Startup Funding - Afrikan Heroes

Ghana-based Startup Degas Raises $6.7 Million to Empower Small Farmers

December 20, 2023

Degas, the innovative startup dedicated to improving the livelihoods of small farmers in sub-Saharan Africa, has announced the successful completion of a funding round, securing ¥970 million (approximately $6.7 million). The investment round saw participation from prominent investors, including Animal Spirits, Global Catalyst Partners Japan, Hakuhodo DY Ventures, Nanto CVC (operated by Nanto Bank and Nanto Capital Partners), and Primal Capital.

This latest funding round builds upon Degas’ earlier achievements, having secured ¥240 million in the first close of the seed round in November 2020, with contributors such as Primal Capital, Akatsuki’s Heart Driven Fund, and others. Subsequently, in January 2023, the company secured ¥1 billion in a round with notable participants, including Deepcore, Monex Ventures, Inclusion Japan, and Ikemori Venture Support.

Since its establishment in 2018 by Doga Makiura, recognized by TED as “one of the 12 young people around the world in 2014,” Degas has been providing crucial financial services to over 46,000 small farmers in sub-Saharan Africa. Leveraging its mobile app and localized operations, the company addresses the financial needs of small farmers overlooked by traditional financial institutions, utilizing data collection and AI-based credit decisions.

The newly acquired funds will propel Degas towards its mission of expanding its existing farmer finance business and introducing two new initiatives. The company plans to recruit experts in carbon credits and data analysis to spearhead the decarbonization business, issuing high-quality carbon credits. Simultaneously, Degas aims to establish a marketplace for academic loans, farm machinery leasing, and mobile phone contracts.

Degas, with major offices in both Ghana and Japan, remains committed to its vision of empowering small farmers and fostering sustainable agricultural practices. The company’s innovative approach to financial inclusion and commitment to leveraging technology for positive social impact has garnered support from investors who share its dedication to making a meaningful difference in the lives of those in need.

A Look at Degas

Degas, founded in 2018 by Doga Makiura, is a Tokyo-based startup committed to improving the livelihoods of small farmers in sub-Saharan Africa. Through its mobile app and localized operations, Degas provides financial services to small farmers using data collection and AI-based credit decisions. The company aims to drive positive change by empowering small farmers and promoting sustainable agricultural practices.

Degas farmers Ghana

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

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

Twiga, the Kenyan startup renowned for its innovative approach connecting farmers with food vendors, has successfully raised $35 million in convertible bonds. The fundraising effort comes at a critical juncture for the company, following recent challenges, including a court dispute with a supplier and the announcement of a six-month sabbatical by CEO Peter Njonjo.

The convertible bonds, a form of debt that offers interest payments and the option for conversion into equity, were secured from private equity investors Creadev and Juven. Both firms, known for their previous investments in Twiga, played a crucial role in providing the undisclosed amount of funding. The financial infusion is earmarked to settle outstanding payments to suppliers and bolster Twiga’s operations.

Creadev, a subsidiary of the Mulliez Family Association, and Juven, a Goldman Sachs spinoff, have demonstrated their commitment to Twiga by participating in this latest funding round. However, both private equity firms did not provide comments regarding the investment at the time of this report.

The fundraising effort follows recent reports of a court dispute with Incentro, a cloud service vendor, seeking liquidation proceedings to recover outstanding debts. Private negotiations are ongoing between the concerned parties to resolve the dispute amicably.

Amidst the fundraising news, CEO Peter Njonjo’s decision to take a six-month sabbatical has sparked speculation within the tech community about potential internal dynamics. While some investors and industry observers suggest the timing could indicate a change in leadership, sources close to the matter maintain that Njonjo continues to enjoy a positive relationship with Creadev, emphasizing their ongoing support for Twiga.

Twiga, a B2B company co-founded by Peter Njonjo and Grant Brooke in 2014, has faced challenges in adapting to the evolving business landscape. The company recently underwent significant changes, including a 30% staff reduction and a shift in its commercial model, opting for independent sales contractors over an in-house sales department.

