ReNile specializes in providing end-to-end solutions that address the core challenges of modern farming. Its innovative product range is designed to monitor and optimize critical factors such as water, soil, and air quality. By leveraging cutting-edge Internet of Things (IoT) technology, ReNile enables farmers to closely monitor environmental conditions, automate routine processes, and improve overall operational efficiency.

The startup’s IoT systems empower farmers with real-time data insights, allowing them to make informed decisions that enhance crop yields and reduce resource wastage. From automating irrigation systems to monitoring soil health, ReNile’s solutions help streamline farming practices and ensure sustainable use of natural resources.

ReNile’s commitment to innovation and sustainability has attracted significant investor interest. The company recently raised an impressive US$450,000 in funding from undisclosed investors. This fresh capital injection will enable ReNile to scale its operations and expand its reach beyond Egypt.

With ambitious plans to enter the Saudi Arabian and Kuwaiti markets, ReNile aims to address the growing demand for smart farming solutions in the region. These markets present immense opportunities for agricultural innovation, and ReNile is poised to play a key role in transforming traditional farming practices into tech-driven, efficient systems.

As the global agriculture sector faces increasing pressure to produce more with fewer resources, ReNile’s smart farming solutions stand out as a beacon of hope for sustainable and efficient food production.

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South African fintech and alternative funding provider, Sourcefin, has successfully secured ZAR150 million (approximately US$8.2 million) in funding from Futuregrowth Asset Management. This landmark investment aims to strengthen Sourcefin’s mission of enabling financial access and providing specialized supply chain support to small and medium-sized enterprises (SMMEs).

Bridging the Financial Gap for SMMEs

Established in 2020, Sourcefin has emerged as a pivotal enabler for often-overlooked SMMEs in South Africa. By addressing critical gaps in financing, the company empowers small businesses to overcome working capital challenges and fulfill purchase orders from both public and private sectors. This innovative approach has positioned Sourcefin as a vital player in supporting the backbone of the South African economy.

Futuregrowth’s Strategic Investment

The ZAR150 million investment was provided through Futuregrowth’s High Growth Developmental Equity Fund (HGDEF). This fund is dedicated to supporting high-growth businesses and aligns with Futuregrowth’s strategy of investing in transformative enterprises. Notable companies previously backed by HGDEF include hearX, Yoco, Pineapple, Retail Capital, Ozow, and Cash Connect.

Amrish Narrandes, Head of Private Equity and Venture Capital at Futuregrowth, highlighted the significance of this investment:
“The SMME sector is vital for South Africa’s economic growth, yet traditional financing solutions often fail to meet their unique needs, particularly in government-issued orders. Sourcefin’s technology-first approach, coupled with their expertise in procurement and project management, has created a truly transformative solution. Their proven ability to support tender fulfillment while maintaining strong financial performance made this a compelling investment opportunity.”

Scaling Sourcefin’s Impact

Joshua Kadish, Co-Founder, Director, and CEO of Sourcefin, emphasized the transformative potential of this partnership:
“There is no doubt about the massive impact that well-supported SMMEs can have on our country. With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy.”

Driving Economic Growth and Innovation

This strategic partnership between Sourcefin and Futuregrowth is poised to significantly enhance the financial landscape for SMMEs in South Africa. By leveraging Sourcefin’s innovative technology and expertise, the collaboration aims to foster economic growth, create jobs, and drive innovation within the sector.

With this funding, Sourcefin is set to expand its impact, reinforcing its role as a catalyst for change in South Africa’s SMME ecosystem.

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Equity Investment Welcomes New Shareholders

The $90 million equity investment marks a significant milestone for Cassava Technologies, as it attracts new shareholders who share the company’s vision for advancing Africa’s digital future. These new investors join an already impressive roster, which includes Econet Group, British International Investment, Public Investment Corporation, Royal Bafokeng Holdings, Gateway Partners, and the African Export-Import Bank (Afreximbank). This strategic injection of equity capital underscores the growing confidence in Cassava’s integrated digital solutions platform.

