IBM Exits 36 African Markets

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⟹ 🚀 STARTUPS WATCH 🚀 ⟸

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

Green Scooter is Africa’s first all-electric e-hailing platform, providing affordable, eco-friendly last-mile mobility for commuters and businesses. With its Zbee RS & Zbee Cargo electric vehicles, the company offers a cost-effective, zero-emission alternative for urban transport, reshaping how people and goods move in African cities.

Beyond mobility, Green Scooter designs and manufactures its electric powertrain components, including battery packs and energy management systems, ensuring high performance and efficiency. With a vision to lead Africa’s clean mobility revolution, the startup is driving innovation in sustainable transportation while making EV adoption more accessible across the continent. 🌍🔋

TradeBuza is revolutionizing agriculture by providing data-driven infrastructure for agribusinesses, financial institutions, and government organizations to streamline out-grower schemes and commodities trade. By digitizing farm management, credit risk assessments, and payment processing, TradeBuza enhances efficiency, transparency, and financial access for smallholder farmers.

With real-time field monitoring, automated payments, and seamless data management, TradeBuza empowers agribusinesses and cooperatives to optimize production and scale trade operations. By leveraging technology and smart analytics, the startup is bridging the gap between farmers, buyers, and financial institutions, driving sustainable agricultural growth across Africa. 🚜🌾

Cape AI is a South African AI company specializing in machine learning, NLP, and computer vision to help businesses make smarter, data-driven decisions. Founded in 2019 by Pieter Boon and Adit Mehta, the company has delivered 25+ projects and launched four ventures, including Enlabeler and Autoscriber.

With expertise in cloud engineering and AI modeling, Cape AI builds scalable AI solutions while driving AI for good initiatives. Committed to People, Planet, and Profit, the team is shaping the future of intelligent automation. 🤖🚀

⟹ 💼 💰️ VENTURE CAPITAL WATCH 💼 💰️ ⟸

The African venture capital landscape continues to evolve with multi-million-dollar investments, new funds targeting key sectors, and strategic acquisitions reshaping industries.

Here’s a detailed look at this week’s biggest funding moves:

🚀 New VC Funds & Startup Investments

🔹 Foundation Ventures Secures $25M for Egypt’s Startup Ecosystem – Cairo-based Foundation Ventures has announced the first close of its $25M fund, dedicated to scaling early-stage and growth-stage startups in Egypt. The fund has attracted backing from the Egyptian American Enterprise Fund (EAEF), MSMEDA, and Onsi Sawiris, signaling strong institutional support for Egypt’s growing tech sector.

🔹 StarkWare Launches $4M Blockchain Investment Fund for Africa – Israeli blockchain giant StarkWare, valued at $8B, has unveiled a $4M fund to support pre-seed and seed-stage blockchain startups across Africa. Early-stage projects will receive grants of up to $150K, while high-growth startups building on StarkNet can secure follow-on investments of $500K+. With Africa’s crypto adoption accelerating amid forecasts of $6.7T in business and consumer spending by 2030, blockchain investments are on the rise.

🔹 i3 Initiative Injects $1.6M into 15 African Healthtech Startups – Amidst a decline in African healthtech funding (which accounted for only 6.5% of total VC activity in 2024), the Gates Foundation-backed Investing in Innovation Africa (i3) is stepping up with $50K equity-free grants for 10 early-stage startups and up to $225K each for five additional growth-stage ventures. The program has already backed 60 startups across 16 African nations, creating over 150 strategic connections with healthcare organizations.

🔹 Cauridor Raises $3.5M to Expand Payment Infrastructure in Francophone Africa – Ivorian fintech Cauridor, which operates a network of 25,000+ payment agents across Guinea, Senegal, Ivory Coast, Sierra Leone, and Liberia, has raised $3.5M in seed funding. The startup processed $500M in transactions in 2024 and is now expanding into Mali and Nigeria, with plans to integrate blockchain technology to enhance cross-border settlements.

🔹 Khazna Secures $16M Pre-Series B to Enter Saudi Arabia – Egyptian fintech Khazna, which started as an earned wage access provider and evolved into a multi-product fintech, has raised $16M to fuel its digital banking expansion in Egypt and support its entry into the Saudi Arabian market. The company’s backers include SANAD Fund for MSME, Aljazira Capital, Khwarizmi Ventures, Quona Capital, and Speedinvest.

🔹 Tunisian Fintech EasyBank Raises $370K to Support Global Growth – AI-powered digital banking startup EasyBank has secured $370K to expand into the Middle East, North Africa, and France. The startup aims to streamline loan access and advisory services using AI-driven financial solutions.

📈 Strategic Acquisitions & Market Moves

🔹 Egypt’s Dsquares Acquires B2B Loyalty Startup Prepit – Egyptian loyalty solutions giant Dsquares, which operates across banking, telecom, FMCG, and retail, has acquired B2B SaaS loyalty platform Prepit for an undisclosed amount. The acquisition will bolster AI-powered customer engagement solutions across Saudi Arabia, Egypt, and the UAE, as demand for gamified loyalty programs surges in the region.

African startups continue to secure significant VC backing, with fintech, blockchain, and healthtech standing out as key sectors attracting funding. As 2025 unfolds, the push for regional expansion, blockchain integration, and deepening investor confidence is positioning African startups for sustained growth and global competitiveness.

👀 This week’s featured investor is NuState Capital. 👀

NuState Capital is a Johannesburg-based private equity and venture capital firm backing high-growth businesses across Africa. Founded in 2015, the firm invests in education, healthcare, energy, water, financial services, safety, and real estate, with a strong focus on businesses driving positive social impact while delivering exceptional returns.

With a long-term investment strategy, NuState Capital partners with scalable, cash-generative businesses that need expansion capital, business development expertise, and mentorship. Unlike traditional VCs, NuState has no predefined exit strategy, allowing them to support companies for the long haul.

💡 Portfolio Highlights:

✔ Little Ashford – A leading private preschool network driving early childhood education.
✔ BrightBlack Energy – Delivering sustainable, renewable energy solutions to commercial clients.
✔ Rubicon – Advancing transformative technology solutions in emerging markets.
✔ Nurture – A private healthcare provider specializing in acute, sub-acute, and rehabilitation care.

NuState Capital is actively scaling Africa’s next generation of businesses, combining financial resources with strategic expertise, industry networks, and operational support to unlock growth.

🌍 Explore their portfolio and investment approach on SHA! 💰

⟹ 📺️ MEDIA WATCH 📺️  ⟸

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

1. Egyptian fintech startup Khazna raises $16m pre-Series B round to fuel expansion  - Disrupt Africa

2. Tech Giant IBM Exits Direct Operations in West African Markets - Tech In Africa

3. Foundation Ventures unveils $25m fund to support Egypt’s startup ecosystem  - Disrupt Africa

4. Israeli unicorn StarkWare launches $4 million fund to invest in African blockchain startups - Techcabal

5. Ivorian fintech startup Cauridor raises $3.5m seed funding - Disrupt Africa

And that’s your weekly dosage of the African startup ecosystem! If you have any comments or feedback, just respond to this email.

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• 👉️ 👉️ Scalable

Thanks for reading. Have a great week ahead!

Gitonga, the Stoic Founder at StartupHub.Africa 🚀

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