Despite Twiga’s impressive track record of raising over $150 million in equity and debt since 2017, the company has acknowledged the complexities of operating in an increasingly challenging business climate. Rising inflation and currency devaluation across Africa have added to the difficulties faced by B2B e-commerce startups.

Twiga, with its asset-light model, continues to navigate these challenges as it seeks to digitize the informal market for fast-moving consumer goods and packaged foods. The company remains backed by investors such as Genevieve Capital, Creadev, Juven AHL Venture Partners, and Omidyar Networks.

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

CDG Invest Unveils Eight Promising Startups Selected for the 7th Edition of the 212 Founders Program

December 19, 2023

CDG Invest, through its investment arm 212 Founders, proudly announces the selection of eight innovative startups for the 7th edition of the renowned 212 Founders program. The investment committee meticulously reviewed nearly 300 applications, choosing companies operating in diverse sectors such as Fintech, DeepTech, BioTech, Afritech, and more. Notable among the selected startups are Premium Technology and Services, PCS Agri, Fungu’it, Tickie, AltBiotech, TrackLab, and Cryptr.

Nawfal Fassi Fihri, the Director of the 212 Founders program, highlighted the unique nature of this edition, emphasizing its position in supporting startups aspiring to grow in Morocco. Fihri stated, “This position reinforces our presence as a Moroccan support and investment program ready to support projects from the diaspora in Europe.” The selected startups will receive individualized mentoring, specialized training, and networking opportunities to connect with investors and partners.

Since its inception in 2019, the 212 Founders program has successfully realized 18 seed and Series A fundings, allocating a total of 97.2 million dirhams (MDH) (9.6 Million USD). Phase 1 (Seed) of the project is allocated 7 MDH, while phase 2 (Series A) is allocated 10 MDH.

In a strategic move to boost the global presence of Moroccan and African startups, 212 Founders pioneers an innovative program providing both guidance and financing. The program is open to high-potential individuals with at least a Minimum Viable Product (MVP) and emphasizes innovation, scalability, and a strong ambition for internationalization in Africa or the Middle East.

The program, financed by CDG Invest, operates on a non-profit basis with a mission to bring forth globally impactful startups tied to Morocco and Africa. During the incubation phase, startups can secure Seed funding ranging from €200k to €700k. As startups progress to acceleration, 212 Founders stands ready to co-invest up to €1M during a Series A funding round, collaborating with other venture capital funds.

The 212 Founders program unfolds in three distinct phases: Project Sourcing, Incubation (6 months), and Acceleration (12 months), focusing on large-scale deployment and preparing startups for a Series A funding round.

Historically based in Casablanca, Morocco, 212 Founders has expanded its reach to Paris, France, ensuring equal access to mentorship, support, and resources for startups in both locations. The program’s operations remain consistent, promoting entrepreneurship and innovation in the region.

Startups in the program have the opportunity to develop internationalization strategies towards MENA and Africa, leveraging the strategic advantages of Morocco, such as a pool of tech talents and development resources. This holistic approach aims to foster entrepreneurship and innovation, creating a thriving ecosystem for startups in both Casablanca and Paris.

CDG Invest 212 Founders

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 Healthtech Chefaa Secures $5.25 Million Investment for Saudi Expansion

December 18, 2023

Egyptian healthtech Chefaa recently secured a $5.25 million investment in a funding round co-led by Newtown Partners (South Africa) and Global Brain (Japan). Other notable investors include GMS Capital Partners LLC (US), Verod-Kepple Africa Ventures (Nigeria), and M3, Inc. (Japan). Founded in 2017 by Rasha Rady and Doaa Aref, Chefaa is a female-led e-pharmacy platform that aims to provide an end-to-end healthcare experience.

