Investor Updates: May 20 2022 - AutoCheck acquires Morocco-based KIFAL Auto

AutoCheck acquires Morocco-based KIFAL Auto

Highlights

• Nigeria-based automotive technology startup AutoCheck, this week said it’s acquired Morocco-based KIFAL auto, as it aims to ramp up expansion into the North African market.
• Founded in 2019 by Nizar Abdallaoui Maane, KIFAL facilitates the purchase and sale of used cars, covering financing, warranties, insurance, and other services. 
• The startup was recently accepted into the inaugural cohort of the 212 Founders accelerator program by CDG Invest, an early-stage fund focused on backing tech startups operating in Morocco as well as the wider African continent.

Source: TechCrunch

Our Takeaway

Morocco is one of the most developed automotive markets in Africa, with more than 180,000 new cars and around 560,000 used cars sold annually. As a result of various policy developments and investments in infrastructure, the automotive sector is set to grow a further $14 billion over the next five years. With this acquisition, Autochek is uniquely positioned to tap into the innovation that underpins Morocco’s thriving automotive ecosystem.

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Egypt’s CASF backs Kenya fintech FlexPay

Highlights

• Egypt’s The Cairo Angels Syndicate Fund (CASF) has invested an undisclosed amount in a Kenya-based fintech FlexPay, marking the first investment for CASF in Africa outside Egypt.
• Founded in 2016 by Richard Machomba, FlexPay is an online and offline payment gateway that allows merchants to offer interest-free targeted savings to their customers in Africa.
• CASF is a Delaware-based micro venture capital fund launched by the Cairo Angels to invest in post-seed and pre-Series A startups across the MENA.

Source: Wamda

Our Takeaway

In what was a record year for venture funding in Africa, startups on the continent raised more than $4 billion in 2021. This year, African startups secured more than $2 billion in four months, prompting predictions startup funding in Africa may reach $7-$8 billion at the end of 2022. For Cairo Angels, it sees an opportunity in the fact that despite this growth, early-stage African startups still only draw a fraction of the funding available.

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UK’s BII pledges $220m towards high-quality internet in Kenya

Highlights

• The United Kingdom has availed financing worth $220 million to improve access to high-quality internet in Kenya, according to British International Investment (BII) chief executive Nick O’Donohoe.
• The funding, meant to support digital transformation on the continent, will be provided to Africa’s largest telecoms company, Liquid Telecom, which is improving access to high-quality internet.
• O’Donohoe notes that the financing is part of BII’s drive to channel greater funding to, among others, help drive innovation and the digital economy.

Source: Ventureburn

Our Takeaway

Over the past decade, African countries working with various local and international partners have made huge strides in making the internet accessible for the continent’s 1.2 billion people. But with just 22% internet connectivity, the continent remains significantly behind other regions in the world. Africa has financing needs of between $70-$100 billion annually to address its existing infrastructure gap. This underlines the importance of capital injections from foreign partners like the UK’s BII.