Bright future for Kenyan startups as 8 tech companies raise over Ksh.20B in 2022

At the close of last year, 13 startups we looked at had raised a total Ksh.25 billion ($222 million) in funding, the most beneficiaries being fintechs (Financial technology firms).

While this was amid a 25% dip in investment from Ksh.63.4 billion ($549 million) in 2020 to Ksh.47.4 billion ($411 million), the Kenya startup ecosystem still managed to be fourth in Africa, according to data from Substack.

Leading in venture capital investments in Africa was Nigeria, which emerged with $1.5 billion last year, ahead of South Africa followed at $945 million and Egypt at $599 million.

This year, however, Kenya is second with 20 startups having raised Ksh.25.8 billion ($223 million) so far, behind Nigeria which has reported a combined Ksh.42 billion ($364.6 million) from 33 startups.

According to Disrupt Africa’s annual African Tech Startups Funding Report which captured investment data up to March 1, 16 South African startups have in the meantime secured Ksh.25 billion ($220 million).

The report also projects a promising 2022, with new records in the continent expected to be set by May.

Also worth noting is that fintechs account for 38,7% of the total investment channeled into the continent this year.

Below are some of the Kenyan startups who have raised considerable amount of funding so far in 2022

Tushop - Ksh.345 Million

Fast-moving consumer goods start-up Tushop raised $3 million in a pre-seed round early this month.

Founded in 2021, the company’s platform enables customers to buy groceries online at more affordable prices compared to supermarkets, local retailers and ‘mama mbogas’.

Tushop uses community leaders who collect orders from their neighbours and handle door-to-door deliveries, with an added free delivery perk.

The round was led by 4DX Ventures and saw the participation of JAM Fund, Breyer Capital, Chandaria Capital, TO Ventures, Golden Palm Investments, FirstCheck Africa, and DFS Lab, among others.

Apollo Agriculture - Ksh.4.5 Billion

This agri-tech startup raised $40 million in equity funding last month from a Series B round led by Softbank Vision Fund 2 and saw the participation of Chan Zuckerberg Initiative, Yara Growth Ventures, Endeavor Catalyst, CDC, as well as Anthemis Exponential Ventures, Flourish Ventures, Leaps by Bayer, SBI, Breyer Capital and TO Ventures Food.

Launched in 2017, Apollo  builds credit profiles for small-scale farmers using machine learning models. The company verifies the identity of farmers and takes satellite coordinates of their fields.

The startup then uses the data to build automated digital processes for each step in a farmer’s life cycle, from customer acquisition through training to collecting the payment.

MarketForce - Ksh.4.5 Billion

In February, retail and distribution firm MarketForce raked in $40 million from a Series A round funding, just 7 months after the firm concluded a $2 million (Ksh.227 million) pre-Series A round. 

In what was reported to be the largest Series A round in East and Central Africa, the funding was led by V8 Capital Partners and saw the participation of Ten13 VC, SOSV Select Fund, Vu Ventures, Vastly Valuable Ventures, Uncovered Fund, alongside other existing investors.

The startup enables informal merchants to source goods directly from manufacturers and distributors as well as placing and paying for orders digitally through its RejaReja app.

BasiGo - Ksh.389 Million

Kenyan Electric Vehicle (EV) startup BasiGo in February announced that it has raised $3370000 three months after its launch.

The round led by Novastar Ventures saw the participation of  Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital and Third Derivative, among others.

The EV manufacturer had also raised Ksh.106 million ($930,000) in a pre-seed round last year.

Amitruck - Ksh.454 Million

Tech-enabled logistics start-up Amitruck secured $4 million seed funding in February from a round led by California-based Better Tomorrow Ventures.

Dynamo Ventures, Rackhouse Venture Capital, Flexport Inc, Knuru Capital, Launch Africa Ventures, Uncovered Fund also participated in the funding.

Amitruck links shippers with transporters operating trucks, vans, tuk-tuks, pick-ups and motorbikes, allowing them to negotiate the transport charges and do away with the middleman.

The platform also enables clients to customize options in the services offered, such as off-loading costs, and all goods transported are insured.

Copia - Ksh.5.6 Billion

In January, e-commerce start-up Copia Global raised $50 million from a Series C equity round led by Goodwell Investments, which also saw the participation of Zebu Investment Partners, the U.S. International Development Finance Corporation (DFC), Koa Labs, Lightrock, German development finance institution DEG, as well as Perivoli Innovations.

The business-to-consumer (B2C) company provides a platform for rural, middle to low-income consumers to order products that are delivered at their convenience.

Poa Internet - Ksh.3 Billion

Poa Internet, a local internet service provider targeting homes and small businesses in Nairobi’s low and middle-income neighborhoods secured $28 million in January.

In 2020, the company beat out 673 other startups to win an innovation challenge hosted by Africa50, an infrastructure financier backed by the Africa Development Bank (AfDB) Group.

Poa Internet raised the amount in a Series C funding round, taking the total amount it has raised since winning the challenge to $36 million (Ksh.4.084 billion).

Lipa Later - Ksh1.36 billion

Tech credit platform Lipa Later raked in $12 million from a pre-Series A funding in January.

The Buy Now Pay Later (BNPL) service partners with retailers to allow shoppers to pay in installments and operates in Kenya, Uganda and Rwanda.

Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services participated in the equity and debt funding.