What Chinese Investors Look Out For While Investing In Startups 

Chinese investors are not notorious for investing in African startups, although they invest in other startup ecosystems in world. However, China’s venture capital (VC) investment in the Indian startup ecosystem grew five times at $5.6 billion in 2018 compared to a $668 million in 2016.

In India alone, Chinese investors have clearly been betting big on startups with their funding surpassing their American and Japanese counterparts in 2018. In fact, Chinese funds flowing into India have seen exponential growth over the last couple of years.
China’s venture capital (VC) investment in the Indian startup ecosystem grew five times at $5.6 billion in 2018, compared to a mere $668 million in 2016, according to research and analytics platform Tracxn. In 2017, the number stood at $3 billion.

Given their interest in investing in startups, most founders here would give an arm and a leg to have a cheat-sheet to the dos and don’ts while meeting Chinese investors.

During a panel discussion at the fourth edition of the TiE Global Summit in New Delhi on Friday, Damien Zhang from CDH Investments and Jeffrey Yam from Integrated Capital gave a sneak-peek into the mind of a Chinese VC.
CDH Investments is a Beijing-based alternative asset management firm while Integrated Capital is a Hong Kong-based multi-strategy private investment office. Both entities have investments in Indian startups.

The Dos

We are casual about meeting founders, so feel free to meet for drinks. And reach out for karaoke if you’re in China,” Damien says.

According to Jeffrey, as an Indian startup founder, even if you don’t fit a Chinese investor’s mandate, be “proactive”.

“Their advice could help a lot. Once you’ve developed a personal relationship, it’s easier to get an investor on board once they know your journey rather than just seeing a deck. You want investors that you actually enjoy hanging out with and vice versa,” he adds.

Read also: Will Investors Fund Your Startup?

The Don’ts

Never exaggerate your numbers and do not under-report your competitors, says Damien.

“Every Chinese investor does a very thorough cross-checking and if you understate your competition or there is something amiss about your numbers, they will just go past you,” he says.

Jeffrey concurs, and adds that trust is the key.

On the numbers, you would want to be absolutely transparent. And you want potential investors to have trust in you,” he says.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

European Investment Bank Expands Trade & Investment Insurance Benefits to West Africa

As part of plans to expand services to the African continent, the European Investment Bank has membership of Africa Trade Insurance Agency Availability of investment insurance to strengthen investment and reduce project financing costs; Agreements for intended financing signed at African Investment Forum.

Ambroise Fayolle, Vice President of the European Investment Bank
Ambroise Fayolle, Vice President of the European Investment Bank 

The European Investment Bank has formally agreed to support the membership expansion of the African Trade Insurance Agency (ATI) with a concessional financing facility to cover the shareholding of three prospective members – Cameroon, Niger and Togo. This represents the first time the European Investment Bank has backed ATI’s membership expansion. Unlocking additional investment insurance is expected to transform public and private sector investment in the countries. Investment insurance includes the full spectrum of political and credit risk insurance covering both sovereign and corporate risks.

Read also: African Women Entrepreneurs Get New $1.1 Billion Fund As European Investment Bank Launches SheInvest

The Agreement with ATI to enable the European Investment Bank to finance membership of countries was signed earlier today at the Africa Investment Forum in Johannesburg by Ambroise Fayolle, Vice President of the European Investment Bank and John Lentaigne, Ag Chief Executive Officer of the African Trade Insurance Agency.

Speaking on this development, the Vice President of the European Investment Bank Ambroise Fayolle said that today marks a significant milestone in the European Investment Bank’s support for private sector and sustainable infrastructure development across Africa. He noted that “the agreements agreed in Johannesburg today will enable West African countries to benefit fully from ATI membership and benefit from increased investment in sectors such as agriculture, energy, manufacturing and health”. He added that as the EU Bank, the European Investment Bank is committed to accelerating sustainable development across Africa. This new cooperation will expand the impact of investment insurance essential for sustainable development in West Africa.

