Lengo AI raises pre-seed round with participation from Daba

BREAKING NEWSOctober 5, 2023 at 11:19 AM UTC

Acasia Ventures, an early-stage venture capital firm, has taken the lead in a pre-seed investment round for Dakar-based Lengo AI, an AI-driven FMCG intelligence platform. The investment round was co-led by Ventures Platform and included participation from P1 Ventures, Launch Africa, Voltron Capital, Daba, and several other venture capital firms and angel investors.

Established in 2021, Lengo AI is a data-driven operating system for informal retail in Africa whose objective is to provide actionable insights and intelligence to FMCG (Fast-Moving Consumer Goods) brands by tapping into the vast network of corner shops that account for 90% of purchases across the continent.

The funds from this investment will be used to expand Lengo AI's tech and sales teams, further enhance the AI component of the product, and extend its presence into new African markets.

Key Takeaways

Africa is expected to account for up to 40% of the human population by the end of the 21st century with the FMCG market positioned to emerge as its first globally relevant industrial sector. As the demand for packaged food, beverages, personal care products, and household items surges, multinational companies are expanding their presence and local players are emerging. But they need help with infrastructure limitations and a dearth of data on consumer preferences, market trends, and supply chain dynamics. Lengo solves the latter problem by leveraging AI and is poised to capture a major market share in an industry that accounted for two-thirds of Africa’s $1.4 trillion retail spending in 2016 and is expected to grow even further—driven by rising middle-class incomes and urbanization.