In a dynamic landscape where African startups navigate the challenges of funding scarcity, two notable acquisitions have recently unfolded, underscoring the resilience and ambition of the continent’s entrepreneurial spirit.

Neighbourgood’s Merger with Local Knowledge:

South African proptech startup Neighbourgood has made headlines with its acquisition of Cape Town-based traveltech startup Local Knowledge in a cash and equity deal valued at $1.5 million. Describing the move as more than a merger, Neighbourgood envisions a union of two visionary missions to redefine urban living and travel experiences.

The acquisition coincides with the launch of a viral tourism ad featuring comedian Trevor Noah, in partnership with the Tourism Business Council of South Africa (TBCSA). With a bold target of attracting 21 million visitors by 2035, TBCSA CEO Tshifhiwa Tshivhengwa aims to build on last year’s 5.8 million inbound international tourists.

Neighbourgood, established in 2020, currently provides around 1000 living and workspaces for tourists, predominantly in South Africa, and plans to deploy an additional 650 next year. Leveraging Local Knowledge’s expertise in connecting travelers with local communities, Neighbourgood aims to create The Experience Vertical — a platform offering personalized suggestions and exclusive insights into city life, curated by knowledgeable locals.

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Murray Clark, Neighbourgood CEO, sees this acquisition as a significant milestone in the travel and hospitality industry, envisioning a future where travel is about building friendships and communities. Neighbourgood’s ambitious plans extend beyond Cape Town, with an expansion into California slated for next year.

Chimoney’s Strategic Move in Fintech:

On another front, Nigerian fintech startup Chimoney has quietly sealed an undisclosed deal to acquire Scrim App, a social payment app catering to Gen Z. Founded by Pleasant Balogun two years ago, Scrim App enables users to send payments via social handles and direct messages.

Uchi Uchibeke, Chimoney CEO, commends the brilliance behind Scrim’s concept and expresses confidence in its growth potential. The Scrim App is set to be relaunched in December 2023, powered by Chimoney’s API and Wallet as a Service (WaaS).

The relaunched Scrim App promises enhanced features, including earning opportunities, shopping with Scrim wallet balance, and global real-time payments. Users will have flexible withdrawal options, including transfers to bank accounts in over 100 countries, mobile money wallets in 17 countries, and engaging in cryptocurrencies across seven blockchains.

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Uchibeke emphasizes the seamless integration of Scrim with Chimoney’s API, ensuring greater stability and reliability while preserving the Scrim name and brand. The collaboration is positioned to elevate Scrim to new heights, offering users a diverse range of financial options.

These acquisitions highlight the strategic efforts of African startups to expand their reach, diversify their offerings, and overcome funding challenges, signaling a promising trajectory for the continent’s entrepreneurial ecosystem. As these ventures unfold, the African startup landscape continues to be a focal point for innovation and growth.

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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