July has been a cold month marked by the continuation of Youth protests across Kenya. However, the startup scene continues to push on. The month was had mergers and acquisitions that illustrated the strong relantionship between Nigeria and Kenyan companies. Nala which announced plans to open an office in New York, also raised $40m. This funding will help it to build cross-border payments for emerging markets.
There was also reports that 9 former Wasoko employees have dropped their wrongful termination lawsuit against the e-commerce company. The decision comes after a Kenyan court overturned a previous ruling that ordered Wasoko to keep the employees on payroll. The employees failed to meet a court-imposed deadline to proceed with the case, leading to its dismissal.
These was not all that happened in Kenya, we cover more startup news that you might have missed in July below.
Risevest Acquires Kenya’s Hisa
Nigeria Fintech sector growth and the country’s position as the fintech giant of Africa continues. In July, Nigerian investment platform RiseVest announced it has acquired Kenyan startup Hisa, a wealthtech startup. RiseVest, founded in 2014, did not disclose the financial terms were for the deal,
The company is a digital wealth manager in Nigeria, offering users access to dollar-denominated investments in developed markets. It claims to have a user base of 620,000 and cumulative pay-outs exceeding $42 million since its inception. RiseVest’s growth has been supported by investments from notable entities including Flutterwave, Techstars, and ARM, one of Nigeria’s largest fund managers.
Hisa, valued at $7.7 million before its acquisition, offered Kenyan investors a unique opportunity to invest in both domestic and U.S. equities, including fractional shares.
d. light Raises More Funding
In a major boost to its mission, d. light, a pioneer in off-grid solar technology, raised $176 million to accelerate its expansion into Kenya, Tanzania, and Uganda. The funding, secured on July 17, will power the company’s efforts to provide sustainable energy solutions to East Africa’s most vulnerable populations.
African Frontier Capital’s $176 million investment enables d. light to scale its PayGo model. By offering solar products on credit, the cleantech startup aims to serve approximately 6 million low-income households across the 3 East African countries within the next three years.
Fintech Minka Arrives in East Africa
Minka, a Colombian fintech company, has arrived in Africa, specifically East and Southern regions. The company aims to be part of the fintech ecosystem, changing the way money moves by connecting banks, financial institutions, and central banks on a shared platform.
This approach simplifies complex financial transactions, making them faster, safer, and more accessible. Minka’s cloud-based platform offers flexibility, allowing partners to tailor solutions to their specific needs and regulatory environments.
Having had success in Latin America, Minka believes its technology can find a market in the African financial landscapes. By targeting Kenya, Tanzania, Ethiopia, Malawi, Zambia, Burundi, Uganda, and Mozambique, the company intends to deliver solutions that benefit individuals, businesses, and governments alike.
mTek and Workpay Team Up for Easy Insurance Access
mTek, a digital insurance platform, has teamed up with Workpay to make it easier for employees to get insurance coverage. The partnership integrates insurance options into the Workpay system, allowing employees to compare and purchase motor, health, life, and general insurance policies directly through their HR and payroll platform. This streamlined process aims to make insurance more affordable, convenient, and accessible for workers.
“We are excited to partner with mTek to streamline insurance procurement,” said Workpay’s Chief Business Officer, Edwin Mwangi. “This simplifies processes and offers tailored insurance products through Workpay’s HR and payroll expertise.”
Workpay also offers financial assistance for insurance premiums, making comprehensive coverage more accessible by allowing employees to spread payments over time. To protect vehicle owners from financial losses due to accidents, theft, or damage, Kenyan law mandates car insurance coverage.
Daphne Kabeberi Joins Glovo
Glovo announced the appointment of Daphne Kabeberi to be the Impact and Sustainability Lead for Africa. Daphne has over 20 years of experience in empowering underserved communities through skills training, fundraising, advocacy, and rural electrification projects worldwide.
Sebastien Pellion, Global Head of Impact & Sustainability at Glovo, commented on this appointment saying, “We are delighted to welcome Daphne Kabeberi to the Glovo team. Her vast experience and deep-rooted passion for community welfare align perfectly with our vision of creating positive social impact. We are confident that under her leadership, our sustainability initiatives in Africa will reach new heights.”
Before joining Glovo, Daphne led training programs for underprivileged youth at Tunapanda Institute and implemented eco-friendly standards at a hotel for Endustrial Support.
