Investors Update: New $16m fund supports Egyptian fintech startups

A new $16m fund launches to support Egyptian fintech startups

Highlights

• Egypt-based Camel Ventures has launched a $16 million VC investment vehicle “Camel Ventures for Investment I (CVI)”.
• The new VC fund will focus on supporting Egypt’s fintech startup ecosystem, by providing them with both equity investments for early-stage startups, as well as venture debt for later-stage startups.
• CVI has already made ten investments in various sectors across Egypt, including Khazenly, Pharmacy Marts, and klickit.

Source: Wamda

Our Takeaway

In Egypt, only 33% of people have a bank account, according to the most recent World Bank data while 50% of its 100 million people actively use smartphones. Also, the North African country boasts a young and tech-savvy population with 61% below 30. Expanding access to financial services through digital channels is thus an attractive market opportunity, and startups leading such efforts stand to gain significantly from increasing amounts of venture capital available in the country, which has grown more than 10-fold since 2016 and has placed Egypt as one of Africa’s leading countries by tech venture funding.

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Kenya on course to launch its first SpaceX-backed satellite

Highlights

• The Kenya Space Agency (KSA) has announced that the country will launch its first operational satellite this month in a landmark achievement for the country’s space program.
• Codenamed Taifa-1, the project is scheduled to be launched on April 11, with the assistance of  Space Exploration Technologies Corporation (SpaceX), SpaceX Falcon 9 rocket.
• The satellite is expected to provide data for decision support to agriculture and food security, natural resources management, and environmental monitoring among other details.

Source: ABC

Our Takeaway

The launch of Kenya’s first operational satellite is significant for several reasons. Firstly, it marks a major milestone for the country’s space industry, demonstrating its technological capabilities and competitiveness in the region. The satellite will be used for a range of important applications, including weather forecasting, disaster management, and telecommunications, which will benefit Kenyan citizens and businesses. Finally, it highlights the growing trend of African countries investing in space technology as a means of driving economic growth and development.

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Partech Africa backs TerraPay in $100m Series B round

Highlights

• TerraPay, a global payments infrastructure company, has successfully closed its Series B equity financing round, raising in excess of $100 million in equity and debt financing. 
• The funding round was led by IFC and supported by Prime Ventures, Partech Africa, the US International Development Finance Corporation (DFC), and a consortium of other investors.
• The funding will help further TerraPay’s global expansion plans, especially across the LATAM and MENA regions, strengthen its existing pay-out network to 150 countries by 2024, and support and accelerate its growth.

Source: ABC

Our Takeaway

The cost of migrant remittances to developing markets, especially Africa, remains expensive and well above the UN SDG target of 3%. As a leading payments infrastructure company, TerraPay aims to enable the delivery of cross-border remittances and instant money transfers, securely, and at a low cost. With the new funding, the company is well-positioned to capitalize on the growing demand for remittance and payment solutions and continue its mission of making cross-border payments more accessible, secure, and affordable for all.