Hi and welcome to African VC/ Startup news, a weekly newsletter where I highlight transactions in the African startup ecosystem over the past week (or two). Since 25 February 2021, I noticed 12 deals come across my screen, 11 investments and 1 fundraise. Regionally, South Africa and Kenya dominated with 4 and 3 investments respectively. By sector, Edtech and Fintech had the most deals, with 3 deals each.
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Since 25 February 2021 I noticed the following deals:
Investments (11 deals)
1: Inoxico | $650k | Undisclosed round | Vumela Fund | Fintech
Investee:
Inoxico – a South African Information Bureau that provides credit analytics and solutions for corporates.
Investor(s):
Vumela Fund - a South African SME investment fund established in 2009 by FNB Business Banking and Edge Growth. The fund’s objective is to create an innovative model to invest in sustainable, independent businesses and earn both an economic and impact returns.
Detail: South African fintech company Inoxico has raised an undisclosed round of funding of $650k (ZAR10m) from the Vumela Fund (managed by Edge Growth). The funds will be used to implement the company’s growth strategy.
2: HitChat | $255k | Series A | Undisclosed investors | Entertainment
Investee:
HitChat – a Swedish-South African entertainment company that focuses on providing entertainment for townships within the T-pop concept. The company finds, trains and launches world-class acts consisting of young talents from townships. They also produce songs and music videos that they release both in the local market and globally.
Investor(s): Undisclosed
Detail: South African talent discovery platform HitChat has raised a Series A round of funding of $255k from an undisclosed group of investors. The funds will be used to launch a new talent scouted by HitChat (a new girl group) that will empower individuals from disadvantaged communities.
3: WeThinkCode | $600k | Undisclosed round | E-Squared Investments | Edtech
Investee:
WeThinkCode – a South African edtech startup that provides tuition-free tech training. The company is dedicated to meet the increasing demand for software engineering skills and drive the continent’s digital economy.
Investor(s):
E-Squared Investments - an impact fund that enables Social Entrepreneurs to build and scale high-impact organisations while creating jobs, eliminating poverty and contributing to South Africa’s transformation.
Detail: South African social entrepreneur WeThinkCode has raised $600k in an undisclosed round of funding. The funds will be used to open a new campus in KwaZulu Natal, the third biggest metropole in South Africa.
4: ImaliPay | Undisclosed amount | Pre-Seed | Various investors | Fintech
Investee:
ImaliPay – a Kenyan financial health platform offering financial products to freelancers and blue collar gig-workers in partnership with gig-platforms.
Investor(s):
TEN13 – an Australian syndicated investment platform that gives Sophisticated Investors access to early stage technology startups and visionary founders.
FINCA Ventures - an impact investing initiative that leverages a global microfinance network to catalyze market-based solutions to end poverty.
Optimizer Foundation - an early stage impact investor dedicated to impact orientated early-stage companies who create positive social impact in Sub-Saharan Africa.
Mercy Corps Ventures - a venture capital firm that partners with pioneering social entrepreneurs who harness novel business models to fuel social change. The firm is the investment arm of Mercy Corps, a global team of humanitarians.
Change Com - an Oslo-based investment and advisory company with a mission to enable talented individuals and teams to set up profitable businesses and achieve sustainable economic growth and prosperity
Other angels from Norway, Nigeria, UK and Kenya
Detail: Kenyan AI and big data fintech company ImaliPay has received an undisclosed amount in pre-seed funding from a group of investors led by TEN13. The company will use the funds to expand its offering and grow its presence in Kenya, Nigeria, and South Africa.
5: Powered By People | $1.5m | Seed | Various Angel Investors | e-commerce
Investee:
Powered By People – a mobile-first, distributed manufacturing system based in Kenya. The startup offers online tools, financing solutions, and a B2B marketplace to small and mid-sized enterprises in the creative manufacturing and handmade sector.
Investor(s):
Matthew Kalish – Entrepreneur with a passion for sports, technology and analytics, currently the President of DraftKings, N.A. DraftKings has become one of the world’s leading daily fantasy sports, sports-betting and iGaming platforms.
TBD Angels - a group of like-minded angel investors who thrive on sharing advice, guidance, and capital with talented entrepreneurs. TBD Angels provide critical advice and connections to jumpstart the companies it invests in.
Detail: Kenyan e-commerce platform Powered By People has raised $1.5m seed round funding from a group of angel investors led by Matthew Kalish. The funds will be used to expand access to the platform to more artisans for B2B retail market connections.
6: Crowdyvest | Undisclosed amount | Undisclosed round | Various investors led by Tope Omotolani | Fintech
Investee:
Crowdyvest – a Nigerian crowd funding platform and impact-driven cooperative society that creates financial solutions for a community of individuals and organizations.
