Africa Funding Roundup Week 37: Kenyan Startups Lead with $33.3M in Electric Mobility Funding

The Big Number

This week, African startups raised approximately $36.3 million, a notable figure that underlines the persistent momentum in the continent's tech investment landscape. While this amount marks a slight decrease compared to previous weeks, the focus on specific sectors showcases a targeted approach by investors.

Top Deals

1. ARC Ride

   • Amount Raised: $33.3 million
   • Founders: Jo Hurst Croft
   • Company Description: ARC Ride is a Kenyan electric mobility startup specializing in Battery-as-a-Service (BaaS) solutions, aiming to transform transportation across Sub-Saharan Africa.
   • Investors: Led by Novastar Ventures and Norrsken22, with additional backing from IFC, BII, Proparco, Musashi Seimitsu, and Talanton.

2. Velocity

   • Amount Raised: Reported investment from the Africa Jobs Fund (exact amount not disclosed)
   • Founders: Lalit Kumar, Siddharth Gusain, Betty Chelangat
   • Company Description: This Kenyan startup focuses on the training and placement of nurses, bridging the gap for healthcare providers in Germany by preparing qualified African nurses.
   • Investors: Africa Jobs Fund.

3. Nomba

   • Amount Raised: $3 million
   • Company Description: A Nigerian fintech company focused on cross-border payments and digital transactions.
   • Investors: Not specified in the sources.

Sector Spotlight

Electric mobility continues to gain traction in Africa, with ARC Ride's substantial funding being a testament to the growing interest in sustainable transport solutions. Additionally, the healthtech sector is emerging with Velocity's initiative to train nurses for international placement, indicating an increasing focus on healthcare solutions.

Country Watch

Kenya is at the forefront this week, with both top deals occurring within its borders. ARC Ride not only contributes to the electric mobility landscape but also aims to expand into other countries such as South Africa, Ghana, and Tanzania. Meanwhile, the continued development in the labour mobility sector through Velocity highlights Kenya's dual focus on tech and social impact. Nigeria remains active, with Nomba's funding underlining the fintech sector's resilience.

The Trend

This week's funding landscape indicates a shift towards more targeted investments, particularly in sectors addressing specific challenges such as sustainable transport and healthcare. The success of ARC Ride and Velocity suggests that investors are increasingly looking for companies that not only promise financial returns but also contribute to societal improvements. There seems to be a growing recognition that tech solutions can address pressing issues such as health professional shortages and environmental sustainability.

What to Watch

• ARC Ride's Expansion: Keep an eye on how ARC Ride scales its operations across Sub-Saharan Africa, especially in markets like South Africa and Ghana.
• Velocity's Impact: As Velocity expands its nurse placement program into Malawi and Zambia, it will be interesting to see the impact on local healthcare systems and whether it attracts further investment.
• Fintech Innovations: With Nomba raising funds, the fintech space in Nigeria remains vibrant. Look for new products and services that may emerge from this funding.

In conclusion, while the total funding appears modest compared to previous weeks, the focus on impactful sectors signals a strategic approach from investors. As Africa's tech landscape continues to evolve, these developments underline the importance of innovation that addresses both market needs and social challenges.

Sources

1. Kenyan Startup Velocity Secures Africa Jobs Fund Investment To Expand Nurse Placements — WeeTracker
2. Kenya’s ARC Ride Raises USD 33.3 M To Scale Electric Mobility Across Africa — WeeTracker
3. Nomba raises $3 million for cross-border payments — TechPoint Africa

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