Startups and founders - Afrikan Heroes

Africa-focused Digital Library YouScribe Surpasses 1 Million Users. Here’s What It Did

September 23, 2022

The fact that YouScribe has reached one million users in Africa is proof positive of the success of its digital book distribution model and a further endorsement of the company’s desire to expand into further countries. For YouScribe, partnering with Edi8 is a confirmation of its mission to increase literacy and education opportunities for people all around the world.

YouScribe’s President and Founder Juan Pirlot de Corbion

Since its inception in 2011, YouScribe has expanded to cover 11 countries across the African continent, with a total of over one million subscribers. These countries include: Tunisia, Senegal, Cameroon, Ivory Coast, Burkina Faso, Morocco, Madagascar, Guinea, Democratic Republic of the Congo, Mali, and South Africa.

A large North and West African audience, particularly from the countries of Morocco, Tunisia, Senegal, Guinea, and Ivory Coast. More than half of African YouScribers are under the age of 34, and while most of them are men (51%), there are almost as many women (49%).

The number of subscribers has increased by a factor of 20 in only three years because to this robust and sustained expansion.

African Publishers Rely On YouScribe.

YouScribe was founded with the goal of helping publishers improve their catalogue distribution via the use of digital technology so that they may better aid in the spread of language, culture, and information. If the rise of mobile readership, especially on smartphones (86% of African readers do so), presents a golden chance for publishers to expand into new markets, it also allows for more secure author compensation.

This is why several hundred of YouScribe’s 1,900 publishers are located in Africa and they receive 60% of the company’s profits.

There is a clear preference among YouScribe’s African audience for literature and works written in regional languages that are otherwise difficult to find. YouScribe places significant emphasis on creating and providing access to an African catalogue.

Since its inception, the library has collaborated with Edi8, a division of the Editis company (Vivendi). By establishing its first African subsidiary in Côte d’Ivoire in 2022, Edi8 demonstrated its commitment to expanding its operations on the continent and its mission to provide a local, relevant, and diverse editorial offer across the continent of Africa. Senegal, where a second company with similar goals was founded the next year (2022).

What Propels YouScribe’s Growth

YouScribe is able to offer its services at the proper price and with a payment mechanism tailored to the reality of the continent because of its success in micro-payment via telecom operators, in addition to its tight relationship with publishers.

In this way, Digital Virgo, a global leader in mobile payment and digital marketing through billing solutions for telecom carriers, is one of the company’s strategic partners. YouScribe forms partnerships with local publications, TV operators (Canal+ is present in 24 African nations with high growth), and cellphone carriers in every market in which it launches. As a result, YouScribe has partnered with companies including Orange, Maroc Telecom, Ooredoo, Moov, and Inwi. Since 2018, Orange has been a valuable partner in expanding the library over seven nations throughout Africa.

“Gaining a million subscribers so rapidly in Africa is a source of great pride,” YouScribe’s President and Founder Juan Pirlot de Corbion says. “We have everything we need to further our growth in Africa, both in the countries where we are already present and in the emerging markets we hope to enter, such as Algeria and Egypt. Despite the fact that Africa is still our primary focus, we may now expand our efforts to any location where digital technology can enhance and expedite the dissemination of traditional books. Canada is a possibility, but so are Benin, Togo, and Nigeria.”

“We’ve found great writers and a steadily expanding audience in Africa, so we see publishing there as a key growth area for Edi8. Edi8’s goals include encouraging people to read and encouraging the development of local talent. The relationship with YouScribe is an essential development vector since the streaming library model is especially fitted to applications and relevant for the compensation of writers, in addition to offering protection against piracy,” Vincent Barbare, President of Edi8, adds.

YouScribe users YouScribe users YouScribe users

Ghana’s SecondSTAX Raises $1.6M To Enable Investors Access Foreign Capital Markets

Charles Rapulu Udoh

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

Shorooq Partners Confirms It Has No Board Member In Troubled Portfolio Startup Capiter, Still Bullish On Egypt

September 18, 2022

Shorooq Partners, a venture capital firm, has stated that it can only fathom how difficult the past few weeks have been for Capiter employees and their families, and that they, as owners, cannot express enough gratitude for the hard work, support, and patience that the employees and their families have shown throughout this ordeal.