Liquid Intelligent Technologies Secures $220 Million Debt Refinancing

In a parallel development, Liquid Intelligent Technologies, a key subsidiary of Cassava Technologies, has successfully closed a $220 million equivalent ZAR debt refinancing. This refinancing initiative was made possible through partnerships with prominent financial institutions, including Standard Bank Group, Rand Merchant Bank (RMB), Nedbank, and the International Finance Corporation (IFC).

The funds will enable Liquid Intelligent Technologies to enhance its offerings in broadband connectivity, data center co-location, and cloud services while reinforcing its position as a market leader in digital infrastructure solutions across Africa.

Driving an Integrated Digital Solutions Platform

Hardy Pemhiwa, Group CEO and President of Cassava Technologies, emphasized the importance of the funding round, stating: “The $310 million financing, combined with our strategic reorganization, is part of our repositioning into an integrated digital solutions platform. We are focused on delivering broadband connectivity, co-location (data centers), cloud, cybersecurity, AI computing, and fintech services in our chosen markets.”

This strategic direction aligns with Cassava’s mission to bridge the digital divide and empower African enterprises and communities with cutting-edge technologies.

A Pioneering ICT Platform for Africa

Founded in 2021 as a rebrand and restructuring of various digital businesses under Strive Masiyiwa’s Econet Group, Cassava Technologies has rapidly established itself as a cornerstone of Africa’s digital economy. Operating in over 30 countries, the company provides a wide range of services, including broadband connectivity, data center co-location, cloud solutions, cybersecurity, and payment systems.

By integrating these offerings, Cassava Technologies is not only addressing the continent’s critical infrastructure gaps but also creating opportunities for innovation, economic growth, and social development.

A Vision for Africa’s Digital Future

With its latest funding milestone, Cassava Technologies is poised to accelerate the deployment of transformative digital solutions across Africa. By leveraging partnerships with global investors and local financial institutions, the company is strengthening its capacity to deliver world-class ICT services to enterprise and hyperscale customers.

As Africa’s digital landscape continues to evolve, Cassava Technologies stands at the forefront, championing innovation and inclusion in the digital age.

The post Cassava Technologies Secures $310M to Power Africa’s Digital Future appeared first on Venture Deals Africa.

A Milestone in African Private Equity

Samantha Pokroy, CEO of Sanari Capital, shared her excitement about the fund’s successful close, emphasizing the trust it reflects in the firm’s investment strategy. “With four investments already made and a robust pipeline of opportunities that align with our themes, this capital enables us to execute our plans swiftly. We are optimistic about the positive impact this will have on the ground and on the fund’s returns,” she said.

A Diverse and Confident Investor Base

The Sanari 3S Growth Fund has attracted a wide range of institutional investors, demonstrating broad confidence in its vision and approach. Key investors include:

• Public Investment Corporation (PIC)
• Alexforbes Investments
• 27four Black Business Growth Fund
• Telkom Retirement Fund
• Motor Industry Retirement Funds
• RisCura
• National Fund for Municipal Workers

This diverse investor base underscores Sanari Capital’s reputation and its ability to bring together stakeholders committed to advancing African businesses.

Scaling Businesses with Global Potential

Sanari Capital’s investment strategy targets mid-market businesses with significant scaling potential, offering investments of up to R250 million (approximately $14 million). The firm’s current portfolio is a testament to this vision, with companies generating about 60% of their revenues in hard currency, reflecting strong export orientation and geographic diversity.

Moushmi Patel, Executive Director of Sanari Capital, highlighted the global demand for South African innovation: “We are continuously inspired by the compelling technology and innovation that thrive in our market.”