Intron Health Raises Pre-Seed Funding
Intron Health secured $1.6 million in pre-seed funding to accelerate growth. The company will use the investment to expand research, enhance its technology platform, and build its team. The round was led by Microtraction, with participation from Plug and Play Ventures, Jaza Rift Ventures, Octopus Ventures, Africa Health Ventures, OpenseedVC, Pi Campus, Alumni Angel, and Baker Bridge Capital.
The investment also saw contributions from angel investors from global companies, including Google, CLEAR Global, NYU, and Optum.
Intron created a clinical speech recognition platform for Africa, achieving up to 92% accuracy with medical terminology, even with heavy accents. This platform enables doctors in Nigeria, Ghana, Kenya, South Africa, and most recently Uganda, to complete documentation seven times faster, significantly speeding up the adoption of Electronic Health Records (EHR) and reducing administrative burdens.
Speaking on the round, Tobi Olatunji, Founder and CEO of Intron Health stated, ‘We are not only improving efficiency but also enhancing health outcomes and positively impacting hospital finances. With the backing of prominent global investors who bring deep knowledge and expertise, we are looking forward to our next phase of growth.’
TerraPay Fintech Startup Secures Funding
African fintech company TerraPay secured a $95 million debt financing round led by IFC, ILX, and BII. The funds will be used to expand its affordable remittance services across Africa, enter new markets, and partner with more money transfer operators. By increasing transaction volume, TerraPay aims to further reduce transfer costs for customers.
Ambar Sur, the Founder and CEO of TerraPay, expressed that this significant investment reaffirms the company’s dedication to revolutionizing the payment systems across Africa.
“The IFC has been a crucial partner in our journey, and we look forward to deepening our relationship to drive financial inclusion and accessibility across the continent,” he said.
Village Capital Invests in Kenyan Agri-tech Startup
Kenyan Agri-tech startup Aquarech has secured a $350,000 investment from Village Capital. The funding comes through Village Capital’s Reducing Inequalities Investment Facility, backed by FMO’s MASSIF Fund. This facility aims to support innovative businesses that promote financial inclusion. Aquarech will use the investment to provide small and medium-sized fish farmers with access to essential resources, such as quality fish feed, financing, and market connections.
“An inclusive and sustainable aquaculture food system in Africa depends on how many small and medium-sized fish farmers we can transition to profitability,” Dave Okech, co-founder and CEO of Aquarech, said. “This fund enables us to achieve this by bringing high-quality extruded floating pelleted fish feed with better feed conversion ratios directly to the farmers’ doorstep, supported by a credit platform and market linkages. With this intervention, we are transitioning farmers to profitability.”
Uncover Raises $1.4M to Expand Skincare Platform
Kenyan skincare brand Uncover has secured $1.4 million in seed funding to fuel its growth. The company, which uses data to create personalized skincare products for black women, plans to invest in its tech platform, launch new products, and expand its reach across Africa. With a strong community of over 200,000 customers and 10x revenue growth in two years, Uncover is poised for further success.
EQ2 Ventures and IgniteXL Ventures co-led the round, with additional investment from Chui Ventures, Samata Capital, and Altree Capital. To meet strong investor interest, Uncover also facilitated a secondary share sale.
Jade Oyateru, the startup’s co-founder and COO, said she was delighted to work with the group of investors. She said, “They bring a wealth of experience in this industry. This funding will empower us to unlock our next stage of growth, expand our product portfolio, enhance our technology, and reach even more consumers seeking personalised skincare solutions,”
Prembly and Peleza Merge to Create African Data and Compliance Leader
Nigerian fintech Prembly and Kenyan identity verification firm Peleza joined forces to form a leading data infrastructure and compliance solutions company for emerging markets. The combined entity will offer a comprehensive suite of services, including digital security, KYC, KYB, and background checks.
Prembly, established in 2021, has rapidly grown into a key player in the digital security space, while Peleza has built a strong reputation for its AI-powered identity verification solutions. Together, the companies aim to accelerate growth and expand their reach across the continent.
The merger of the two companies, the partners said, made the new combined entity the most robust data infrastructure and compliance solutions startup serving emerging markets.
“The merger with Peleza deepens our industry knowledge and elevates our strengths and technologies, empowering us to exceed our clients’ expectations worldwide,” said Lanre Ogungbe, founder and CEO of Prembly.
