Tech

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

Published

2 months ago

September 20, 2024

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.

Related Topics:Africa Featured Funding SMES Uncap Venture Capital

Click to comment

Tech

African startups invited to pitch at this month’s Africa Tech Festival in Cape Town

Published

5 hours ago

November 10, 2024

Isaac Dachen

African tech startups have been invited to make their pitches at the Africa Tech Festival which will take place in Cape Town, South Africa, from November 12 to 14.

The invitation will afford selected startups the opportunity to pitch their business, connect with funders, and meet potential customers, according to James Williams, the Event Director of Africa Tech Festival.

In a statement announcing the offering, Williams said the Africa Tech Festival, including anchor events AfricaCom, AfricaTech, AfricaIgnite, and AI Summit Cape Town, is the largest tech and digital connectivity conference and exhibition in Africa, attracting hundreds of exhibitors, more than 450 speakers and more than 15,000 delegates.

“This year’s edition, the 27th, takes place on November 12-14 at the Cape Town International Convention Centre (CTICC), with AfricaIgnite the flagship event for founders, investors, and key players in the tech ecosystem, supporting market access and investment opportunities for the continent’s startups,” he stated

“Africa Tech Festival is all about providing a platform for stakeholders from across all spheres of Africa’s technology arena to connect, collaborate, and drive innovation.

“It is wonderful to see how AfricaIgnite has grown since first being included in the Africa Tech Festival line-up. This year sees the highest attendance by founders and venture capitalists to date, reflecting the effectiveness of the platform in growing Africa’s startup ecosystem.

“Delegates can look forward to a stellar range of speakers, and sponsorship by established brands like Collective 54 and SAP for Scaleups,” said Williams.

He added that a pre-event “Founder and Investor Day” will enable founders to learn from and network with experienced entrepreneurs, while the “Matchmaking Programme” offers a chance to connect with potential venture capitalists.

“Opportunities to exhibit in the event’s startup marketplace will allow founders to increase brand visibility and connect with potential customers.

“Presented in partnership with the Startup World Cup and powered by Pegasus Tech Ventures, the AfricaIgnite Pitch Competition presents an opportunity for innovators to showcase their ideas to potential investors and partners in a live pitch.

“The winner will advance to next year’s Startup World Cup Grand Finale in the United States, where they will compete for a $1 million investment prize alongside the best startups from around the globe.”

Tech

Morocco’s retail-tech startup Chari partners with Orange to digitise retailers

Published

2 days ago

November 8, 2024

Isaac Dachen

Morocco’s retail-tech startup, Chari, has entered into partnership with telecoms giant, Orange Maroc, to boost the digital transformation of Moroccan neighbourhood retailers.

According to the CEO and co-founder of the startup, Ismael Belkhayat, through the partnership, Orange Maroc and Chari will offer Moroccan neighbourhood retailers tailored digital solutions, with Chari leveraging the distribution network of Dislog Group, its exclusive logistics partner.

“This collaboration will enhance retailers’ competitiveness by facilitating payments and accessing new financial services,” he said.

“The partnership will also support financial inclusion offering merchants and their customers innovative and secure payment solutions.

“The vast majority of Moroccan grocery stores already distribute services from the telecom operator Orange. This partnership with Orange will allow Chari to digitise the distribution process of these services by adding them to its eCommerce app.

“This will contribute to better training grocers in using digital tools and promoting their digital inclusion,” Belkhayat said.

Founded in 2020 by Belkhayat and his wife, Sophia, Chari allows traditional proximity store owners in Morocco to order products and have them delivered.

The platform has onboarded over 20,000 food businesses in Morocco, and expanded into Tunisia and Ivory Coast.

In 2023, the startup raised $1 million in funding from Orange Ventures, and has now deepened is relationship with the operator through this partnership with Orange Maroc.