Investor Updates: March 11 2022 - Nigeria BNPL startup Klump raises $780k pre-seed funding

Nigeria BNPL startup Klump raises $780k pre-seed funding

Highlights

• Lagos-based buy now, pay later (BNPL) startup Klump has raised a $780,000 pre-seed funding round to help it launch its flagship “Pay with Klump” product with select partners.
• Founded in 2021 by Celestine Omin and Olufunbi Falayi, who have combined experience building products with Konga, DealDay, Paystack, Andela, Amazon, and H-E-B, Klump offers customers the option to buy and receive their purchases right away and spread the payments over 4 equal installments.
• With its proprietary credit eligibility and fraud detection engine, Klump is able to make an informed credit decision on a customer in less than 3 minutes, with a goal to further reduce the decision time to less than a minute.

Source: Disrupt Africa

Our Takeaway

A buy now, pay later (BNPL) craze is sweeping the world and Africa’s consumers are certainly up for it despite most people being credit-averse. There’s a sense that consumers on the continent will embrace low or no-interest point-of-sale financing options, going by the rate at which Africans now take on loans at ridiculous interest rates to finance their needs. It’s not surprising to see banks, fintechs, financing companies, payment services providers, and merchants considering how to get a slice of the action.

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Catalyst Fund, Google and YC-backed Tendo launches in Nigeria

Highlights

• Ghanaian startup Tendo, which enables anyone to sell online with zero upfront inventory, has launched in Nigeria.
• Launched last year, Tendo has the backing of heavyweights such as Catalyst Fund, Google, and Y Combinator and has developed a mobile app that connects drop shippers to local wholesalers.
• Sellers on the platform are able to source products and resell items using social commerce tools such as WhatsApp, arrange delivery, and get paid, all through the Tendo app.

Source: Disrupt Africa

Our Takeaway

Tendo, which already works with thousands of merchants in Ghana, has now also opened its doors in Nigeria with funding from the likes of the Google Black Founders’ Fund, LoftyInc Capital Management, and Plug and Play Ventures. The startup also recently took part in the Y Combinator W22 accelerator and Catalyst Fund’s inclusive digital commerce program.

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A new startup hub for Tanzania’s ecosystem set to launch 

Highlights

• Westerwelle Foundation and Obuntu Hub have partnered to build the largest startup hub in Arusha, Tanzania, with the ambitious goal of uplifting the Tanzanian entrepreneurship ecosystem.
• Westerwelle is a German non-profit organization with a mission to support empowered entrepreneurship in emerging markets, which already has hubs in Kigali and Tunis, as well as an online program welcoming entrepreneurs from Asia, Latin America, and Africa. 
• Its new Arusha hub will open in the second quarter of this year, and offer co-working spaces, events, more support programs, and access to service providers.

Source: Disrupt Africa

Our Takeaway

As Africa catches up with the developed world in terms of technological progress, the continent’s more than 600 tech hubs are helping to bridge this gap by supporting startups. But beyond this, tech hubs play the role of safe havens for young people looking for training centers that promote digital literacy. Currently, Nigeria, South Africa, and Kenya have the highest number of tech hubs on the continent.