The primary purpose of this substantial investment is to fuel Chefaa’s expansion, particularly in Saudi Arabia, where it has recently launched operations in eight cities. The funds will be utilized to strengthen its presence in the kingdom and scale various models designed to digitize the healthcare supply chain. The investment is strategic, aligning with Chefaa’s mission of leading the safe digital transformation of healthcare through a patient-centric and comprehensive approach.

Why The Investors Invested

Investors committed a significant amount to Chefaa based on its demonstrated success and growth in the challenging healthcare sector. The reasons for this investment are rooted in Chefaa’s ability to improve healthcare accessibility in Egypt and its successful entry into the Saudi market. Investors expressed confidence in Chefaa’s innovative strategies, citing its commitment to innovation, data leverage, and impactful partnerships with major pharmaceutical players.

Newtown Partners, represented by Managing Partner Llew Claasen, emphasized their conviction in the capabilities of Chefaa’s founders and the massive opportunity to improve healthcare access in the Gulf Cooperation Council (GCC) and Sub-Saharan Africa (SSA) through digitization.

Global Brain Corporation’s Director of Investment Group, Hiroto Sorita, acknowledged Chefaa’s growth in a challenging business climate, affirming the company’s position as a leading patient-centric service provider in the region. GMS Capital Partners LLC CEO Yezan Haddadin highlighted Chefaa’s commitment to innovation and its impact on reshaping the future of healthcare delivery in the region.

Verod-Kepple Africa Ventures Partner Ryosuke Yamawaki expressed the firm’s belief in Chefaa’s unique position to transform the retail pharmaceutical supply chain in Africa, underscoring its potential to become a critical business infrastructure in the broader Gulf region.

A Look at Chefaa

Founded in 2017 by Rasha Rady and Doaa Aref, Chefaa is an Egyptian healthtech startup specializing in e-pharmacy. The platform operates as a patient-centric pharmacy benefits platform, offering an end-to-end healthcare experience. Chefaa recently expanded its operations into Saudi Arabia, operating in eight cities.

Chefaa’s mission is to lead the safe digital transformation of healthcare by prioritizing market needs, overcoming continuous challenges, and designing new services and features aligned with its vision and mission. The startup has garnered investor confidence through its impactful strategies, commitment to innovation, and measured impact on healthcare accessibility. CEO Doaa Aref expressed gratitude for investor support, emphasizing their shared passion and belief in Chefaa’s vision and mission.

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.

Ghana’s Koa Secures $15M in Series B Funding to Transform Cocoa Industry Through Upcycling

Swiss-Ghanaian start-up Koa secured a substantial equity investment of US$15 million in its recent Series B funding round. The Land Degradation Neutrality (LDN) Fund from Mirova, along with the Regenerative Growth Fund 1 managed by Zebra Impact and Mirabaud, led the round with a notable US$9 million investment. The remaining funds were contributed by various new investors, complemented by continued support from existing shareholders, including Haltra, who led Koa’s Series A equity round in 2021.

The injection of funds is earmarked for scaling up Koa’s innovative cocoa upcycling strategy. This strategy involves leveraging a newly inaugurated cocoa fruit factory in Ghana to increase production tenfold, extending cocoa fruit upcycling, and promoting regenerative and climate-smart agricultural practices. Koa aims to share its upcycling technologies with an additional 10,000 cocoa smallholders, addressing the challenges of food waste and fostering sustainability within the cocoa industry.

Why The Investors Invested

The primary drivers behind the investors’ decision to commit significant funds to Koa are rooted in the transformative impact of the startup’s operations and its alignment with sustainable finance goals:

Mirova’s LDN Fund sees Koa as a catalyst for sustainable and fair economic development in emerging countries. The LDN Fund aims to address substantial investment needs in such regions, and Koa’s initiatives, reducing food waste and providing additional income to local producers, resonate with this ambition.

The Regenerative Growth Fund 1, managed by Zebra Impact and Mirabaud, focuses on investing in nature tech solutions. Recognizing the challenges posed by nature loss and climate change, the fund sees Koa as a strategic player in transforming the cocoa value chain, aligning with their broader goal of supporting innovative solutions to global environmental challenges.

