Skip to main content
https://www.highperformancecpmgate.com/rgeesizw1?key=a9d7b2ab045c91688419e8e18a006621

Venture capital, global expansion, blockchain and drones characterize African tech in 2018

Jake Bright Contributor
Jake Bright is a writer and author in New York City. He is co-author of The Next Africa.
More posts by this contributor

2018 saw Africa’s tech sector become more dynamic and international. VC firms on the continent multiplied. There were numerous investment rounds. And startups pursued acquisitions and global expansion. Here’s a snapshot of the news that shaped African tech over the last year.  

Surge in VC funds

A notable 2018 trend was Africa’s VC landscape becoming more African, with an increasing number of investment funds headquartered on the continent and run by locals, according to Crunchbase data released in this TechCrunch exclusive.

Drawing on its database and primary source research, Crunchbase identified 51 viable Africa-focused VC funds globally with at least 7-10 investments in African startups from seed to series stage.

Of the 51 funds, 22 (or 43 percent) were headquartered in Africa and managed by Africans. Of those 22, nine (or 41 percent) were formed since 2016 and nine were Nigerian.

Four of the nine Nigeria-based funds were formed within the last year: Microtraction, Neon Ventures, Beta.Ventures and CcHub’s Growth Capital fund.

The Crunchbase study also tracked more Africans in top positions at outside funds and the rise of homegrown corporate venture arms.

One of those entities with a corporate venture arm, Naspers, announced a $100 million fund named Naspers Foundry to invest in South African tech startups. This was part of a $300 million (4.6 billion Rand) commitment by the South African media and investment company to support South Africa’s tech sector overall, as reported here at TechCrunch.

Another DFI came on the scene when France announced a $76 million African startup fund administered by the French Development Agency, AFD. TechCrunch got the skinny on how it will work here.

Investment and expansion

If African VC investment headlines were scarce a decade ago, in 2018 we became overwhelmed with them. This was largely a result of several recently closed Africa funds — TLcom’s $40 million, Partech’s $70 million, TPG’s 2 billion — beginning to deploy that capital.

In March, Nigerian consumer data analytics firm Terragon raised $5 million from TLcom. Kenyan business enterprise software company Africa’s Talking raised $8.6 million in a round led by IFC.

Investment startup Piggybank.ng closed $1.1 million in seed funding and announced a new product — Smart Target, for traditional savings groups. Trucking Logistics company Kobo360 raised two rounds, for a total of $7.2 million. Kenya-based agtech supply chain startup Twiga Foods raised $10 million. B2B retail supply chain Sokowatch closed a $2 million seed round led by 4DX ventures.

White-label lending startup Mines.io secured a $13 million Series A round. South African SME payment venture Yoco raised $16 million. Paga Payments added $10 million in fresh funding.

And then there were the three huge raises of the year. Kenyan digital payment company Cellulant hauled in $37.5 million in a Series C round led by TPG Growth. South African lending startup Jumo raised $52 million led by Goldman Sachs. And just this month, The Carlyle Group invested $40 million in Africa-focused online travel site Wakanow.com.  

Acquisitions and expansion

In 2018, African tech demonstrated it can travel, as several digital companies expanded on the continent and abroad. In May, MallforAfrica and DHL launched MarketPlaceAfrica.com, a global e-commerce site for select African artisans to sell wares to buyers in any of DHL’s 220 delivery countries.

Paga announced plans to expand in Africa and internationally, with an eye on Ethiopia, Mexico and the Philippines, CEO Tayo Oviosu told TechCrunch. Kobo360 is moving into in new markets — Ghana, Togo and Cote D’Ivoire.

On the back of its $52 million round, Jumo said it would expand in Asia and started by opening an office in Singapore.

On the acquisition front, Terragon bought Asian mobile marketing company Bizense in a cash and stock deal. The company is exploring greater growth opportunities in Latin America and Southeast Asia, CEO Elo Umeh told TechCrunch.

TPG Growth acquired a majority stake (of an undisclosed value) in Africa entertainment content company TRACE. After previous investments, Naspers acquired  96 percent of Southern African e-commerce venture Takealot.

And in December, California-based Emergent Technology Holdings acquired Ghanaian fintech payment company InterpayAfrica.

Partnerships

Collaboration between local tech firms and big global names continued in 2018. Liquid Telecom and Microsoft continued their partnership to offer connectivity cloud services such as Microsoft’s Azure, Dynamics 365 and Office 365 to select startups and hubs. This is part of Liquid Telecom’s strategy to go long on Africa’s startups as its future clients and the continent’s next big companies.

Facebook teamed up with Nigerian tech hub CcHub to launch its NG_Hub high-tech incubator.