Read also: Horn of Africa Countries Launch Regional Initiative to Unlock $15 billion Investment Opportunities

In his response to the development, the Acting Chief Executive Officer of the African Trade Insurance Agency said that “as an African institution, ATI has a strategic focus to de-risk member countries in order to attract investment and promote growth. The European Investment Bank’s engagement to expanding ATI membership in West Africa will help to ensure that the prospective countries’ economies achieve their full potential and follow the success of ATI membership seen in so many other countries across Africa.”

The European Investment Bank, the long-term lending institution of the European Union, will finance capital participation that will enable three countries to access guarantee and insurance mechanisms provided by ATI. Full membership in ATI is expected to follow in the coming months.ATI membership will enable underlying projects to be bankable and able to attract new investors for strategic infrastructure and private sector projects.

Read also: Africa’s Most Valuable Company Naspers Is Set To Unveil New Startup Investments Before 2019 Ends

The agreement signed today is a key step toward improving private sector investment and sustainable economic development in West Africa by stimulating growth in key economic sectors, driving economic diversification and ensuring more stable and sustainable growth. Once the countries become full ATI members investors will benefit from the full spectrum of investment insurance that protects against non-payment of both sovereign and corporate risks.

ATI membership has already helped other African countries to reduce sovereign borrowing costs. ATI currently insures USD 6 billion of transactions across Africa as a current outstanding portfolio.

The agreement will ensure that projects follow international technical, environmental and social standards that further reassure international investors.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Zimbabwe Set To Introduce New Currency In Two Weeks

Most ATMs in the economically battered Southern African country of Zimbabwe, where inflation is at about 300%, no longer even give out cash. To address this, and other bigger economic issues, Zimbabwe’s central bank has said that it would introduce a new currency within two weeks to ease a cash shortage that have affected the ailing economy.

“We are going to be releasing the currency, coins and notes … to ensure we don’t starve this market. Within the next two weeks we will have the cash,” John Mangudya, Zimbabwe’s central bank governor said at a news conference in Harare.

Here Is All You Need To Know

  • Zimbabwe has been plagued by a shortage of cash for the past three years with most ATMs no longer doling out cash.
  • The latest currency  intervention is part of a statement of Zimbabwe’s central bank’s monetary policy committee that was set up to find solutions to the country economic crisis.

“The committee felt there was a need to boost the domestic availability of cash in the economy for transactional purposes through a gradual increase in cash supply over the next six months,” he said. “This additional cash injection will be carried out through the non-inflationary exchange of real-time, gross settlement money for physical cash.”

Read also: Zimbabwe Increases Electricity Tariffs By 320% As Daily Power Cuts Worsen

The central bank said the new currency will be circulated together with the bond notes — a pseudo-currency that the country has been using for transactions. 

“The new currency won’t have be called bond notes — just two dollars [or] five dollars.”

  • Zimbabwe is experiencing its worst economic crisis in a decade, with inflation at more than 300% and is also plagued by a shortage of foreign currency, fuel, electricity and basic foods.
  • The country is also in the grips of a currency crisis as Zimbabwe ‘s local  currency, which was, at one time, pegged at 1:1 with the US dollar is now trading at 1:20 with the greenback.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

African Development Bank Invests In A New £50 Million SME Fund For Francophone West Africa

The African Development Bank (AfDB) has committed EUR 12.5 million to a private equity fund which supports small and medium-sized enterprises (SMEs) in francophone West Africa.

The investment in Adiwale Fund 1 is a private equity fund run by Abidjan, Ivory Coast-headquartered Adiwale Partners, targeting a fund size of EUR 75 million which it will use to take minority stakes in SMEs with a view to scaling up the businesses. The aim will be investments in the consumer goods and services sector, business services and manufacturing.

