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⟹ 🚀 STARTUPS WATCH 🚀 ⟸

Here are the 5 top startups in the African eco-system we think you need to know:

Oolu is revolutionizing energy access for off-grid households in West Africa by offering affordable and high-quality solar solutions. The startup installs pay-as-you-go solar kits that power various household devices, including lights, phone chargers, and televisions, for a low monthly fee payable through mobile money.

Founded in 2015 and incubated in Y Combinator, Oolu is dedicated to combating energy poverty and financial exclusion for the 150 million people living off-grid in the region. Their customer-centric approach includes local-language support, market-adapted financing plans, and a commitment to after-sales service, including free battery replacements and system upgrades. By fostering trust within communities, Oolu aims to create sustainable energy solutions that empower individuals and improve their quality of life.

Qotto is revolutionizing energy access for rural households in West Africa with its pay-as-you-go solar home systems. The startup offers autonomous solar kits in Benin and Burkina Faso, enabling families to enjoy reliable electricity for lighting and entertainment.

The Qotto Light kit provides essential lighting and mobile phone charging, while the Qotto TV kit adds television access for community engagement. Each solar kit is installed by Qotto's teams, ensuring immediate use and support, with maintenance provided within 48 hours—even in remote areas. Qotto guarantees its solar panels for 10 years and its electronics for 3 years, fostering energy autonomy and improving the quality of life for its customers.

Intigo is a Tunisian bike taxi startup founded in 2019, providing a two-wheeler ride-hailing service and last-mile delivery. With $2 million in funding and a focus on superior customer service, Intigo employs hand-picked drivers to ensure convenient, fast, and cost-effective transportation.

The company aims to contribute to smart city initiatives through optimized logistics, allowing packages to be delivered within 24 hours. Intigo's platform integrates seamlessly with existing systems, offering features like real-time tracking and reliable cash-on-delivery services. With an expanding fleet of bikes and vehicles, Intigo is dedicated to enhancing urban mobility and logistics in Tunisia.

⟹ 💼 💰️ VENTURE CAPITAL WATCH 💼 💰️ ⟸

Venture funding in Africa remains on an evolving path, showcasing both resilience and new possibilities. In this week’s VC Watch, African startups have made headlines with significant fundraising efforts, including Yellow Card, Octavia & Aya Data.

These developments reflect a vibrant startup ecosystem that, despite global economic headwinds, continues to attract investment and innovate in crucial sectors. As the landscape shifts, there is growing optimism for a sustainable funding environment in the African tech space!

This past week, Yellow Card secured $33 million in Series C funding, bringing its total to $85 million. Operating in 20 African countries with over $3 billion in transactions, the fintech will use the funds to enhance APIs, develop new products, and expand partnerships with companies like Coinbase. Led by Blockchain Capital, the investment highlights Yellow Card’s mission to drive stablecoin adoption and support digital payments across the continent.

Kenyan cleantech startup Octavia Carbon has secured $5 million in seed funding to build a Direct Air Capture (DAC) storage plant. DAC technology removes CO2 from the atmosphere and stores it underground to combat climate change. Octavia liquefies captured carbon and injects it into Rift Valley basalt, where it mineralizes into solid rock. The funding, led by Lateral Frontier and E4E Africa, will help Octavia scale operations. It aims to capture 1,000 tons of CO2 annually. Leveraging Kenya’s geothermal energy, Octavia plans to reduce capture costs from $680 to $100 per ton while also generating revenue through carbon credit sales.

Ghana-based AI consultancy Aya Data has raised $900,000 in a seed round to expand its AI products, AyaGrow and AyaSpeech, and grow its talent pool. The funding, a mix of debt and equity led by 54Collective, brings Aya Data’s total investment to $1.15 million. Founded in 2021 by Freddie Monk and Ama Larbi-Siaw, Aya Data specializes in data annotation for developing large language models like ChatGPT. Its products include AyaGrow, an AI-driven agricultural solution, and AyaSpeech, which enables interactions in local African languages. The startup generated $500,000 in revenue in 2023 and serves 20 clients, including MIT and Unilever. Aya Data aims to train 1,000 AI professionals, helping African businesses harness AI for growth.

👀 This week’s featured investor is Fedha Capital 👀

Fedha Capital is a dynamic venture capital firm based in Nigeria, founded by a group of five entrepreneurs with over a century of collective experience across diverse sectors, including finance, real estate, and manufacturing.

Established in 2021, Fedha Capital focuses on empowering early-stage companies, particularly those in the Seed and Series A phases, with a mission to support innovative entrepreneurs in developing solutions for Africa's financial challenges.

Through its Spark Fund, aimed specifically at seed-stage companies, Fedha Capital collaborates with like-minded founders to catalyze the creation of tomorrow’s impactful products. Their vision is to become the preferred financial partner for startups in sub-Saharan Africa, facilitating growth and fostering economic development in the region.

Their portfolio includes promising startups such as Spleet, Bitmama, ZirooPay, Pharmarun, and TeamAPT, each addressing critical needs in their respective industries and contributing to the broader mission of economic empowerment. 🌍✨

⟹ 📺️ MEDIA WATCH 📺️  ⟸

Here are the 5 key things in the news this week that you need to know:

1. Pan-African fintech startup Yellow Card raises $33m Series C funding to drive expansion - Disrupt Africa

2. ‘Where we are today in biology AI is similar to GPT in 2020’: An interview with the CEO of Africa’s biggest AI startup - Techcrunch

3. Ghanaian AI startup Aya Data raises $900,000 seed round - Techcabal

4. Cleantech startup Octavia raises $5 million to take more CO2 out of the atmosphere and build a storage plant - Techcabal

5. Kenya’s BuuPass expands bus management system to new operators - Techcabal

And that’s your weekly dosage of the African startup ecosystem! If you have any comments or feedback, just respond to this email. We are always looking to hear from our community.

Thanks for reading. See you next week.

Gitonga, the Stoic Founder at StartupHub.Africa 🚀

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