Blockchain

As crypto fever gripped many leading economies in 2018, Africa was shaping its own blockchain narrative — one more grounded in utility than speculation. 500 Startups-backed SureRemit launched a crypto token product aimed at disrupting Africa’s multi-billion-dollar remittance market and raised $7 million in an ICO. South African payments venture Wala and solar energy startup Sun Exchange also had ICOs.

For blockchain as a platform, agtech startups Twiga Foods and Hello Tractor partnered with IBM Research to use the digital ledger tech to advance small-scale farmers and agriculture on the continent.

Ride-hail boda bodas

Ride-hail tech expanded into the continent’s frequently used motorcycle taxi market. Uber entered the three-wheeled tuk tuk moto taxi market in Tanzania in March and Uber and Taxify launched motorcycle passenger services in East Africa, including Kenya and Uganda.

Fails

Last year saw Y Combinator-backed VOD startup Afrostream shutter. In February 2018, Nigerian e-commerce startup Konga — backed by VC — was sold in a distressed acquisition. There were high expectations for Konga and its much-liked founder Sim Shagaya. I made the case that Konga’s acquisition was one of Africa’s first big startup fails that flew under the radar.

Drones

TechCrunch did a deep dive into Africa’s drone scene, talking to several experts and looking at emerging use cases across delivery services, agtech and surveying. On the regulatory side, several countries — Rwanda, Tanzania, South Africa, Zambia and Malawi — are doing some interesting things around regulation and creating drone-testing corridors for global players.

TechCrunch and Africa

In 2018 TechCrunch did more with Africa than any previous year. In addition to more content, there was a market engagement trip to Ghana and Nigeria, with meet-and-greets at Impact Hub, MEST Accra and Lagos, and CcHub.

TechCrunch also had its first Africa panel on Disrupt SF’s main stage, an Africa session at Disrupt Berlin and held the second Startup Battlefield Africa in December in Nigeria.

Fifteen startups competed in Lagos in front of a Pan-African and global crowd. South African virtual banking startup Bettr was runner-up. Ultra-affordable ultrasound startup M-Scan from Uganda was the winner.

More Africa-related stories @TechCrunch

African tech around the ‘net  

Comments

Post a Comment

Popular posts from this blog

Uber co-founder Garrett Camp steps back from board director role

Uber co-founder Garrett Camp is relinquishing his role as a board director and switching to board observer — where he says he’ll focus on product strategy for the ride hailing giant. Camp made the announcement in a short Medium post in which he writes of his decade at Uber: “I’ve learned a lot, and realized that I’m most helpful when focused on product strategy & design, and this is where I’d like to focus going forward.” “I will continue to work with Dara [Khosrowshahi, Uber CEO] and the product and technology leadership teams to brainstorm new ideas, iterate on plans and designs, and continue to innovate at scale,” he adds. “We have a strong and diverse team in place, and I’m confident everyone will navigate well during these turbulent times.” The Canadian billionaire entrepreneur signs off by saying he’s looking forward to helping Uber “brainstorm the next big idea”. Camp hasn’t been short of ideas over his career in tech. He’s the co-founder of the web 2.0 recommendatio...
Post a Comment
Read more

Drone crash near kids leads Swiss Post and Matternet to suspend autonomous deliveries

A serious crash by a delivery drone in Switzerland have grounded the fleet and put a partnership on ice. Within a stone’s throw of a school, the incident raised grim possibilities for the possibilities of catastrophic failure of payload-bearing autonomous aerial vehicles. The drones were operated by Matternet as part of a partnership with the Swiss Post (i.e. the postal service), which was using the craft to dispatch lab samples from one medical center for priority cases. As far as potential applications of drone delivery, it’s a home run — but twice now the craft have crashed, first with a soft landing and the second time a very hard one. The first incident, in January, was the result of a GPS hardware error; the drone entered a planned failback state and deployed its emergency parachute, falling slowly to the ground. Measures were taken to improve the GPS systems. The second failure in May, however, led to the drone attempting to deploy its parachute again, only to sever the line...
Post a Comment
Read more

How the world’s largest cannabis dispensary avoids social media restrictions

Planet 13 is the world’s largest cannabis dispensary. Located in Las Vegas, blocks off the Strip, the facility is the size of a small Walmart. By design, it’s hard to miss. Planet 13 is upending the dispensary model. It’s big, loud and visitors are encouraged to photograph everything. As part of the cannabis industry, Planet 13 is heavily restricted on the type of content it can publish on Instagram, Facebook and other social media platforms. It’s not allowed to post pictures of buds or vapes on some sites. It can’t talk about pricing or product selection on others.   View this post on Instagram   A post shared by Morgan Celeste SF Blogger (@bayareabeautyblogger) on Jan 25, 2020 at 7:54pm PST Instead, Planet 13 encourages its thousands of visitors to take photos and videos. Starting with the entrance, the facility is full of surprises tailored for the ‘gram. As a business, Planet 13’s social media content is heavily restricted a...
3 comments
Read more