Here Is The Deal 

  • The fund has identified Ivory Coast, Senegal, Burkina Faso and Mali as the main subject of interest, followed by Togo, Benin and Ghana as secondary targets.
  • The consumer goods and services investments will include education and healthcare, while business services will include transport, logistics, IT and construction. Pharmaceuticals, agri-processing and chemicals will be incorporated into manufacturing.
Francophone West Africa

AfDB director for industrial and trade development Abdu Mukhtar explained the investment corresponded with the bank’s ‘High 5’ goals.

The Fund focuses on SMEs in francophone West Africa which accounts for nearly 19% of West Africa’s GDP but attracts only 7% of private equity capital. As these companies grow, they cross the borders and integrate across different countries,” he said in a statement.

The SME sector has been a focus of attention for investors this year, with the London Stock Exchange drawing attention to businesses worthy of support with its Companies to Inspire Africa Report and AfricInvest providing EUR 194 million for SMEs in North Africa.

As governments seek to diversify their economies and investors look for opportunities for growth, the World Bank and International Finance Corporation have been among the bodies promoting SMEs across Africa.

Adiwale Partners Announces Closing of Adiwale Fund I at €50 million

Adiwale Partners has also announced the first closing of its first fund, Adiwale Fund I L.P. at €50 million. The fund has attracted investors from Africa, Europe and North America. Investors include development finance as well as commercial investors.

Adiwale Fund I will provide growth capital to SMEs in Francophone West Africa, Côte d’Ivoire, Senegal, Mali, Burkina Faso as well as Togo, Benin and Guinea. The fund will be acquiring minority positions in 10 to 12 investments, with tickets of €3-8 million per transaction. Key investment themes for the fund are: rising incomes and changing consumer behaviours, expansion of the local supply chain (increased sophistication of local economies), import substitution and company’s backward integration. The fund will as a consequence invest in three key sectors: Consumer-related, including health and education; Business Services (transport & logistics, IT, construction-related services, etc) and Manufacturing (chemicals, pharma, …)

Jean-Marc Savi de Tové, Managing Partner at Adiwale Partners, said:

“We are very pleased with this first closing which attracted leading institutions that have a keen interest in the development of Africa. The closing demonstrates our expertise and knowledge of the region and it shows the confidence that our institutional investors have in our activities. We are hopeful to reach our target size of €75 million within a year”.

He added: “Francophone West Africa attracts less than 7% of private equity investments, where it represents 19% of the GDP of the West Africa region. Locally groomed private equity firms like Adiwale Partners could help close the gap. Today, we have a strong pipeline of attractive projects which our team is already executing on.”

Read also: Seedstars World Partners With African Development Bank To Boost African Startups

Vissého Gnassounou, Managing Partner at Adiwale Partners, also added:

“Francophone West Africa’s pool of entrepreneurs is constantly growing and evolving, and has dramatically changed over the past two decades. The region remains the second fastest growing region in the world, and should continue to post strong growth, as our currency remains stable and provides visibility, countries embark on strong reforms, and borders become more fluid for businesses and for people.”

About Adiwale Partners

Adiwale Partners is an independent private equity fund manager established in 2016 by seasoned private equity and capital markets professionals. Its private equity experience spans 20 transactions in Francophone West Africa, as well as over 30 fund investments.  It offers growth capital and operational support to mid-size companies looking to strengthen their core activities and expand in West Africa and beyond.

We like entrepreneurs with a genuine ambition for the region and with a good record of execution, the fund noted on its website. 

We want to help more companies scale up their operations and contribute to the overall economic activity of the region and to job creation. We are a responsible investor, seeking to build long-term value through sustainable growth in our portfolio companies. We want to build a better environment for our kids

Based in Abidjan, Cote d’Ivoire, the  fund  operates from the economic centre of the Francophone region. 

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Rwandan ed-tech startup BAG Innovation raises $150k seed round

Rwandan ed-tech startup BAG Innovation, which uses gamification and artificial intelligence (AI) to revolutionise the future of career development, has raised a US$150,000 seed round to help it expand locally and internationally.

