Private companies or startups with a value of over $1 billion market valuation are referred to as Unicorn Startups or companies. In Africa there are three startups that have crossed the $1 billion financial valuation mark, turning them to African Unicorns. These companies are Cell C, Jumia Group and Promasidor Holdings.
We discuss the next African Unicorn, startups and businesses most likely to be the next African Unicorn and with a prospective future. Keep reading to know more about them.
Branch International is an online money lending app, founded in Kenya but currently based in Silicon Valley, California. In April 2019, it raised $170 million in funds after a $20 million funding round in 2018, according to Quartz. The firm boasts excellent financial performance and is currently expanding into other markets, with recent expansion into Brazil and Indonesia via a partnership with Visa, placing the company on a path to becoming an African tech unicorn
Jumo is a South African finance tech platform aimed at emerging markets, with the potential of becoming a tech unicorn in years to come. In 2018 it secured a $64.5 million funding round from U.S based investor Goldman Sachs to accelerate expansion into additional African and Asian markets. The funding deal was announced to the biggest tech startup funding deal of the year in South Africa according to ITWeb Africa.
Peg Africa is a Ghanaian solar company offering solar services on a pay-as-you-go basis. In 2019 the solar company raised around $25 million in a Series C funding round totalling its funding to about $47.5 million, according to a press release by the firm. Peg Africa serves more than 60,000 households and is being used by more than 300,000 users across Ghana. It has over 70 service centers with a total of 400 full-time work staff and 550 contract-based sales agents. These growing numbers behind the company certainly make it one to look out for in the future.
Zola Electric is a Tanzanian solar company founded by Erica Mackey, Xavier Helgesen and Joshua Pierce which manufactures and sells solar-powered electricity solutions. It was the first solar company to offer the ‘Pay As You Go’ mode of payment to deliver off-grid electricity in Africa. The firm offers products in the line of household lighting and mobile charging, the startup is seen as one of the next startups to be the next African unicorn, after securing funding from a variety of investors and is notably one of the highly funded renewable energy companies in Africa, raising $239.1 million till date.
Andela, a Nigerian founded tech startup which grooms rising African tech talents, has been a close contender for this achievement for quite some time, following a massive investment at the beginning of 2019, the company is getting closer to becoming an African Unicorn. In January, the tech startup secured $100 million in funds bringing the firm’s total venture capital funding to $180 million as of date, according to Bloomberg. In addition to the latest investment, Andela is valued somewhere between $600 million and $700 million, some millions short of the 1 billion mark.
African Startups are racing towards the Unicorn status, with many startups and businesses receiving venture capital to facilitate their businesses, with the combined value of these companies funding crossing the $1.5 billion mark. With the above list we hope you have a better knowledge on the startups who are soon to be African Unicorn.