This week was relatively slow, with 7 funding deals across the African startup ecosystem, three of which came from Kenya. Design, agritech, mobility, and e-commerce are among the sectors that have received funding.
Let’s go straight into the details.
Funding
Pre-Seed
CONIX.AI, a UK-based and Egypt-founded design tech startup, has raised $1.3 million in funding led by BIM Ventures and announced the start of commercial operations in Saudi Arabia.
Founded in 2020 by Yusuf Fahmy, CONIX.AI’s AI-powered platform allows real estate developers and architects to generate designs and adaptive materials. It enables users to evaluate the viability of building sites and assess multiple scenarios in a matter of minutes, generate design options for a given site, and optimize spaces while reducing environmental impact.
The funds raised will be used to expand into Saudi Arabia as well as further product development.
Seed
BasiGo, a Kenyan-based electric vehicle manufacturer, has raised $6.6 million in a funding round led by Mobility54, Novastar, and Trucks.VC to deliver electric buses. Moxxie Ventures, My Climate Journey (MCJ), Susquehanna Foundation, Keiki Capital, and OnCapital are among the other investors.
Founded in 2021 by Jit Bhattacharya and Jonathan Green, BasiGo provides state-of-the-art electric buses as well as charging and maintenance services to bus operators, making these vehicles affordable through a financing model that allows operators to pay for the battery and charging separately from the bus via a pay-as-you-go financing arrangement.
The funds raised will be used to support BasiGo’s efforts to provide electric buses for public transportation systems in Kenya and throughout Africa.
Others
Beekeeper Tech, a Tunisian agritech, has raised $640,000 in a round led by 216 Capital Ventures, with participation from business angels including Ibrahim Al-Rashid, co-founder of Resorts Holding in Saudi Arabia, and Bridging Angels.
Founded in 2021 by Khaled Bouchoucha, Beekeeper, formerly known as Iris Technologies, develops and sells smart connected equipment that assists beekeepers in increasing hive production.
These funds will enable Beekeeper to accelerate its expansion into new regions and strengthen its position in Mena, as well as strengthen the startup’s bee genetic selection program and add new talent to the team.
BuuPass, a Kenyan-based online bus booking service that aims to build Africa’s digital transportation infrastructure, has received investment from Change Com.
Founded in 2015 by Sonia Kabra and Wyclife Omondi, BuuPass has created a B2B2C digital marketplace that provides transport operators (bus, train, and airline) with digitized local sales via POS, transparent reporting of sales data for better business decisions, and real-time sales across multiple online and offline channels. Travelers can search for, compare, and book tickets, as well as pay using cashless methods such as MPesa.
The funding will be used to strengthen the startup’s position as a leading African player in the digitization of bus, train, and plane ticket sales.
Yaga, an Estonian-founded e-commerce startup, has raised €2.2 million in a round led by Startup Wise Guys, with participation from Trind Ventures, Specialist VC, and Rubylight, in order to bring the digital approach to second-hand fashion to the African and Asian markets.
Launched in 2019 by Aune Aunapuu, customers can buy and sell used clothing on Yaga. The platform primarily serves emerging markets in Asia and Africa. There, it promotes the circulation of local fashion at local prices while also reducing environmental damage.
Yaga intends to use the new funds to continue its rapid growth over the next year. The funds will be used to further develop the platform, expand the team, and attract new customers.
ISI Digital, a Tunisian digital transformation company and Sage X3 and Sage 100 ERP installer, has raised 2.6 million Tunisian dinars ($820,000) in funding from Innovatech and CAPSA Capital.
With these funds, the company will be able to provide more value in the integration of big data solutions and management software, such as BI, ERP, Production, Accounting, Treasury, CRM, Payroll, and Human Resources, as well as expand its Sage ERP and IT certification training offerings.
Stable Foods, a Kenyan startup, has received $600,000 in funding from Acumen Resilient Agriculture Fund (ARAF) and Mercy Corps Ventures to expand its climate-smart smallholder food production system.
Stable Foods, a Pyramidia Foods portfolio company, has developed an integrated solution that includes irrigation-as-a-service (IaaS), input and offtake contracts, and training on best practices for regenerative agriculture. These services are provided to smallholder farmers as a menu, allowing them to layer solutions to meet their specific needs.
The funds raised will be used to expand Stable Foods’ proof of concept to 500 farmers by the end of 2023.
Venture Fund
The International Finance Corporation (IFC), which is backed by the World Bank, has launched a $225 million platform to strengthen venture capital ecosystems in Africa, the Middle East, Central Asia, and Pakistan.
The IFC’s new platform will invest in early-stage companies addressing development challenges through technological innovations in areas such as climate, healthcare, education, agriculture, e-commerce, and others.
The platform will be backed by an additional $50 million from the Blended Finance Facility of the International Development Association’s Private Sector Window, which helps de-risk investments in low-income countries.
Modus, a MENA-focused venture capital firm, has launched a $75 million Modus Africa VC fund, led by two General Partners, Vianney Mathonnet and Andre Jr. Ayotte.
The fund will invest in early-stage startups powered by AI and blockchain solutions and will be sector agnostic.
Modus Africa will foster the growth and development of Africa’s local tech talent as well as early-stage impact-driven ventures. The new fund, which will close in the first quarter of 2023, will invest in 45 startups at the Seed+ stage, with a follow-on investment allocation.
AU-Startups Highlights
Paystack secures PSP license in Kenya
PalmPay obtains Nigeria Data Protection Regulation (NDPR) Compliance
Kenya’s central bank slashes digital loan burden
Employees are resigning at Future Africa as the VC transitions into a venture studio
Kenyan Agri-tech Twiga Foods Transitions into Agency Model, Fires 211 Staff
Morocco’s Witamax 1 Gets Set For A New Round Of Startup Investments
SA’s most promising businesses honoured by SAVCA
Interesting Reads
A Deep Insight Into How France-backed Digital Africa Invests In African Startups
Local streaming services have edge over global counterparts
Value as a priority: the next step forward for the ‘as-a-service’ model
Events, Opportunities and Jobs
Are you a startup in Ghana, Kenya and Tanzania with innovative business models and a sustainable economic, ecological, or social impact in these countries? Then you are eligible for develoPPP Ventures’ new €100K funding grant.
And that’s all for this week. Remember to share this newsletter issue with your friends and colleagues at work, so they don’t miss out on the happenings in the African startup ecosystem.