Founded in 2017, BAG Innovation is a virtual internship system that develops, tracks and matches students with the right market need upon graduation.

“We realised that career centres within universities were not developing fast enough, and that the student environment was not conducive to challenging students to be proactive with their career choices and passions,” said Gabriel Ekman, managing director of BAG Innovation.

“The student needs to have individualised career guidance and be challenged on their own terms, and this must be directly related to an actual market need, now or in the future.”

That is what BAG Innovation provides, and the startup’s platform — only made available to the public this year — is now used by more than five per cent of all Rwandan students and over 100 Kigali-based companies looking for interns. It has now raised a US$150,000 seed funding round from an as-yet-unnamed local VC firm to help it grow its local user base and expand into new markets.

Ekman said BAG was targeting entering three new countries in the coming year — Tanzania, Ethiopia, and Uganda — and added that securing the investment in the first place had been a challenge.

“The main challenge was to find the right match with the right investor. Many were interested, but it was never the right fit for us, mostly because the investor did not understand the regional context or ed-tech in general,” he said.

“There are more opportunities for Series A, B and C in the country than with seed funding. The challenge as a new startup is to find the person or firm that is willing to be the first — and most brave — investor.”

BAG has now managed to find that investor, and is readying its expansion plans. Ekman said it has a subscription model that allows companies to activate one or more of the tools on the BAG platform.

“The most commonly paid service is “talent identification”, which helps organisations proactively source the best talent in the country, and the “crowdsourcing” tools, that help companies with data collection, market studies and the ability to access up to 600 certified virtual interns,” he said.

“However, we are offering freemium subscriptions to both companies and students in our new expansion model, and working with new revenue systems by monetising the data from the two user sides. We are aiming at becoming the largest centralised forum of University students in E

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Finance Ministers and Central Bank Governors Urged to Focus on Growth

As the global economy shows signs of uncertainty on many fronts policy makers have been urged to focus on growth. This is coming amid subdued growth even as the pace of the investment and trade softens.

The World Bank Group, in cooperation with the International Monetary Fund, can help emerging and low-income countries bolster potential growth, increase their resilience to shocks, boost domestic revenues, and continue building policy buffers. The two organizations have an important role to play in addressing the increase in debt vulnerabilities, and they can help countries meet a range of challenges to the international financial system, including tackling corruption.

World Bank Group President David R. Malpass
World Bank Group President David R. Malpass

These were key messages from the Development Committee, a ministerial-level forum of the World Bank Group and the International Monetary Fund, in a communique issued at the close of the institutions’ Annual Meetings in Washington.

Read also: Photo news : Nigeria’s Minister of Finance Zainab Shamsuna Ahmed at the IMF Headquarters

The committee, which represents 189 member countries, noted that the Bank Group is uniquely placed to address global development challenges, and they encouraged it to help implement country platforms that will make better use of development resources and mobilize private sector solutions. They also urged continued efforts to protect the most vulnerable, spur job creation, and strengthen public sector efficiency.

World Bank Group President David R. Malpass similarly stressed the urgency of the organization’s mission: the twin goals to reduce poverty and boost shared prosperity. But with 700 million people still living in extreme poverty around the world and the increasing risks posed by climate change and fragility, today’s global economy is making this mission even harder. At the meetings’ opening press conference, Malpass called for “fresh thinking to ignite growth” while expressing optimism that “well-designed reforms can deliver meaningful gains.” He emphasized that this is especially true for emerging markets and developing countries: they can “unleash growth that’s broadly shared across all segments of society.”

Read also: New IMF Managing Director Calls for Equal Pay for Equal WOrk

Both the committee and Malpass underscored the leading role played by IDA, the Bank Group’s fund for the poorest countries, in reducing extreme poverty, a challenge that is becoming steadily more concentrated in Africa. They noted IDA’s strong implementation of its current three-year program, and they urged continued strong support from donor countries in the replenishment of IDA’s funding for the next cycle, an effort that is well underway. In his plenary speech to the Board of Governors during the meetings, Malpass highlighted IDA’s growing focus on situations of fragility, conflict, and violence—where the poorest people are also increasingly concentrated. In addition, both he and the committee noted IDA’s joint work with IFC and MIGA to scale up private sector development, including in fragile situations.

