Afrigather 1. Funding: Q3 brings within the lowest funding of the yr
In September 2023, 22 African tech startups raised $116.7 million throughout 22 totally disclosed* raises. In comparison with August 2023’s $243.7 million whole increase, this represents a 52.11% lower.
This additionally represents a big YoY lower—about 69.6%—from September 2022 when African startups raised $383.4 million. With this, September marks the month with the second-lowest funding following March’s $66 million increase.
In whole, Q3 noticed African startups increase $492.6 million throughout 67 totally disclosed offers. It’s a decline from Q2’s $877 million whole increase, and an excellent sharper drop from Q1’s $1.3 billion. Thus far, African startups have raised $2.57 billion.
Per area, Southern African startups made a stunning look in first place with $69 million in raises, about 59.1% of the overall funding. That is principally led by vitality startup Wetility’s $48 million raise. West Africa comes second with $26.1 million, East Africa with $20.2 million, and North Africa with $1.4 million.
Per sector, the highest three sectors for September 2023 are vitality with $60 million (51.41%)—led by the Wetility increase and Kenya’s SunCulture’s $12 million increase, fintech with $27.5 million (23.56%), and retail/e-commerce with $11.6 million (9.94%).
The highest 5 disclosed offers of the month are:
- South African vitality startup Wetility’s $48 million debt and equity round.
- Kenyan vitality startup SunCulture’s $12 million syndicated debt facility.
- Ghanaian agritech Complete Farmer’s 10.4 million pre-Series A round.
- Zambian fintech Lupiya’s $8.25 million Series A funding.
- South African retail startup Rentoza’s $6 million raise.
*Word: This information is inclusive solely of funding offers introduced in September 2023. Raises are sometimes introduced later than when the offers are literally made. This information additionally excludes estimated grants from accelerators.
2. Investments: Enza Capital launches a $58 million fund
In September, Kenyan-based enterprise agency, Enza Capital, raised $58 million to support startups on the continent.
The VC firm, which invests from first cheque, can also be kickstarting a brand new shared possession mannequin that permits startup founders the flexibility to personal a part of the agency. Enza capital has allotted 10% of its carry pool to founders.
One other VC agency, P1 Ventures, additionally closed a $25 million fund which it plans to put money into African companies throughout fintech, SaaS, AI and healthtech ventures.
3. M&As: Risevest acquires Chaka, WhoGoHost acquires SendChamp
Q3 additionally ended with a number of acquisitions.
First, earlier within the month, Nigerian cloud infrastructure firm WhoGoHost acquired SendChamp, a cloud communications startup, for an undisclosed quantity.
A lot later, Nigerian buying and selling startup Risevest announced its acquisition of digital buying and selling startup Chaka for an undisclosed sum.
4. Shutdowns: 54gene shuts down
Final month, TechCabal additionally confirmed that Nigerian genomics startup 54gene is shutting down. The information was confirmed by ex-CEO Ron Chiarello.
The startup, which raised $54 million since its founding in 2019, struggles by a number of management modifications and impulsive spending habits.
In the meantime, founder and ex-CEO Dr. Abasi Ene-Onong launched a new genomics startup, Syndicate Bio, in the identical month.
5. Sendy goes into administration, PayDay searches for a purchaser
September noticed Kenyan logistics startup Sendy enter into administration—an impartial particular person, Peter Kahi, will take management of the corporate till it may resolve its monetary disaster.
This comes after the corporate, which was reportedly burning $1 million per month in working prices, didn’t discover a purchaser.
In the meantime, Nigerian fintech startup PayDay additionally confirmed its search for a buyer in September. The corporate, which raised $3 million in March 2023, confronted a sequence of challenges together with contentious wage will increase, impulsive administration selections and defective infrastructure.
6. Financial system: Kenya joins PAPSS
In September, Kenya grew to become the tenth African country to hitch the Pan-African Funds and Settlement System (PAPSS).
Commerce secretary Moses Kuria made the announcement noting that the Central Financial institution of Kenya (CBK) had signed the settlement and accomplished all the mandatory formalities.
Thus far, the service—which is utilized by 9 central banks—has reportedly saved African corporations $5 billion in transaction prices.
7. Layoffs: mPharma lays off 150 employees
One yr on, and layoffs are nonetheless occurring within the tech area.
In September, Ghanaian healthtech mPharma introduced that it had laid off 150 employees—together with 40 from its Nigerian crew. Per CEO Gregory Rockson, the layoff are—unsurprisingly—due “macroeconomic situations pushed by the devaluation of the naira”.
This comes 19 months after the startup raised $35 million in a Collection D spherical.
8. Financial system: Sama to supply 2,100 Kenyans with AI jobs
Months after Meta reduce ties with it, Kenyan content material moderation agency Sama is taking a brand new flip.
In September, the corporate introduced a pivot from content material moderation into synthetic intelligence (AI). Per Kenya’s cupboard commerce secretary Moses Kuria, the corporate was set to hire 2,100 Kenyans to work in a number of AI-focused groups together with machine studying, and enterprise course of outsourcing (BPO).
9. Social Media: Kenya continues to be going after TikTok
Whereas Sama may not be inquisitive about moderating content material anymore, a number of different Kenyan gamers are.
September noticed Kenyan officers with a renewed drive to ban TikTok…or at the very least components of it. The Kenyan Movie Classification Board (KFCB) reportedly requested that TikTok disable its Live feature within the nation in a gathering with TikTok CEO Shou Zi Chew. The assembly was held with the Kenyan president to debate a petition to ban TikTok earlier acquired by the Kenyan Parliament.
In the meantime, related petitions to ban TikTok have surfaced in Uganda and Egypt.
10. International Information: TikTok fined $370 million within the EU
Seems just like the social media firm is combating fires in all places.
Within the European Union, TikTok was fined €345 million ($370 million) for violating privateness legal guidelines referring to the processing of kids’s private information. Per Eire’s Information Safety Commissioner, TikTok dedicated various breaches between July and December 2020 together with non-verification of age for underage customers, and setting visibility for under-16 accounts to “public” by default.
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