Investor Updates: Talk360's Seed Funding Hits $7m

South African startup Talk360’s seed funding hits $7m

Highlights

• Months after the initial close of its seed round, Talk360, a South African Voice over Internet Protocol (VoIP) startup, has raised an additional $3 million, bringing the total investment raised in the round to $7 million.
• Talk360’s latest investors include Allan Gray E2 Ventures (AGEV), Kalon Venture Partners, E4E Africa, Endeavor, existing lead investor HAVAÍC, and a number of angel investors including Tjaart van der Walt and Coenraad Jonker.
• The company plans to use the new funding to launch a pan-African payment platform—which will integrate “all payment options” in the continent—next year and grow its VoIP market share.

Source: TechCrunch

Our Takeaway

Talk360’s smartphone-based platform offers an easy-to-use digital service but its reach is somewhat limited by the fact that over half of Africans still lack access to the internet. Regardless, the startup has recorded impressive numbers, connecting up to 2 million people last year, and has paying users in 170 countries so far. That number should grow, driven by increased marketing efforts and expansion plans. The company’s network of over 750,000 physical points of sale in partnerships with agents like Kenya’s PesaPoint and South Africa’s Flash also provides physical touchpoints, which is crucial to penetrating markets like Africa.

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Morocco’s Chari raises $1m investment from Endeavor Catalyst

Highlights

• Morocco-based B2B e-commerce Chari has raised $1 million from Endeavor Catalyst as part of its Series A funding round.
• Founded in 2020 by Sophia Alj and Ismael Belkhayat, Chari aims to digitize the retail value chain in Francophone Africa. It offers a marketplace and embedded finance platform that connects informal stores and retailers to FMCG suppliers. 
• This investment will allow Chari to strengthen its continental expansion and begin its shift to fintech by financing the acquisition of Axa Credit, subject to central bank approval.

Source: Wamda

Our Takeaway

African markets, though diverse, have some common themes, one of which is the largely fragmented fast-moving consumer goods (FMCG) sector. Often, both local and multinational manufacturers do not have visibility and control over their own distribution channels while distributors have to deal with discrepancies in prices and inefficient logistics. For small informal retailers, much of their time is spent on fulfilling orders and struggling without sufficient capital. Chari is one of many startups in the B2B e-commerce space in Africa that have built digital products to address these bottlenecks.

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Egyptian IoT devices maker CardoO raises $660k in seed round

Highlights

• Egypt-based IoT devices manufacturer CardoO has raised a $660,000 seed funding round, led by The Alexandria Angels, with the participation of Sofico Investments, angel investors from Saudi Arabia, and the European Bank for Reconstruction and Development (EBRD).
• Founded in 2018 by Ahmed Adel, CardoO provides its users with smart devices at affordable prices enhanced by IoT technology.
• The new investment will allow CardoO to improve its products, as well as enable local manufacturers to produce consumer electronics provided with IoT under the brand name CardoO.

Source: Wamda

Our Takeaway

The emerging technologies market is a promising market, especially since consumers in the Middle East and Africa spend about $25 billion annually on this market, while the middle class spends about $10 billion. CardoO plans to acquire $200 million of market share in the next 5 years and per company data, it recently launched nine new smart devices, with sales of more than 100,000 different devices. The company was also able to conclude several deals with major retailers in the country, and provide products in more than 1,000 branches across Egypt.