Digitalization is not Detriment- Believe Us
African tech companies in the past decade has joined the fast-growing digital revolution. With innovators everywhere across the continent Africa has become a top choice for western venture companies and investors. Countries like Nigeria, having one of the fastest growing economies in the continent are one of the top spots for innovation and the birth of these businesses and companies. If you are into the African tech scene and its prospects there are quite a number of notable Startup companies in the tech scene to follow and know about.
The companies which thrive the most in Africa are the Fintech companies. This year, Payment company Stripe acquired Nigerian start-up PayStack for 200 million dollars, one of the biggest acquisitions on the Continent.
Though with problems like lack of electricity and other related issues affecting the African investment tech scene.
Here’s a list of African Tech Companies to look out for
The company was founded by Ian Carnevale and Iyinoluwa Aboyeji in May 21st 2014. Though affected by an economic downturn this year leading to laying off of 1,300 staff across Africa. Andela began as a Startup comprised of six founders with the goal of connecting engineers in training. The company is a brilliant and quite popular in mainstream tech for bridging developers in Africa and has attracted major investors like Mark Zuckerberg, founder of Facebook, invested a total of 24million dollars into the company, a good development for the African technology industry. Andela is still expanding and with features like remote working.
With over 60,000 businesses using the service. Founded by Ezra Olubi and Shola Akinlade in the year 2015. PayStack is one of the largest FinTech companies in Africa that supports websites and credit cards in making secured payments and cash transfers. PayStack has raised a total of $11.7million in a total of five funding rounds. The company was recently acquired by Stripe with goals to expand their base into the African market. This company is one to be on the look out for.
One of the most widely diverse brands in Africa, Opay is a platform for payment, food and grocery, transportation and many more. The company was launched in August 2018 and raised a total of 120million dollars in funding from companies like GaoRong Capital and Source Code Capital. The company was incubated by global internet company Opera. Opay is one of the fastest growing companies in Africa and with goals to triple its expansion across African markets.
Opay is currently active in Nigeria, Ghana, South Africa and Kenya in the fintech ecosystem. Opay is very focused on making marketing opportunities readily available to everyone in Africa, both big and small businesses, this is one major company to watch in African technology.
This is another widely Chinese backed fintech company that’s widely popular in Africa. It lets users send and receive money through their PalmPay wallets and bank accounts. The company was launched on July 2019. The company raised a whooping sum of $40 million in seeding funding which was led by Chinese smartphone brand Tecno. The fintech company has plans to expand in Africa and is currently present in Nigeria and Ghana. One major goal of PalmPay is to solve the problem of financial inclusion in the continent as Africans are financially excluded according to statistics and data gotten from World Bank. This fintech company has all the potential to solve this problem.
PalmPay can also be likened to a business aggregator and uses transsion to scale its business in the African Market. PalmPay now has more than 100,000 active users and is very much bound to skyrocket in the upcoming years.
BBOXX is a power company founded in Rwanda. One of its aims is to promote a safer and cleaner African climate by utilizing Solar power and liquefied natural gas as means of conventional power supply. The ecological startup which mainly stands for a greener world is a potential and innovative African technology company to be on the look out for. This is mainly purported by the ‘pay-as-you-cook’ policy and technology for urban holdings and regular households. These features are connected to the internet via Bboxx Pulse, this is the platform that facilitates online payment and customer reaching and services rendering. BBoXX targets across the continent a profitable market of over 860 million customers as millions of people across the continent lack access to clean cooking. BBOXX arrived in Rwandan market at a very perfect time, when the country is seriously trying to reduce and check over dependence on biomass as a means of power.
This is also, another large fintech organisation in Africa. Founded and developed by Mitchell Elegbe in the year 2002 solely focused on digital payments and commerce as a whole and recently hit a $1 billion dollar valuation after a major investment by Visa which bought a $200 million dollar stake for 20%.
From its initial base in Nigeria, Interswitch has expanded its physical presence to Uganda and Kenya. Interswitch also currently markets in up to 23 countries across the African continent. The two fintech giants propose equity investment as a way of working together for the two companies. Though Interswitch’s IPO has been stalled for quite a number of years as a result of the economic recession ongoing in Nigeria. The fintech company is currently 17 years old and expanding markets across Africa and in the US via the Visa partnership. Interswitch joins the major goal of fintech start-ups in Africa which is basically, facilitating savings, curbing financial inclusions and solving the problem of loan and credit for SMEs.
The fintech industry is a major market and potential investment to be on the look out for in Africa. The continent has robust commodity markets which in general needs better and more secured and reliable ways to connect retailer to customer and as the number of internet and smartphone users rise across the continent gradually the fintech industry can prove to be a very fruitful and potential market for both founders and investors. There are currently over 300 million Africans currently online and the number is very much expected to rise in the coming years.