norrsken22, a Pan-African venture capital firm, has opened applications for its prestigious Norrsken Accelerator. This 8-week growth sprint, combined with a substantial upfront investment of $125,000, aims to empower promising startups across the continent.

The Norrsken Accelerator

Located in Stockholm, Sweden, Norrsken Accelerator goes beyond conventional funding programs. It is a tailor-made experience connecting entrepreneurs with world-class investors and mentors who share a profound belief in technology and entrepreneurship as catalysts for positive change. The mentors and investors involved have faced and conquered challenges similar to those encountered by startups, making them invaluable allies on the road to success.

The Norrsken Accelerator provides participants with:

$125,000 Upfront Investment: A substantial injection of capital to fuel growth and development.
Unicorn Mentors: Access to mentors who have achieved unicorn status, bringing invaluable insights and guidance.
Top Investors: Networking opportunities with high-profile investors who can propel startups to the next level.

Norrsken22’s Remarkable Journey and Fundraising Success

November 2023 marked a significant milestone for Norrsken22 as it closed its debut fund, surpassing its initial target and securing a total of $205 million. This accomplishment underscores the strong interest from institutional investors in supporting African startups during crucial growth stages.

Founded by individuals with extensive experience in venture capital and private equity, Norrsken22 boasts a distinguished team operating across Nigeria, South Africa, Kenya, and Ghana. The firm’s African Tech Growth Fund, launched in January the previous year, achieved its first close at $110 million, with notable contributions from a consortium of 30 unicorn founders worldwide.

Despite challenges faced in the global tech investment landscape, Norrsken22’s fundraising success stands out, especially considering the decline in venture capital activity in Africa from $5–6 billion in 2022 to $2.5–3.4 billion in 2023.

Investment Focus and Strategic Exits

Norrsken22’s investment focus centers on Series A and B rounds, bridging the gap between growth and late-stage investments. Approximately 50% of its capital will be allocated to building a portfolio with Series A and B companies, with the remainder reserved for follow-on investments.

The firm targets entrepreneurs in fintech, edtech, medtech (health tech), and market-enabling solutions that promise strong returns and positive impacts across Africa. Notable investments include TymeBank, Sabi, Smile Identity, Autochek, and Shara.

In line with its commitment to success, Norrsken22 actively prepares its portfolio companies for strategic exits. Rigorous evaluations of potential exit scenarios, including identification of buyers and valuation assessments, are integral to the firm’s approach.

Call to African Entrepreneurs: Seize the Opportunity

Norrsken22 is actively seeking innovative startups to join the Norrsken Accelerator and benefit from its investment and mentorship program. As the tech landscape in Africa continues to evolve, this opportunity can be a game-changer for startups looking to scale and make a positive impact.

Interested entrepreneurs can apply on the official Norrsken22 link (https://airtable.com/app7bGSveZe9qXGM5/pag01no0ldy3Ae7Br/form), seizing the chance to be part of a transformative experience that could define the future of their ventures. Norrsken22’s commitment to fostering growth and innovation in Africa makes this accelerator an unmissable opportunity for those ready to take their startups to new heights.

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.

Uganda’s Opareta Secures Funding to Launch Revolutionary Mobile Money Operator Solution

January 10, 2024

Opareta, a pioneering Ugandan startup, has secured a strategic investment from Renew Capital to introduce an innovative Mobile Money Operator Solution. Recognizing the pivotal role of mobile money transactions in Africa’s financial landscape, Opareta aims to bridge technological gaps with a comprehensive digital operating system.

According to GSMA, in 2022, over $831 billion in mobile money transaction value was facilitated by four million active agents across sub-Saharan Africa. Opareta’s digital operating system is designed to address challenges faced by mobile money operators, offering efficient oversight of agent networks. The platform boasts cutting-edge tools for cash reconciliation, float approvals and disbursements, and effective loan management.

Mike Schwartz, co-founder of Opareta, emphasized the need for a departure from outdated tools such as physical ledgers and USSD codes. He stated, “We address this challenge head-on with our digital operating system, designed to improve liquidity management, performance analytics, and digital identity creation for agents. This shift promises not only improved operational efficiency but also a leap toward financial inclusivity.”

Opareta’s platform provides a suite of services, including performance analytics, field team management, KYC capture, and CRM services, ensuring enhanced efficiency and customer engagement. The startup aims to create robust digital infrastructure and tools to significantly enhance the operational efficiency of mobile money operators and other digital financial services providers.

