Investor Updates: Nigerian fintech startup ImaliPay raises $3m

Nigerian fintech startup ImaliPay raises $3m

Highlights

• ImaliPay, a  Nigeria-based one-stop-shop financial services platform for gig workers, has closed a $3 million seed in debt and equity round. This comes after it raised an $800,000 pre-seed round in 2020.
• The startup was launched in late 2020 by Tatenda Furusa and Oluwasanmi Akinmusire after Furusa noticed the challenges ride-hailing drivers faced when accessing working capital or emergencies like running out of fuel in Nairobi.
• The investment will go into expanding its 50-man team, amping up its technology, and exploring new markets like Ghana and Egypt.

Source: TechCrunch

Our Takeaway

Since the coronavirus pandemic began in late 2019, the gig economy has been on an upward trajectory. More than two years on and the booming economy is not showing signs of a slowdown, including in Africa. According to research, the sector is expected to reach a $455 billion global market value by 2023, double the value in 2018 and a 17% CAGR. As opportunities within this space increase, so do the platforms linking workers with remote jobs.

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Africa-focused e-commerce startup Folklore Group secures $1.7m

Highlights

• The Folklore Group has shifted from direct-to-consumer to B2B wholesale against the backdrop of a $1.7 million pre-seed funding.
• The startup’s new wholesale business dubbed The Folklore Connect will link luxury fashion brands in emerging markets in Africa to bulk retailers in North America, and later, in Europe.
• The e-commerce company was founded in 2018 by Amira Rasool and plans to use the fund to fuel the growth of its new business.

Source: TechCrunch

Our Takeaway

Startups focused on African fashion are tapping into a growing global demand for African designer goods, riding on e-commerce. Africa’s e-commerce opportunity is estimated to be $19.8 billion, and in terms of general e-commerce activities on the continent, McKinsey & Company estimates consumer spending to reach $2.1 trillion by 2025. That presents an opportunity for startups to promote African fashion globally, especially with consumers increasingly switching to online shopping amid the raging Covid-19 pandemic.

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WafR raises $278k for its reward-based platform

Highlights

• Morocco-based fintech and rewards startup WafR, has raised $278,000 at a $7.5 million valuation in a funding round led by UM6P Ventures, Plug, and Play, with participation from a group of undisclosed local and international angel investors.
• Founded in 2018 by Ismail Bargach and Reda Sellak, WafR allows FMCG retailers to offer discounts on its platform in the hope of acquiring more customers.
• With the fresh funds, WafR hopes to grow its network of grocery stores from 12,000 to 50,000.

Source: Wamda

Our Takeaway

WafR is one of an increasing number of technology startups across Africa that are reinventing the way traditional corporates in the fast-moving consumer goods sector offer discounts and rewards to end consumers. In Africa, startups that play in this space have a big market opportunity as the FMCG sector is one of the largest in the continent’s leading economies. There’s also a growing appetite for technology-enabled solutions, especially by organizations that wish to digitize their workplaces.