New York-based firm acquires Nigerian startup CoverAI
Writesea, a New York-based firm specializing in white-label services for recruitment marketplaces, has acquired the three-month-old Nigerian AI startup, CoverAI. CoverAI's founder, Chris Adolphus, disclosed that he had received 12 offers for his startup on the Acquire.com marketplace but ultimately decided to sell to Writesea. While the exact transaction value remains undisclosed, one source estimated it to be less than $50,000.
CoverAI's technology, which leverages OpenAI's large language model, can swiftly generate or enhance CVs. It operates on a freemium model, allowing users to optimize their CVs and obtain a cover letter at no cost. Additional features like interview preparation and job application tracking are accessible through three subscription tiers: a $5 basic plan, a $7 premium plan, and a $15 lifetime plan.
Adolphus noted that selling the startup was always part of the plan and could have been a six-figure deal given the technology they developed. While Writesea declined to comment on the acquisition, Adolphus expressed confidence in their ability to propel CoverAI to the next level.
Points clés à retenir
African startups and businesses are increasingly embracing AI-driven solutions. InstaDeep, a Tunisia-based startup founded in 2014, stands out as a prime example and made headlines when it was acquired by Germany's largest vaccine manufacturer, BioNTech, in January for up to $680 million. This acquisition marked a historic milestone in the African startup ecosystem and has put Africa's AI industry on the global stage. However, InstaDeep is not the sole pioneer in this field. Numerous other promising startups throughout Africa are harnessing AI in exciting ways. With PwC estimating that AI could contribute as much as $15.7 trillion to the global economy by 2030, Africa is well-positioned to emerge as a leader in this arena. This potential is driven by a burgeoning youth population, a growing middle class, and expanding access to mobile and internet technologies.
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