Diana Njuguna, Senior Investment Manager at Renew Capital, expressed enthusiasm for Opareta’s approach, stating, “Opareta’s approach aligns with the needs of an evolving financial landscape where mobile money operators seek to drive efficiency and agents seek more than just transactional tools.” The investment from Renew Capital, an Africa-focused impact investment firm, is intended to support Opareta in reshaping the financial transactions and services landscape across the region.

Founded in 2020, Opareta’s team, made up of Raymond Besiga and Mike Schwartz, brings a wealth of experience from leading companies in the industry. The company’s strong product vision extends beyond facilitating float loans, aiming to build a digital identity for agents that can be embedded by other companies to approve loans, sell financial products, and leverage existing agent networks for various businesses.

Renew Capital manages investments made on behalf of the Renew Capital Angels, a global network of angel investors, foundations, and family offices that seek both financial returns and sustainable social impact. Opareta’s strategic funding is poised to propel the startup into a new era of revolutionizing mobile money operations and fostering financial inclusion.

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 Autotech Startup FriendyM Secures $2M to Expand Presence in Local Market

In a significant stride towards leveraging technology for the benefit of citizens, “FriendyM,” Egypt’s pioneering car management and maintenance application, made its debut yesterday. The startup, backed by a substantial investment amounting to USD 2 million, is already operational in Cairo and Alexandria, with ambitious plans to extend its services to all governorates across Egypt.

Founder and CEO of “FriendyM,” Abdelrahman Elgamal, expressed the company’s commitment to innovation and technology, stating, “We hope to provide innovation and technology to our customers, and we are working to strengthen our presence in the Egyptian market.”

The application, which is also active in countries such as Saudi Arabia and the United Arab Emirates, aims to reach 100,000 cars on its platform within the first year. “FriendyM” stands out by sending regular maintenance reminders, tracking necessary operations, and assisting users in calculating average maintenance costs based on registered car data.

In addition to managing maintenance schedules, the application facilitates the tracking of car expenses, including fuel bills, parking fees, and cleaning costs. Users can attach all invoices to their accounts, and the app provides an expense analysis service to help manage and optimize spending.

Key features of the application include a “Chat Support” feature, connecting users with mechanical engineers and specialists for inquiries. It also allows users to book maintenance appointments at competitive prices through specialized centers listed on the platform. Furthermore, “FriendyM” offers emergency SOS services and creates comprehensive car records, beneficial for resale purposes.

Excitingly, “FriendyM” plans to introduce Lite and elite concierge services, available through monthly subscriptions. The Elite concierge service offers unique benefits, such as requesting relief vehicles during emergencies and car replacement services for more extended maintenance periods. Subscribers to both packages enjoy exclusive discounts of up to 25% on maintenance costs and annual insurance subscriptions.

Abdelrahman Elgamal expressed his delight at launching “FriendyM” in Egypt, highlighting the dedication of the professional and enthusiastic team behind the venture. He emphasized the company’s commitment to capitalizing on Egypt’s digital transformation revolution to enhance its local presence and deliver a unique experience to its customers.

Elgamal also outlined a specific focus on reaching all segments of society, particularly women, acknowledging their relatively lower familiarity with technical aspects of cars. Through innovative digital solutions, “FriendyM” aims to empower women to efficiently manage both periodic and emergency maintenance, offering essential advice for optimal car performance.

Updated Story: This story has been revised to indicate that the total investment in FriendyM is USD 2 million, rather than the previously mentioned 100 million EGP (approximately $3.2 million).

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.

Empowering Africa’s Smallholder Farmers: Zebra CropBank Secures Investment for Innovative Agritech Solutions

Zebra CropBank, a pioneering agritech startup dedicated to transforming the fortunes of smallholder farmers across Africa, has secured a significant investment to bolster its mission. While the exact investment amount remains undisclosed, a group of investors with a shared commitment to advancing agricultural sustainability and rural prosperity, led by the Catalyst Fund, has come forward to support Zebra CropBank’s groundbreaking initiatives.

This strategic investment is earmarked for the expansion of Zebra CropBank’s operations, with a primary focus on deploying solar-powered micro-warehouses and enhancing integrated trading platforms. The initiative seeks to address critical challenges faced by smallholder farmers, including limited access to capital, deficient market linkages, and the impacts of climate change. The funds will empower farmers by improving storage capabilities, facilitating market access, and elevating their overall economic standing.

