Investors update: SoftBank invests $75m in Africa-focused renewable energy developer AMEA Power

SoftBank backs Africa-focused AMEA Power with $75m

Highlights

• AMEA Power, one of the fastest growing renewable energy developers in Africa, has signed a $75 million equity funding round from Japanese investment holding company SoftBank Group Corp.
• Founded in 2016, AMEA Power has assembled a world-class team of industry experts to deliver projects across Africa, the Middle East, and other emerging markets.
• This represents AMEA Power’s first external equity funding following years of being privately funded by its founding shareholders. The funding will allow AMEA Power and SBG to explore a mutual partnership, which will lead to maximizing the value creation of AMEA Power mainly in the AMEA region.

Source: Zawya

Our Takeaway

As African economies grow, the demand for energy by companies, households, and industries increases by the day. This comes with challenges of climate change and energy depletion, however, many innovators and investors believe renewable energy can help Africa counter these challenges. Financiers mostly are skeptical about funding ventures in the renewable energy space, which has hindered growth in the sector, but AMEA’s successful raise—as well as recent huge rounds by Sun King particularly—suggests the perception towards the renewable energy opportunity in Africa could be changing.

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Microsoft-backed AI program for African startups launches

Highlights

• Flapmax, a leading artificial intelligence (AI) company, has launched the second FAST Accelerator program designed to support and fund the next generation of innovative companies and entrepreneurs in Africa. 
• Building on the success of the inaugural program, which more than 800 startups from 25+ countries applied to join, the accelerator helps startup founders seeking to scale rapidly and sustainably.
• In partnership with Microsoft, the initiative combines business development, technology integration, funding opportunities, and community building to empower startup companies based in Africa and emerging markets to deliver sustainable solutions.

Source: ABC

Our Takeaway

Across Africa, startups currently offer AI-driven services and are increasingly attracting VC dollars to serve several industries. Earlier this year, Germany’s BioNTech SE acquired InstaDeep, a Tunis-born AI startup, for up to $680m. Egypt-based Instabug and Synapse Analytics raised $46m and $2m respectively last year. For every big name that dominates the headlines, there are several other upstarts building innovative AI-led solutions, though yet to be market-tested, that need early-stage support from programs like FAST.

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Egyptian neobank Menthum raises pre-seed funding

Highlights

• Egypt-based fintech Menthum has raised pre-Seed funding from Acasia Ventures, along with A15 and other angel investors. 
• Founded in 2021 by Himanshu Shrimali and Ismail Sarhank, Menthum is a B2B and B2C digital savings platform that enables individuals and companies to invest in safe treasury bills (T-bills) through a money market fund.
• The funding will go towards expanding Menthum’s team, customer acquisition, brand building, and developing the company’s tech infrastructure. 

Source: Wamda

Our Takeaway

Digital banks—across several verticals—have enormous potential in Egypt, a country where 2 of every 3 individuals are partly or totally excluded from formal financial services but 50% of its 100 million people actively use smartphones. In addition to high mobile and internet penetration, the North African country boasts a young and tech-savvy population with 61% below 30. Startups like Menthum have thus moved to capture this opportunity with neo-banking platforms, contributing to the general booming fintech sector in Egypt.