10 African startups to watch out for in H2 2023, according to investors

In the wake of the global market reset, African startups are hustling to regain momentum in a funding winter. Four investors reveal their top must-watch startups.

African startups have been steadily making their mark in the tech ecosystem, attracting the attention of investors with their innovative solutions and disruptive potential. From fintech to healthtech, these startups have shown immense promise and are becoming increasingly sought after by venture capitalists. With funding pouring into the continent’s tech scene, it’s no surprise that investors are closely watching the rise of African startups.

In the first half of 2023, African startups have raised over $1.4 billion in funding in 153 deals which is 53% less than what was raised in H1 2022 with various sectors vying for a piece of the pie. While this figure represents a slight dip from the previous year, there are still some notable rounds to be celebrated, with startups like MNT-Halal of Egypt raising $400 million which was a mix of debt and equity, and M-Kopa raising $250 million; also a mix of debt and equity.

As the ecosystem begins to pick back it pace following the market reset, we shine the light on 12 African startups that have caught the eye of investors, who believe they are a must-watch.

These startups, spanning diverse industries, showcase the region’s thriving tech landscape and its potential for further growth. From disruptive fintech solutions to groundbreaking health innovations, these startups are poised to impact their respective industries significantly.

As investors continue to bet on Africa’s tech future, these startups are the ones to watch out for.

AltSchool Africa

Adewale Yusuf is a three-time founder changing the way opportunity is distributed, developed, and democratised across the Continent. He currently serves as Co-founder and CEO of AltSchool Africa and TalentQL.

In this role, he leads his team in delivering edtech and recruitment products, training thousands of students in software engineering, product development, and tech leadership. Prior to founding TalentQL, he grew Techpoint Africa into the largest media company covering the African tech ecosystem. Adewale gained over a decade of experience building in Africa. He and his team bridged critical gaps, gathering data and insights in reporting, tracking, and African community reporting on founders, fundraising, and future plans. Through this work, Adewale got to build relationships with 80+% of tech founders across Africa and hosted critical players from international markets to the likes of Jack Dorsey of Twitter.

He currently serves on the board of Life Beyond Disability, a non-profit advocating for the rights and empowerment of persons living with disability in Africa. Adewale believes improving education on the Continent is the key to unlocking the Future of Work, ensuring everyone has access to opportunities that allow them to develop in-demand skills.

Educare

Alex Onyia is the CEO of Educare, the #1 leading education technology platform in Africa for K-12, serving more than 1million students, 300 thousand parents.

Before that Alex partnered with Facebook’s Platform Partnerships team in Middle East and Africa working with different content partners and developers in the region as part of Facebook’s drive to make its platform more relevant in the day to day lives of people all over the world

At Winexviv International Limited from 2015 – present. Alex is the Head of Products leading developer programs in Sub Saharan Africa. His mission is to grow the tech ecosystem in Sub Saharan Africa and other emerging market regions through the use of Web and Mobile technology platforms as the “Growth Engine”.

Before Winexviv, Alex worked as a software developer and later as a strategic business development manager in projects and initiatives that took him across Sub Saharan Africa and the Indian Sub continent. These projects and initiatives span the education and electronic payment verticals.

He is a graduate of Agricultural & Bio-resources engineering from the University of Nigeria. He also holds a certificate as Certified Internet Webmaster.

Joe Kinvi – Founding Partner, HoaQ

Brass

Brass co-founded in 2020 by Sola Akindolu and Emmanuel Okeke which delivers easy access to affordable premium banking services for small and medium-sized businesses (SMEs), is making business banking simple again. According to Joe Kinvi, “They are very intentional about building each product and their ecosystem approach is coming together very nicely. If you haven’t heard of it, your favorite business is probably using them”.

In 2021, the startup successfully secured $1.7 million in funding. Currently, it offers a wide array of products, including credit and payment services, payroll and expense management, API support, and other core business solutions. Brass has served thousands of businesses, provided over $2 million in credit, and introduced Brass Capital, a cash-flow financing service to foster business growth.

Rayda

“Francis the CEO has built many businesses in the past but found a very good niche that is not very sexy and ignored. My money is on Francis to build a truly global business.” Joe said.

Rayda provides businesses the infrastructure to acquire, manage, insure, track, and dispose of their business assets globally. The startup was founded in 2022 by Francis Osifo, who was a co-founder of 54gene, a YC-backed startup.

Tembo Plus

The Tembo Plus website says “Embed and Launch financial products across Africa” which reflects the scope of their ambition, however, they also have a digital banking app and according to a tweet by the Founder, Victor Joseph on the 5th of November 2021, they had gotten approval from the Bank of Tanzania to start offering their product in partnership with a bank partner. “One huge step closer to bringing true digital banking services to this market!” he said via the tweet.

“Victor might just put the Tanzanian fintech ecosystem on the global map with what they are building. He is relentless and will not give up until he achieves his goals.” according to Joe Kinvi.

Stephen Deng – General Partner, DFS Labs

Ando Food

Asif Khan and Vineet co-founded Ando Foods in 2020, a food tech startup operating in Kenya and South Africa that is disrupting the conventional restaurant model. Stephen commends Ando Foods as a standout startup, demonstrating how to build a food-first food-tech business in Africa.

Terminal

Terminal Africa was established officially in 2021 by Nnamdi Okoh and Udi Okoh. The startup facilitates continental and global commerce through scalable technology-based solutions and is said to be serving over 3,500+ businesses, shipping goods worth over ₦350 million monthly.

“Terminal is a startup worth watching for leading the cross-border delivery opportunity while staying asset-light,” Stephen said. The startup has raised $2.1 million from 10 investors according to their LinkedIn profile.

Orda

Orda is referred to as the OS for small and medium-sized African restaurants, founded in 2020 by Guy Futi, Fikayo Akinwale, Mark Edomwande, Kunle Ogungbamila, and Namir El-Khouri and their vision is to help small-sized African restaurants optimize their business and achieve sustainable growth. In Nov 2022, the startup secured $3.4 million dollars funding, bringing its total raise to $4.5 million. The startup is said to be serving over 600 restaurants across Nigeria and Kenya and is now processing over 500% more weekly orders for its customers.

Stephen believes they are a must-watch for showcasing the potential of a vertical-specific fintech opportunity done right.

 

Source: Benjamindada

Leave a Reply

Your email address will not be published. Required fields are marked *