The Bank Group’s work supports better development outcomes across a wide range of sectors. Malpass mentioned a number of these: “We’re investing to help countries gain access to electricity and clean water, to ensure the full inclusion of girls and women, to address climate change and protect the environment, to improve health and nutrition, and to bolster infrastructure.” He also stressed the rule of law, transparency, and peace and security, along with more effective debt management. But he observed that effective country programs must fit the distinct needs of each economy: “Development cannot be imposed from outside—country leadership and ownership matter.”

Read also: Congo Republic’s Debt Is 114% of Its GDP But IMF Has Just Approved A Major Bailout

The meetings also marked a further transition in leadership, with Anshula Kant recently arrived as Managing Director and Chief Financial Officer for the Bank Group and with Axel van Trotsenburg assuming a new role as Managing Director of Operations at the World Bank. In welcoming them, Malpass also congratulated Kristalina Georgieva on her appointment as Managing Director of the IMF, expressed his appreciation for IFC CEO Philippe Le Houérou becoming co-chair of the current IDA replenishment, and thanked Keiko Honda for her years of service as MIGA CEO.

In a statement after the Development Committee meeting, Malpass said, “We at the World Bank Group are staying focused on our mission. We’re helping countries build strong programs, tailored to the unique circumstances of their economies.” While acknowledging the risks posed by the global economy and the daunting issues that face individual countries, he expressed confidence that progress can be made: “We cannot let today’s challenges be a roadblock to better development outcomes.”

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

The Largest Renewable Energy Fund Backed By Facebook Launched For Africa’s Off-Grid Energy Startups

With heightened black-out in Zimbabwe, increased load-shedding in South Africa, and partial or complete blackout in most parts of Africa, Facebook is pitching tent with a few investors who are looking to close the continent’s energy gaps. Backed by the DOEN Foundation, Facebook, Shell Foundation, and USAID, VentureBuilder, an energy-focused startup which aims to scale African-owned and managed off-grid solar enterprises expanding energy access to underserved populations in Africa, has officially been launched. 

Here Is The Deal

  • VentureBuilder is not just the latest player in the off-grid energy market on the continent, it is also aggregating all the already existing renewable energy startups on the continent to tackle the lack of access to modern electricity services.
  • VentureBuilder hopes to help these indigenous distributors grow into high-impact solar companies.
  • This will be done by focusing on three key areas to close the electricity access gap on the continent:
  1. Partnering with existing local African distribution enterprises that cater to rural underserved communities.
  2. Investing the much-needed ‘patient’ capital alongside Enterprise Development Services to enable entrepreneurs to scale their business.
  3. Rigorous tracking of key metrics associated with business performance and social impact.

“As Africa’s off-grid solar revolution has evolved, many industry insiders have recognised the need to empower a new generation of local enterprises,” says Dan Murphy, Managing Director of VentureBuilder. “We’re excited to partner with these local businesses and provide them with the human and financial resources they need to sustainably and profitably scale their impact”.

A map of some energy startups in Africa

‘Patient’ Early Stage Capital

In simple terms, VentureBuilder would not only be sitting down doing the aggregation, it would also be heavily investing in local renewable energy startups through a new investment model it calls ‘patient’ early-stage capital This investment in local partners across Africa, combined with a specialised suite of technical expertise, will accelerate each partner’s path to scale.

By doing so, VentureBuilder intends to tackle the lack of access to modern electricity 

“The DOEN Foundation has supported dozens of energy access initiatives over the years. We believe VentureBuilder can be a gamechanger in supporting and scaling indigenous enterprises across Africa, in areas most in need,” says Saskia Werther, Program Manager at the DOEN Foundation.

