The Rise of Female-Led Fintech Startups in Africa: A $20.9 Million Milestone
In a remarkable showcase of resilience and innovation, nine female-led fintech startups across Africa have collectively raised over $20.9 million in funding in 2023, according to the BD Funding Tracker. This achievement comes amidst a broader landscape where fintech funding on the continent has seen a notable decline, highlighting both the challenges and the triumphs of women entrepreneurs in the tech space.
The Fintech Landscape in 2023
The report detailing the state of startup venture capital funding in Africa for 2023 reveals that fintech startups raised a total of $1.01 billion across 65 deals. This marks a 25% decrease from the previous year, where $1.36 billion was raised through 112 deals. Despite this downturn, the nine female-led startups that secured funding demonstrate a growing trend of women stepping into leadership roles within the fintech sector.
A Closer Look at the Female Founders
Despite the progress made by these female entrepreneurs, the overall funding landscape remains skewed. Only 15% of total funding raised on the continent went to solo female founders or teams that included at least one woman. In stark contrast, a significant 85% of funding was allocated to all-male founding teams. This disparity underscores the ongoing challenges women face in securing investment, even as they continue to innovate and lead successful ventures.
Lupiya: Pioneering Financial Inclusion
At the forefront of this movement is Lupiya, led by CEO Evelyn Chilomo Kaingu. The Zambian microfinance startup raised an impressive $8.25 million in Series A funding. Established in 2016, Lupiya aims to bridge the financial inclusion gap by offering technology-driven solutions tailored for the unbanked and underbanked populations in Zambia. With this new funding, Lupiya plans to scale its operations both locally and in new markets.
Revio: Transforming Payment Solutions
Another standout is Revio, co-founded by Ruaan Botha, which secured $5.2 million in seed funding. Based in South Africa, Revio specializes in payment APIs designed to help businesses enhance revenue collection by minimizing payment failures. Since its inception in 2020, the startup has attracted major clients, including some of Africa’s largest insurers and telecommunications companies, and has recently partnered with a tier 1 African bank to expand its reach.
Emtech: Driving Technological Adoption
Kenyan fintech Emtech, under the leadership of CEO Carmelle Cadet, raised $4 million in seed funding. Emtech focuses on developing technologies that promote financial inclusion, having previously assisted central banks worldwide in adopting modern financial service technologies. This funding will enable Emtech to further its mission of driving financial accessibility across the continent.
Kwara: Empowering Financial Cooperatives
Kwara, led by CEO Cynthia Wandia, raised $3 million in 2023. This Kenyan-based platform caters to financial cooperatives, credit unions, and community banks, providing them with online and mobile banking solutions. Founded in 2018, Kwara has established connections with over 4,000 savings and credit cooperatives, positioning itself as a key player in the banking-as-a-service sector.
Oystr Finance: Innovating Micro-loan Products
Founded in 2022 by Ifedolapo Lawal, Oystr Finance focuses on providing lenders with the infrastructure to launch low-risk micro-loan products. In 2023, Oystr was selected by Techstars for its accelerator program, securing $120,000 in equity funding along with valuable training and resources to enhance its offerings.
Cladfy: Revolutionizing Credit Analysis
Cladfy, led by CEO Ebby Gatamu, also received $120,000 in funding from Techstars. This Kenyan fintech, established in 2021, specializes in software for bank statement analysis and alternative data analysis, enabling real-time credit scoring and loan limit assessments.
Sidebrief: Simplifying Business Startups
Another notable mention is Sidebrief, a Nigeria-based fintech founded by Eunice Olopade. Sidebrief secured $120,000 in pre-seed funding as part of the Techstars accelerator cohort. Launched in late 2021, the startup provides a digital infrastructure that simplifies the process for entrepreneurs to start their businesses from anywhere in the world.
Flick: Building a Payment Ecosystem
Flick, co-founded by Ruth Olojede and Dipo Gbadebo, aims to create a PayPal-like experience for Africa. The startup raised $120,000 in pre-seed funding from ARM Labs Lagos Techstars Accelerator. Flick allows users to connect multiple bank accounts and facilitates seamless payments from a single source, enhancing the payment experience for users across the continent.
Koree: Enabling Savings
Lastly, Koree, a Cameroonian fintech founded by Magalie Gauze-Sanga, raised $22,193 in 2023. Launched in September 2022, Koree enables customers to save spare cash on their cards. With over 13,000 users and 50,000+ transactions processed, Koree is making strides in promoting savings culture among its users.
The Path Forward
The achievements of these nine female-led fintech startups highlight the potential for growth and innovation within Africa’s fintech landscape. While the overall funding environment poses challenges, the determination and ingenuity of these women signal a promising future for female entrepreneurship in the tech sector. As they continue to break barriers and secure funding, these leaders are not only transforming their communities but also inspiring the next generation of female entrepreneurs across the continent.