African Startups have been steadily making their mark in the tech ecosystem, attracting the attention of investors with their innovative solutions and disruptive potential. From fintech to healthtech, these startups have shown immense promise and are becoming increasingly sought after by venture capitalists. With funding pouring into the continent's tech scene, it's no surprise that investors are closely watching the rise of African startups.

In the first half of 2023, African startups have raised over $1.4 billion in funding in 153 deals which is 53% less than what was raised in H1 2022 with various sectors vying for a piece of the pie. While this figure represents a slight dip from the previous year, there are still some notable rounds to be celebrated, with startups like MNT-Halal of Egypt raising $400 million which was a mix of debt and equity, and M-Kopa raising $250 million; also a mix of debt and equity.

As the ecosystem begins to pick back it pace following the market reset, we shine the light on 12 African startups that have caught the eye of investors, who believe they are a must-watch.

These startups, spanning diverse industries, showcase the region's thriving tech landscape and its potential for further growth. From disruptive fintech solutions to groundbreaking health innovations, these startups are poised to make a significant impact in their respective industries.

As investors continue to bet big on Africa's tech future, these startups are ones to watch out for.

Joe Kinvi - Founding Partner, HoaQ

Brass

Brass co-founded in 2020 by Sola Akindolu and Emmanuel Okeke which delivers easy access to affordable premium banking services for small and medium-sized businesses (SMEs), is making business banking simple again. According to Joe Kinvi, "They are very intentional about building each product and their ecosystem approach is coming together very nicely. If you haven’t heard of it, your favorite business is probably using them".

In 2021, the startup successfully secured $1.7 million in funding. Currently, it offers a wide array of products, including credit and payment services, payroll and expense management, API support, and other core business solutions. Brass has served thousands of businesses, provided over $2 million in credit, and introduced Brass Capital, a cash-flow financing service to foster business growth.

Rayda

"Francis the CEO has built many businesses in the past but found a very good niche that is not very sexy and ignored. My money is on Francis to build a truly global business." Joe said.

Rayda provides businesses the infrastructure to acquire, manage, insure, track, and dispose of their business assets globally. The startup was founded in 2022 by Francis Osifo, who was a co-founder of 54gene, a YC-backed startup.

Tembo Plus

The Tembo Plus website says "Embed and Launch financial products across Africa" which reflects the scope of their ambition, however, they also have a digital banking app and according to a tweet by the Founder, Victor Joseph on the 5th of November 2021, they had gotten approval from the Bank of Tanzania to start offering their product in partnership with a bank partner. "One huge step closer to bringing true digital banking services to this market!" he said via the tweet.

"Victor might just put the Tanzanian fintech ecosystem on the global map with what they are building. He is relentless and will not give up until he achieves his goals." according to Joe Kinvi.

Stephen Deng - General Partner, DFS Labs

Ando Food

Asif Khan and Vineet co-founded Ando Foods in 2020, a food tech startup operating in Kenya and South Africa that is disrupting the conventional restaurant model. Stephen commends Ando Foods as a standout startup, demonstrating how to build a food-first food-tech business in Africa.

Terminal

Terminal Africa was established officially in 2021 by Nnamdi Okoh and Udi Okoh. The startup facilitates continental and global commerce through scalable technology-based solutions and is said to be serving over 3,500+ businesses, shipping goods worth over ₦350 million monthly.

"Terminal is a startup worth watching for leading the cross-border delivery opportunity while staying asset-light," Stephen said. The startup has raised $2.1 million from 10 investors according to their LinkedIn profile.

Orda

Orda is referred to as the OS for small and medium-sized African restaurants, founded in 2020 by Guy Futi, Fikayo Akinwale, Mark Edomwande, Kunle Ogungbamila, and Namir El-Khouri and their vision is to help small-sized African restaurants optimize their business and achieve sustainable growth. In Nov 2022, the startup secured $3.4 million dollars funding, bringing its total raise to $4.5 million. The startup is said to be serving over 600 restaurants across Nigeria and Kenya and is now processing over 500% more weekly orders for its customers.