A Look at Koa

Founded in 2017, Koa has emerged as a trailblazer in the cocoa industry, particularly in West Africa. The startup, with its Swiss-Ghanaian roots, has unlocked a new value chain by innovatively upcycling cocoa fruit, notably the previously discarded cocoa pulp. Collaborating with cocoa smallholders in Ghana, Koa simultaneously reduces on-farm food waste, generates additional income for farmers, and introduces unique ingredients to the food and beverage industry.

Factory Inauguration and Strategic Expansion: The recent inauguration of Koa’s new cocoa fruit factory in Ghana signifies a pivotal moment for the company. This facility serves as the cornerstone for scaling up production, cooperating with an additional 10,000 cocoa farmers, and intensifying regenerative agriculture practices. The Series B funding is crucial for Koa to facilitate these expansions, develop more cocoa fruit products, and broaden its marketing and distribution efforts.

Koa’s strategic expansion revolves around promoting sustainability in the cocoa value chain. By focusing on regenerative agriculture, the startup aims to enhance the resilience of cocoa farms, simultaneously addressing issues of soil fertility deterioration and the high carbon footprint associated with traditional cocoa farming in West Africa.

Koa’s endeavors align with broader industry trends, where sustainability in chocolate and cocoa ingredients is becoming increasingly prominent. The upcycling trend, rescuing ingredients that would otherwise go to waste, is a key aspect of Koa’s approach. Beyond cocoa, the company’s initiatives contribute to reducing waste in food value chains, addressing the global imperative for sustainable resource use in the production of food and beverage products.

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.

Techstars Unveils 12 Promising Startups in Second Cohort for Lagos-based Accelerator Program

December 15, 2023

In a strategic move to bolster Africa’s startup ecosystem, Techstars, renowned as one of the continent’s most active investors, has revealed its second cohort for the Lagos-based accelerator program. This initiative, conducted in collaboration with Nigerian accelerator ARM Labs, will infuse a total of $120,000 in funding into a diverse range of startups spanning Ghana, Nigeria, and East Africa.

Techstars, a global accelerator boasting a portfolio of over 3,000 companies, is set to play a pivotal role in the growth trajectory of these startups. The 12 selected enterprises, four of which have at least one female co-founder, will not only benefit from substantial financial backing but will also receive cash-equivalent support exceeding $400,000. This encompasses hosting, accounting, legal assistance, and various other benefits amounting to over $5 million.

Oyin Solebo, Managing Director of ARM Labs Lagos Techstars Accelerator, emphasized the contemporary challenges faced by founders, stating, “The current market dynamics mean that founders need a combination of financial support as well as technical assistance and access to networks in order to build resilient businesses.”

After a remarkable 2022 where nearly $5 billion was raised in the African tech space, 2023 saw a funding slowdown. The funding winter led to a more cautious investment approach among investors. However, Techstars remains undeterred, extending its support to startups beyond the realms of fintech and proptech. This cohort reflects a diversified portfolio, encompassing fintech, logistics, e-commerce, healthtech, renewable energy, and the future of work.

“Our second cohort truly showcases, and perhaps also epitomizes, the wealth of talent, innovation, and ingenuity that can be found within the African tech ecosystem,” added Solebo.

In addition to the financial backing, the cohort will receive invaluable mentorship from prominent figures in Africa’s tech ecosystem. The roster includes Tunde Kehinde, CEO of Lidya; Bode Abifarin, COO at Flutterwave; Tingting Peng, Chief Capital and Strategy Officer at Moove; Kevin Simmons, a partner at LoftyInc; Lola Esan, a partner at EY; and Yischai Beinisch, the Head for Shell’s West African Emerging Market Power.

The selected startups, ranging from asset-light marketplaces to e-commerce platforms and healthcare solutions, will also tap into the expansive Techstars network, comprising 10,000 founders, alumni, and mentors.

Meet the innovative startups in this cohort:

24Seven: An asset-light marketplace facilitating small businesses with credit-based inventory ordering and one-hour doorstep delivery.

