We are not used to such big news where a Kenyan startup is acquired for millions let alone hundreds of millions. In what seems like a vote of confidence in Kenyan startups, Afb has acquired Kenyan startup Weza Tele for a sum of 154 million shillings ($1.7 million).
Weza Tele provides mobile solutions in commerce, supply chain and distribution through integration of the same with mobile payments. The solutions are provided on web, ussd and sms. The company has so far provided solutions in Kenya, Tanzania, Zimbabwe and Nigeria. The official announcement of the acquisition should be out in a few weeks time. Weza Tele is backed by some local investors who include Joe Mucheru of Google.
During the State of the Nation Address a few weeks ago, the president lauded Kenya’s rising position as a startup nation after a visit to iHub and Nailab incubators. This was followed by news by PSCU director of the government’s plan to establish a Kshs. 1 Billion startup accelerator. The interest in the Kenyan startup scene was also reaffirmed by Intel’s investment of 1.3 million in three Kenyan Apps. This will ultimately offer Kenyan Startups the much needed space to grow and scale their ideas.
We hope to see more of such deals take place.