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Every startup is trying to fix something, but Terraformation is tackling the only problem that must matter to all of us: climate change.
This is why it’s in such a big huge hurry. Its mission — as a “forest tech” startup — is to accelerate tree planting by applying a startup-y operational philosophy of scalability to the pressing task of rapidly, sustainably reforesting denuded landscapes — bringing back native trees species to revive former wastelands and shrinking our carbon emissions in the process.
Forests are natural carbon sinks. The problem is we just don’t have enough trees with roots in the ground to offset our emissions. So that at least means the mission is simple: Plant more trees, and plant more trees fast.
Terraformation’s goal is to restore three billion acres of global native forest ecosystems by scaling tree replanting projects in parallel, scaling the use of existing techniques and working with all the partners it can. (For a little context, the U.S. contains some 2.27 billion acres of total land area, per Wikipedia).
So far it says it’s planted “thousands” of trees — with live projects in North America, South America, Africa and Europe, which it hopes will yield up to 20,000 replanted acres. It’s also in talks with partners about more projects that could clad hundreds of thousands of acres with carbon-consuming (and biodiversity-prompting) trees, if they come to full fruition.
That’s still a long way off the 3 billion-acre-wooded moonshot, of course. But Terraformation claims it’s been able to achieve a forestry restoration work-rate that’s 5x the average already. And that’s definitely the kind of “gas stepping” that climate change needs.
Its elevator pitch is also punchy: “Our mission is explicitly to solve climate change through mass reforestation,” says founder Yishan Wong — whose name may be familiar as the ex-Reddit CEO (and also a former early-stage engineer at PayPal/Facebook). “So it’s getting trees in the ground and getting faster at getting trees in the ground.”
It’s not going it alone, either. It’s just announced a first closing of a $30 million Series A funding round, led by Sam & Max Altman at Apollo Projects, the brothers’ “moonshot” fund; plus several high-profile institutional investors (whose names aren’t being disclosed); along with nearly 100 angel investors, including Sundeep Ahuja, Lachy Groom, Sahil Lavingia, Joe Lonsdale, Susan Wu and OVN Cap.
“The [Series A] was a bit larger than we anticipated and the idea is to get us to the next stage of planting orders of magnitude more trees every year,” says Wong. “So it’ll be used both for supporting forestry projects directly, as well as for the development and deployment of forestry acceleration products and technology.”
“The very, very nice thing about mass reforestation or mass restoration as a solution to climate change is that it’s extremely parallelizable,” he adds. “You can plant any tree at the same time as you’re planting some other tree. This is the primary reason why this solution can potentially be implemented within the timetable that we have left. But in order to do so we have to start and drive an enormous, decentralized reforestation campaign across multiple continents and countries.”
The funding follows a $5 million seed last year, as the young startup worked to hone its approach.
Terraformation is targeting the main barriers to successful reforesting: Through early research and pilots it says it’s identified three key bottlenecks to large-scale forest restoration — namely, land availability, freshwater and seed. It then seeks to address each of these pinch-points to viable reforesting — identifying and fashioning modular, sharable solutions (tools, techniques, training etc.) that can help shave off friction and build leafy, branching success.
These products include a seed bank unit it’s devised, housed in a standard shipping container and kitted out with all the equipment (plus solar off-grip capability, if required) to take care of on-site storage for the thousands of native seeds each projects needs to replant a whole forest.
It also offers a nursery kit which also ships in a shipping container — a flat-packed greenhouse that it says a couple of people can put together, and where thousands of seedlings can then be tended and irrigated in pots until they’re ready to plant out.
A third support it offers to the replanting projects it wants to work with is expertise in building solar-powered desalination rigs so young trees can be supplied with adequate water to survive in locations where poor land management may have made conditions for growth difficult and harsh.
It goes without saying that planted trees which fail because of poor processes won’t help cut carbon emissions. Badly managed replanting is at best wasteful — and may be closer to cynical greenwashing in some cases. (Poor quality projects can be a known problem where claims of corporate carbon offsetting are being made, for example.)
Terraformation is thus zeroing in on repeatable ways to scale and accelerate the successful planting and nurturing of trees, from seed to sapling and beyond, to accelerate sustainable reforesting.
Ultimately, it’s the only kind of tree planting that will really count in the fight against climate change.
Its first pilot restoration projects began in Hawai’i in 2019 — where it’s been able to plant thousands of trees at a site called Pacific Flight, reviving a native tropical sandalwood forest that had been logged unsustainably. To enable the young trees to grow in land which had also become arid as a result of cattle grazing, the team built the world’s largest fully off-grid, solar-powered desalination system to supply sustainable freshwater to the baby forest.
“The arid environment, high winds, and degraded soils meant that if a team could restore a forest there, they could do it anywhere,” is the pitch on its website.
The Series A will go toward spinning up lots more such native species forest restoration projects — working via partnerships, with organizations such as Environmental Defenders in Uganda, and other groups in Ecuador, Haiti and Tanzania — as well as on more R&D (additional products are in the pipeline, we’re told); and on expanding headcount so its team has the legs to run faster.
Interestingly, for a startup with a Silicon Valley engineering pedigree at its core, the team’s approach is intentionally light on technology — leaning only on vital tech (like solar and desalination), rather than experimental bells and whistles (drones, robotics etc.) to ensure the processes it’s packaging up for massive replanting parallelism remain as simple, accessible and reliable as possible. So they are able to scale all over the globe.
