Investor Update: Kenya’s Turaco Raises $10m Series A Funding

Kenya’s Turaco secures $10m Series A funding

Highlights

• Turaco, a Kenyan insurtech driving mass market insurance adoption, has closed a $10 million Series A equity round led by AfricInvest, via the Cathay Africinvest Innovation Fund, and existing investor, Novastar Ventures.
• Founded in 2019, Turaco is a distributor, broker, and key customer interface between the underwriter and the end consumer. The insurtech company’s mission is to free people from the fear of financial shocks caused by unexpected health risks.
• The latest round of funding places Turaco in a strong position to address Africa’s untapped insurance market, doubling down its expansion efforts through strategic partnerships. 

Source: TechCrunch

Our Takeaway

With insurance still very much in its infancy and penetration in Africa currently below 3%, up to 90% of people have no formal safety net for when they get sick or are in an accident. Most African insurance underwriters and intermediaries use rigid systems that do not allow for integration with external partners, with many still using paper-based processes. Turaco is building in a largely untapped sector, opening up an extremely large market and innovating for mass market consumers by providing a cutting-edge solution that will drive inclusive insurance.

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MVP Match raises $5m to expand into Africa

Highlights

• Tech-talent marketplace MVP Match has raised $5 million in seed funding from Stage 2 Capital to double down its strategy for pairing companies with talent from across the globe.
• The Germany-based startup plans to use the funding to build new hubs in Africa and Europe, grow its team, and re-launch its proprietary platform to make “finding and working with tech talent easier than ever before.”
• The plan to grow its reach follows the launch of a new hub in Egypt that MVP Match will use to tap talent in Africa — with the aim of creating more networks in the region.

Source: TechCrunch

Our Takeaway

Tech companies and giants are increasingly looking to Africa in search of software engineers to meet the growing demand for tech-savvy employees globally. A report by the US Bureau of Labor Statistics revealed that the demand for software engineers is expected to grow by 22% between 2020 and 2030. Already, 38% of African developers work for at least one company based outside of the continent, per a Google survey. While this bodes well for the engineers themselves, the trend could worsen the shortage of tech talent available to indigenous startups. Although several players like Manara and Alt School are working to expand the continent’s tech talent pool.

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Egypt’s ECC Group acquires majority stake in Source Beauty

Highlights

• Egypt-based cosmetics company ECC group has acquired a majority stake in beauty products marketplace Source Beauty, for an unknown amount.
• Founded in 2018 by Lydia Schoonderbeek, Source Beauty is a female-led one-stop shop that provides users with multiple choices of local and international beauty brands. ECC is an Egypt-based specialized contract manufacturer for the cosmetics and personal care industries, led by Mohamed Salah and Ahmed Abo El Hamail.
• Lorax Capital Partners recently acquired a minority stake in ECC and is supporting the company’s expansion plans.

Source: Wamda

Our Takeaway

ECC’s acquisition of Source Beauty is timely. The beauty industry in Egypt is growing exponentially and is expected to reach a market volume of $188 million by 2025. This growth is driven by factors such as the increasing customs on international beauty products and high demand for variety, which have made customers less dependent on imported beauty products and given way to local manufacturers.