FARO, a South African startup revolutionizing the fashion industry, has secured $6 million in funding to address textile waste and make fashion more affordable across Africa.

JP Zammitt, President of Bloomberg, led the investment round, with additional backing from venture capital firms such as Presight Capital and Garage Ventures.

Notable individual investors included Mato Perić (MPGI), Leonard Stiegeler (Pulse), Oliver Merkel (Flink), Vikram Chopra (Cars24), Tushar Ahluwalia (Razor Group), and Daniel Funk, Managing Director of Thiel Capital.

The funds will enable FARO to scale operations and further its mission of combating the environmental damage caused by fashion industry waste.

By leveraging unsold inventory from developed markets and reconditioning returns, FARO is carving a niche in the global resale market while addressing the sustainability challenges posed by secondhand clothing imports in emerging markets.

Founded in 2024 following a successful pop-up experiment in 2023, FARO quickly established itself as a market leader.
Its debut pop-up store in South Africa generated $100,000 in its first month.

Surpassing initial projections, the startup achieved $2.3 million in revenue last year with just four stores, a remarkable feat that reflects its innovative approach and market demand.

Currently operating in urban hubs, mid-market centers, and formal retail spaces, FARO plans to expand to 1,000 locations within the next decade.

The company’s inventory consists of 40% reconditioned returns and 60% overstock items, sourced from prominent brands like ASOS, Boohoo, G-Star, Jack & Jones, and Levi’s.

The startup employs advanced data analytics and inventory management systems to predict consumer demand, optimize stock levels, and enhance the shopping experience.

This technology-driven approach ensures operational efficiency, enabling FARO to scale while maintaining competitive pricing.

The startup’s business model aligns with the principles of a circular economy, extending product lifecycles and reducing environmental impact.

The funding aims to enhance the continent’s tourism industry through cutting-edge technology, marking a significant milestone for sustainable and inclusive travel.

The funding round attracted prominent investors, including Clear Creek Investment B.V., Klister Corp., and Fede Pirzo-Biroli of Playfair Capital.

This investment highlights growing confidence in PEV’s mission to tackle key challenges in the tourism industry through its portfolio of startups and upcoming ventures.

“This funding is a testament to the untapped potential in African tourism innovation. With this support, we’re poised to revolutionize the industry through groundbreaking travel technology in Africa, fostering economic growth while preserving the continent’s incredible natural and cultural heritage,” said Ben Peterson, PEV’s Co-Founder and CEO.

PEV’s ambitions align with Kenya’s efforts to bolster its digital ecosystem.
Initiatives like expanding fiber optic connectivity and the introduction of a digital nomad visa underscore the government’s commitment to fostering a tech-enabled environment.

These measures aim to attract remote workers and global travelers, strengthening the synergy between technology and tourism.

Kenya has also made strides in digitizing government processes to improve efficiency and transparency.

In September 2024, the government launched the Foreign Travel Management Information System (FOTIMS), an automated platform for senior government officials to approve foreign travel, replacing outdated manual systems.

PEV’s focus on sustainability is central to its approach, addressing immediate industry needs while ensuring long-term environmental and cultural preservation.

Its innovations prioritize efficiency, inclusivity, and resilience—qualities that are especially vital in a post-pandemic landscape.

This funding forms part of a $7.75 million internal round, enabling Sistema.bio to scale its biogas technology and digital solutions across Africa.

The investment aligns with Novastar’s mission to foster sustainability and economic development through its Africa People + Planet Fund III, which targets climate-focused initiatives and agricultural advancements.

Sistema.bio has made significant strides in providing biogas technology that transforms animal waste into renewable energy and biofertilizer, helping farmers reduce energy costs and improve soil health.

Operating across 12,000 farms in 31 countries, including several in sub-Saharan Africa, the company has positively impacted over 100,000 farmers.

Enhanced Capabilities Through Technology
Sistema.bio’s acquisition of Inclusive Energy has strengthened its digital monitoring and verification (MRV) capabilities.

The integration enhances remote diagnostics, carbon usage analytics, and predictive maintenance, ensuring efficient service delivery and reliable data insights for farmers.

“This investment strengthens our mission to empower low-resourced farmers with solutions that drive economic growth and climate resilience,” said Joyce Cacho, Board Chairman of Sistema.bio.

“Together, we are scaling impactful technologies that benefit both people and the planet.”

