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South African venture capital firm, Secha Capital closes first tranche of $15.7m funding

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South African venture capital firm, Sencha Capital, has closed an initial funding round of $15.7 millon from a targeted fund of $34 million from a group of investors including RMB Ventures, 27four Investment Managers, the SA SME Fund, and Caleo Capital.

Founding partner, Nombuso Nkambule who made the announcement on Saturday, said the fund was targeting wider investments in traditional companies across different sectors in the southern Africa region making the tech-enabled transition into the green economy.

“The new fund has already made four investments in iG3N, Cultura Fresh, Herbivore and FarmTrace, and plans to make 10 more investments within the next five years,” Nkambule said.

He added that Secha Capital, which runs an operator-investor model, placed highly-skilled human capital resources into its portfolio companies to work on high impact value creation projects that deliver exponential growth for its entrepreneurs.

“We invest in companies at an inflection point in their growth trajectory. Most capital in Southern Africa is invested in either extremes – early-stage startups or mature companies,” Nkambule said.

“We’ve identified a gap in the market where we can find a unique proprietary pipeline and bring in our team of operator investors to achieve outsized returns,” he added.

According to information from the company, Secha Capital, which was founded in 2017 by Nkambule, Brendan Mullen and Rushil Vallabh, is an operator-investor firm that runs a model that places highly-skilled human capital resources into its portfolio companies to work on high impact value creation projects that deliver exponential growth for its entrepreneurs.

According to tech experts, the first tranche of fund has proven that the combination of equity investments and human capital for growth-stage businesses is a replicable model for generating financial returns and social impact, particularly in women-founded businesses in South Africa.

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Kenya’s e-commerce startup, tappi partners with KNCCI to launch digital services for MSMEs

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Kenya’s e-commerce startup, tappi, has announced a strategic partnership with the Kenya National Chamber of Commerce and Industry (KNCCI), to launch digital services for MSMEs in the country.

Co-founder and CEO of tappi, Kenfield Griffith, who announced the signing of the announced the signing of the Memorandum of Understanding (MoU) with the KNCCI, the collaboration will see the launching of a Sukuma Biz initiative which will enable tappi to deliver a unique package of digital services specifically geared towards bolstering online credibility and identity for the KNCCI’s 30,000 business members.

“KNCCI is one of Kenya’s most trusted industry bodies and with its extensive network of local businesses, they’re an ideal partner to accelerate our mission of empowering MSMEs to effectively establish strong reputations of their own in an online setting,” said Griffith.

“In order for this initiative to be successful, it was vital we worked alongside a partner with not only a strong, in-depth understanding of the most critical pain points Kenyan businesses face, but also the demographics which are most heavily affected by them.

“With this in mind, we’re incredibly proud to be joined by KNCCI on what we believe is not only a crucial step for MSMEs, but specifically women-led businesses, in equipping them with the digital tools to significantly drive Kenya’s economy forward,” he added.

Founded in 2022 by Griffith and Louis Majanja, tappi is an end-to-end digital commerce SaaS solution tailored for MSMEs, which allows business owners to download its app, add their “look and feel”, and promote their business through a three-step process that goes to Google Ads, Facebook Ads, and Instagram Ads using airtime credit or mobile money.

Also speaking on the partnership, Majanja said tappi has been on a “rapid growth journey capturing verified reviews on over US$3 million consumer transactions and engaging with over 150,000 consumers.”

He added that the startup had raised $1.5 million in December of 2023 through an oversubscribed pre-seed round of funding, and it recently made Ivory Coast its third market, having already moved into Nigeria.

“For a monthly fee of KES500, KNCCI members will receive their own business landing page on tappi’s platform featuring a KNCCI logo as well as access to 50 customer reviews via SMS, WhatsApp or additional channels, which will be integrated to their landing page.

“Members will also be able to send 250 text marketing messages directly to their customers.

“Leveraging tappi’s SaaS and enterprise-grade solutions, all KNCCI members will be able to generate SEO-optimised websites in less than two minutes based on eight simple questions devised by an intuitive chat tool,” he added.

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Job losses loom as Microsoft set to shut down Lagos tech centre

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An estimated 500 jobs are at risk following the decision of United States-based multinational technology giant, Microsoft, to close down its African Development Centre (ADC) located in Lagos, Nigeria.

Though no reason has been advanced for the impending closure of the ADC, industry experts say it may not be unconnected with the unfavourable economic policies of the President Bola Tinubu administration which has seen businesses suffer, while many foreign conglomerates have been forced to close shop and leave the country.

An inside source who pleaded anonymity, said Microsoft had in an internal memo, communicated to its members of staff on Monday about shutting down operations in Lagos.

“The affected employees would receive salary payments till June and continue to be covered by health insurance,” the insider said.

He added that the closure of the ADC will only affect Microsoft’s operations in West Africa but not its East Africa facility located in Nairobi, Kenya.

Microsoft had launched its $100 million African Development Centers initiative in 2019, establishing facilities in both Lagos and Nairobi.

In Nigeria, the tech giant hired more than 120 engineers when it was unveiled in 2022, and over the years, have growi its staff strength to more than 500 in total.

The company, in 2019, said it aimed to recruit 100 full-time engineers by the end of the year, and 500 engineers by the end of 2023 in its bid to tap into Africa’s innovation in fields like fintech, agritech and off-grid energy and hopes to tap into them.

“The ADC will be unlike any other existing investment on the continent. It will help us better listen to our customers, develop locally and scale for global impact,” Microsoft executive vice president, Phil Spencer, had said in Nairobi.

“Beyond that, it’s an opportunity to engage further with African partners, academia, governments and developers – driving impact and innovation in sectors important to Africa,” Spencer said.

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