Founded in 2020, BFREE leverages artificial intelligence (AI) to revolutionize credit collection processes across emerging markets.

“We are focused on tackling risk management challenges within African economies,” stated BFREE CEO Julian Flosbach.

“By harnessing AI, we create solutions that empower both lenders and distressed borrowers, ultimately contributing to financial stability across the continent.”

Initially focused on automating credit collection software, BFREE has strategically shifted its approach.

The company now utilizes extensive data on non-performing loan portfolios to expertly evaluate and structure acquisitions in collaboration with investors like alternative asset managers and hedge funds seeking to capitalize on emerging market credit portfolios.

This latest funding round, led by Capria Ventures, will be used to improve BFREE’s suite of risk management solutions tailored for banks and lenders. Additionally, the funding will support BFREE’s expansion plans across the African continent.

Susana García-Robles, managing partner at Capria Ventures, believes BFREE is well-positioned to play a vital role in enhancing financial service accessibility and mitigating risk.

“We anticipate BFREE spearheading the creation of a secondary market for distressed assets on the continent,” she remarked.

This new investment follows a $500,000 pre-seed funding round secured in October 2023. The fresh capital will be used to enhance and deepen AI integration on the company’s platform, alongside supporting growth and expansion plans.

Cue has also announced leadership changes, appointing Rhett Trickettl as Chief Product Officer, Ryan Egnos as Chief Revenue Officer, and Richard Nischk as Chief Executive Officer.

Founded in 2018, Cue offers businesses AI-powered customer service solutions on platforms like WhatsApp and social media.

They provide chatbots, live chat functionalities, and have already served over 300 clients, including expanding their reach to the United Kingdom.

Cue aims to deliver fast, personalized, and seamless customer service experiences while reducing communication wait times.

They have already demonstrated success, driving a 160% sales conversion for Mancosa, a 13% increase in response rate for AutoZone, and a 7% increase for Richfield.

Additionally, Cue helped King Price Insurance achieve a 77% return on investment by automating insurance quotes and reduced customer service costs by 73% for Affinity Health.

The new funding will enable Cue to further integrate AI into its platform, allowing businesses to automate routine customer inquiries and leverage data insights to optimize customer engagement and improve support.

The African AI market is projected to reach $6.9 billion in 2024 and is expected to grow significantly, reaching $18.3 billion by 2030.

This growing trend is evident in recent developments, such as the launch of Jetvision.ai, an AI-powered platform for cross-border trade in Africa by Ghanaian digital freight forwarder Jetstream Africa.

This investment could boost Moove’s valuation from $650 million to $750 million, although the final figure could fall between $75 million and $100 million.

While neither company has officially commented on the potential deal, the move wouldn’t be surprising given their existing partnership.

In 2020, Uber and Moove collaborated to offer Uber drivers flexible car ownership options.

This potential investment would mark another milestone for Moove, bringing its total funding to $335 million since its launch.

The company recently secured $10 million in debt financing from Stride Ventures to expand its operations in India, focusing on the cities of Mumbai, Hyderabad, and Bengaluru.

Notably, Uber has partnered with Moove in India to provide electric vehicles to Uber drivers there.

The firm, known for supporting founders from the initial stages of development to post-launch, actively invests in pre-seed and seed-stage startups across the Gulf Cooperation Council (GCC), with a focus on Saudi Arabia, Egypt, Pakistan, and the UAE. COTU Ventures boasts a portfolio of over 15 early-stage companies spanning various industries.

“We see immense potential for startups to address regional challenges through innovative tech solutions, particularly in high-margin sectors where technology can significantly impact efficiency,” said Amir Farha, Founder and General Partner at COTU Ventures.

While open to diverse sectors, COTU Ventures currently exhibits a particular interest in fintech and B2B software companies.

Some notable ventures in their portfolio include Huspy (UAE mortgage platform), MoneyHash (Egyptian fintech startup), Sirdab (Saudi Arabian on-demand storage), and Mayple (UAE delivery solution).

Prior to establishing COTU Ventures, Farha was instrumental in the success of Careem, a renowned Dubai-based ride-sharing platform, while serving as co-founder of BECO Capital, a UAE-based VC firm focused on early-stage investments in the MENA region. He departed BECO Capital to pursue his passion for early-stage ventures, leading to the creation of COTU Ventures.

COTU Ventures differentiates itself through its in-depth engagement with potential investments. This comprehensive approach allows the firm to build trust and establish strong connections with founders, gaining valuable insights to offer guidance on fundraising, startup development, and go-to-market strategies.

Additionally, COTU Ventures connects their backed startups with crucial stakeholders, including potential employees, customers, and future late-stage investors.

The funding round was co-led by COTU Ventures and Sukna Ventures, with participation from RZM Investment, Dubai Future District Fund, VentureFriends, and prominent individuals like Tom Preston-Werner, the founder of GitHub and an investor in Stripe. This investment follows MoneyHash’s $3.5 million pre-seed funding round in 2022, also led by COTU Ventures.

Founded in 2020, MoneyHash helps businesses simplify their payment processes by providing a unified solution through its payment orchestration platform.

This platform eliminates the need for merchants to integrate and manage multiple payment providers, addressing challenges like technical complexities, operational inefficiencies, and delays.

“MoneyHash addresses the unique challenges faced by businesses in the MEA region, where diverse payment methods, currency variations, and nation-state specificities create significant complexities for traditional payment solutions,” said Nader Abdelrazik, CEO of MoneyHash.

“Our platform offers a single integration point with features like customizable checkout experiences, transaction routing, and comprehensive reporting, empowering businesses to navigate the complexities of the region’s payment landscape.”

Abdelrazik further emphasized the potential for growth in the region, highlighting that only 10% of all payments in the MEA are currently digital. MoneyHash is well-positioned to capitalize on this upcoming surge in digital payments adoption.