Investor(s): various led by
Temitope Omotolani – a successful serial entrepreneur and the Co-founder and Managing Director of Crowdyvest.
Detail: Nigerian crowdfunding platform Crowdyvest has raised an undisclosed amount of funding in an undisclosed round from a group of investors led by serial entrepreneur Temitope Omotolani. The funds will be used to buy-out the existing shareholders (EMFATO Holdings which also owns the Farmcrowdy platform that Omotolani founded) and become independent.
7: Mubawab | $10m | Undisclosed round | Emerging Markets Property Group | Proptech
Investee:
Mubawab – a Morocco based real estate digital platform that allows sellers and landlords to advertise their properties in Morocco and Tunisia. The platform covers six countries in the Maghreb region.
Investor(s):
Emerging Markets Property Group – a UAE based real-estate focused firm that owns and operates bespoke property verticals in emerging markets, primarily in the Middle East and South Asia.
Detail: Moroccan based Mubawab, a real-estate digital classifieds portal has secured $10m funding in an undisclosed round from the Emerging Markets Property Group. The capital will be used to accelerate the company’s growth in the Maghreb region.
8: Nuru | $1.2m | Undisclosed round | Proparco | Clean Energy
Investee:
Nuru – a renewable energy company that specializes in the fields of storage micro-grids and solar energy. The company is dedicated to enhancing connectivity in the Democratic Republic of Congo. Nuru deployed Congo's first solar-based mini-grid in 2017 and is currently constructing a 1.3MW solar hybrid site in Goma, the largest off-grid mini-grid in sub-Saharan Africa.
Investor(s):
Proparco – a subsidiary of the French Development Agency (Agence Française de Développement (AFD)) devoted to private sector funding with a focus on key development areas, such as renewable energy-based infrastructure, agribusiness, financial sector, health and education.
Detail: Proparco has invested $1.2m in an undisclosed round of funding in Nuru, the renewable energy company based in the Democratic Republic of Congo. The funds will be used to complete the largest off-grind mini-grid in Sub-Saharan Africa, which is estimated to provide electricity to 330 000 people and prevent the emission of 500 000 tons of CO2 over the next 20 years.
9: Moja Ride | Undisclosed amount | Undisclosed round | Toyota Tsusho | Mobility
Investee:
Moja Ride – a Mobility-as-a-Service platform transforming mobility in emerging markets. The company provides a reservation and cashless payment system spanning multiple transport services, centred on the city of Abidjan, Ivory Coast, currently including over 1,200 taxis and buses.
Investor(s):
Toyota Tsusho/ Mobility 54 – a corporate venture subsidiary of Toyota Tsusho (Japanese automobile corporation) that is committed to solving social challenges in Africa with innovative mobility technologies and services. The firm makes early and transformational investments in companies that have innovative mobility technologies and services.
Detail: Ivory Coast based mobility tech startup Moja Ride has raised an undisclosed sum in an undisclosed round from Japan based Mobility 54 Fund. The use of the funds has not been disclosed.
10: Les Écoles Idéales | Undisclosed amount | Undisclosed round | INMA Holdings | Education
Investee:
Les Écoles Idéales – an owner and operator of private schools and colleges in Tunisia.
Investor(s):
INMA Holding – an investment vehicle dedicated to investing in Tunisian SMEs to develop their businesses and strengthen their balance sheets.
Detail: Tunisian education group Les Écoles Idéales has raised an undisclosed amount of funding in an undisclosed round from private equity group INMA Holding. The funds will be used to build a new secondary school for 600 students.
11: Kidato | $125k | Seed | Y Combinator | Ed-tech
Investee:
Kidato – a Kenyan ed-tech startup that provides high-quality, affordable online schooling to the growing middle-class in Africa. The company’s classes have student-teacher ratios of 5:1 and teach the same international curriculum as other private schools.
Investor(s):
Y Combinator – a US-based accelerator that invests in startups twice a year. In each round the company invests $125k in exchange for a 7% stake in the business. The program lasts for three months and helps founders to refine their investor pitches.
Detail: Kenyan ed-tech startup Kidato has been accepted into US accelerator Y Combinator’s program for the Winter 2021 season, and has received $125k in funding.
Fundraises (1 deal)
1: HAVAIC / Universum Core African Fund | Undisclosed amount (second close) | Undisclosed investors | Post-Seed / Pre-Series B funding
Investor: HAVAIC – a South African investment and advisory firm that specialises in early-stage, high-growth African businesses with proven concepts and global prospects.
Capital raised: undisclosed amount from undisclosed investors.
Sector / Stage focus: Technology startups; post-seed / pre-Series B funding.
Portfolio / fund size: target $20m.
Cheque size: undisclosed.
That’s it for this week! Have a great 1!
Daryn
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