As one of the investors who have backed Capiter, the company has confirmed in a statement that it is heartbreaking to see the current situation, not necessarily in terms of the potential outcome in terms of financial capital, but more than the harmful perception and impact that can have on the emerging region and environmental capital in the region.

“We understand that there has been a lot of news with conflicting accounts on Capiter,” the statement added. “We know there is a lot of interest in what we have to say as shareholders of the company and this post is not about that, Shorooq Partners is not involved in operating Capiter and has no representation on the board of directors in the company, and as such, we are not in a position to provide feedback on behalf of the company. As shareholders, we need to respect and allow the Board of Directors to continue its work through appropriate legal channels. We know and trust that the Board of Directors is working tirelessly to fulfill its duties and responsibilities in caring for employees and providing clarity on the situation.”

The company believes that the best way to do this is by reflection, transparency, and always striving to discover the full factual truth, and stresses that together they will build a trustworthy ecosystem. Keeping this in mind, the company is committed to being as open and accountable as possible, including to its founders and current board members. This is done with the intention of putting people first and providing support to the many groups that make up the Capiter family.

“We are committed to serving the Egyptian market and the broader ecosystem, and we are long-term value investors in the MENA region. Egypt, like many other countries, is going through difficult periods with currency fluctuations, supply chain disruptions, etc. Nevertheless, Shorooq and its partners continue to be committed to the state. We continue to work on improving our processes to identify great leaders early on, create real and tangible value on the ground and help build Egyptian companies that can expand globally,” the statement further stated.

Meta Launches Chats to Connect Communities in Real Time on Messenger and Facebook

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. You can book a session and speak with him using the link: https://insightsbyexpert

Why Kenya-based HotelOnline Acquired Hospital Software Supplier HotelPlus

September 17, 2022

HotelPlus, a software supplier with clients in 22 countries, has been bought by HotelOnline, a Kenya-based Yanolja-backed travel technology scale-up that bills itself as an e-commerce and digital marketing enabler in the hotel business.

The precise details of the transaction were not released, but Eric Muliro, who created HotelPlus in Kenya 13 years ago, would get a compensation as well as $1.9 million in HotelOnline shares, which were valued at $24 million prior to the transaction. Muliro will also serve as HotelOnline’s chief technology officer.

Why The Acquisition

HotelOnline stated that the transaction boosted its client base by over 2,200 and opened the way for new consumers and innovative capabilities such as payment solutions, AI-driven pricing, and revenue management.

“We are significantly increasing our client base, while capitalizing on the combined strengths of both companies, creating a force to reckon with in East Africa’s hospitality industry,” HotelOnline co-founder, said.

“Because the HotelPlus client-base currently uses on-premise software, this creates a unique integration opportunity with our cloud solutions…We are creating a massive win-win situation for the HotelPlus clients, in other words,” said Bauck, who co-founded HotelOnline with Endre Opdal in 2014.

Trond Riiber Knudsen of the TRK Group, an Oslo-based venture capital firm and an investor in HotelOnline, said in a statement, “A deal like this helps build a strong African travel-tech player, with a local and continental foothold. This is a key part of what we aim to contribute to through our stake in HotelOnline. We see great potential in the new company, and we look forward to the journey from here.”

The transaction comes months after HotelOnline concluded a Series A fundraising round led by Yanolja earlier this year, a first in Africa for the SoftBank and Booking.com-backed South Korean travel technology startup. Yanolja, which has over 43,000 clients in 170 markets, provides cloud-based solutions for lodging, restaurants, and residences.

With Yanolja’s backing, HotelOnline now has the financial clout to strike partnerships and make investments that will help it develop and expand in its current and target countries. Tore Hofstad, Stratel AS, and a group of Nigerian angel investors are among HotelOnline’s other investors.

