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Uncap VC earmarks $33m to empower early-stage African SMEs

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Kenya’s Venture Capital firm, Uncap, has announced earmarking a whopping $33 million fund aimed at fostering the growth of early-stage small and medium-sized enterprises (SMEs) across Africa.

Uncap CEO, Franziska Reh, who made the announcement on a statement, said the firm will collaborate with key partners to unlock new growth opportunities for African businesses.

She stated that the fund presents a “unique non-dilutive, revenue-based financing model that provides crucial support to early-stage businesses without requiring equity stakes.”

“These partnerships include O-Farms, a circular agriculture program run by Bopinc and funded by the Ikea Foundation, and SAIS, an agritech initiative supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ.

“The fund has garnered support from global institutions, including the Bill & Melinda Gates Foundation and the Bayer Foundation. This backing underscores the potential impact of Uncap’s innovative approach to SME financing in Africa.”

“This initiative by Uncap represents a significant step towards addressing the financing challenges faced by African SMEs. By offering a flexible, non-dilutive funding model, the fund aims to empower entrepreneurs to grow their businesses while retaining control.

“As Africa’s SME sector continues to evolve, innovative financing solutions like Unconventional Capital could play a crucial role in driving economic growth and development across the continent,” Reh added.

Uncap’s track record includes investments in 87 companies across seven sub-Saharan African countries with their portfolio spanning eight sectors, including agriculture, education, food and beverages, media and entertainment.

According to the CEO, to qualify for funding, intending SMEs must be registered limited companies in Kenya, Rwanda, Uganda, or Nigeria and should have at least two years of operational history and a minimum revenue of $89,000 in the past 12 months.

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Kenya’s auto-tech startup BuuPass expands system to new operators

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Kenyan auto-tech startup, BuuPass, has announced the expansion of its Bus Management System (BMS) to new operators in a bid to further enhance transparency and operational efficiency for bus companies in the country.

Founded in 2016 by the duo of Sonia Kabra and Wyclife Omondi, BuuPass has grown from a B2B2C mobility marketplace to become a leader in digital ticketing and transportation management solutions that enables users to search, compare, and book travel tickets via web, app, or USSD, while its SaaS platform helps bus operators manage their operations, inventory, and sales.

“What we are witnessing is nothing short of a digital renaissance in bus operations. Our Bus Management Service isn’t just a tool—it’s the future of this industry,” said Kabra, who doubles as the CEO of the company.

“So far, BuuPass has sold over 16 million travel tickets and generated over US$100 million in total value of goods sold, while it has also taken part in the Google for Startups Accelerator Africa and been backed by the Google for Startups Black Founders Fund. It also acquired counterpart QuickPass earlier this year.

“The BuuPass BMS is designed to address the most pressing challenges faced by bus operators. At its core, the system enhances transparency and control by providing real-time visibility into all aspects of operations, from ticket sales to route performance.

“Among the newly enrolled operators are Abuya, Abandu, Shoreline, and Bin Ibrahim, serving crucial routes such as Nairobi-Garissa, Nairobi-Moyale, Nairobi-Busia, Mombasa-Busia, and Mombasa-Kitui.

“To ensure smooth integration, BuuPass provides these operators with scanning devices, computers, and digital printers, along with comprehensive training for their staff on system usage,” she said.

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Tanzanian fintech Nala secures $40m funding to boost expansion

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Tanzanian payments platform, Nala, has announced securing $40 million in Series A funding from several global investment firms such as San Francisco-based VC firm, Acrew Capital, DST Global and Amplo, as well as other angel investors, which it says will be used for its global expansion and to strengthen its payment systems across Africa.

The startup which has its headquarters in Kenya, is a fintech that enables seamless money transfers from the UK, US, and the EU to Kenya, Uganda, Tanzania, Rwanda, and Ghana.

Nala’s founder and CEO, Benjamin Fernandes, who announced the new funding in a statement, said it is coming on the heels of a $10 million seed round in 2022 and will further improve the reliability of its African payment systems by establishing its own payment infrastructure.

Fernandes highlighted how the new capital would fast-track the company’s global expansion efforts, focusing on its Nala Money App and its business-to-business (B2B) payment platform, Rafiki API.

“This funding allows us to go beyond remittances and scale beyond Africa, building a comprehensive payments ecosystem. We’re reinvesting to enhance our infrastructure, ensuring affordable, reliable payments for everyone,” Fernandes said.

“With our own payment rails and the growth of our B2B platform Rafiki, we’re not just talking about change – we’re building it. We have bold, ambitious plans, so stay tuned for the next couple of years.

“For the first time, we are profitable and cash flow positive. Our transaction volume has surged 34 times over the last 20 months,” he added.

He noted that the company has expanded from a seven-member team to nearly 100 employees, and is serving nearly 500,000 customers globally.

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