The initiative is designed to support the continent’s expanding adoption of blockchain technology by providing financial backing and mentorship to emerging enterprises.

The fund will offer grants of up to $150,000 to pre-seed and seed-stage startups, with the potential for larger investments for projects utilizing StarkNet, the company’s proprietary decentralized application platform built on Ethereum.

The initiative will focus on high-potential startups across West, South, and East Africa, emphasizing teams that demonstrate a blend of strong technical expertise and deep local market understanding.

Kheireddine Kamal, Head of Africa Ventures at StarkWare, highlighted the program’s objectives, stating:

“We are looking for projects in African countries where economic conditions such as high inflation, volatile exchange rates, or low financial inclusion make blockchain solutions particularly relevant.”

In addition to financial support, selected startups will receive mentorship and the possibility of securing further investments of up to $500,000 from StarkWare, with even larger amounts available for standout projects.

StarkNet aims to provide African businesses with an alternative to traditional financial systems, leveraging blockchain’s scalability and efficiency.

Africa’s rapidly growing young population and increasing adoption of digital assets position the continent as a key player in the global blockchain ecosystem.

With consumer and business spending in Africa projected to reach $6.7 trillion by 2030, the demand for blockchain-based solutions continues to rise.

Established in 2018, StarkWare specializes in zero-knowledge-proof systems to enhance blockchain scalability.

The company’s key products include StarkEx, a scaling engine launched in 2020 that optimizes transaction efficiency, and StarkNet, a decentralized Layer 2 network introduced in 2021 to enable low-cost, scalable dApps.

The funding round was led by Oui Capital, with participation from Rally Cap, BKR Capital, and several angel investors.

Cauridor operates a hybrid payment system that integrates digital solutions with cash-based networks, enabling seamless financial transactions across multiple West African countries.

The company facilitates payments through a network of over 25,000 agents spanning Guinea, Senegal, Ivory Coast, Sierra Leone, and Liberia.

Its technology supports various payment methods, including cash pickups, bank transfers, and mobile wallets.

According to co-founder Oumar Rafiou Barry, the lack of robust payment infrastructure in Francophone Africa prompted the company to build its payment rails to address fragmentation in the region’s financial ecosystem.

This strategy has significantly contributed to Cauridor’s revenue, with its payment rails division now accounting for more than 90% of its earnings.

In 2024, the company reported a total payment volume (TPV) of $500 million.

The newly secured funding will drive Cauridor’s expansion into additional markets, including Mali and Nigeria.

Additionally, the company is preparing for a Series A funding round and is exploring blockchain integration to optimize settlements and leverage the rising adoption of stablecoins in cross-border payments.

Barry emphasized that these developments will enhance operational efficiency and position Cauridor as a key player in Africa’s evolving fintech landscape.

Founded in 2020 by Omar Saleh, Ahmed Wagueeh, and Fatimah El Shenawy, Khazna initially launched as an earned wage access platform.

Over time, it has evolved into a multi-service fintech provider, catering to a significant portion of Egypt’s smartphone users who lack access to formal financial services.

The company currently offers general-purpose credit, buy now pay later (BNPL) options, and bill payment services.

This latest funding round follows Khazna’s $38 million Series A investment in 2022.

Investors in the pre-Series B round include a mix of new and existing backers such as SANAD Fund for MSME, anb Seed Fund, Aljazira Capital, Khwarizmi Ventures, Nclude, ICU Ventures, Quona Capital, Speedinvest, and Disruptech Ventures.

With fresh capital secured, Khazna aims to accelerate its growth by applying for a digital banking license in Egypt and establishing strategic partnerships to enter the Saudi market.

CEO Omar Saleh described the funding as a major milestone for the company, emphasizing its role in expanding financial inclusion across the MENA region.

“This achievement not only strengthens our core operations but also enables us to fast-track our mission of financial empowerment. Our entry into Saudi Arabia marks the start of an exciting new chapter, and we remain dedicated to delivering a seamless digital experience to users across the region,” he stated.

The new fund is targeting a total capital raise of $85 million and aims to provide crucial early-stage investment to startups across North, West, and East Africa.

Flat6Labs has positioned itself as a key player in accelerating startup growth in these regions, offering funding, mentorship, and business development support to emerging companies.

A significant portion of the fund—49%—will be allocated to Egyptian startups, reinforcing Egypt’s role as a leading hub for innovation and entrepreneurship in Africa.

This strategic focus aligns with Flat6Labs’ ongoing efforts to stimulate local economies by empowering high-potential startups with the necessary resources to scale.

IFC’s Ongoing Partnership with Flat6Labs

The proposed investment marks IFC’s fourth financial commitment to Flat6Labs, following its participation in three previous funds managed by the firm.

This long-standing partnership highlights IFC’s confidence in Flat6Labs’ ability to identify and nurture promising startups that contribute to economic development and job creation.

As the private sector arm of the World Bank Group, IFC has been actively involved in supporting high-growth startups across emerging markets.

Its latest backing of Flat6Labs aligns with broader efforts to address the financing gap that many early-stage companies face in Africa, particularly those operating in technology-driven sectors with the potential for significant economic impact.

Strengthening Africa’s Startup Ecosystem

Flat6Labs’ latest fund comes at a time when African startups are increasingly attracting global attention, despite challenges such as limited access to capital and economic volatility.

The firm has a proven track record of successfully launching and managing startup accelerator programs, equipping founders with the skills, mentorship, and capital necessary to scale their ventures.

Flat6Labs aims to bridge the funding gap that often hinders early-stage startups from achieving sustainable growth.

The fund’s regional strategy, encompassing North, West, and East Africa, reflects the growing investor interest in African markets as hubs for technological innovation and entrepreneurship.

The fund aims to support startups at various stages, from early development to scaling regionally and internationally.

With a strong focus on fostering Egyptian startups, Foundation Ventures has built a reputation for backing early and growth-stage companies.

The new fund has garnered support from notable investors, including the Egyptian American Enterprise Fund (EAEF), the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and entrepreneur Onsi Sawiris.

While the primary investment focus remains on Egypt, a portion of the capital will also be allocated to high-potential startups across Africa.

According to Mazen Nadim, managing partner at Foundation Ventures, Egypt presents a unique opportunity for startups due to its rich tech talent pool and strategic economic position in the Middle East and Africa.

“The currency devaluation provides startups with an advantageous cost structure, allowing them to access top-tier tech talent and refine their business models efficiently before expanding regionally and globally,” Nadim explained.

Beyond financial investment, the firm extends strategic support to its portfolio companies, offering them access to Egypt’s largest enterprise network. This approach is designed to help startups establish a strong foundation locally before pursuing wider market opportunities.

Meanwhile, the Egyptian-American Enterprise Fund sees the partnership with Foundation Ventures as a move toward fostering innovation and economic growth in the region:

“We are confident in the talent and vision of the Foundation Ventures team and committed to supporting entrepreneurs who are shaping the future of the region,” said Yasmine Ghobrial, EAEF’s chief investment officer.