Kenya's HotelOnline acquires hospitality software company HotelPlus | TechCrunch — *Credits: HotelOnline*

A Look At What HotelOnline Does

HotelOnline assists hotels in establishing and increasing their internet exposure in order to reach a larger consumer base. It assists its clients in deploying booking engines and increasing their visibility on distribution channels like as Booking.com, as well as arming them with the ability to manage operations on their own platforms utilising cloud-based digital tools such as property management systems. It also provides property management services to owners.

HotelOnline stated that it intends to aggressively expand across Africa, where it presently has over 6,000 clients distributed across 27 countries, by using HotelPlus’ reseller network and the burgeoning hospitality business, which is rebounding successfully from the pandemic’s ravages. Its immediate strategy is to establish a dominant position in East Africa, as well as in Nigeria and Senegal, as it strives to become a big pan-African powerhouse.

“HotelPlus has built an impressive commercial organization, with skilled sales people, a high-performance reseller network covering more than a dozen countries across the continent. Integrating these resources, prepares the ground for our accelerated expansion in Africa,” said Bauck.

Algeria’s GroDesto Raises $1.4M To Build Its Logistics 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. You can book a session and speak with him using the link: https://insightsbyexpert

Ghanaian Healthtech mPharma Acquires Leading Nigerian Pharmacy Chain HealthPlus

September 15, 2022

Gregory Rockson, chief executive officer (CEO) of mPharma.

mPharma, the foremost patient-centered and technology-driven healthcare provider on the African continent, has just purchased the majority ownership in HealthPlus, the most prominent drugstore chain in Nigeria. A deal has been made between mPharma and Alta Semper, a previous investor in the company, which will result in mPharma acquiring a controlling position in the HealthPlus Group.

Why The Acquisition

According to mPharma’s CEO and co-founder, Gregory Rockson, the purchase is in keeping with the company’s goal of creating a healthy Africa through the distribution of innovative healthcare solutions. He said that mPharma’s recent purchase of the HealthPlus Pharmacy chain was a natural extension of the company’s efforts to improve Nigerians’ access to low-cost, high-quality medical care.

“mPharma is deepening its long-standing commitment to Africa by reimagining primary healthcare in some of the most vulnerable communities on the continent. We continue to transform community pharmacies into primary care centers to provide affordable and accessible healthcare to all patients so they can live not just longer but healthier lives. We are optimistic about the future of healthcare for Nigerians through the acquisition of HealthPlus”, said Rockson.

“We are delighted about HealthPlus’ partnership with mPharma. We have a strong conviction in mPharma’s strategy of revolutionizing primary care across Africa and believe mPharma is the ideal steward for HealthPlus’s next chapter of growth. We believe mPharma’s vision is consistent with that of HealthPlus’s shareholders and employees, and we are enthusiastic to support the business through a relationship with mPharma going forward,” In her remarks on the acquisition, Afsane Jetha, Co-founder and CEO at Alta Semper Capital, said.

HealthPlus is now the most well-known pharmacy brand in Nigeria, and mPharma intends to keep it that way. The purchase will provide mPharma a solid foundation on which to build a larger presence in the Nigerian market and to extend its QualityRx mutti pharmacy retail programme across Africa.

HealthPlus, which presently retails economical and high-quality drugs throughout 12 states in Nigeria, will soon be able to provide patients access to primary care services within its pharmacies, made possible by mPharma’s proprietary Bloom software. In addition to opening its pharmacies, HealthPlus will introduce mutti®, a health membership programme developed by mPharma that will provide savings, interest-free “heal-now-pay-later” options, free health screenings, and other primary care services to both new and current clients.

With the addition of HealthPlus pharmacies to mPharma’s expanding network of partner mutti pharmacies and GoodHealth stores (PPMVs), mPharma will be able to improve the health of over 100,000 Nigerians every month in more than 320 locations across the country.

Lessons From How Ghanaian eHealth Startup, mPharma, Is Conquering Older Incumbents In Africa

Charles Rapulu Udoh

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

Egypt-based Cosmetics Platform Source Beauty Acquired By ECC Group

Source Beauty, the first and foremost beauty platform located in Egypt, has acquired an investment from ECC in exchange for a controlling ownership in the company.

