Investor Updates: February 8 2022 - Egypt’s Swvl receives $21.5m ahead of Nasdaq listing

Egypt’s Swvl gets additional $21.5m ahead of Nasdaq listing

Highlights

• Egyptian mobility company Swvl has raised an additional $21.5 million in private investment in public equity (PIPE) deal as part of its proposed business combination with Queen’s Gambit, ahead of its future listing on the Nasdaq exchange.
• Founded in 2017, Swvl offers intra and intercity travel options, along with B2B partnerships with public and private institutions aimed at transporting students and employees.
• Last July, Swvl announced a planned initial public offering (IPO) on the Nasdaq exchange after a merger with special purpose acquisition company (SPAC) Queen Gambit Growth Capital, which values it at $1.5 billion.

Source: Zawya

Our Takeaway

SPACs, newly formed companies listed for the purpose of acquiring or combining with another entity, have surged in popularity over the last few years but Africa has so far missed out on the boom. The deal with the Queen’s Gambit thus makes Swvl a rare African unicorn startup, which is also among the best-funded in Africa. It is currently active across 10 cities in Egypt, Kenya, Pakistan, the United Arab Emirates (UAE), Saudi Arabia, and Jordan.

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Uganda’s SafeBoda transitioning to “super app”

Highlights

• Ugandan bike-hailing app SafeBoda has become the latest startup in the African mobility space to transition towards becoming a multi-purpose “super app” with the addition of various new services to its offering.
• Initially launched in Kampala, SafeBoda connects passengers with motorcycle taxi drivers, while also offering additional financial services.
• The startup has since expanded to Kenya but later exited in 2020 citing the impact of COVID-19, raised a Series B funding round, and launched operations in Nigeria.

Source: Disrupt Africa

Our Takeaway 

Following the successes of WeChat and Alipay in China, many startups in Africa have emerged with ambitions to replicate the super app model. These players often start by offering a core service, through which they get a foothold, before adding a variety of other offerings to their customer base. OPay, Gozem, Gokada, and now SafeBoda are some samples currently operating super apps on the continent. 

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Fintech accounted for 50% of African startup funding in 2021

Highlights

• Africa’s fintech sector is a funding magnet, with nearly half the more than $2 billion raised by 564 African tech startups last year sucked into the space, per the 7th edition of Disrupt Africa’s African Tech Startups Funding Report.
• The extraordinary year saw new unicorns minted, round size records tumble, and fintech startups break the $1 billion funding barrier, something the African tech space as a whole only managed for the first time in 2021.
• Fintech’s share of total funding was just shy of the 50% mark, a significant increase on 2020 figures when it accounted for less than a quarter.

Source: Disrupt Africa

Our Takeaway

Within the African tech ecosystem, fintech has always been the most popular sector for investments. Last year, it maintained its dominance in fundraising, accounting for the bulk of investments secured by startups, regardless of where the data is sourced from. Among the largest beneficiaries were OPay ($400 million Series C), Wave ($200 million Series A), Flutterwave ($170 million Series C), MFS Africa ($100 million), and PalmPay ($100 million Series A).