Read also: African Renewable Energy Startups Get A New Fund

A Look At VentureBuilder

VentureBuilder has been co-developed by Catalyst Off-Grid Advisors and Open Capital Advisors since 2017, leveraging both companies’ decades of experience in building, advising, and financing off-grid solar companies. The development phase was made possible with support from Facebook, who also committed additional financing alongside the DOEN Foundation, Shell Foundation, and USAID for the implementation phase.

Want to learn more?

Visit VentureBuilder’s website at https://www.venture-builder.com/contact-us

World Bank Court Orders Tanzania To Pay $185 million To Standard Chartered

In Summary

  • The case stems from a legal battle between the government and power producer IPTL, which led to the dismissal of several cabinet ministers in 2014.
  • Tanzania also faces at least two other multi-million claims from international investors.

Tanzania has been ordered by a World Bank arbitration court to pay $185 million to the Hong Kong subsidiary of Standard Chartered for breaching an energy contract.

The court’s ruling, which was released on Tuesday, adds to pressure on the country, which faces at least two other multi-million claims from international investors.

Here Is All You Need To Know

  • The case stems from a legal battle between the Tanzanian government and privately-owned independent power producer IPTL, which led to the dismissal of several cabinet ministers in 2014.
  • The award by the World Bank’s International Centre for Settlement of Investment Disputes is less than the $352.5 million sought by Standard Chartered Bank Hong Kong, which was not immediately available for comment.
  • The government of Tanzania denied any responsibility and said it was not planning to pay the damages.

“Neither the government nor (state power company) Tanesco, have a legal liability in these cases,” Tanzania government spokesman Hassan Abbasi said on Twitter on Wednesday.

Tanzania’s attorney general Adelardus Kilangi said that IPTL, not the government, would have to pay Standard Chartered.

“When the award says that the Tanzanian government should pay Standard Chartered Bank, the actual meaning is that the government should supervise IPTL to make the payment,” he told Reuters.

IPTL did not immediately respond to requests for comment.

Tanzania faces at least two other cases at the World Bank tribunal.

US firm Symbion Power said in 2017 it was seeking $561 million from Tanesco at the Paris-based International Chamber of Commerce’s International Court of Arbitration for breach of contract.

In 2017, a Canadian construction firm seized one of Tanzania’s new Q400 turbo-prop planes in Canada over a $38 million lawsuit related to a compensation ruling by the International Court of Arbitration.

Aviation sources said Tanzania reached a settlement to secure the aircraft, which was released in March 2018.

Read also: Egypt’s Central Bank approves new regulations tightening control on micro-financing

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

New $6.8 Million VC Fund Launched For Southern Africa Women-led Startups 

WemTech

Women-led startups in Southern Africa can now pitch to Enygma Ventures, a R100-million ($6.8) venture capital (VC) fund which will invest up R2-million in women led startups from the Southern African Development Community (SADC).

Here Is All You Need To Know

  • The fund was founded by husband and wife duo Sarah and Jacob Dusek who are the founders of US adventure-hospitality firm Under Canvas.
  • The US-based fund will be run locally by operating partners and husband and wife team Lelemba and Sandras Phiri of the Africa Trust Group.

Engyma Ventures will hold a three to six-month investor readiness programme in January

Lelemba Phiri, who is the Africa Trust Group principal said  the sector agnostic fund will hold a three to six-month investor readiness programme which will kick off at the end of January next year.

List of Southern African countries

How To Apply

  • Applications are open to women-founded or led ventures and will close on 1 December.
  • To be considered for the programme, applicants must have scalable SADC-based businesses with a proven revenue model and business concept.
  • In addition, the ventures must have demonstrated growth and be looking for early-stage or growth capital.

Read also: Why More South African Startups Have Raised Funds This Year

First Batch of Investment Will Be In 10 Women-Led  Startups

Phiri pointed out that Enygma Ventures is the first VC fund that is focused on investing in women startups in the Southern Africa Development Community region.

