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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.

12 African Startups Bag $1.2M From Inaugural ARM Labs Techstars Accelerator

February 1, 2023

For its inaugural batch, ARM Labs Techstars Accelerator has admitted 12 African startups from Nigeria and Kenya.

Following its April 2021 launch, the three-month ARM Labs Techstars Accelerator programme has accepted 12 African firms for the inaugural class. The programme targets early-stage fintech and proptech startups with a presence in Africa.

The first batch includes two firms from Kenya and ten from Nigeria, with 50% female CEOs. “This is a decision of our belief in the teams; their product, market and traction,” Oyin Solebo, MD at ARM Labs Techstars, said. “Also, we did not show any gender bias in the screening process.”

Keep in mind that Oyin Solebo was named managing director by Techstars and ARM Labs last year to oversee the accelerator’s efforts to “find the most promising businesses and founders while guaranteeing equal gender participation.”

The initiative is pan-African, but Ms. Solebo claimed that because ARM Labs is familiar with the business, more Nigerian startups were chosen. “From the applications we received, these 12 were the best. However, the next cohorts will be more diverse. My vision is for Techstars to be in multiple cities across Africa,” she added.

“Lagos has built a successful startup ecosystem that merits more global exposure, investments and resources, and we see extraordinary potential in the market.” — Nancy Wolff, General Manager, Techstars.

Each of the chosen firms will earn up to $120,000 as well as access to Techstars’ extensive network of 7,000+ mentors, 20,000+ investors, alumni, and corporate partners. They will also receive specially curated startup programming.

The pioneer batch, which started in December 2022, has met with more than 100 speakers and mentors, including Tunde Kehinde, co-founder and CEO of Lidya, Bode Abifarin, COO of Flutterwave, Fara Ashiru Jituboh, founder and CEO of Okra, and Amandine Lobelle, COO of Paystack. On March 16, 2023, the demo day will take place in Lagos.

Meet the first group of ARM Labs Techstars Accelerator participants

Ms. Solebo noted in regards to the selection of industries, particularly fintech and proptech startups: “it is an evaluation of where there is market potential. Also, since it’s a partner programme with ARM Labs, property and financial services is where a lot of their expertise and network is.”

She did point out that in the ensuing years, the Lagos-based accelerator might diversify its investment portfolio into other industries. The three-year Techstars Accelerator programme in Lagos will invest in 36 entrepreneurs over three batches.

The first class of the ARM Labs Techstars Accelerator Program is listed below:

alphabloQ

Trevor Kimani and John Mbui established the real estate investment platform known as alphabloQ. The startup’s goal is to lower the entry barrier for real estate investors by allowing investors to buy a portion of buildings that generate income.

peppa.io

By utilising payment protection, the company peppa.io, founded by Banky Alao, Bridget Yadua-Soremekun, and Emmanuel Obute, is making it safer for Africans to make purchases on social media platforms.

“Being accepted into the Techstars accelerator was an unmistakable validation of peppa.io,” said Banky Alao, CEO of peppa.io, a fintech services company dedicated to payment protection. “The program has set us on a sure path to exponential growth and impact. Absolutely the best thing to happen to us.”

CDCare

Through clever instalment plans, CDcare makes it simple for Africans to own gadgets, appliances, automobiles, and more with no interest. Deji Farohun and Tobi Odukoya created the business..

Cladfy

Ebby Gatamu and Kibe John founded Cladfy, which offers credit profiling, digitised loan management, and access to affordable, dependable financing to microfinance lenders.

“I am delighted about our selection into the Techstars family because traditionally, as an African, female, fintech founder, the odds are often stacked against you,” said Ebby Gatamu, Co-founder Cladfy. “This program has not only taught us to focus on the problem and our customers, but also led us to meet and interact with phenomenal people we’d otherwise possibly never have met.”

Flick

Flick is creating PayPal for Africa, allowing customers to link various bank accounts and make payments all from one source, accelerating transactions by seven times. The company was founded by Dipo Gbadebo and Ruth Olojede.

Keble

With the help of Keble, which was formed by Emmanuel Oballa, Agulanna Josemaria, Adebisi Borokinni, and Valentine Offiah, Africans can buy fractional interests of international real estate for as little as $10.

Keza Africa

Keza is the driving force behind smartphone finance since it enables customers to purchase new and pre-owned smartphones on flexible payment terms. Aisha Hussaini started Keza Africa.

Salad

Chikodi Ukaiwe and Seunfunmi Omotunde established Salad to give workers access to financial services and benefits outside of their regular paychecks.

Sidebrief

With its one-stop solution for registration, banking, and regulatory compliance, Sidebrief makes the process of beginning and growing a business across borders simpler. Eunice Olopade, Abdulwaheed Yusuf, and Usman Sotunde created the business.

Towntalk

By offering real-time location and behavioural analytics, vehicle tracking, and access to insurance providers, Towntalk, founded by Folake Edun, Disun Vera-Cruz, and Tomiwa Erinosho, is developing Area!, a protection platform that gives businesses peace of mind when moving goods and people from point A to point B.

Vittas

Vittas is a digital lender for healthcare providers that offers loans for the purchase of drugs and medical equipment using partnerships, incorporated third-party SaaS solutions, and machine learning. Sulav Singh, Collins Uche, and Eric Okemmadu founded Vittas.

Oystr Finance

Omotayo Iginla, Olusola Onajobi, and Ifedolapo Lawal founded Oystr, which is democratising credit in Africa. The business offers lenders an infrastructure to support the rapid launch of low-risk microloan products, portfolio expansion, and market expansion.

New $110M Debt Fund Arrives For African Startups, Courtesy Of Lendable

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