Investor Updates: September 14 2022 - Brazil’s Ebanx expands into Africa with an eye on mobile money

Brazil’s Ebanx expands into Africa with an eye on mobile money

Highlights

• Brazilian fintech unicorn Ebanx S.A. has expanded into Africa, where it hopes to replicate its fast growth in Latin America and plans to initially focus on mobile money.
• The company started operations in Kenya, South Africa, and Nigeria in late August amid soaring demand for payments via mobile phones in recent years.
• The Brazilian startup, valued at over $1 billion, also aims to reach agreements with major e-commerce stores to provide payment services on the continent. Without disclosing names, Ebanx plans to focus on partnerships with global merchants.

Source: CNBC

Our Takeaway

Per a GSMA report, Africa now accounts for 70% of the world’s $1 trillion mobile money value after mobile money transactions on the continent rose 39% to $701.4 billion in 2021 from $495 billion in 2020. It’s widely believed that Africa’s fintech-powered digital economy is only in its early days and Ebanx’s move seeks to tap into Africa’s fast-growing digital payments space and broader digital economy, driven by the rise of fintech companies like Flutterwave, MFS Africa, and OPay, the very payments startups which are about to face competition from the Brazilian unicorn.

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Egypt’s Cairo Angels welcomes Biola Alabi as a venture partner

Highlights

• Egypt-based VC Cairo Angels Syndicate Fund (CASF) has announced having the Nigerian businesswoman Biola Alabi join as a Venture Partner. Biola will take the lead on origination, investments, portfolio management, and investor relations. 
• Alabi is an active angel investor and advisor to African technology and media companies. She is also the founder of Grooming for Greatness (G4G), a program aimed at cultivating leadership skills in aspiring entrepreneurs. 
• Founded in 2012 by Hossam Allam, CASF is a micro VC fund launched by the Cairo Angels that invests in Seed-stage startups across the Middle East and North Africa region.

Source: Wamda

Our Takeaway

In what was a record year for venture funding in Africa, startups on the continent raised more than $5 billion in 2021. This year, they’ve secured over $3.6 billion. 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. It has so far backed four startups on the continent, including Nigeria’s CredPal, South Africa’s Finclusion Group, and Kenya-based Flexpay. With Biola joining the team, CASF is arguably better positioned to expand further across the continent and bring regional ecosystems together.

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De Novo Dairy secures investment from UM6P Ventures

Highlights

• South African startup De Novo Dairy has secured an undisclosed investment from UM6P Ventures to produce animal-free dairy products that provide the same sensory experience and nutrition as their traditional dairy alternatives.
• De Novo Dairy specializes in the production of milk proteins using precision fermentation of yeast strains. This technology allows them to extract essential cruelty-free milk proteins used within a wide range of products to improve and boost human nutrition. 
• The startup targets various industries, including food, health, sports nutrition, and baby formula, and with the funding, plans to accelerate both R&D and scale-up efforts.

Source: TechCabal

Our Takeaway

With the huge strides made by startups like De Novo, Africa is fast becoming a global leader in the agritech space. Between 2016 and 2019, the industry grew by 44% year-on-year, and the continent has registered the highest number of agritech services in the developing world reaching more than 30 million smallholder farmers as of 2021. The global agritech sector will reach nearly $200 billion by 2025. How much value Africa can tap from the vast and dynamic market will be determined by how well startups and companies capitalize on the challenges in agriculture on the continent.