It’s clear that sci-fi robotic gadgetry isn’t the answer here. It’s sweating toil plus tried and tested horticulture processes, done systematically and repeatedly, in mass parallelism all over the world that’s required, argues Wong, whose years in tech have given him a healthy skepticism on the issue of over-engineering. (“The biggest lesson I learned was, you want to solve a big problem? You want to use as little technology as possible… Technology’s always breaking, it’s always got flaws. The biggest problem with technology is technology.”)
“I would say that the key contribution that ‘tech’ — if you think of a monolith or a culture or whatever — will make to climate change, is not in fact some new invention or some gadget or some sort of special magical technology… I think it really is the practice of scalability,” he goes on. “Which is an organizational end. A management way of thinking. Because that is actually something that has been carefully and painfully developed… over the past 20 years in Silicon Valley. How to take small working solutions, how to solve very big problems, how to scale them. And it isn’t a very glamorous thing — which is why I think it’s one of the more pure disciplines.
“It just has been less corrupt… Scalability is just people thinking hard and grinding it out to address really hard big problems. And I think that practice and all the little tips and rules that we have to doing that is the real contribution that tech is going to make — with one of those principles being use as little tech as you can.”
Terraformation is building software tools too — such as a mobile app to help with cataloguing and monitoring seeds. But the really critical technologies involved, solar and desalination, are very much at the “tried and tested” end of the tech scale (“very, very reliable and refined”.).
Wong points out that a key development for solar and desalination is related to the unit economics — with falling costs allowing for scalability and thus speed.
Asked whether Terraformation is a business in the typical startup sense, Wong says it’s been set up in a familiar way — as a Delaware C Corp — but purely because he says that’s just the quickest way to be able to operate. Doing stuff as a nonprofit would be way too slow, he says, describing it thusly as a “non nonprofit” (rather than a business with a for-profit mission).
Aka: “It’s a corporate with investors but primarily the aim is to solve climate change.”
Startup investors are of course often betting their money on the chance of a quick and meaty return. But not here, confirms Wong. “When we raised funding all of our investors invested primarily because they wanted to see climate change solved,” he tells TechCrunch. “To many of them this was the first time that a plausible, full-scale solution to solving climate change had been presented.
“It’s still very, very hard. It’s very, very large. It’s really daunting. But it’s the first time someone has mapped out a path that could actually get us there. And so all of our investors invested because they want to see that happen.”
So how will a “non nonprofit” startup (even with $30 million just banked) get its hands on enough land to plant enough trees? A variety of ways, per Wong. (Perhaps even, in some instances, landowners could end up paying it to turn their dirt into beautiful woodland.)
“The short answer is anywhere we can!” he adds. “The solution is structured to give us maximum flexibility, given that we can use a large variety of land. We don’t want to count on any particular land owning entity — and I use that very broad term to mean like people, communities, governments, municipalities — we don’t want to rely on any one particular land-owning entity wanting to work with us or allowing us to reforest the land, because you can’t guarantee that.”
He also notes that Terraformation’s plan to fix climate change is based on “worse-case scenarios” — where “no one who owns any land that gets enough natural rainfall for forest restoration will allow it to reforest it”. “We use the least valuable land — basically desertified, degraded land,” he adds. “Is there enough of that? And it turns out there is.”
Even though personal financial upside clearly isn’t front of mind for Terraformation’s investors, Wong still believes there’s plenty of “value” to be unlocked as a byproduct of spreading leafy-green goodness all over the planet versus funding more extractive exploitation.
“It turns out that solving climate change is actually a huge value-creating act,” he argues. “My experience in Silicon Valley is if you have people who believe in you and believe in the thing that you’re creating is ultimately value-creating then it’s actually also wealth creating. If you do something that is fundamentally very, very valuable and you’re right next to it, you will be able to monetize it in some way. You will capture some of that value for your shareholders. So it’s a bet that if you really can solve climate change, that’s super valuable, both for the world and to the entity that’s [investing].”
Of course climate change is more than just a problem; it’s an existential threat to all life on Earth — one which affects humans and every other living creature and thing on the planet.
Given such terminal stakes, reversing climate change should be the highest global priority. Instead, humans have procrastinated — putting dealing with rises in atmospheric CO2 on the back-burner and worse (cutting down existing forests like the Amazon Rainforest, for one).
Set against that backdrop, Terraformation’s answer to humanity’s greatest crisis looks compellingly simple. Its bet is that climate change can be fixed by scaling the most proven technology possible (trees) to capture carbon emissions. Who can argue with that?
But it does also seem clear that reforesting will need to go hand in hand with a mainstreaming of conservation, as a prevailing societal attitude, if the mission is to be pulled off — otherwise all these beautiful baby trees could just meet the same sad fate as all the Earth’s already lost forests.
Nonetheless, conservation is something Wong’s team is deliberately not focusing on.
Not because they don’t care. Rather their hope is that by building the baby forests, the protective partners will come — to watch over and get value from the trees as they grow.
“I don’t want to make it seem like we don’t care about [forestry conservation] but one of the things that I try to do is figure out where people are already doing work and things are already moving in the right direction — and then go work on the thing that other people are not working on,” he says when we ask about this. “When I talk to people in the forestry world many, many people are working on avoiding deforestation, helping solve the broader socioeconomic issues that result in deforestation. And so I feel like there is momentum moving in that direction — so we have to work on this other issue that other people aren’t working on.”
