The Kenyan startup scene is flourishing as reports suggest that about 20 startups have raised around Ksh5.8 billion worth in funding. This is according to Disrupt Africa’s annual African Tech Startups Funding Report which captured investment data up to March 1st, 2022. This comes to show how Kenyan startups are providing lasting solutions that need to be natured.
The Key players in the Kenyan startup scene include accelerators, hubs, and investors. And here in Kenya, we have 48 hubs that support technology entrepreneurs. Kenya having about 85% internet penetration has made it easier for both entrepreneurs and investors. This is in fact one of the highest in Africa in matters of internet penetration. The launch of M-Pesa back in 2007 by Safaricom also contributed positively to innovation and entrepreneurship.
Some of the major investors that have pumped millions into amazing Kenyan status include Accion Venture Lab which provides flexible financial and post-investment support. They have invested about $300,000-$500,000 in startups. Acumen Fund Kenya has funded companies that provide anti-malaria bed nets, solar-energy and agricultural input. And has so far invested about $28m in East African companies. Africa Tech Ventures also invest in Kenyan startups that are high in growth and increase access to essential goods and services. They usually provide startups with money that ranges from $100,000 to $5m. And the great news is that they take a significant minority equity stake.
While most companies are trying to recover from the hard economic times, Kenyan startups have gained big from investors. Here are some of the startups that have managed to get funding in the last year:
BasiGo is a bus company that works to provide buses that are electric and environment friendly throughout Africa. And their buses aim to offer long-range, improved reliability, and lower operating costs than diesel buses. They managed to gain funding of $3370000 three months after its launch.
The e-commerce platform Copia offers its customers products and goods that they can transport to rural areas in 2-4 days for free. In January this year, they managed to raise $50 million from a Series C equity round led by Goodwell Investments.
Twiga Foods is a B2B e-commerce platform that works as a connection between fresh food producers, FMCG manufacturers, and retailers. And it boasts of having 100,000 registered customers and delivering to 10,000 every day. They have raised Ksh.5.6 billion ($50 million) from a Series C round to scale its efforts across the country and other neighboring countries.
Poa! internet is a new generation internet service provider that connects people in Africa with access to affordable and reliable broadband. And if you subscribe to their services they offer you access to over 10,000 street Wi-Fi hotspots. They managed to secure $28 million in funding in January.
The platform offers its users groceries at a lower price compared to supermarkets and mama mbogas. They also offer opportunities for their community leaders to make additional income. Founded in 2021 they have raised $3 million in a pre-seed in April this year.
These are but a few of the Kenyan startups that have managed to raise seed capital this year. Congratulations to them as they have shown potential in making profits and an ability to make a positive impact in Kenya and Africa. Let this also be an encouragement to other startups that it is possible for them too to get funding.
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