ECC is one of the major producers of beauty and personal care products in Egypt and gives a significant potential for Source Beauty to deliver an upgraded service to its clients, including new product creation and manufacturing expertise, among others. The company provides comprehensive production and distribution services for new, scientifically-proven cosmetics in the United States. Lorax Capital Partners has just purchased a minority position in ECC and is supporting the company’s expansion efforts.

“The funds will reinforce an accelerated digital and physical marketing strategy to reach a broader customer base, enhancing customer retention and brand visibility as well as expanding the team,” Lydia Schoonderbeek, the founder and CEO of Source Beauty said. “This strategic investment by ECC is a game changer for Source Beauty and we’re all hugely excited about the future. Since Source Beauty’s inception, I have been determined to change the beauty space in Egypt to truly address the needs of the Egyptian consumer.”

Lydia will continue in her role as CEO, in addition to assuming the role of Chief Creative Officer of ECC.

“We are excited about Source Beauty’s role as part of the group and are equally excited about working with Lydia and her team to continue their journey in a market that is price sensitive and seeks sustainability.” Dr Ahmed Abo El Hamail, Co-Founder and Vice-Chairman of ECC also added, “Source Beauty’s brand and Company values make it a great fit for us. We are delighted to back Lydia, and believe that her continued role at Source Beauty as well as her new role at ECC complement the new chapter we are building for the group,” Dr Mohamed Salah, Co-Founder and CEO of ECC, said.

Lydia Schoonderbeek, Founder and CEO of Source Beauty — *Lydia Schoonderbeek is the Founder and CEO of Source Beauty*

A Look At What Source Beauty Does

Source Beauty, which debuted in 2018, is a women-led one-stop beauty shop with over 85 local and international beauty brands and 60,000 users. This marketplace offers clients an accessible, cheap option for beauty items in the nation and exposes them to products obtained from the finest raw materials by female entrepreneurs. In addition, it gives both known and growing firms with the most remarkable interactive shop window.

By 2025, the beauty sector in Egypt would have reached a market volume of $187.70 million. Customers have become less reliant on imported beauty products as a result of factors such as the increasing customs on international beauty products and the high demand for variety, giving way to domestic manufacturers. For the typical Egyptian beauty consumer, there is a pressing need to promote inclusion, sustainability, accessibility, and affordability.

“We will continue to develop and work towards becoming Egypt’s largest multi-brand online beauty retailer. We are confident that this partnership with ECC will get us there,” Lydia added.

Source Beauty cosmetics Source Beauty cosmetics

Egypt’s Source Beauty Secures Six-figure Seed Round Led by Geneva-based ACE & Company

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. You can book a session and speak with him using the link: https://insightsbyexpert

China’s Huawei Launches “Huawei Spark” To Support Startups In Algeria

September 13, 2022

The Chinese telecoms company Huawei-Algeria and the public startup accelerator “Algeria Venture” inaugurated the international programme “Huawei Spark” dedicated to the promotion and development of startups in Algiers, according to a press release.

The launch event was attended by Yacine El-Mahdi Oualid, Minister of Knowledge Economy, Start-ups, and Microenterprises, and Hocine Cherhabil, Minister of Digitization and Statistics.

“The international ‘Huawei Spark’ Startup Support Program delivers free cloud resources, technical training, and professional support to qualifying entrepreneurs while exploiting commercial prospects in the Huawei Cloud ecosystem,” according to the announcement. Huawei was informed.

It also enables Algerian startups to “go to international markets with assistance at trade exhibitions and world fairs.”

Mr. El-Mahdi Oualid applauded Huawei’s efforts to boost telecommunications and ICT in Algeria through training sessions for students and entrepreneurs during his remarks.

He emphasised the importance of initiatives like “Spark,” which allow entrepreneurs to grow while also helping to construct a new Algeria based on the digital economy.

Similarly, Mr. Cherhabil lauded Huawei for its many measures targeted at assisting entrepreneurs in order to strengthen the country’s digital economy.

Eason YI, CEO of Huawei-Algeria, commended Huawei and the Ministry of Start-ups and SMEs’ entry into the second phase of collaboration, which seeks to assist start-ups in establishing a better technical and commercial environment, particularly through the “Huawei+Spark” programme.