Wong also argues that forests are naturally more valuable than the denuded waste/scrub ground they’re replanting — implying that pure economic interest should help these baby forests survive and thrive far into the future.
However the history of humanity shows that unequal wealth distribution can wreak all sorts of havoc on a resource-rich natural environment. And people who live in poverty may well be disproportionately more likely to like in a rural location, on or near land that Terraformation hopes to target for replanting. So if these forests can’t provide — in crude terms — ‘value’ for their local communities the risk is the same cycle of short-term economic harm will rip all this hard work (and hope) out of the ground once again.
Wealth inequality lies at the core of much of humanity’s counterproductive destruction of the environment. So, seen from that angle, reforesting the planet may require just as much effort toward tackling — root and branch — the wider socioeconomic fault-lines of our world, as it will washing, sorting and storing seed, watering seedlings and nurturing and planting saplings.
And that further dials up an already massive climate challenge. But, again, Wong is quietly hopeful.
“People aren’t cutting down trees because they’re evil, they’re cutting down trees because they need to make a living. So we have to provide them with ways to make a living that is more valuable than cutting down the trees. I think that recognition is moving in the correct direction — so I’m hopeful there,” he says.
Asked what keeps him up at night, he also has a straightforward answer to hand — one we’ve heard many times already from a new generation of climate campaigners, like Greta Thunberg, whose futures will be irrevocably stamped by the effects of climate change: Humanity simply isn’t moving fast enough.
“In order to do this we have to make order of magnitude improvements in both speed and scale — which is technically a thing that we know how to do but is among the most daunting things that you ever try to undertake. So… are we moving fast enough? Are we doing enough? Because time is running out,” warns Wong.
“The time frame that we have left is very small when compared to the planetary scale of the problem. And so I think the only way that we’re going to get there is with proven solutions, moving, growing at exponential speed.”
“I am [hopeful],” he adds. “I’m a big fan of humans working together. People can really do it. I’m very I guess what you’d call pro-human. We have a lot of flaws, we fight amongst ourselves a lot, but I really think that when people work together they can really do amazing, amazing things… Trees gave us life and so now it’s our time to repay that debt.”
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Kenyan consumer experience platform for businesses in Africa, Ajua today announced that it has acquired WayaWaya, a Kenya-based AI and ML messaging and payments company.
WayaWaya’s customers and partners include the likes of I&M Bank, Interswitch and MTN. The company offers a range of services, from digital banking and payment services to financial services APIs and payment bots.
According to Ajua, the acquisition is primarily focused on WayaWaya’s payments bots system known as Janja. The platform, which has customers like Airtel, Ezee Money, Housing Finance Company of Kenya (HF Group), enables borderless banking and payments across apps and social media platforms. Teddy Ogallo, the entrepreneur who founded WayaWaya, joins Ajua as VP of Product APIs and Integrations.
Per Crunchbase, WayaWaya has just raised $75,000. Although the two companies did not disclose the financial details of the acquisition, Ajua is expected to have paid 10 times more than WayaWaya’s total raise.
Ajua, formerly mSurvey, was founded in 2012 by Kenfield Griffith. The company is solving a consumer data problem for African businesses to understand their business better and drive growth.
“There’s a lot of commerce happening on the continent and Ajua wants companies to move from transaction numbers to the customers behind such transaction,” Griffith told TechCrunch. “Imagine if we knew what drove consumer habits for businesses. I mean, that’s a huge exponential curve for African businesses.”
Teddy Ogallo (Founder, WayaWaya) & Kenfield Griffith (CEO, Ajua)
Nigeria’s SME market alone is valued at $220 billion annually. And while businesses, mostly big enterprises, can afford customer communication tools, a large segment of small businesses are being left out. Ajua’s play is to use data and analytics to connect companies with their customers in real time. “We’ve taken what makes enterprise customers successful, and we’re capturing it in a simple format so SMEs can have the same tools,” Griffith added.
Since most consumer behavior for these SMEs happens offline, Ajua gives businesses unique USSD codes to receive payments, get feedback and offer discounts to their customers. It is one of the products Ajua has launched over the years for customer feedback at the point of service to businesses that cumulatively have over 45 million customers.
The company’s partners and clients also include Coca-Cola, FBNQuest, GoodLife Pharmacy, Java House, Safaricom, Standard Chartered and Total.
As an intelligent messaging bot, Janja is used by individuals and businesses across WhatsApp, Facebook Messenger and Telegram to automate customer support and make cross-border payments. So, Janja’s integration into Ajua’s product stack will close much of the acquirer’s customer experience loop by automating responses and giving customers what they want, when they want it.
This acquisition comes a month after Ajua announced that it partnered with telecom operator MTN Nigeria to launch a customer management product for Nigerian businesses. The product called MTN EnGauge carries the same features present in Ajua but, in this case, is tailored solely for businesses using the MTN network. The roll-out is expected to generate more data for Ajua’s thousands of users. It will also be upgraded to incorporate Janja and other services.
In hindsight, it appears Ajua could have created a product like Janja in-house due to its vast experience in the consumer experience space. However, the company chose an acquisition and Griffith gave two reasons why — building a similar product would have taken a long time and Ogallo seemed to know Janja’s business and operations so well, it just made sense to get him on board.