Portfolio Highlights

The fund’s portfolio includes businesses that are making a notable impact in their respective industries:

• Edulife Group: Providing affordable schooling solutions.
• LightWare LiDAR: Developing the world’s smallest and lightest LiDAR sensors.
• iiDENTIFii: Africa’s leading enterprise identity verification company.
• Energenic Holdings: A pan-African energy solutions provider.

Commitment to Transformation and Economic Impact

Sanari Capital places a strong emphasis on diversity, transformation, and economic impact in its investment approach. Sihle Gumede, a representative of the firm, commented, “Private equity has a pivotal role in transforming our economy.”

This commitment is evident in the firm’s focus on fostering growth that not only delivers strong financial returns but also drives meaningful change across the African business landscape.

Sanari Capital’s R1.5 billion fund marks a new chapter in supporting technology-driven African enterprises, showcasing the potential of private equity to empower innovation and transformation in the region.

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Empowering Traditional Retail Through Technology

Founded in 2022 by Meriem Benabad, Samer Choumar, and Youssef Ait-Haddouch, Z operates as a B2B marketplace connecting traditional retailers and brands directly with consumers. The platform addresses a critical need in the Fast-Moving Consumer Goods (FMCG) sector, where traditional trade still dominates, accounting for 85% of the market.

Z’s innovative approach seeks to revitalize traditional trade by equipping small businesses with tools to remain competitive in an evolving retail landscape.

Impressive Growth Since Inception

In just two years, Z has achieved remarkable milestones. The startup has onboarded over 15,000 active retailers and processed more than 800,000 orders. This rapid growth underscores the platform’s potential to reshape Morocco’s retail ecosystem.

Backing from Leading Investors

The funding round was supported by prominent Morocco-based venture capital firms, including MNF Ventures, Witamax, Cash Plus Ventures, and Kalys Ventures. Their backing reflects strong confidence in Z’s mission and growth trajectory.

Scaling for the Future

The fresh funds will be strategically invested to enhance Z’s technology, expand its product offerings, and prepare for the next phase of scaling operations.

“This funding marks a pivotal moment for Z, as we aim to scale operations and bring cutting-edge solutions to traditional retail,” said Samer Choumar, one of Z’s co-founders. “Our vision is to empower small businesses and unlock growth across Morocco and Africa.”

With this financial boost, Z is well-positioned to lead the digital transformation of traditional retail in Morocco and beyond.

Moroccan B2B retail-tech startup Z raised $1.05M in seed funding to enhance technology, expand product offerings, and empower traditional retailers in the FMCG market.”

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Investors and Funding Details
The $1.6 million funding, comprising a mix of debt and equity, was secured from prominent investors including Norrsken Accelerator, Kaleo Ventures, 54 Collective, P2Vest, and Afrinovation Ventures. This financial backing underscores the growing interest in innovative solutions addressing SME challenges in Africa.

Addressing SME Cash Flow Challenges
Founded in 2023 by Justus Obaoye and Abdulazeez Ogunjobi, Billboxx was established to tackle cash flow issues plaguing SMEs, which frequently experience long or delayed payment cycles from larger enterprise partners. The company’s invoice financing solution provides advance payments to SMEs ahead of client payments, ensuring steady cash flow crucial for business operations.

However, SMEs using Billboxx must first secure approval from their enterprise clients for payment authorization. The platform charges up to 5% for invoice financing and 1.5% in transaction fees for payments processed through its system.

Operational Milestones and Unique Model
Billboxx reports processing over ₦1 billion monthly without any defaults, a testament to the platform’s reliability. “We realised that every business we interacted with faced billing inefficiencies and cash flow problems. Many still rely on manual or Excel-based invoicing,” said co-founder Justus Obaoye.

The fintech serves SMEs primarily but also partners with larger enterprises to expand its reach. Current clients include Monument Distillers and the International Institute of Tropical Agriculture (IITA). By leveraging its unique distribution model, Billboxx acquires SMEs through its partnerships with these larger entities.