Beauty Hut: An e-commerce platform enabling users to shop from their favorite beauty brands via a web store and mobile app.

Eight Medical: An end-to-end platform connecting users to emergency medical resources, reducing waiting times significantly.

GetEquity: Facilitating access to investment opportunities by SEC-accredited providers through investment aggregation.

JumpnPass: A mobile self-checkout platform allowing shoppers to scan product barcodes, pay for items, and skip queues.

One Plan: Assisting workers in Africa’s informal economy to create affordable financial plans for retirement, credit, and insurance.

PBR Life Sciences: Providing pharmaceutical, consumer healthcare, and medical device companies with access to high-quality market data.

PressOne Africa: Offering businesses deeper insights into phone conversations through a communication platform.

Rana: Democratizing access to clean and reliable solar systems for SMEs and residential customers through affordable subscriptions.

Surge Africa: Enabling instant cross-border transfers and reducing fees for individuals, micro-entrepreneurs, and MSMEs.

Swoove: Empowering logistics companies in emerging markets with dispatch automation, fleet management, and tracking.

Veend: Enabling individuals and businesses with verifiable income to access funds on-demand.

The accelerator program is set to culminate in a Demo Day on February 22nd, 2024, offering an exclusive platform for founders to showcase their progress and innovations.

Techstars Lagos

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 TUNL Secures $1M to Offer Transparent Shipping Solution

December 14, 2023

TUNL, a South African parcel shipping platform, recently secured $1 million in pre-seed funding from notable investors, including Founders Factory Africa, Digital Africa Ventures, E4E Africa, and Jozi Angels. The investment aims to support TUNL’s expansion within its primary market, South Africa, and lay the foundation for its entry into other key African and emerging markets.

The platform, founded in 2022 by CEO Matthew Davey and COO Craig Lowman, addresses the challenges faced by e-commerce merchants dealing with exorbitant international shipping costs. TUNL’s strategic approach involves forming partnerships with major courier services like UPS and FedEx, negotiating favorable rates, and subsidizing shipping costs for small- and medium-sized enterprises (SMEs) by 50% to 75%. This commitment to transparency and cost reduction enables TUNL to empower businesses of all sizes, fostering international sales and growth.

Why the Investors Invested

Investors were compelled to allocate $1 million in pre-seed funding to TUNL due to a meticulous evaluation of the startup’s value proposition and the prevailing market dynamics. The decision to invest in TUNL can be dissected into several critical factors.

In the first place, the investors recognized the magnitude of the problem TUNL aimed to address — the exorbitant shipping costs for small businesses in emerging markets, especially South Africa. The fact that cross-border shipping challenges were costing African businesses an estimated $50 billion annually underscored the substantial market gap. Investors, driven by a keen sense of market potential, saw TUNL’s solution as not only innovative but also as a means to tap into a lucrative and underserved market segment.

Again, TUNL’s founders, Matthew Davey and Craig Lowman, demonstrated a nuanced understanding of the industry pain points. Davey’s firsthand experience as the managing director of a Dutch company importing South African engineering materials into Europe highlighted the inefficiencies and costliness of existing shipping processes. The investors likely found confidence in the founders’ ability to address a real-world problem with practical industry insights, increasing the likelihood of TUNL’s success in the market.

Furthermore, TUNL’s commitment to transparency and cost reduction in international shipping resonated with investors. The founders’ approach of forming strategic partnerships with established courier services, negotiating favorable rates, and subsidizing SMEs’ shipping costs by 50% to 75% showcased a business model that aligned with both ethical and profitable considerations. Investors saw the potential for TUNL not only to disrupt the existing market but also to create a sustainable and scalable solution.

Lastly, the investors’ decision was likely influenced by the impressive growth metrics and traction that TUNL demonstrated. The month-on-month growth rate of 35%, coupled with over 700 merchants joining its “shipping club” and facilitating the shipment of over 8,000 international parcels in 2023, provided tangible evidence of TUNL’s market acceptance and execution capabilities. Investors, being inherently risk-averse, found assurance in these concrete achievements, validating their choice to back TUNL with substantial pre-seed funding.