“Teddy was going the same direction we’re going. We just thought to acquire WayaWaya instead and make a really good company out of both products attempting to solve the same problem. To me, it’s all about solving the problem together rather than going alone,” said the CEO.
On why he accepted the acquisition, Ogallo, who now has a new role, noted that Ajua’s ability to scale customer service and experience and also help businesses was one reason and earned admiration from him. “Seeing how WayaWaya’s technology can complement Ajua’s innovative products and services, and help scale and monetize businesses, is an exciting opportunity for us, and we are happy that our teams will be collaborating to build something unique for the continent,” he added.
This is a solid infrastructure play from Ajua coming from a founder who is a massive advocate of acquisition and consolidation. Griffith believes that the two are strategies for a speedier route to new markets and channels in Africa.
“I think there are lots of ways we can build the ecosystem. There are lots of young talent building stuff, and they don’t have access to capital to get to the next stage. The question is if they want to race to the finish line or take off time and get acquired. I think there’s a huge opportunity in Africa if you want to solve complex problems by acquisition.”
There has been an uptick in local acquisitions in Africa from startups within a single country and between two countries in the past three years. For the former, Nigerian recruitment platform Jobberman’s acquisition of NGCareers last year comes to mind. And there are pan-African instances like Lagos-based hub CcHub’s acquisition of iHub, its Nairobi counterpart; Ethiopian software provider Apposit sell-off to Nigerian fintech Paga; and Johannesburg-based fintech MFS Africa acquiring Uganda’s Beyonic.
The common theme among the acquisitions (and most African acquisitions) is their undisclosed sums. For Ajua, Griffith cited regulatory issues as one reason why the company is keeping the figure under wraps.
Since launching nine years ago, Ajua has raised a total of $3.5 million, according to Crunchbase. Given the nature of this acquisition and partnership with MTN, the company might set sights on another fundraise to scale aggressively into Nigeria (a market it entered in 2019) and other African countries.
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More than a year after the pandemic began, remote work shows no signs of going away. While it has its cons, it remains top of mind for potential employees around the world before joining a new company.
But while most people in Africa still go to physical offices despite the pandemic, a few companies have nevertheless embraced this concept. Andela, a New York-based startup that helps tech companies build remote engineering teams from Africa, was one of the first to publicly announce it was going remote on the continent.
Today, it is doubling down on this effort by announcing the global expansion of its engineering talent. Over the past six months, the company has seen a 750% increase in applicants outside Africa. More than 30% of Andela’s inbound engineer applications also came from outside the continent in March alone. Half this number came from Latin America while Africa saw a 500% increase in applications as well.
When Andela launched in 2014, it built hubs in Nigeria, Kenya, Rwanda and Uganda to source, vet and train engineers to be part of remote teams for international companies. It also tested satellite models in Egypt and Ghana as substitutes to physical hubs.
The company would issue a call for applications, select a few (less than 1%), pay them a salary for the first six months and provide them with housing and food. It also helped developers improve their skills via training and mentorship. Over 100,000 engineers have taken part in the company’s learning network and community, and, as of 2019, Andela had more than 1,500 engineers on its payroll.
However, after noticing that this model wasn’t sustainable, it began to make changes.
In September 2019, it let go of 420 junior engineers across Kenya, Uganda and Nigeria. Nine months later, citing the pandemic, it laid off 135 employees while introducing salary cuts for senior staff. But despite the layoffs, the pandemic provided some form of clarity to how Andela wanted to operate — which was remote, judging by the success of the satellite models.
“In the very beginning, a developer had to be in Lagos to work with Andela. Then it became living in Nigeria. Then Kenya. Then Uganda, Rwanda,” CEO Jeremy Johnson told TechCrunch. “Before the pandemic, Andela was opening applications in country after country. The pandemic came and changed that as we opened up to the entire continent.”
Shutting down its existing physical campuses and going remote also helped the company focus on getting engineers with more experience to meet its clients’ requirements. That experiment, which the company conducted in less than a year, is also part of its mission to be a global company.
“That went so well and we thought ‘what if we accelerated it now that we’re remote and just enable applicants from anywhere?’ because it was always the plan to become a global company. That was clear, but the timing was the question. We did that and it’s been an amazing experiment,” Johnson added.
Now with its global expansion, its clients can tap into regional expertise to support international growth.
According to a statement released by the firm, it currently has engineers from 37 countries across Africa, Asia, Latin America, North America and Europe.
Johnson didn’t go into details about how many of these engineers are getting jobs from Andela or even its total developer count. He’s more interested in helping its clients solve the diversity issues that have plagued many Western corporations.
Andela is currently working with eight companies that have hired its engineers in Latin America and Africa. In addition to the diversity play, the CEO says that means Andela engineers get to prove themselves on a global playing field in a way the company has “always wanted to see.”
Andela serves more than 200 customers, including GitHub, ViacomCBS, Pluralsight, Seismic, Cloudflare, Coursera and InVision. GitHub is one company that seems to be benefitting from Andela’s new offerings. The company’s VP of Engineering, Dana Lawson, in a statement said, “As a business in the developer tool space, a lot of us are trying to enter those areas of the world (Southeast Asia, Latin America and Africa) where the emergent developers are coming so we can better understand their needs. Having a local presence there with amazing talent is super valuable to building a global product.”