The company boasts a growing customer base of 50 active paying businesses, who benefit from a tiered pricing structure based on a combination of SaaS fees and transaction fees. This model ensures cost-effectiveness for businesses of all sizes while allowing MoneyHash to scale its operations effectively.

With its latest funding, MoneyHash aims to solidify its position as a leading payment solutions provider in the MEA region, empowering businesses to embrace the future of digital payments.

The funding comes from the Nigeria Infrastructure Debt Fund, managed by Chapel Hill Denham, a prominent Nigerian asset manager. African Frontier Capital acted as the transaction’s main and backup servicer, structuring and sponsoring the financing.

Founded in 2007, d.light has already impacted over 150 million people by selling nearly 30 million solar products across Africa. The company aims to reach a billion individuals in developing countries by 2030.

“This new financing will allow us to provide more affordable solar-powered products to low-income Nigerian households,” stated Nick Imudia, CEO of d.light.

The company has successfully utilized securitized financing to raise funds for off-grid solar projects in other sub-Saharan African countries and plans to leverage this experience to expand its operations in Nigeria.

This investment allows Chapel Hill Denham to contribute to Nigeria’s renewable energy sector and promote sustainable development through “pioneering local currency securitisation for financing solar home systems and essential solar-powered household utilities,” said Bolaji Balogun, CEO of the asset manager.

Anshul Rai, Partner for Infrastructure & Climate at Chapel Hill Denham, emphasized their commitment to “continue broadening the range of financing solutions available to infrastructure providers in Nigeria, with a particular focus on addressing the country’s most significant sustainable development challenges.”

This financing adds to d.light’s recent achievements, including a $30 million securitization facility secured from the TDB Group in August 2023 and a successful full repayment of their initial securitized loan.

Notably, the company experienced a 41% revenue surge in the first half of 2023, driven primarily by its operations in Nigeria.

This investment aims to strengthen financial access for micro, small, and medium-sized enterprises (MSMEs), particularly those owned by women, in Côte d’Ivoire.

The $25 million combined investment will be managed by BBM.

Swedfund anticipates it will improve access to finance for women entrepreneurs, boost MSME growth, and create income and employment opportunities across West Africa.

BBM plans to tailor its offerings specifically to women-led businesses, aligning with Swedfund’s commitment to promoting gender equality and empowering women financially.

This investment marks Swedfund’s first venture into the Ivorian market since establishing a regional office in Abidjan in 2023.

Kitanha Toure, Head of Swedfund’s Abidjan office, highlighted the DFI’s dedication to supporting the development of a gender strategy.

She emphasized the challenges faced by MSMEs, especially those led by women, in securing funding in Côte d’Ivoire.

Responsible lending to these enterprises, she explained, can stimulate private sector growth, create formal employment, and advance gender equality.

Swedfund, Teyliom Finance, and BBM have agreed to implement a gender strategy that will be monitored by Swedfund throughout the loan period.

This collaboration builds on Swedfund’s previous investment in BluePeak and its commitment to providing long-term capital to African businesses through its investments in BluePeak and Vantage Mezzanine Fund IV.

This comes amidst reports of a funding slowdown in the African tech ecosystem during 2024.

“This fund aims to bolster sustainable growth across various sectors, including education, healthcare, fintech, green tech, and deep tech initiatives,” stated Hani Al Sanbati, CEO and co-founder of Sawari Ventures.

“We believe these areas hold immense potential for positive impact in Egypt and beyond.”

Sawari Ventures, established in 2010, boasts a history of backing over 500 startups, including 19 early and growth-stage companies in Egypt, Tunisia, and Morocco.

With a focus on digitizing the Egyptian economy and fostering regional financial inclusion, fintech represents a significant portion (35%) of the firm’s portfolio.

Expressing optimism about the prevailing economic climate, Al Sanbati emphasized the company’s belief in the continued viability of investing in tech startups.

He downplayed the potential impact of past challenges faced by tech companies, asserting their long-term growth potential.

Projections suggest that Egyptian startups backed by Sawari Ventures could attract investments ranging from $350 million to $500 million over the next five years.

“Exits are an integral part of our strategy, allowing us to reinvest in other promising tech ventures,” added Al Sanbati.

This announcement follows a trend of renewed commitment to the African tech ecosystem in 2024.

Several Egyptian startups, including FriendyM, Zeal, Bosta, DXwand, Yodawy, and Roboost, secured funding in January.

The investment round was led by returning backers E3 Capital and 4DX Ventures, with participation from Breega, E4E Africa, TO.org, Tekton Ventures, Sunu Capital, Musha Ventures, and Climate Capital Ventures.

Hohm Energy’s proprietary platform connects homeowners and businesses with accredited solar installers, product suppliers, and embedded financing options.

This streamlined approach aims to simplify the rooftop solar journey, making it easier and more affordable for everyone to adopt clean energy.

“South Africa’s energy system is broken, and climate technology is critical to repairing it through scalable and sustainable alternatives,” said Tim Ohlsen, CEO of Hohm Energy.

“This funding will enable us to accelerate our work on our cutting-edge climate fintech strategy, which will focus on technological advancement, product innovation, and solar installer skill development.”

Hohm Energy has already made significant progress in its mission.

The company has generated over 17,000 custom solar rooftop designs worth $190 million and facilitated over $90 million in finance applications for its customers.

Additionally, it has partnered with major South African retail finance institutions to offer secured financing options, addressing a key barrier to solar adoption.

This investment comes at a critical time for South Africa, which is grappling with an escalating energy crisis.

Hohm Energy’s innovative approach and commitment to affordability position it well to play a significant role in providing alternative energy solutions and contributing to a more sustainable future for the country.