A Look at TUNL

Founded in 2022 by Matthew Davey and Craig Lowman, TUNL is a South African startup focused on revolutionizing cross-border shipping for e-commerce merchants. The company’s primary markets include the U.S., the U.K., Europe, and Australia, with two-thirds of its parcels destined for the U.S. TUNL competes with platforms such as ANKA, an Ivorian startup partnered with DHL.

The platform’s growth has been noteworthy, experiencing a 35% month-on-month increase since its launch. With over 700 merchants in its “shipping club,” TUNL has facilitated the shipment of over 8,000 international parcels in 2023, representing exports from South Africa worth R19.5 million. TUNL’s revenue model involves taking margins on orders placed through its platform, which caters to a diverse range of products, including backpacks, fashion footwear, arts and crafts, books, nanofiber materials, high-performance springs, furniture, musical instruments, and nonperishable products like cosmetics.

Looking ahead, TUNL plans to leverage its seed funding to enhance sales processes and streamline onboarding for new merchants, emphasizing a self-service approach. The startup’s success is evident in the positive impact on merchants, with growing businesses attributing their transformations to TUNL’s ability to unlock international markets for South African products.

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

Investors Rally Behind Ivory Coast’s Susu in $4.8M Deal to Democratize Healthcare Access in Francophone Africa

Susu, an Ivorian healthtech startup, has successfully raised 4.5 million euros in a recent fundraising round. Notable investors include INCO Ventures, Al Mada Ventures, Janngo Capital, Open CNP, Health54 (CFAO Healthcare), Launch Africa Ventures, Five35 Ventures, Plug and Play Ventures, and several business angels. The funds raised are earmarked for the expansion of Susu’s healthcare services in Africa, particularly in Côte d’Ivoire, Senegal, and Cameroon, where the company has already gained traction with over 7,000 clients.

Susu, founded in 2019, aims to position itself as a leader in healthtech in Francophone Africa. The startup addresses the pressing healthcare challenges on the continent, where population growth is substantial, and chronic diseases like diabetes and hypertension are on the rise. The investment will be utilized to develop a comprehensive range of health offers, including local and international health insurance coverage and tailor-made health bundles. The startup operates through a 360° digital platform connecting beneficiaries, medical providers, financial contributors, and its internal teams. Additionally, Susu collaborates with top healthcare providers to establish a high-quality medical network. The funding will also support innovative health financing models leveraging third parties, such as the African diaspora, relatives, employers, or charities.

Why the Investors Invested

Investors have committed to Susu due to its compelling mission of democratizing access to healthcare throughout Africa. With a focus on reducing inequalities in health access, Susu aims to deliver quality care through innovative products and financing models. The investors were drawn to Susu’s commitment to addressing the growing healthcare needs on the continent, where life expectancy is increasing, and chronic diseases are becoming more prevalent. The startup’s innovative approach, combining technology, a comprehensive range of health offers, and partnerships, aligns with the investors’ vision of creating economic and social progress in the intersection of financial, insurance, and health services.

Carole Cazassus, Investment Director at Inco Ventures, highlighted the Susu team’s commitment to reducing health inequalities as a key factor in their decision to support the startup. Fatoumata Bâ, Founder and Executive Chair of Janngo Capital, emphasized Susu’s vision, team quality, and unique technological solutions as compelling reasons for leading the funding round. The investors view Susu’s initiative as transformative, contributing to the redefinition of insurability boundaries in the African health sector.

A Look at Susu

Founded in 2019, Susu has rapidly expanded its operations beyond its initial commercial launch in France and Côte d’Ivoire. The startup’s primary markets now include Cameroon and Senegal. With approximately forty employees spread across Paris, Abidjan, Douala, and Dakar, Susu has positioned itself as a key player in healthtech. The startup’s ambition is to leverage the recent funding to accelerate growth by expanding into new African countries in Francophone Africa and North Africa.