Image Credits: Andela
In its quest to become a global company, going up against competition is unavoidable for the seven-year-old company. But since most of these companies are horizontal marketplaces (providing a wide range of expertise), whereas Andela is vertical, Johnson believes there’s enough market share to be acquired by the company.
“We are focused on building digital products, and because of that, we’re able to do more, essentially, for our customers… That’s where our focus is — [building long-term relationships] and around building great digital products,” the CEO said.
The company was founded by Jeremy Johnson, Christina Sass, Nadayar Enegesi, Ian Carnevale, Brice Nkengsa and Iyinoluwa Aboyeji. It has raised more than $180 million (up to Series D) from firms like Chan Zuckerberg Initiative, Generation Investment Management, Google Ventures and Spark Capital, at a valuation of about $700 million.
While announcing the layoffs last year, Andela said it was on an annual revenue run rate of $50 million. But when asked how this number has changed over the past year, Johnson said the company is “growing at a healthier pace as we’ve ever had.”
The future of remote work is global and Johnson believes Andela provides the vital link to talent wherever it is found. The company’s head of talent operations, Martin Chikilian, echoed similar sentiments regarding the expansion.
“We’ve seen exponential growth and interest from engineers from across Africa who want to work with some of the world’s most exciting technology-focused companies,” he said. “Growing our network of talent from Africa to include more markets is a unique proposition and we continue to match talent with opportunity beyond geographical boundaries.”
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The world’s food supply must double by the year 2050 to meet the demands of a growing population, according to a report from the United Nations. And as pressure mounts to find new crop land to support the growth, the world’s eyes are increasingly turning to the African continent as the next potential global bread basket.
While Africa has 65% of the world’s remaining uncultivated arable land, according to the African Development Bank, the countries on the continent face significant obstacles as they look to boost the productivity of their agricultural industries.
On the continent, 80% of families depend on agriculture for their livelihoods, but only 4% use irrigation. Many families also lack access to reliable and affordable electricity. It’s these twin problems that Samir Ibrahim and his co-founder at SunCulture, Charlie Nichols, have spent the last eight years trying to solve.
Armed with a new financing model and purpose-built small solar-powered generators and water pumps, Nichols and Ibrahim have already built a network of customers using their equipment to increase incomes by anywhere from five to 10 times their previous levels by growing higher-value cash crops, cultivating more land and raising more livestock.
The company also just closed on $14 million in funding to expand its business across Africa.
“We have to double the amount of food we have to create by 2050, and if you look at where there are enough resources to grow food — all signs point to Africa. You have a lot of farmers and a lot of land, and a lot of resources,” Ibrahim said.
African small farmers face two big problems as they look to increase productivity, Ibrahim said. One is access to markets, which alone is a huge source of food waste, and the other is food security because of a lack of stable growing conditions exacerbated by climate change.
As one small farmer told The Economist earlier this year, “The rainy season is not predictable. When it is supposed to rain it doesn’t, then it all comes at once.”
Ibrahim, who graduated from New York University in 2011, had long been drawn to the African continent. His father was born in Tanzania and his mother grew up in Kenya and they eventually found their way to the U.S. But growing up, Ibrahim was told stories about East Africa.
While pursuing a business degree at NYU Ibrahim met Nichols, who had been working on large-scale solar projects in the U.S., at an event for budding entrepreneurs in New York.
The two began a friendship and discussed potential business opportunities stemming from a paper Nichols had read about renewable energy applications in the agriculture industry.
After winning second place in a business plan competition sponsored by NYU, the two men decided to prove that they should have won first. They booked tickets to Kenya and tried to launch a pilot program for their business selling solar-powered water pumps and generators.
Conceptually solar water-pumping systems have been around for decades. But as the costs of solar equipment and energy storage have declined, the systems that leverage those components have become more accessible to a broader swath of the global population.
That timing is part of what has enabled SunCulture to succeed where other companies have stumbled. “We moved here at a time when [solar] reached grid parity in a lot of markets. It was at a time when a lot of development financiers were funding the nexus between agriculture and energy,” said Ibrahim.
Initially, the company sold its integrated energy generation and water-pumping systems to the middle income farmers who hold jobs in cities like Nairobi and cultivate crops on land they own in rural areas. These “telephone farmers” were willing to spend the $5,000 required to install SunCulture’s initial systems.
Now, the cost of a system is somewhere between $500 and $1,000 and is more accessible for the 570 million farming households across the word — with the company’s “pay-as-you-grow” model.
It’s a spin on what’s become a popular business model for the distribution of solar systems of all types across Africa. Investors have poured nearly $1 billion into the development of off-grid solar energy and retail technology companies like M-kopa, Greenlight Planet, d.light design, ZOLA Electric and SolarHome, according to Ibrahim. In some ways, SunCulture just extends that model to agricultural applications.
“We have had to bundle services and financing. The reason this particularly works is because our customers are increasing their incomes four or five times,” said Ibrahim. “Most of the money has been going to consuming power. This is the first time there has been productive power.”
SunCulture’s hardware consists of 300-watt solar panels and a 440-watt-hour battery system. The batteries can support up to four lights, two phones and a plug-in submersible water pump.
The company’s best-selling product line can support irrigation for a two-and-a-half acre farm, Ibrahim said. “We see ourselves as an entry point for other types of appliances. We’re growing to be the largest solar company for Africa.”