A Differentiated Approach
Unlike competitors focusing on mid-market and enterprise-level businesses, Billboxx prioritizes solutions tailored to SMEs. “We aim to become the financial operating system for SMEs in Africa,” Obaoye stated. This vision drives the company’s strategy and product development.

Future Plans and Expansion
Looking ahead, Billboxx plans to extend its footprint across Africa while introducing a new feature designed to help SMEs access market opportunities within corporate ecosystems. Though details of this feature remain undisclosed, it signals the company’s commitment to innovation and growth.

Conclusion
With its robust financial backing and a clear focus on addressing the unique challenges of SMEs, Billboxx is poised to redefine financial operations for small businesses across Africa. The company’s innovative solutions and ambitious goals make it a key player in Africa’s fintech landscape.

The post Nigerian fintech Billboxx raises $1.6 million in pre-seed from Norrsken, 54 Collective appeared first on Venture Deals Africa.

He stated, “Migration is not just a crossover from one geography to another. It is a critical driver of global and national development. In 2022 alone, Nigeria accounted for $21.9 billion in diaspora remittances, representing 64% of all remittances in West Africa. This is a testament to the invaluable economic contributions of Nigerian migrants.”

Beyond financial contributions, Nigerian migrants have demonstrated excellence in technology, medicine, sports, and the creative arts. Nigerian startups founded by migrants attracted over $800 million in investments in 2022, highlighting the transformative potential of the diaspora community.

Migration’s Dual Nature in Nigeria

Vice President Shettima noted that Nigeria serves as both a source and destination for migrants. Over 1.3 million international migrants currently reside in the country. However, he raised concerns about irregular migration, revealing that in 2024 alone, 10,000 Nigerians were detained for migration offenses and subsequently deported.

“Irregular migration remains a persistent challenge,” he said. “In 2024, we have already returned and reintegrated no fewer than 10,000 Nigerians who had been detained for immigration offenses in African and European countries.”

The Vice President emphasized the vulnerabilities associated with migration, calling for coordinated efforts to address these challenges while maximizing migration’s economic benefits.

Government Commitment to Migration Challenges

The Federal Government of Nigeria remains steadfast in tackling the challenges associated with migration. Efforts are being made to address irregular migration and enhance the country’s capacity to benefit from its citizens’ global contributions.

Nigeria’s Changing Position

Nigeria lost its leading position in African startup funding to Kenya in 2023. Kenyan startups attracted the largest amount of funding that year, totaling approximately $800 million, according to research by Africa: The Big Deal.

An analysis of the ‘Big Four’ African countries—Nigeria, Kenya, Egypt, and South Africa—showed that Nigeria slipped from first place in 2021 and 2022 to fourth place in 2023. Nigerian startups raised the least funding compared to the other three countries.

Africa’s Funding Decline

Startups across Africa raised a total of $2.9 billion in 2023, marking a 39% year-on-year decline. The ‘Big Four’ accounted for 87% of the total funding, their largest share since 2019. Kenya led the pack, attracting 28% of the continent’s total funding. Despite a 25% year-on-year decline, Kenya’s share of Eastern Africa’s funding grew from 86% in 2022 to 91% in 2023, with 93 startups raising $100k or more during the period.

Egypt and South Africa’s Contributions

Egypt claimed the second spot among the ‘Big Four,’ with 48 startups raising $100k or more in 2023. Despite its lowest number of funded startups among the Big Four, Egypt saw a substantial increase in its share of North African funding, rising from 72% in 2022 to 95% in 2023. This growth was driven by MNT-Halan’s significant fundraising efforts.

South Africa maintained the highest share of regional funding at 97%. The 70 startups raising $100k or more in the country secured $600 million in funding, accounting for 21% of Africa’s total. Notably, South Africa was the only member of the Big Four to experience growth in total funding, achieving an 8% year-on-year increase.