Stephen believes they are a must-watch for showcasing the potential of a vertical-specific fintech opportunity done right.

Jasiel Martin-Odoom, Africa Investment Officer, Accion Venture Labs

Kuunda

"Kuunda has developed the infrastructure to address liquidity management for underserved agents and micro-merchants," Jasiel says. "I find Kuunda's approach to be particularly exciting as it solves a significant problem that affects critical players in the informal economy who are often limited by liquidity issues."

Kuunda was founded in 2018 by Andy Milne, Sam Brawerman, and Morne van der Westhuizen who recognised that despite best efforts, the liquidity challenges faced by those in emerging economies were rife and ongoing. After disbursing over 6 million loans in 2021 and launching a Nairobi operations hub to support country launches across Africa, they raised $2.25 million in seed funding led by Accion Venture Labs.

"By serving as the connective tissue between bank partners like FINCA, strategic partners like Telcos, and other startups, Kuunda provides liquidity solutions for unbanked and underbanked populations in emerging markets," Jasiel explained.

Lami

According to its website, it is end-to-end insurance, with powerful APIs revolutionizing insurance for underwriters and businesses in Africa via a single platform. The female-led startup founded in 2018 by Jihan Abass is working to increase insurance penetration in Africa, starting in Kenya.

Lami's solution reduces friction for B2B SMEs seeking insurance for the first time by offering improved quotation and pricing mechanisms while providing customer claims and policy support to underserved businesses. Additionally, Lami offers an API-led approach for tech-enabled partners that want to offer insurance along their value chain.

Jasiel believes they are a must-watch.

Earthbond

"Earthbond is a company on our watchlist that is making waves in the climate tech industry," Jasiel says. The woman-led climate startup is currently raising its first Angel round and its focus is helping African SMBs make and save more with solar energy, starting in Nigeria.

With rising fuel costs, Nigerians are seeking more reliable and cost-effective means of power generation, such as solar. Despite the need, solar power adoption is still less than 1%. However, Earthbond is addressing this issue with a cohesive platform that connects African SMBs with affordable payment plans for reliable solar, while leveraging the team's domain expertise in launching and growing fintech products in emerging markets and solar equipment design and installation.

Peter Oriaifo - Principal, Oui Capital

Duplo

A B2B payments startup headquartered in Lagos, Nigeria. The company provides payment operations solutions for African enterprises, allowing them to collect payments from their clients and partners and make payments to their suppliers and vendors.

"The company has been experiencing double-digit growth month-over-month and has earned a loyal customer base in the fast-moving consumer goods segment of the Nigerian Market." Peter told Bendada.

The company is a YC-backed startup and is led by co-founder and CEO Yele Oyekola. It raised $4.3 million in seed funding in August 2022 to launch new products and expand into new business verticals in Nigeria, bringing its total raise to $5.6 million since it inception.

Akiba Digital

This fintech startup was founded in 2017 and is headquartered in Johannesburg, South Africa. The company provides alternative credit-scoring infrastructure that connects lenders with small and medium enterprises.

According to Peter, the company has seen significant growth since its pre-seed round, growing annualized revenue run rate by more than 30x.  

"What I find especially impressive about the team, led by co-founder and CEO Tebogo Mokwena, is the strength of their sales effort, which is still founder-led to this day - boasting an impressive client base that includes some of the largest financial institutions in sub-Saharan Africa." He said.

Maad

Maad was founded by co-founders and Co-CEOs Sidy Niang and Jessica Long. It is a B2B e-commerce startup headquartered in Dakar, Senegal.

The company has built a tech-driven solution that allows retailers to order products from its one-stop shop, allowing said retailers to enjoy reliable delivery, low prices, and fewer stock-outs. In addition to this distribution infrastructure, the company layers additional high-value services for retailers and brands.

"Since leading the pre-seed round in 2021, Maad has become the largest tech wholesaler in Senegal, with best-in-class gross margins." Peter shared.