With the $14 million in funding, from investors including Energy Access Ventures (EAV), Électricité de France (EDF), Acumen Capital Partners (ACP) and Dream Project Incubators (DPI), SunCulture will expand its footprint in Kenya, Ethiopia, Uganda, Zambia, Senegal, Togo and Cote D’Ivoire, the company said.
Ekta Partners acted as the financial advisor for the deal, while CrossBoundary provided additional advisory support, including an analysis on the market opportunity and competitive landscape, under the United States Agency for International Development (USAID)’s Kenya Investment Mechanism Program.
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The economic effects of COVID-19 could delay Africa’s next big IPO — that of Nigerian fintech unicorn Interswitch.
If so, it wouldn’t be the first time the Lagos-based payments company’s plans for going public were postponed; the tech world has been anticipating Interswitch’s stock market debut since 2016.
For the continent’s innovation ecosystem, there’s a lot riding on the digital finance company’s IPO. After e-commerce venture Jumia, it would become only the second listing of a VC-backed African tech company on a major exchange. And Interswitch’s stock market debut — when it occurs — could bring more investor attention and less controversy to the region’s startup scene.
TechCrunch reached out to Interswitch on the window for listing, but the company declined to comment. The tech firm’s path from startup to IPO aspirant traces back to the vision of founder Mitchell Elegbe, a Nigerian electrical engineering graduate whose entire career has pretty much been Interswitch.
Africa’s tech scene is still fairly young, but it does have a timeline with several definitive points. An early one would be the success of mobile money in East Africa, with the launch of Safaricom’s M-Pesa in 2007. Another is the notable wave of VC-backed startups and founders that launched around 2010.
Interswitch CEO Mitchell Elegbe (Photo Credits: Interswitch)
With Interswtich, Elegbe pre-dated both by a number of years, founding his fintech company back in 2002 to connect Nigeria’s largely disconnected banking system. The firm became a pioneer of the infrastructure to digitize Nigeria’s economy.
Interswitch created the first electronic switch whereby Nigerian financial institutions could communicate and thereby operate ATMs and point of sales operations. The company now provides much of the rails for Nigeria’s online banking system.
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November 2019 could mark when Nigeria (arguably) became Africa’s unofficial capital for fintech investment and digital finance startups.
The month saw $360 million invested in Nigerian-focused payment ventures. That is equivalent to roughly one-third of all the startup VC raised for the entire continent in 2018, according to Partech stats.
A notable trend-within-the-trend is that more than half — or $170 million — of the funding to Nigerian fintech ventures in November came from Chinese investors. This marks a pivot (to tech) in China’s engagement with Africa. We’ll get to that.
Before the big Chinese-backed rounds, one of Nigeria’s earliest fintech companies, Interswitch, confirmed its $1 billion valuation after Visa took a minority stake in the company. Interswitch would not disclose the amount to TechCrunch, but Sky News reporting pegged it at $200 million for 20%.
Founded in 2002 by Mitchell Elegbe, Interswitch pioneered the infrastructure to digitize Nigeria’s then predominantly paper-ledger and cash-based economy.
The company now provides much of the tech-wiring for Nigeria’s online banking system that serves Africa’s largest economy and population. Interswitch offers a number of personal and business finance products, including its Verve payment cards and Quickteller payment app.
The financial services firm has expanded its physical presence to Uganda, Gambia and Kenya . The Nigerian company also sells its products in 23 African countries and launched a partnership in August for Verve cardholders to make payments on Discover’s global network.
Visa and Interswitch touted the equity investment as a strategic collaboration between the two companies, without a lot of detail on what that will mean.
One point TechCrunch did lock down is Interswitch’s (long-awaited) and imminent IPO. A source close to the matter said the company will list on a major exchange by mid-2020.
For the near to medium-term, Interswitch could stand as Africa’s sole tech-unicorn, as e-commerce venture Jumia’s volatile share-price and declining market-cap — since an April IPO — have dropped the company’s valuation below $1 billion.
Circling back to China, November was the month that signaled Chinese actors are all in on African tech.
In two separate rounds, Chinese investors put $220 million into OPay and PalmPay — two fledgling startups with plans to scale in Nigeria and the broader continent.
PalmPay, a consumer-oriented payments product, went live last month with a $40 million seed round (one of the largest in Africa in 2019) led by Africa’s biggest mobile-phone seller — China’s Transsion.
The startup was upfront about its ambitions, stating in a company release its goals to become “Africa’s largest financial services platform.”
To that end, PalmPay conveniently entered a strategic partnership with its lead investor. The startup’s payment app will come pre-installed on Transsion’s mobile device brands, such as Tecno, in Africa — for an estimated reach of 20 million phones.
PalmPay also launched in Ghana in November and its U.K. and Africa-based CEO, Greg Reeve, confirmed plans to expand to additional African countries in 2020.

OPay’s $120 million Series B was announced several days after the PalmPay news and came only months after the mobile-based fintech venture raised $50 million.
Founded by Chinese-owned consumer internet company Opera — and backed by nine Chinese investors — OPay is the payment utility for a suite of Opera -developed internet-based commercial products in Nigeria. These include ride-hail apps ORide and OCar and food delivery service OFood.
With its latest Series A, OPay announced it would expand in Kenya, South Africa and Ghana.
