Africa, known for its diverse culture and natural beauty, is becoming a vibrant centre for technological advancement and as such in recent times, a surge of indigenous startups has risen to prominence, achieving the esteemed title of “tech unicorns.” These companies, valued at more than $1 billion, are transforming the African business landscape and defying international views of the continent’s capabilities.
Who Is A Unicorn?
A unicorn is a privately owned startup company valued at over $1 billion, a term commonly used in the venture capital industry. Aileen Lee, a venture capitalist, created the term “unicorn startup” in 2013 to highlight the rarity of companies like the mythical animal.Attaining the height of a unicorn is not a small feat, it requires innovation and creativity.
Let’s check out some of the biggest tech unicorns in Africa.
1. Flutterwave
founded in 2016 by Iyinoluwa Aboyeji, Olugbenga Agboola, and Adeleke Adekoya Flutterwave, a Nigerian fintech unicorn, has transformed digital payments in Africa. By providing a smooth platform for both businesses and individuals, it streamlines financial transactions and plays a significant role in promoting financial inclusion on the continent. Flutterwave’s achievements underscore the powerful influence of technology in tackling real-world problems and showcasing African innovation on a global scale.
Flutterwave excels in its dedication to overcoming the hurdles of cross-border transactions in Africa. The varied financial systems and currencies across the continent frequently create barriers to effortless trade and transactions. Flutterwave’s solution tackles this issue by offering a unified platform that enables payments in multiple currencies, thus streamlining cross-border commerce.
Flutterwave closed its Series D funding round in February 2022, raising $250m and giving the company a valuation of $3bn.
2. Opay
OPay, also known as Opera Pay, is a fintech company that has quickly gained attention in Africa, specifically Nigeria. Established in 2018 as a branch of Opera Software, OPay seeks to transform the methods by which individuals conduct transactions and use financial services in the area. Despite its brief existence, the company has achieved notable progress by utilising technology to tackle the limitations of conventional banking and payment platforms.
OPay broadened its range of services by entering new industries, such as transportation and food delivery. In Nigeria, the company introduced ORide, a motorcycle ride-hailing service, offering a dependable and effective transportation option in busy urban areas. Furthermore, OPay launched OTrike, a three-wheeler transportation service. In the food delivery sector, OFood enables users to request food from their preferred restaurants and have it brought to their location.
Opay is currently valued at around $2 billion as of 2023. In 2021, SoftBank Vision Fund 2 invested $400 million in OPay, valuing the Nigerian mobile payments platform at $2 billion and marking its initial foray into African investments.
3. Wave
Established in 2014 and co-founded by Drew Durbin and Lincoln Quirk Wave is a fintech company dedicated to offering inexpensive and easily reachable financial services to individuals without bank accounts and those with limited access to banking services in developing economies, notably in Africa. The company has become well-known for its creative deployment of technology to bridge the financial inclusion divide and enable people who have historically been excluded from formal banking networks.
Wave’s primary service focuses on its mobile money platform, allowing users to transfer and receive money, conduct transactions, and utilise basic financial services through their mobile devices.Wave’s emphasis on financial inclusion, along with its flexible and adaptable approach, sets the company up for a more promising future.
It reached a valuation of $1.7 billion during its most recent funding round in September, following a $200 million raise, which marked the largest Series A in Africa.
4. Andela
Andela, established in 2014, is a tech company with a distinct goal: to construct skilled engineering teams by discovering and nurturing top software engineering talent in Africa. The company is driven by the belief that intelligence is spread evenly worldwide, but access to opportunities is not. Andela aims to narrow this divide by granting talented individuals in Africa entry to opportunities in the global technology sector.
Andela utilises a remote work model, which is an innovative approach in the tech sector. The company locates and hires talented developers from Africa through a thorough selection process that evaluates not just technical expertise but also problem-solving and communication abilities.
The company has secured substantial investment from notable investors such as the Chan Zuckerberg Initiative and Spark Capital.Andela raised $200 million in its Series E funding round, with Softbank Vision Fund 2 taking the lead, valuing the company at $1.5 billion.
5. Chipper Cash
Ham Serunjogi and Maijid Moujaled co-founded chipper cash in 2018. Chipper Cash, a financial technology company, has quickly become well-known for its role in enabling affordable and accessible cross-border transactions throughout Africa. With the goal of Bridging the financial gap and improving financial inclusion, Chipper Cash has emerged as a major player in the African fintech industry.
Chipper Cash’s primary service is its mobile money platform, enabling users to transfer money internationally without high charges. The platform accommodates multiple currencies, ensuring a smooth process for users in different African nations.The platform now offers Users the ability to handle bill payments, purchase airtime and mobile data, and even utilise virtual merchant payments.
Chipper cash is currently valued at $1billion.
6. Interswitch
Established in 2002 by Mitchell Elegbe, Interswitch is a prominent pan-African company specialising in digital payments and commerce. Based in Lagos, Nigeria, the company has extended its presence throughout Africa, providing creative services that enable smooth and secure electronic transactions.
Interswitch’s core services include a range of electronic payment solutions designed for individuals, businesses, and governments. The company’s platforms enable various transactions, including online payments, point-of-sale transactions, and mobile payments.Interswitch was the first to introduce shared Automated Teller Machines (ATMs) in Nigeria, which helped alleviate the shortage of ATMs and improve financial inclusion.
Interswitch secured a $100 Million joint investment from leapfrog investments and Tana Africa Capital Valuing it at $1 billion
7. MNT-Halan
Halan, established in 2017 by Mounir Nakhla and Ahmed Mohsen, is an Egyptian fintech firm that has distinguished itself by integrating financial services with transportation solutions. The company’s unique approach seeks to tackle the specific difficulties encountered by people in developing economies, especially in Africa and the Middle East, by offering affordable mobility and financial services.
The startup’s unique financial technology platform connects customers, vendors, and small businesses through its customer application, merchant application, distributed lending and payment processing software, and payment offerings. Additionally, it offers ride-hailing and logistics services.
Halan announced that it secured a $400 million investment, comprising $260 million in equity financing and $140 million from securitized bond issuance, valuing the company at $1 billion.
Conclusion
The emergence of tech unicorns in Africa represents a significant milestone in the continent’s technological advancement. These firms are not only revolutionising various sectors but also playing a crucial role in social and economic progress. As they expand, African tech unicorns have the opportunity to reshape the conversation about innovation, business, and technology worldwide. This is just the start, and the global community is observing as Africa’s tech unicorns reach new levels of success.