Sid Ali Zerrouki, managing director of Algeria Venture, stated that the “Spark” initiative intends to help start-ups flourish through technical assistance, as well as to involve them in international events to increase their awareness.

Huawei Algeria wished to commemorate the young talents that took part in the 8th edition of the “Seeds for the Future 2022” programme, which had a record participation of 26 students from various establishments and institutes of Higher Education.

Founder Of Embattled Egyptian Startup Capiter Denies Fraud Allegations As Cause Of Crisis Emerges

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. You can book a session and speak with him using the link: https://insightsbyexpert

“Fake Propaganda,” Mahmoud Noah, Founder Of Capiter, Calls Claims He Was Fired

September 12, 2022

Mahmoud Noah, who was the co-founder of Capiter and was fired from his role as CEO of the firm, issued an official statement to his firing in which he called the news that was spreading regarding his firing from his position as CEO of the company “fake propaganda.”

Through the official account he maintains on Facebook, Noah communicated the following statement:

Given the recent rumours that we were fired for being absent from work for a week, this business document is conclusive evidence to destroy the claims that we were never CEOs and that the statements made concerning us were untrue.

Noah, who had previously shared a photo from Capiter’s business registry, further remarked: “It’s clear that everyone who lied and slandered against us did so with the intention of winning a personal war against us, and there are many other factors at play here that are intended to exert pressure on us; we’ll get into the specifics as time goes on. Why have we made it this far if we are so inept?”

The board of directors of Capiter’s holding company recently made the decision to remove CEO Mahmoud Noah and his brother, COO Ahmed Noah, effective September 6th, and to assign Kapiter’s CFO, Majed Al-Ghazouli, to the position of temporary CEO.

According to a statement released by the board of directors, this decision was made because Mahmoud and Ahmed Noah, the company’s founding partners, had failed to carry out their responsibilities as executives and appear before representatives of the board, shareholders, and investors during multiple visits to the company’s headquarters last week to complete the due diligence procedures for a potential acquisition.

Mahmoud Noah Capiter Mahmoud Noah Capiter

Founder Of Embattled Egyptian Startup Capiter Denies Fraud Allegations As Cause Of Crisis Emerges

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. You can book a session and speak with him using the link: https://insightsbyexpert

Troubled Ecommerce Startup’s Website, Capiter, Is No Longer Online

The website for Capiter, an Egyptian start-up firm that specialises in retail and FMCG, has ceased functioning in the middle of the present crisis that the company is experiencing.

The error message “This site can’t be reached” appeared regardless of whether access was sought for the Capiter website on a desktop computer, a laptop computer, or a smart phone.

No statement from company has been released as to the reasons for the website’s inability to work properly.

A decision made by the board of directors of Capiter, an Egyptian e-commerce and retail trade platform, early on the morning of September 9 to dismiss Mahmoud Noah, CEO of the company, and Ahmed Noah, chief operating officer, from their positions, a decision that takes effect as of September 9th, signalled the beginning of the crisis that the company is currently experiencing.

Founders Sacked And Replaced

In a recent statement (pdf) of the board of directors of Capiter ’s holding company, Mahmoud Noah and Ahmed Noah were removed from their executive positions as Co-Founder & CEO and Co-Founder and Chief Commerical Officer, respectively, effective September 6, 2022.

The Board of Directors had since appointed Maged Al-Ghazouli, Capiter’s Chief Financial Officer, to serve as interim CEO until Mahmoud and Ahmed Noah make a personal appearance before the Board, shareholders, and investors to address concerns from employees, suppliers, creditors, and other stakeholders, and to continue negotiations with the entity planned to merge with Capiter.

Before launching Capiter, Mahmoud Noah co-founded the smart ride-sharing company SWVL, a mass transit company based in Egypt that went global after striking a merger deal with the special purpose acquisition company Queens Gambit Growth Capital and listing its shares on the Nasdaq Stock Exchange in the United States and and expanding other countries in Europe and Latin America.