Though it wasn’t fintech, Chinese investors also backed a (reported) $30 million Series B for East African trucking logistics company Lori Systems in November.
With OPay, PalmPay and Lori Systems, startups in Africa have raised a combined $240 million from 15 Chinese investors in a span of months.
There are a number of things to note and watch out for here, as TechCrunch reporting has illuminated (and will continue to do in follow-on coverage).
These moves mark a next chapter in China’s engagement in Africa and could raise some new issues. Hereto, the country’s interaction with Africa’s tech ecosystem has been relatively light compared to China’s deal-making on infrastructure and commodities.
There continues to be plenty of debate (and critique) of China’s role in Africa. This new digital phase will certainly add a fresh component to all that. One thing to track will be data-privacy and national-security concerns that may emerge around Chinese actors investing heavily in African mobile consumer platforms.
We’ve seen lines (allegedly) blur on these matters between Chinese state and private-sector actors with companies such as Huawei.
As OPay and PalmPay expand, they may need to do some reassuring of African regulators as countries (such as Kenya) establish more formal consumer protection protocols for digital platforms.
One more thing to follow on OPay’s funding and planned expansion is the extent to which it puts Opera (and its entire suite of consumer internet products) in competition with multiple actors in Africa’s startup ecosystem. Opera’s Africa ventures could go head to head with Uber, Jumia and M-Pesa — the mobile money-product that put Kenya out front on digital finance in Africa before Nigeria.
Shifting back to American engagement in African tech, Twitter and Square CEO Jack Dorsey was on the continent in November. No sooner than he’d finished his first trip, Dorsey announced plans to move to Africa in 2020, for three to six months, saying on Twitter, “Africa will define the future (especially the bitcoin one!).”
We still don’t know much about what this last trip — or his future foray — mean in terms of concrete partnerships, investment or market moves in Africa from Dorsey and his companies.
He visited Nigeria, Ghana, South Africa and Ethiopia and met with leaders at Nigeria’s CcHub (Bosun Tijani), Ethiopia’s Ice Addis (Markos Lemma) and did some meetings with fintech founders in Lagos (Paga’s Tayo Oviosu).
I know pretty well most of the organizations and people Dorsey talked to and nothing has shaken out yet in terms of partnership or investment news from his recent trip.
On what could come out of Dorsey’s 2020 move to Africa, per his tweet and news highlighted in this roundup, a good bet would be it will have something to do with fintech and Square.
More Africa-related stories @TechCrunch
African tech around the ‘net
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As someone who covers Africa’s tech scene, I’m frequently asked about Andela . That’s not surprising, given the venture gets more global press (arguably) than any startup in Africa.
I’ve found many Silicon Valley investors have heard of Andela but aren’t exactly sure what it does.
In a bite, Andela is Series D stage startup―backed by $180 million in VC―that trains and connects African software developers to global companies for a fee.
The revenue-focused venture is often misread as a charity. In 2017, Andela CEO Jeremy Johnson described the organization as “a mission-driven for-profit company” ― a model for the concept “that you can actually build businesses that create real impact.”
I asked Johnson recently to clarify the objective behind Andela’s drive. “It’s the exact same mission as when we started, based around our founding principle… that brilliance and talent are distributed equally around the world, but opportunity is not,” he said.
“We’re about breaking down the walls that prevent brilliance and opportunity from connecting to each other.”
A major barrier for Africa’s software engineers, according to Johnson, is simply the fact that the continent has been totally off the network that companies look to for developer talent.
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When it comes to VC, vehicles, and startups, Africa’s ride-hail markets are becoming a multi-wheeled and global affair.
The big players such as Uber and Bolt are competing in Kampala and Nairobi—where in addition to car-service—they offer rickshaw taxis. On-demand motorcycle startups are multiplying and piloting EVs with funds from international partners. And many ride-hail companies in Africa are adapting unique product solutions to local transit needs.
In this analysis, I take a look at the leading startups in the mobility space and how the future of transportation on the continent will increasingly come from new entrants.
Africa’s in the midst of digital innovation boom, the components of which are intersecting rapidly across its 54 countries and 1.2 billion people.
Smartphone penetration is improving and in 2017, the continent saw the largest global increase in internet users—20 percent.
By Partech data, the continent surpassed the $1 billion VC mark in 2018. And greater connectivity and venture funding are fueling thousands of startups in every imaginable sector, including digital-transit.
While reliable markets stats for the size and potential of Africa’s ride-hail markets are sparse, there are some indicators of the sector’s potential.
Car ownership and cars per capita in Africa is among the lowest in the world. Parallel to that, any eyes and ears survey of the continent’s big cities reveals that shared transport by buses, cars, or motorcycles is big business that’s already ingrained in consumer culture. Millions of people daily pay fares to pack onto East and West Africa’s Mutatu and Danfo minibuses and Okada and Boda Boda motorbike taxis.
As Africa continues to urbanize, converts to smartphones, and discretionary consumer spending continues to rise—it all adds up to suggest strong potential for conversion to on-demand mobility services.
Unsurprisingly, the most active markets for ride-hail startups and investment in Africa align with the continent’s top spots for VC and tech activity: primarily Nigeria, Kenya, and South Africa.
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In many large cities across Africa, motorcycle taxis are as common as yellow cabs in New York.
That includes Lagos, Nigeria, where ride-hail startup Gokada has raised a $5.3 million Series A round to grow its two-wheel transit business.
