What’s Happening in Africa:
- Partech closes its second Africa-focused fund at €280 million, the largest to date, to invest in African startups across various stages from seed to Series C.
- Internet in Africa:
Country-specific spotlights
- RobotsMali, a government backed initiative, is using generative AI to preserve the country’s national languages and cultures by teaching them to schoolchildren.
- Viamo, a Canadian company, has launched an AI-powered mobile phone service in Nigeria that operates offline, allowing users in remote areas without internet access to access AI technology via SMS or voice calls. The service is aimed at the world's poorest communities and is being expanded to other countries such as Pakistan, India, and Tanzania.
- The latest GitHub Developer Report ranks Nigeria as the country with the second-largest growth in GitHub developer accounts in the world. With a whopping 45% growth in accounts from 2022 to 2023,
- Benin-based electric vehicle company Spiro has exchanged over 10,000 old motorbikes for electric models in four African countries, but there are concerns about the long-term viability of its business model.
- Touch and Pay Technologies, the startup behind the Cowry card, is transforming Lagos' public transportation system by enabling contactless payments, with 3.8 million users making 500,000 trip payments daily. The company is now looking to expand its successful digital payment platform to other states within Nigeria and into Ghana, aiming to raise $4 million for further growth.
- Kenyan fintech Triply, focusing on streamlining payment processes for the travel industry, has been selected for Y Combinator's winter 2024 batch, targeting the enhancement of efficiency and exposure for small travel businesses in a burgeoning local travel market.
Acquisitions, Fundraises, Expansions, and Contracts:
Contractions:
- MTN Group is selling its equity interests in MTN Guinea-Bissau and Guinea-Conakry to Telecel in order to exit smaller markets in the West and Central Africa region, as revealed in its 2023 financials.
- Kenyan e-commerce startup Wasoko closed its Zanzibar office, paused operations in Uganda and Zambia, and laid off employees as part of a restructuring before completing a merger with MaxAB. High-profile executives resigned, and former employees sued for unsatisfactory exit packages. The merger consolidated roles, resulting in over 100 job losses.
Expansions:
- Kuda Bank expands globally with payment licenses in Tanzania and Canada, targeting African migrants with remittance and wallet services.
- Bolt expands into Egypt and Botswana, offering discounts and waiving driver commissions as part of its strategic African market expansion strategy.
Acquisitions:
- Deel acquires PaySpace, a South African HR company, to enhance global payroll services, expanding its reach and capabilities.
- Nigerian fintech Carbon has acquired Vella Finance and launched an AI-driven business banking platform to support SMEs.