Founders Of Egyptian Ecommerce Startup Capiter Fired By Board Amid $33M Funding Allegations

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. You can book a session and speak with him using the link: https://insightsbyexpert

Founder Of Embattled Egyptian Startup Capiter Denies Fraud Allegations As Cause Of Crisis Emerges

Former Capiter CEO Mahmoud Noah, who had been out of work since September 6 after being fired by the holding company’s board of directors, called an MBC Egypt story show to discuss the problem in his first public comments since the incident.

In a phone call with the show’s host, Amr Adib, Noah indicated that he is in regular communication with Capiter board members and that the rumours circulating about the startup are untrue.

Citing the sum of 33 million dollars, which is the worth of the funding that Kapiter got from a number of firms and investment funds in September of last year, Noah confirmed that the rumours that have been spreading regarding his escape and his brother are false.

According to Noah, the $33 million was invested in Kapiter around a year and a half ago. He also emphasised that Capiter is held by the parent business in the UAE, and that it has more than 18 investors, including himself and his brother, who possess the largest percentage.

Noah did not dispute the fact that Kapiter’s present commitments exceed her assets, which indicates that the startup is truly in debt. However, he emphasised that they were not formally notified of the decision to dismiss them.

Noah gave the impression that the current worldwide financial crisis brought on by the conflict between Russia and Ukraine had an impact on Kapiter’s financial situation.

Capiter Fraud — *The team at Capiter: Image credits: Capiter*

Dispute Between Investors And Founders Revealed As Cause Of Impasse

In a similar vein, the programme Hekaya, which is broadcast on MBC Egypt and presented by Amr Adib, explored the opinion of Mohamed Nagati, an investor and entrepreneurship expert, about the current Capiter crisis and its impact on the entrepreneurship sector and emerging companies in Egypt.

Najati said that the problem at Kapiter was caused by a disagreement between the company’s founders and investors. However, the issue was not dealt with in the typical manner, and that there was not a single solution that was agreed upon to deal with it.

According to Nagati, the entrepreneurial sector in Egypt is transitioning from the stage of growth to the stage of “sifting,” which is standard in all emerging economies throughout the world. He also mentioned that it is typical for businesses to fail, liquidate their assets, and depart the market.

Nagati disputed that the Capiter issue will have an effect on the entrepreneurial climate in Egypt, which over the previous ten years has delivered Egypt a return of more than fifty billion pounds in US dollars and employed about one million Egyptians in its many sectors.

Regarding what will happen to Capiter after its crisis, Najati stated that if one of its parties is unable to come to an agreement to control the entire company, the solution will be an external entity that will take over the company and restructure it.

Founders Sacked And Replaced

In a recent statement (pdf) of the board of directors of Capiter’s holding company, Mahmoud Noah and Ahmed Noah were removed from their executive positions as Co-Founder & CEO and Co-Founder and Chief Commerical Officer, respectively, effective September 6, 2022.

The Board of Directors had since appointed Maged Al-Ghazouli, Capiter’s Chief Financial Officer, to serve as interim CEO until Mahmoud and Ahmed Noah make a personal appearance before the Board, shareholders, and investors to address concerns from employees, suppliers, creditors, and other stakeholders, and to continue negotiations with the entity planned to merge with Capiter.

Capiter Fraud Capiter Fraud Capiter Fraud

Founders Of Egyptian Ecommerce Startup Capiter Fired By Board Amid $33M Funding Allegations

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. You can book a session and speak with him using the link: https://insightsbyexpert

Founders Of Egyptian Ecommerce Startup Capiter Fired By Board Amid $33M Funding Allegations

September 10, 2022

According to minutes from a recent meeting of the board of directors of Capiter ’s holding company, Mahmoud Noah and Ahmed Noah were removed from their executive positions as Co-Founder & CEO and Co-Founder and Chief Commerical Officer, respectively, effective September 6, 2022.

Capiter is the leading Egyptian company in the field of electronic commerce, specialising in serving merchants.

This decision was reportedly made because Mahmoud and Ahmed Noah, the company’s founding partners, have been shirking their responsibilities and have ignored repeated requests from the Board of Directors, shareholders, and investors to appear at the company’s headquarters ( during the company’s annual shareholder meeting) so that they can complete due diligence procedures in preparation for a possible merger with another entity over the past week.