Gokada has trained and on-boarded more than 1,000 motorcycles and their pilots on its app that connects commuters to moto-taxis and the company’s signature green, DOT– approved helmets.
The startup has completed nearly 1 million rides since it was co-founded in 2018 by Fahim Saleh — a Bangladeshi entrepreneur who previously founded and exited Pathao, a motorcycle, bicycle and car transportation company.
For Gokada’s Series A, Rise Capital led the investment, joined by Adventure Capital, IC Global Partners and Illinois-based First MidWest Group. Coinciding with the round, Nigerian investor and Jobberman founder Ayodeji Adewunmi will join Gokada as co-CEO.
Gokada will use the financing to increase its fleet and ride volume, while developing a network to offer goods and services to its drivers. “We’re going to start a Gokada club in each of the cities with a restaurant where drivers can relax, and we’ll experiment with a Gokada Shop, where drivers can get things they need on a regular basis, such as plantains, yams and rice,” Saleh told TechCrunch.
The startup differs from other ride-hail ventures in that it doesn’t split fare revenue with drivers. Gokada charges drivers a flat-fee of 3,000 Nigerian Naira a day (around $8) to work on their platform. The company is looking to generate a larger share of its revenue from building a commercial network around its rider community.
“We don’t do anything with the fares. We want to create an Amazon Prime-type membership…and ecosystem around the driver where we’re going to provide them more and more services, such as motorcycle insurance, maintenance, personal life-insurance and micro-finance loans,” Saleh said.
“We’re trying to provide a network of great services for our drivers that makes them stick with us, and not necessarily see a reason to switch to other platforms,” said Saleh.
Competition among those platforms is heating up, as global players enter Africa’s motorcycle taxi market and local startups raise VC and expand to new countries.
Uber began offering a two-wheel transit option in East Africa in 2018, around the same time Bolt (previously Taxify) started motorcycle taxi service in Kenya.
Rwanda has motorbike taxi startups SafeMotos and Yegomoto. Uganda-based motorcycle ride-hail company SafeBoda expanded into Kenya in 2018 and this month raised a Series B round of an undisclosed amount, co-led by the venture arms of Germany’s Allianz and Indonesia’s Go-Jek.
SafeBoda will use the round to further expand in East Africa and Nigeria in the near future, the startup’s co-CEO Maxime Dieudonne confirmed to TechCrunch.
In Nigeria, Gokada faces a competitor in local startup MAX.ng, which offers mobile-based passenger and logistics delivery services.
Overall, Africa’s motorcycle taxi market is becoming a significant sub-sector in the continent’s e-transport startup landscape. Two-wheel transit startups are vying to digitize a share of Africa’s boda boda and okada markets (the name for motorcycle taxis in East and West Africa) — representing a collective revenue pool of $4 billion and expected to double to $9 billion by 2021, according to a TechSci study.
“There is a formalization of an informal sector play here…to make it safer and higher quality,” Gokada investor Nazar Yasin of Rise Capital told TechCrunch.
The appeal to passengers is the lower cost of motorbike transit compared to buses or cabs ($1.85 is Gokada’s average fare) and the ability of two-wheelers to cut through the heavy congestion in cities such as Lagos and Nairobi.

A notable facet of motorcycle ride-hail companies in Africa is better organizing a space with a reputation for being somewhat chaotic and downright dangerous (see Nigeria’s past bans on the sector entirely due to safety).
For Gokada that includes training courses and certification of riders, the ability to track trips and safety stats from the app, and quality control for motorcycles — something that’s been lacking in East and West Africa’s non-digital moto-taxi space.
The company’s rider program offers a way for drivers to buy, own and maintain their motorcycles as they earn. Gokada has entered into partnership with Indian motorcycle maker TVS Motors to create a custom version of the company’s TVS Apache motorcycles for Gokada drivers.
Gokada is also experimenting with adding sensors to its fleet to better track safety standards. “We’re looking at seat sensors and another GPS sensor to track things like ‘did this driver add more than one passenger on the bike’ and all that data will feed back into our servers,” Saleh said.
The company won’t enter any new countries in Africa in the near future. “We plan to expand all over Nigeria. We think it’s a large enough market for now,” said Saleh. Nigeria is Africa’s most populous nation (190 million) and largest economy.
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To become a global fintech player, locate your company in San Francisco and Africa.
That’s the approach of payments company Flutterwave, digital lending startup Mines, and mobile-money venture Chipper Cash—Africa-founded ventures that maintain headquarters in San Francisco and operations in Africa to tap the best of both worlds in VC, developers, clients, and the frontier of digital finance.
This arrangement wasn’t exactly coordinated across the ventures, but TechCrunch coverage picked up the trend and some common motives among these rising fintech firms.
Founded in 2016 by Nigerians Iyinoluwa Aboyeji and Olugbenga Agboola, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad.
Clients can tap its APIs and work with Flutterwave developers to customize payments applications. Existing customers include Uber, Booking.com and African e-commerce unicorn Jumia.com.
The Y-Combinator backed company is headquartered in San Francisco, runs its operations center in Nigeria, and plans to add offices in South Africa and Cameroon.
Flutterwave opened an office in Uganda in June and raised a $10 million Series A round in October. The company also plugged into ledger activity in 2018, becoming a payment processing partner to the Ripple and Stellar blockchain networks.
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