“We’re taking 10 women entrepreneurs in this first cohort and depending on how ready they are at entrance we will look to invest within that six months,” she said.

Sarah Dusek, commenting in an earlier statement, said she is understands the unique struggles and challenges of building a big business, being a founder and CEO herself.

Added Dusek: 

“We want to help women think big. We will create flexible financial solutions for them with efficient and strategic deployment of capital whilst also providing helpful tailored support.”

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world

Egyptian Transport Startup Swvl targets Nigeria, Africa And Asia before the end of 2019

Barring any last minute changes, Egyptian transport technology startup Swvl will expand into two cities in Pakistan in the next two weeks and begin operations in Nigeria’s commercial capital Lagos before the end of the year, its chief executive. 

co-founder and CEO Mostafa Kandil
Co-founder and CEO Mostafa Kandil.

“We will enter Lagos before the end of the year, and our eyes are on Dar es Salaam and Abidjan,” co-founder and CEO Mostafa Kandil told Reuters. ‘‘The firm is also planning to launch in other South East Asian markets, he added.’’

Here Is All You Need To Know

  • The firm, which operates buses along fixed routes and allows customers to reserve and pay for them using an app, will also expand into Manila in the first half of next year, Kandil added. 
  • Kandil said the company is seeking to raise more than $100 million in a financing round in the first half of next year, and is targeting a $1 billion valuation in the next five years.
  • Since its launch in April 2017 Swvl has secured the biggest round of funding for a tech start-up in Egypt.

“We were a company worth about $2 million two years ago and our paid-up capital is now $80 million,” he said.

Read also: Egyptian Statup Swvl Now Valued At $157 million

Kandil said he hoped Swvl would eventually go public, but did not say on which stock exchange. He said he would in the longer term also consider a buyout offer from the likes of ride-hailing giant Uber (N:UBER).

Kandil, 25, said the company has been losing money, but expects to turn a profit in two to three years.

“This year we have entered about seven new cities and next year we are targeting another 10 to 20 new big cities,” Kandil said.

The Cairo-based firm, which is due to move its headquarters to Dubai in November, launched in Nairobi about six months ago and began operations in Lahore in July.

“We aim to reach one million trips a day in Egypt over the next five years,” said Kandil.

He and two other young Egyptian co-founders, Mahmoud Nouh and Ahmed Sabbah, own more than 30% of the company, he said.

The rest is held by 17 investment funds, including U.S.-based Autotech Ventures, Sweden’s Vostok New Ventures, Oman’s sovereign wealth fund, the UAE’s BECO Capital and China’s MSA Capital.

The Swvl app, which has fixed bus routes, uses the passenger’s location and destination to determine the shortest possible trip time based on the nearest bus stop.

Uber and regional competitor Careem began operating their own bus services in Egypt in late 2018, competing directly with Swvl.

About Swvl

  • Founded in 2017, Swvl connects commuters with private buses, allowing them to reserve seats on these buses and pay the fare through company’s mobile app. The buses available on Swvl operate on fixed routes (or lines).
  • The report by Vostok New Ventures, notes,”Swvl offers a premium on-demand bus service with third party supply. The algorithm
    plans the most efficient routes and the most efficient bus stops for peak hours, and more flexibility is possible during off peak hours. Network effects arise through the snowball of the more users that are attracted to the service, the more bus owners will want to offer their supply, the more bus supply the more routes etc., the more customers etc.”
  • It won’t be a fair comparison but to give you some context, Careem had raised its $60 million round (Series C) at a valuation less than $200 million in November 2015, over three and half years after the company was founded.
  •  Swvl is now in the same territory both in terms of total investment they’ve raised so far and the valuation, in almost two years.
  • The VC landscape in MENA is entirely different today with a lot more options when it comes to raising Series A/+ rounds so the funding is relatively easier to come by (than it was when Careem raised money) but what Swvl has achieved is still a very big feat.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world