Key Takeaways

Nigerian migrants are playing pivotal roles as global ambassadors and economic contributors. However, challenges such as irregular migration persist and require focused efforts. Meanwhile, shifts in startup funding trends across Africa underscore the dynamic nature of the continent’s entrepreneurial landscape, with Kenya, Egypt, and South Africa leading the charge in 2023.

The post Nigerian Startups Founded by Migrants Garner Over $800 Million in Investments in 2022 – Shettima appeared first on Venture Deals Africa.

What is a Cofounder Vesting Schedule?

A vesting schedule determines how cofounders earn their ownership stakes over time. Instead of granting equity upfront, shares are earned incrementally, ensuring that cofounders remain committed to the business for a specified period. If a cofounder departs prematurely, they forfeit unvested shares, which can then be redistributed within the company or reserved for future use.

Vesting primarily serves two purposes:

• Encouraging commitment by tying equity to long-term involvement.
• Protecting the startup from losing substantial equity if a cofounder leaves early.

Key Components of Vesting Schedules

1. Duration: Most startups adopt a four-year vesting schedule, commonly used by investors and founders alike.
2. Cliff Period: This is a trial phase, usually lasting a year, during which no equity vests. At the end of the cliff, a lump sum (typically 25% of the total equity for a four-year schedule) vests. Afterward, shares vest incrementally, often monthly. Understanding Cofounder
3. Unvested Shares: These are shares not yet earned by a cofounder and are forfeited if they leave the company early. This mechanism safeguards equity for active team members or future hires.

How Does a Vesting Schedule Work?

Example: A startup allocates 4,800 shares to each cofounder, spread over four years with a one-year cliff.

• Cliff Period: No shares vest in the first year. At the end of year one, 1,200 shares (25%) vest.
• Monthly Vesting: From month 13 onward, 100 shares vest each month until all shares are vested by the end of year four.

If a cofounder exits the startup after two years, they retain only vested shares—2,400 in this case—while the remaining 2,400 are forfeited.

Types of Vesting Schedules

1. Time-Based Vesting:
   • Linear Vesting: Shares vest evenly over a specified period (e.g., monthly or annually).
   • Cliff Vesting: No shares vest until the cliff is reached, after which they begin vesting incrementally.
2. Performance-Based Vesting:
   • Shares vest when predefined milestones, such as revenue targets or product launches, are achieved. This aligns equity with measurable contributions.
3. Hybrid Vesting:
   • Combines time-based and performance-based criteria, requiring both tenure and achievements for shares to vest.

Why is a Vesting Schedule Important?

• Prevents Equity Dilution: Vesting ensures that only committed cofounders retain ownership, preserving equity for those driving the company’s growth.
• Investor Confidence: Investors view vesting as a safeguard, ensuring cofounders are incentivized to stay and contribute to the startup’s success.
• Resolves Disputes: By establishing clear rules upfront, vesting agreements help mitigate conflicts over equity if a cofounder departs.

Special Scenarios in Vesting

1. Accelerated Vesting:
   • In some cases, such as an acquisition, vesting may accelerate, allowing cofounders to earn all unvested shares immediately.
2. Good Leaver vs. Bad Leaver Clauses:
   • Good Leaver: Retains vested shares upon departure for reasons like illness or mutual agreement.
   • Bad Leaver: Forfeits all shares (vested and unvested) for misconduct or breach of contract. Understanding Cofounder

Best Practices for Cofounder Vesting

• Start Early: Establish a vesting agreement as soon as the startup is formed to avoid misunderstandings.
• Customize Agreements: Tailor vesting terms to the needs of your business and cofounders.
• Consult Legal Experts: Ensure your vesting agreement complies with local laws and protects all parties involved.

Cofounder vesting schedules are an essential tool for startups to manage equity, foster trust, and promote long-term collaboration. By implementing a clear and fair vesting plan, startups can create a foundation for sustainable growth and innovation.

For more detailed insights, visit sources like Y Combinator and Startup Savant.

Author

Ejiga Victor

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