Zebra CropBank’s operational model revolves around constructing and leasing solar-powered micro-warehouses in close proximity to farming communities. These facilities empower smallholder farmers to efficiently store and insure their harvests, while a USSD platform ensures transparent storage and trading of produce. The impact has already been profound, with farmers experiencing up to a 90% increase in incomes, coupled with minimized storage losses.

Why the Investors Invested

Investors have been drawn to Zebra CropBank due to its potential for substantial positive impact on Africa’s smallholder farmers. The investment is grounded in a fact-based and robust reasoning that addresses the multifaceted challenges these farmers encounter. Zebra CropBank’s unique focus on post-harvest challenges, particularly storage facilities and market access, differentiates it within the agritech sector.

Recognizing the urgent need to disrupt cycles of poverty prevalent among smallholder farmers, investors see the investment as a catalyst for change. The potential to directly influence the lives of 380,000 smallholders by reaching just 1% of Nigerian farmers underscores the compelling nature of the investment.

A Look at Zebra CropBank

Zebra CropBank predominantly operates in Enugu State, Nigeria. Successfully establishing five solar micro-warehouse units and engaging 1,400 registered farmers, Zebra CropBank offers climate-smart solutions tailored to the needs of smallholder farmers.

The startup’s core offerings encompass solar-powered micro-warehouses for efficient storage, an integrated trading platform for transparent and equitable transactions, and access to credit linked to stored harvests. Zebra CropBank’s innovative amalgamation of physical and digital tools positions it uniquely in the agritech landscape.

Having demonstrated early success in Enugu State, Zebra CropBank envisions significant growth, aiming to establish over 190 micro-warehouses nationwide by 2027. Addressing a critical market gap, the startup is poised to play a pivotal role in reshaping agricultural practices and uplifting small-scale farmers, with a keen focus on sustainability and responsible growth.

Zebra CropBank is at the forefront of providing climate-smart solutions to smallholder farmers in Africa. By combining innovative technology with on-the-ground support, Zebra CropBank aims to drive positive impact, enhance incomes, and ensure food security for the backbone of Africa’s food production.

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.

Digital Africa Expands Investment Portfolio, Welcoming Four New African Startups to Fuzé

January 9, 2024

Digital Africa has announced its strategic investment in four innovative African startups, marking a significant milestone for the Fuzé initiative. These dynamic additions to the portfolio showcase Digital Africa’s commitment to fostering technological solutions aligned with Africa’s economic landscape. The startups include: Valorigo, MONSAPO, REasy, and Kwely Inc.

Valorigo: Valorigo is an online marketplace based in the Democratic Republic of Congo, streamlining access to healthcare products. By providing consumers with an easy-to-use tool to compare and access healthcare products, #Valorigo enhances sales and visibility for pharmacies. Valorigo has received support from partners IMPACT Lab and Kobo Hub.

Kwely Inc: A B2B e-commerce platform focusing on Made-in-Africa products, Kwely aspires to be the leading African B2B e-commerce platform, redefining perceptions of African products and transforming the interaction between African buyers and sellers globally.

MONSAPO: Specializing in eco-friendly and sustainable cleaning products, MONSAPO, a Tunisian startup, operates on circular economy principles, catering to both individuals and professionals.

REasy: Supporting African SMEs in global financial transactions with suppliers and partners, REasy emphasizes speed, traceability, and cost efficiency, simplifying payment processes and saving considerable time for African SMEs.

Digital Africa’s investment mechanism, Fuzé, has played a pivotal role in transforming funding accessibility for startups in Francophone Africa. Bolstered by Proparco’s support, this collaboration aims to cultivate opportunities, facilitate funding avenues, and amplify visibility for startups crafting technological solutions aligned with Africa’s economic landscape.

Digital Africa’s initiatives, including Bridge, Talents 4 Startups, and Fuzé, have already made indelible marks. The Talents 4 Startups program, with over 10,300 applications, successfully trained 294 students in its pilot phase. The second edition aims to deploy 1,000 scholarships across Africa and enhance professional integration strategies in collaboration with Edtech partners.

With an investment envelope of €6.5 million, #Fuzé comprises ideation tickets at €20K, follow-on tickets at €30K, and cumulative tickets at €50K. This funding initiative addresses startups’ financial needs during inception, positioning them for continued growth through subsequent phases.

Digital Africa continues to support businesses in later growth phases through initiatives like the Bridge Fund and the collaboration with BPI France on Africa Next. The ethos behind #Fuzé is to provide startups with the necessary tools to flourish, ensuring a seamless continuum from inception to sustained success.

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.