Investor Updates: Kenya's HotelOnline acquires hospitality SaaS HotelPlus

Kenya’s HotelOnline acquires hospitality SaaS HotelPlus

Highlights

• HotelOnline, a Kenya-based travel technology scale-up that fashions itself as an e-commerce and digital marketing enabler in the hospitality industry, has acquired HotelPlus, a software provider with clients in 22 countries.
• The full terms of the transaction were not disclosed. Eric Muliro, who founded HotelPlus in Kenya 13 years ago is getting a payout and $1.9 million in shares in HotelOnline, which was valued at $24 million before the deal.
• HotelOnline said the deal has increased its customers by over 2,200 and opened the door for additional customers and unique offerings like payment solutions, AI-driven pricing, and revenue management.

Source: TechCrunch

Our Takeaway

Africa’s growing hospitality industry took a beating from Covid-triggered national lockdowns and movement restrictions but is recovering strongly. Amid the rebound, players within the space have an opportunity to re-establish their positions. Realizing this, HotelOnline plans an aggressive expansion across Africa, where it currently has over 6,000 clients spread across 27 countries. The acquisition comes months after it closed a Series A funding backed by Yanolja, giving the startup the necessary financial muscle to cut deals and make investments that will help it scale and expand in its current and target markets.

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British DFI earmarks $100m for Egyptian startups

Highlights

• The UK’s development finance institution, British International Investment (BII), unveiled plans to inject $100 million in investments into Egyptian startups, according to a recent official statement.
• At a business reception launching its new name in Egypt, BII announced its future plans for the country and reaffirmed its commitment to strengthen its partnership with Egypt and increase climate finance to support the country’s green growth.
• Earlier this year, the British institution announced investments in Egyptian venture capital (VC) firms Algebra Ventures and Endure Capital to support early-stage companies.

Source: Disrupt Africa

Our Takeaway

British International Investment’s planned investments in Egyptian startups is part of a broader ambition to invest up to $6 billion in Africa over five years. Beyond that, the move illuminates a trend that’s been on for the past couple of years—development finance institutions (DFIs), which account for the bulk of available capital in Africa, are looking to tech startups to support development goals and find returns. This is good news for the African tech ecosystem as DFIs can plug existing venture market gaps and anchor key funds, resulting in more capital for startups across the continent.

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Egypt’s med training platform 5 Quarters raises seed round

Highlights

• Egypt-based edtech 5 Quarters has raised an undisclosed seed round from a Saudi angel investor.
• Founded in 2016 by Mohamed Salah and Noha Emad, 5 Quarters offers healthcare professionals online courses to improve their capabilities. 
• The startup plans to use the investment to fuel its expansion plans in Saudi Arabia and add new services for medical sector professionals.

Source: Wamda

Our Takeaway
Startups like 5 Quarters are crucial to the African economy and it’s a positive development to see investors back healthcare-focused players. The region’s healthcare industry has for decades been plagued with several challenges that prevent universal access, from a lack of infrastructure to a shortage of qualified doctors. Importantly, increasing investor backing for startups shows one of Africa’s most crucial socio-economic problems can be tackled without forgoing returns.