The Board of Directors has since appointed Maged Al-Ghazouli, Capiter’s Chief Financial Officer, to serve as interim CEO until Mahmoud and Ahmed Noah make a personal appearance before the Board, shareholders, and investors to address concerns from employees, suppliers, creditors, and other stakeholders, and to continue negotiations with the entity planned to merge with Capiter.

Allegations Of Missing $33 Million Funding

Employees of Kapiter who have taken to social media to spread the company’s news have accused the Noah brothers of absconding with $33 million — the value of the funding that Kapiter obtained from a group of investors — and using it to fund a vacation outside of Egypt.

Kapiter secured $33 million in a seed fundraising round last September, including contributions from Kona Capital, MSA Capital, Savola, Shorouk Partners, Foundation Ventures, Accion Venturelab, and Derayah Ventures. A co-founder and managing partner at Kona Capital, Monica Brand Engel, remarked at the time that Kapiter’s funding round was one of the largest seed funding rounds for Egyptian startups ever, reflecting the great confidence of investors in the company.

“When your tech firm is lucrative enough to entice investors from abroad. It’s analogous to how a hummingbird spreads pollen across several blossoms,” she said, at the time.

This was the first step in Quona Capital’s investment in Egypt, where the firm said it found a friendly climate for financial technology owing to the efforts of the country’s president, government, Central Bank of Egypt, and Financial Supervisory Authority.

After receiving funding from Quona, MSA Capital, and Savola, the business reportedly ran into operational issues that resulted in some layoffs, prompting investors to look for a way to combine with another company.

There have been rumours that founders Mahmoud Noah and his brother Ahmed Noah had left the country.

Before launching Capiter, Mahmoud Noah co-founded the smart ride-sharing company SWVL, a mass transit company based in Egypt that went global after striking a merger deal with the special purpose acquisition company Queens Gambit Growth Capital and listing its shares on the Nasdaq Stock Exchange in the United States and and expanding other countries in Europe and Latin America.

China Egypt ecommerce Capiter — *The team at Capiter: Image credits: Capiter*

A Look At What Capiter Does

Mahmoud Nouh and Ahmed Nouh founded Capiter in July 2020. Capiter, according to CEO Mahmoud Nouh, solves difficulties for suppliers and manufacturers in terms of reach and insights. Merchants can order products from FMCGs and wholesalers through Capiter, and the company will deliver them. Capiter also offers retailers fair pricing and matching procedures that allow them to see a wide choice of merchandise.

Capiter’s platform supports over 12 different merchant categories, including mom-and-pop shops, hotels, restaurants, cafes, electronic stores, supermarkets, grocery stores, and catering organizations, all of which have their own unique solutions.

The company’s profits come from small margins on products purchased from manufacturers and sold to retailers. Then there are rebates for suppliers and commissions from merchants’ working capital. Capiter also makes money by providing market research and data services to manufacturers and fast-moving consumer goods companies.

Typically, B2B e-commerce platforms follow one of two models: asset-light or inventory-heavy. Capiter chose a hybrid model, according to Nouh, by making deliveries without owning any trucks in order to ensure scalability and inventory ownership, especially for high-turnover products, which helps the company with high availability and better pricing.

Capiter claims that machine learning assists these manufacturers in gaining essential insights into the markets they service, the products they sell, and how they compete.

“We’re able to get the data from the products they buy. So we offer them the best solution on what they should sell, at what time and peak seasons, including when are the offerings happening. All of these are customized solutions that we offer,” said Mahmoud Nouh.

Capiter has a fleet of more than 400 vehicles, provides services through a network of more than 50,000 dealers, and offers more than 5,000 products through its platform, all while seeing an 11-fold growth rate annually.

The company’s personnel, as well as its offering of financial services through partnerships with banks and its hybrid model, are ways it distinguishes apart in a market crowded with companies like Fatura, Bosta, and MaxAB.

Capiter ecommerce founders Capiter ecommerce founders Capiter ecommerce founders

China’s MSA Capital Again Leads $33m Funding Round In Egyptian Ecommerce Startup, Capiter

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. You can book a session and speak with him using the link: https://insightsbyexpert