Susu’s service offerings revolve around four pillars: a comprehensive range of health offers, a 360° digital platform, a high-quality medical network, and innovative health financing models. The startup’s mission is to democratize access to healthcare across the entire African continent, catering to both healthy and vulnerable individuals. As the startup plans to recruit ten new employees by 2024, its focus extends to bolstering sales, marketing, operations, and finance teams in both France and Africa. Overall, Susu’s innovative approach and commitment to addressing healthcare challenges position it as a key player in transforming the daily lives of millions of Africans.

Susu healthcare Susu healthcare

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.

African Fashion Startup Maka Draws Investor Confidence with $2.65M Pre-Seed Funding

Maka, the African fashion and beauty e-commerce platform, recently secured a $2.65 million pre-seed funding round. The primary contributors to this round were Pan-African venture capital firms, 4DX Ventures and Janngo Capital, with additional support from Palm Drive Capital, angel investor Jonathan Shipman, founder of EVP and Twitch founding member, and executives from delivery platform Wolt. This funding injection comes as the startup’s response to the challenges faced by consumers in the fashion e-commerce landscape, particularly in Africa.

Maka was founded in 2021 by Diana Owusu-Kyereko, the ex-CEO of Jumia Ghana and ex-CCO of Jumia Kenya. The startup originated as an interactive social commerce platform, addressing the complexities of the fashion buying process experienced during the pandemic. Owusu-Kyereko identified a trust deficit in online shopping and the lack of a centralized platform for diverse consumer needs. This insight prompted the birth of Maka, aiming to create a one-stop-shop for fashion enthusiasts, especially millennials and Gen Zers in Africa.

Why the Investors Invested:

Investors were drawn to Maka for its strategic positioning in the evolving African e-commerce market. The surge in technology adoption among Africa’s younger demographic, contributing to the growth of e-commerce penetration from 13% in 2017 to 28% in 2021, provides a significant opportunity for Maka. Maka’s focus on targeting millennials and Gen Zers in this largely untapped market aligns with the shifting consumer trends and represents a strategic opportunity for growth. The startup aims to connect with a broader consumer base, focusing on the fashion sector and the burgeoning creator economy.

Maka addresses critical challenges in the fashion e-commerce landscape, particularly in Africa. Investors were attracted to the startup’s innovative solutions to two fundamental problems: the trust deficit in the online buying process and the struggle creators face in monetizing their influence. The incorporation of video content to build trust between users and creators stood out as a unique and effective approach, differentiating Maka from conventional e-commerce platforms.

The decision to focus on a user-generated content model was seen as a strategic move by investors. Unlike platforms relying solely on big creators, Maka’s scalable base of creators, where every customer can become a creator, provides an infinite pool of individuals generating video content. This approach enhances scalability and user engagement, as demonstrated by the rapid creation of over 2,000 reviews in just two months. Investors recognized the power of this model in fostering a sense of community and trust within the platform.

Diana Owusu-Kyereko’s leadership and industry expertise, gained from her previous roles as the CEO of Jumia Ghana and CCO of Jumia Kenya, played a pivotal role in attracting investment. Investors were confident in Owusu-Kyereko’s ability to navigate the complexities of the e-commerce landscape in Africa. The founder’s vision of creating a centralized platform to meet diverse consumer needs and empower both consumers and creators resonated with investors seeking a strategic and visionary leader.

A Look at Maka

Founded in 2021 by Diana Owusu-Kyereko, Maka operates as an African fashion and beauty e-commerce platform. Owusu-Kyereko, having previously held leadership positions at Jumia, initiated Maka as a response to the complex and challenging fashion buying experience during the pandemic. The platform serves as an interactive social commerce space, allowing users to discover products tailored to their styles through live try-on hauls, reviews, and user-generated content.

