💡 From Sky.Garden Cleanup to Paymob Profits: This Week’s Buzz

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⟹ 🚀 STARTUPS WATCH 🚀 ⟸

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

Koa Impact, based in Achimota, Ghana, is revolutionizing the cocoa industry by turning discarded cocoa pulp into a sustainable source of income for farmers. Founded in 2017 and backed by $10 million in funding, Koa utilizes solar-powered, carbon-neutral technology to directly engage with over 1,600 farmers, enhancing their livelihoods while minimizing food waste.

The company’s innovative approach not only boosts the economic growth of rural West African communities but also ensures the production of high-quality, traceable products that delight consumers. By connecting the rich flavors of cocoa with responsible value creation, Koa Impact is making a meaningful difference for people and the planet.

Founded in 2018 in Cairo, Magma is an innovative Egyptian startup dedicated to crafting superior sportswear for athletes. Although currently unfunded, Magma stands out by combining high-quality materials with advanced technology to enhance athletic performance.

Their apparel features proprietary treatments like Actiwick™ and Bactinix™, designed to wick moisture away and combat odor-causing bacteria, ensuring comfort during even the toughest workouts. With a focus on style and functionality, Magma aims to empower athletes to unleash their inner strength and excel in their endeavors. The brand’s ethos reflects a commitment to redefining athletic gear, making it as formidable and dynamic as the magma itself.

Founded in 2011, Powerhive is a Kenyan software startup focused on providing resilient energy infrastructure for off-grid communities. Powerhive partners with utilities and independent power producers to deliver affordable, reliable mini-grid electricity to rural homes and businesses.

Utilizing a proprietary technology platform, Powerhive enables the financing, monetization, and management of off-grid utility solutions. Their cloud-based software automates account management, monitors microgrid operations, and facilitates prepaid electricity payments via mobile networks. By empowering remote communities with sustainable energy, Powerhive is creating a future where clean electricity and economic opportunities are accessible to all, helping them leapfrog outdated power infrastructure into a more stable energy landscape.

⟹ 💼 💰️ VENTURE CAPITAL WATCH 💼 💰️ ⟸

This week in the Venture Capital Watch, Userguest raised $2.4 million to enhance hotel revenue optimization, while Uncap launched a €30 million fund for early-stage SMEs. Field secured $11 million from the Gates Foundation to tackle maternal mortality in Nigeria. These investments highlight the vibrant growth of Africa's startup scene, and we’re diving deeper below.

Early-stage African investor Uncap has launched a new fund, Unconventional Capital, with €30 million ($33 million) dedicated to providing non-dilutive, revenue-based financing to early-stage SMEs across Africa. Established in 2019 and officially launched in 2021, Uncap aims to unlock growth opportunities for businesses, collaborating with partners like SAIS and O-Farms to enhance support in high-impact sectors. Backed by institutions such as the Bill & Melinda Gates Foundation, the fund focuses on flexible funding options that avoid equity dilution, addressing the significant capital challenges faced by SMEs in the continent's underserved markets. Co-led by investment principal Esther Ndeti and CEO Franziska Reh, Uncap seeks to redefine SME financing and promote sustainable economic growth across Africa.

Egyptian fintech startup Paymob has raised an additional $22 million in an extension of its Series B funding round, bringing its total to $72 million. Founded by college friends Islam Shawky, Alain El Hajj, and Mostafa Menessy in 2015, Paymob addresses the gap in digital payments for e-commerce in Egypt, enabling over 350,000 merchants across five MENA countries to accept a variety of payment methods. The company has seen significant growth, tripling its merchant base since 2022 and expanding its services to include advanced payment solutions and an app for small businesses.

Moroccan startup Userguest has secured €2.2 million ($2.4 million) in seed funding to enhance its hotel technology platform, which helps hotels optimize revenue through personalized messaging and intelligent incentives. Founded in 2018, Userguest has already generated over $100 million in direct revenue for hotels across 30 countries. The funding, led by Al Mada Ventures and supported by CDG Invest and others, aims to accelerate growth and introduce innovative features, with a focus on expanding the sales team to penetrate key markets. Co-founder Hicham Benyebdri emphasized the investment's significance in solidifying Userguest's position as a leader in hospitality tech, enhancing both hotel performance and user experience.

👀 This week’s featured investor is Sherpa Africa Partners. 👀

This week, we spotlight Sherpa Africa Partners, a venture capital firm committed to empowering early-stage tech startups across Africa. Founded in 2020 and based in Nairobi, Sherpa collaborates closely with founders to provide not just capital but also invaluable local expertise and strategic support in areas like market entry and operations.

Their portfolio includes innovative companies such as Boost, OnePipe, and Zumi, focusing on sectors from fintech to renewable energy. Sherpa is dedicated to transforming industries and driving growth in Africa's digital economy, ensuring that visionary entrepreneurs have the resources they need to thrive. If you're building groundbreaking technology in Africa, Sherpa is eager to support your journey!

⟹ 📺️ MEDIA WATCH 📺️  ⟸

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

1. Paymob, started by three college friends, lands another $22M and is profitable in Egypt - Techcrunch

2. Morocco’s Userguest raises $2.4m seed funding to revolutionise hotel technology - Disrupt Africa

3. Y-Combinator-backed Heyfood will expand to Abuja and Benin, avoiding the contested Lagos market - Techcabal

4. Nigerian e-health startup Field launches service to tackle maternal mortality with $11m Gates Foundation backing - Disrupt Africa

5. E-commerce platform Sky.Garden removes 1,500 vendors over counterfeiting claims - 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.

Before I leave, here’s a set of newsletter recommendations that I think you may enjoy. 😀 

• Tech Safari

• Founders Fuel

• Big Desk Energy

• Scalable

• Startup Marketer Newsletter

Thanks for reading. See you next week.

Gitonga, the Stoic Founder at StartupHub.Africa 🚀

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