Enlabeler Hopeful of Growth in the AI Industry in Africa

Enlabeler founder and chief executive officer (CEO) Esther Hoogstad

South Africa’s startup Enlabeler has expressed hope of serious growth over the last couple of years, operating in the valuable “data labelling” niche especially for the continent of Africa.  Enlabeler, which was founded as a data labelling service provider with the objective of offering end-to-end solutions for the classification, cleaning-up and labelling of datasets, has been in business since 2019.

Enlabeler founder and chief executive officer (CEO) Esther Hoogstad
Enlabeler founder and chief executive officer (CEO) Esther Hoogstad

Speaking of the company’s ambition, its founder and chief executive officer (CEO) Esther Hoogstad said that “Our platform turns raw, unlabelled data into high-quality training data. Our team of domain experts works with different data types, for a diverse range of industries. With this, Enlabeler creates flexible tech jobs and fights local unemployment across Africa.”

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Enlabeler’s services include image and video annotation for computer vision models, transcriptions of audio files into text, translations of video and audio content to another local language, and text classification and entity recognition to train models in the area of sentiment analysis.

“Machine learning models and algorithms require big datasets to train the models. Often data scientists or engineers don’t have the time and capacity to spend hours and hours creating, cleaning and labeling datasets for their models. So, they ask Enlabeler to help-out. Companies are looking for end to end solutions in the data space and need quick, reliable and accurate data for their internal artificial intelligence (AI) and machine learning (ML) model,” Hoogstad said.

“Global competitors in the data labelling and annotation space are Sama, Labelbox, Labelfuse, Scale AI, and a few others. However, none of these are based in Africa, and none share the same mission to create and build datasets in Africa for domestic and international clients. Ultimately, it’s about empowering a whole new generation of professionals in the data industry that will gain experiences in the growing AI and ML space. Because of Enlabeler’s price point, customised service offering and quick turnaround times, we are able to compete with some of the more automated, large players based in the US.”

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Enlabeler raised funding in the middle of last year from new VC fund Entrepreneurs for Entrepreneurs (E4E) Africa to kickstart its operations and target international markets, and has seen strong uptake since.

“We now have a growing team of nine people and a database of over 350 data labellers, annotators and language specialists that often come from marginalised communities,” said Hoogstad.

“During 2020, we’ve created approximately 45 labelling jobs. In 2021, this has already been surpassed by more than 25 per cent. The current client mix is approximately 70 per cent South Africa-based and 30 per cent international.”

Business development wise, the team is growing its international footprint, and is currently in talks with several large scaling partners that will help Enlabeler grow.

“As Enlabeler works 100 per cent remotely and offers a fully integrated and secure data pipeline with the main cloud providers, such as Amazon Web Services (AWS), clients from anywhere in the world can be serviced by the Enlabeler team,” Hoogstad said.

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“The current client portfolio consists of AI and ML companies, but also big infrastructure players based out of the Netherlands, the US and Canada. The team is actively working on onboarding new clients from mainland Europe and other regions.”

For the core labelling work, Enlabeler charges clients per dataset or per unit of labeling, with the client only paying for the output that meets their agreed quality standard. It also offers additional services, such as data pipeline integration, building of customised APIs, dataset creation and cleaning, for which it quotes clients on a case-by-case basis.

“This is in case of a longer-term need, where the client is looking for a continuous stream of labeled data to train and retrain their ML model. Enlabeler works on a retainer basis,” said Hoogstad.

Unlike many startups, Enlabeler was not really affected by the COVID-19 pandemic and associated lockdowns, as it has always been 100 per cent remote.

“The AI developments keep accelerating, and for all of these type of ML and AI models, big structured and clean datasets are a must – so we foresee a growing demand for our services,” Hoogstad said.

Kelechi Deca

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Newly Launched South African VC, E4E Africa, Makes Its First Investment In AI Startup Enlabeler

E4E Africa, the recently launched South Africa-based VC firm has made its first investment in South African innovative AI and data annotation startup Enlabeler to enable the startup hit the ground running. 

Esther Hoogstad CEO and co-founder at Enlabeler
Esther Hoogstad CEO and co-founder at Enlabeler

“As important as this initial funding is, what really attracted us to E4E was their expertise as seasoned entrepreneurs and the relationships to which they could introduce us. We rate the team highly as entrepreneurs and are proud to be associated with them,” said Esther Hoogstad CEO and co-founder at Enlabeler.

Here Is What You Need To Know

  • The amount involved in this round of funding is undisclosed.
  • The startup aims to use the funding to immediately get most of its operations started. 

Why E4E Africa Invested

“Enlabeler is a perfect example of the kind of company we want to invest in. It combines the latest in innovation and technology with the ability to scale globally, while empowering ordinary South Africans,” said Philani Sangweni, Managing Partner at E4E Africa. 

Newly launched venture capital fund, Entrepreneurs For Entrepreneurs Africa (E4E Africa), which recently secured R135 million ($8.2m) in funding, invests in innovative startups in South Africa. The fund, which was backed by a founding investment from the SA SME Fund, aims to support business models that bring innovative, agile solutions to critical sectors of the South African economy, including the fintech sector, healthcare and the sustainable agriculture value chain, as well as those with the capacity to scale inside and outside of South Africa.

Investment in Enlabeler further points to the increasing roles South Africa-based VCs, such as E4E Africa are playing for the country’s startup ecosystem. Source: AVCA.

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A Look At What Enlabeler Does

Initiated in 2019, by Pieter Boon and Esther Hoogstad, Cape Town-based Enlabeler work with clients all over the world that require assistance with the organisation, classification, clean-up and labeling of data. Since launching, the startup’s live image annotation, audio transcription, and local language services has attracted a number of local clients.

Enlabeler says it has grown a person-strong database of over 250 human labelers. In addition, the startup has established a presence in both Kenya and South Africa with plans for further expansion into the rest of Africa.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
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