Maka, in its two years of existence, claims to have garnered over 500,000 downloads. The startup recently shifted its model to focus on user-generated content, resulting in over 2,000 video reviews in just two months. The platform incentivizes users with a rewards system, earning points for video reviews that can be converted into cash for shopping on the platform. The funding secured in the pre-seed round will be utilized to expand the team, enhance technology, and deepen the platform’s presence in Ghana and Nigeria.

Fatoumata Bâ, founder and executive chair of Janngo Capital, expressed confidence in Maka’s vision, emphasizing the potential growth and impact the startup could have at the intersection of e-commerce, creative, and cultural industries in Africa. Janngo Capital led the funding round, foreseeing the sectors jointly poised to grow substantially by 2050, generating significant GDP and job opportunities across the continent.

South Africa’s Entersekt Strengthens Global Focus with Modirum 3-D Secure Acquisition

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.

Copia Global Secures $20 Million for African E-commerce Dominance

December 13, 2023

Copia Global recently secured $20 million in a Series C extension round, with significant contributions from Enza Capital, co-founded by John Lazar, the former CEO of Metaswitch. Other major participants include LGT, Goodwell Investments, DFC, DEG, Elea, Perivoli Foundation, and Sorenson Foundation. The investment aims to support Copia Global, a Kenyan e-commerce and fintech platform targeting mid- and low-income African consumers in rural areas. The platform employs a network of over 50,000 local agents, facilitating access to goods and services. Copia has experienced annual growth of 100%, emphasizing scale and swift expansion.

Reasons for Investment

The investors, including Enza Capital, have strategically positioned their capital for several compelling reasons.

Tapping into Expanding Consumer Spending

The investment hinges on a keen anticipation of the forthcoming surge in African consumer spending, poised to exceed $2 trillion. Copia’s target demographic — the mid- and low-income consumers in rural areas — aligns seamlessly with this anticipated growth. The sheer scale of approximately 750 million potential consumers in Copia’s crosshairs provides investors with a compelling prospect to tap into a burgeoning market.

Operational Resilience and Fulfillment Network

Beyond financial figures, investors are attracted to Copia’s operational resilience, exemplified by its robust fulfillment network comprising over 50,000 local agents. This on-the-ground presence positions Copia uniquely to address the nuanced challenges faced by consumers in rural areas, from choice limitations to issues of price and reliability. The strategic emphasis on hyperlocal strategies resonates with investors seeking ventures with a granular understanding of diverse markets.

Strategic Alignment and Professional Relationships

Investors, particularly Enza Capital and John Lazar, are not just putting their money into a venture; they are leveraging strategic alignments and established professional relationships. Lazar’s long-standing rapport with the Copia team adds an additional layer of confidence, affirming the strategic vision and execution capabilities of the platform.

Profitability Focus

The recent shift in Copia’s focus, from expansive growth to a targeted pursuit of profitability in Kenya, reflects a nuanced understanding of market challenges. Investors appreciate Copia’s adaptive approach, acknowledging the global capital market’s shifts and its impact on business models. The commitment to achieving profitability in Kenya before scaling up internationally aligns with investors’ expectations for a sustainable and measured growth trajectory.

A Look at Copia

Founded a decade ago, Copia is a Kenyan e-commerce and fintech platform targeting mid- and low-income consumers in rural areas. The platform was established by founders with a vision to address challenges in accessing goods and services faced by consumers in these regions. Copia’s primary markets are in Kenya, where it operates through a network of local agents.

The startup, despite recent changes in expansion plans, maintains a focus on achieving profitability in Kenya. Copia’s approach involves leveraging local agents and logistics, providing a variety of goods to consumers who face challenges in traditional access methods.

The platform’s shift towards digitization reflects a response to increased smartphone penetration, aiming to tap into a market with significant potential. Once achieving profitability in Kenya, Copia plans to extend its operations to 14 other strategically identified countries.

John Lazar, now on Copia’s board, intends to contribute his tech operator experience and investor network to support talent acquisition, sales strategies, and provide insights to the executive team.

Copia Global Copia Global

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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.