Steve Beck, Co-founder of Novastar Ventures, expressed optimism about the partnership:

“Sistema.bio empowers family farmers to transform waste into renewable energy and fertilizer, unlocking productivity and resilience while reducing greenhouse gas emissions. We’re excited to partner at this growth stage and contribute to their carbon market initiatives.”

This capital injection will facilitate its planned expansion into Europe, including the acquisition of a European firm to support independent operations in the region.

The funding round was led by Highland Europe, a London-based growth-stage investment firm known for backing companies with annualized revenues exceeding €10 million.

Existing investors, including Endeavor Catalyst, Left Lane Capital, Palm Drive Capital, and Y Combinator, also participated.

With this latest round, Lemfi’s total funding has reached $85 million since its inception in 2019 by co-founders Ridwan Olalere and Rian Cochran.

Lemfi’s European entry builds on a prior partnership with Modulr.

However, the acquisition of a Republic of Ireland-based company—whose name remains undisclosed—will allow Lemfi to operate independently in Europe starting next month.

The company generates revenue through transaction fees and foreign exchange spreads across its operational footprint.

The new funding will enable Lemfi to secure additional licenses and form new partnerships while enhancing its offerings with localized services.Plans are underway to introduce a customer card in the US, UK, and Canada, along with strategic hiring to sustain its rapid growth trajectory.

Currently, Lemfi processes $1 billion in monthly payment volumes, marking a significant leap from its $2 billion annual transaction volume in 2023.

Over the past two years, the company has doubled its users, revenue, and transaction figures.

CEO Ridwan Olalere attributes this success to strong adoption in the Asian corridor, which now contributes $160 million in monthly transaction processing volume (TPV) and boasts 30% month-on-month growth since its 2023 launch.

Founded in 2018, the company specializes in transforming business data into actionable insights for operational efficiency and sustainability.

The Awareness Company’s core offering, HYDRA, integrates artificial intelligence (AI), the Internet of Things (IoT), and data analytics to deliver impactful solutions in agriculture, conservation, safety, security, and urban development.

The startup employs data-driven storytelling to empower individuals, communities, and organizations to optimize their operations and achieve greater societal impact.

The seed funding round drew contributions from a range of prominent investors, including NEXT176, Holocene, Catalyst Fund, E Squared, Aions, and Jozi Angels.

The funding will be directed toward expanding the startup’s market reach and refining the technological prowess of HYDRA to address complex challenges in sustainability.

Highlighting the company’s innovative approach, Priaash Ramadeen, co-founder and CEO of The Awareness Company, said:

“This funding marks a significant milestone for us as we continue to innovate in the operational sustainability space. With our new investors, our support has grown, and there is belief in our vision by people who want to push boundaries. This is just the start.”

Investors expressed confidence in The Awareness Company’s mission and potential for scalability.

Tramayne Monaghan, chief ventures officer at NEXT176, remarked:

“We are thrilled to be backing the amazing team behind The Awareness Company. HYDRA epitomizes the ethos of driving scalable impact through data-driven decisions, and we cannot wait to see its growth across Africa.”

Operating in Kenya, Uganda, Tanzania, Zambia, Rwanda, and India, Power Financial Wellness offers a comprehensive digital platform that equips workers with tools to manage their finances more effectively.

By partnering with employers and gig platforms, the company provides access to services aimed at reducing financial stress and boosting productivity.

Additionally, the platform serves banks, lenders, SACCOS, and HR platforms seeking to digitize or integrate financial services.

The platform’s features include earned wage access, enabling employees to access a portion of their income before payday to avoid high-interest lending options.

It also offers savings and investment plans, long-term loans, and insurance premium financing, supporting workers in securing health, funeral, and other essential insurance policies.

“We believe in empowering individuals by giving them access to tools that enable them to pay, save, borrow, and protect their financial health,” said Brian Dempsey, founder of Power Financial Wellness.

“By linking these services directly to earnings, we provide a seamless way for workers to reduce stress and take control of their financial futures.”

Esther Mwikali, senior investment manager at Renew Capital, praised the platform’s impact, noting its significance in addressing financial needs across economies.

“Power Financial Wellness is addressing a critical need in both the formal and informal economies. Their platform offers a comprehensive, easy-to-use solution that empowers workers to manage their finances, access savings and loans, and protect their future. We are committed to continue backing growth-oriented founders across the continent,” Mwikali stated.

