If you’re looking to invest in the tech scene in Africa, you’ll want to check out our recent article on Investing in Africa’s Tech Scene. In it, we discuss IROKO, Vecmocon, Flutterwave, Bamboo and more.
Bamboo
One of the more impressive new offerings in the Nigerian fintech space is Bamboo. This two-year-old company is poised to hit mass scale in Africa in the next few years, thanks in part to funding from Tiger Global.
The company offers ADRs (Alternative Digital Remittances), stocks on foreign capital markets, and even an ETF. They also boast an impressive 50,000 users on their waitlist. Their new round of funding will be used to increase the number of people using their service.
Several of their competitors are offering the same types of products. Other notable names include Wasoko, Jobberman, and Trove. However, their recent funding announcements have a few standout characteristics.
Vecmocon
Vecmocon, a startup from India, is making waves in the field of electric vehicles. The company makes vehicle intelligence solutions that are designed to be embedded in EV components and offer solutions that reduce the time to market for OEMs. They also build products that make EVs more robust and reliable, including batteries, chargers, motor controllers, and instrument clusters.
According to reports, the company has been able to power over 5,000 EVs so far. It has also received orders worth over $5 million. In addition to this, Vecmocon has developed a unique capability to engineer data-intensive EV components.
Vecmocon has developed a variety of solutions that are designed to help vehicle manufacturers, mobility service providers, and ecommerce platforms to improve the customer experience and enhance business operations. Vecmocon also manufactures motor controllers, battery management systems, and other software-based technologies for a range of EV applications.
Float
Float is a Nigeria-based fintech startup that offers loans to small and medium businesses. The platform provides flexible working capital and payment tools to manage accounts and automate invoice collections. In the past seven months, Float has onboarded hundreds of businesses. It has launched instant payouts, revenue advances and a business account.
The company received a seed round of $7 million in equity and $10 million in debt. Float is in Ghana and Nigeria, and plans to expand to South Africa, Kenya and other countries in the future.
Float’s goal is to provide more cash flow to millions of businesses across the continent. Its users can access credit when they need it and know exactly where the money is coming from. Float will use its new funding to launch credit products and improve its cash management platform.
Flutterwave
Flutterwave, a payments company with an impressive track record, is reportedly the most valuable African startup. This resounding statement follows the release of the firm’s most recent funding round. A consortium of global investors led by Tiger Global and YCombinator’s Avenir Growth Capital pumped in more than 42 million dollars to help the nascent firm reach its IPO potential.
The company’s newfound riches come just as the nation’s Central Bank is considering whether or not it should put in place regulations for fintech companies. It is also the company’s first investment from the global investment firm.
With more than a quarter of a billion dollars in funding and a promising growth plan, it is no surprise that Flutterwave is now arguably the most valuable African fintech startup. But what exactly is the company’s valuation?
IROKO
Tiger Global recently unveiled its latest and greatest venture capital fund of $11 billion. The fund is the brainchild of the company’s founder and CEO, Victor Asemota. In addition to investing in startups from Africa, Tiger Global is also active in the emerging market fintech space. For example, the company has a bet on the Congo based crypto startup Jambo’s.
IROKO is just one of the many startups that have landed in the lap of the tiger. Other notable players in the space include the likes of Jobberman and Takealot, which were sold off to Naspers and Autochek, respectively. One of the more noteworthy is IROKOtv, a video-on-demand service that was a relative newcomer in the African tech landscape. Among its competitors were video-on-demand providers like YouTube and Vimeo. Unlike its competitors, however, IROKO had a decent foothold in the African diaspora, with its operations spread across Kenya and Uganda.
Investing in Africa’s tech scene
Africa’s tech scene continues to grow. Global investors recognize the potential in the continent’s tech sectors. As a result, the amount of funding for startups in Africa grew in recent years. By the end of 2022, over three hundred and eighty five startups raised US$ 2.7 billion.
Nigeria has remained the leading investment destination in Africa. The country boasts advanced banking options and telecom companies. Its economy has grown at seven percent per year over the past decade. However, the country faces serious challenges, including poverty, endemic corruption, and poor economic performance.
The success of Nigeria shows that innovation can thrive in any part of the world. But many African countries suffer from poor financial systems and socio-economic constraints. These obstacles make it difficult for smaller towns and cities to access funding.