This funding comes as part of EdVentures’ ongoing efforts to foster innovation and growth in the education sector across the MENA region.

Founded in 2020 by Abdel Monsef Ismail, Ayman Hamza, and Hosni Ahmed, Schoolz is a technology-driven platform designed to provide safe, reliable, cost-effective transportation solutions for students.

Schoolz has quickly positioned itself as a vital service in the education ecosystem by addressing a critical need for secure and affordable student mobility.

Ibn Sina Training Academy, established in 2017, focuses on specialized medical training programs.

Its offerings include courses in medical translation, coding, and digital marketing, equipping professionals with skills to meet the demands of the modern healthcare industry.

With the addition of these two startups, EdVentures has expanded its portfolio to 24 companies, further cementing its status as the leading corporate venture capital firm in ed-tech across the MENA region.

The investments were facilitated through the EdTech Ventures Studio (EDVS) program, an innovative initiative launched by EdVentures to nurture promising startups.

Schoolz and Ibn Sina Training Academy were selected from a competitive pool of 10 startups that participated in the inaugural EDVS BootCamp.

This program aims to provide entrepreneurs with the resources, mentorship, and funding needed to bring transformative educational solutions to market.

The funds will be used to bolster the company’s artificial intelligence (AI) infrastructure and support its expansion into Ghana and Kenya.

The funding round attracted diverse investors, including Launch Africa, Microtraction, Kaleo Ventures, Octerra Capital, Marula Square, XA Africa, ARM Labs, and Techstars.  

Founded in 2015 by Ayodeji Alaran, PBR initially operated in healthcare services but pivoted to big data and analytics in 2021.

The company provides pharmaceutical giants like Sanofi with critical market insights, enabling them to make data-driven decisions on product pricing, demand forecasting, and new product development tailored to African markets.

Pharmaceutical companies in Africa often face challenges related to overproduction, stemming from a limited understanding of market demand.

PBR addresses this issue by aggregating anonymized data—including drug quantities, prices, and purchase frequencies—from pharmacies.

This data helps companies align production volumes with actual market needs, reducing waste and improving efficiency.

The company’s AI-powered analytics dashboards deliver actionable insights, such as market share and consumption trends, across Nigeria and Ghana. 

Additionally, PBR offers a generative AI feature that allows users to generate custom analytics by asking specific questions. Its clientele includes pharmaceutical companies, consulting firms, NGOs, and multilateral organizations.

“Being backed by some of the most reputable venture capital investors and angels in Africa inspires us to do more and validates the need to close the gap in healthcare big data,” said Alaran. “This data will power AI and innovation while unlocking global life sciences growth driven by Africa.”

PBR Life Sciences was part of the second cohort of the ARM Labs Lagos Techstars Accelerator program.

The investment, sourced through Futuregrowth’s High Growth Developmental Equity Fund (HGDEF), reinforces Sourcefin’s mission to address the financing needs of small and medium-sized enterprises (SMMEs) in the country.

Established in 2020, Sourcefin focuses on bridging the critical financing gap for SMMEs, enabling them to manage working capital constraints and complete public and private sector purchase orders.

The company’s approach integrates technology with procurement and project management expertise, making it a leader in supporting tender fulfilment.

The new funding will allow Sourcefin to scale its investment significantly into South Africa’s SMME sector.

Co-founder, Director, and CEO Joshua Kadish highlighted the importance of the sector for economic growth, stating:

“There is no doubt about the massive impact that well-supported SMMEs can have on our country. With the support from Futuregrowth, Sourcefin’s ability to scale investment into the SMME sector significantly increases, and it is our commitment that all R150 million will be deployed as a reinvestment into the backbone of our economy.”

Amrish Narrandes, Futuregrowth’s head of private equity and venture capital, emphasized the strategic value of the investment, saying:

“The SMME sector is vital for South Africa’s economic growth, yet traditional financing solutions often fail to meet their unique needs, particularly in government-issued orders. Sourcefin’s technology-first approach, coupled with their expertise, has created a truly transformative solution. Their proven ability to support tender fulfilment while maintaining strong financial performance made this a compelling investment opportunity.”

Futuregrowth’s HGDEF has a strong track record of supporting high-growth businesses, including hearX, Yoco, Pineapple, Retail Capital, Ozow, and Cash Connect.