Carbon, a Nigerian fintech firm, has announced that $100 000 Pan-African funds have been put in place to assist startups tech entrepreneurs in Africa establish themselves.
Carbon, formerly Paylater, a Nigerian-based fintech startup, made this claim in a statement that its Disrupt fund, which will invest up to $10 000 per startup for a five percent equity stake, is the first of its kind by an African fintech startup.
It noted that in return, pan-African fund investees would get access to Carbon’s API, allowing them to leverage Carbon’s growing customer base and innovative technology platform, to get to market faster.
The fintech firm noted that it currently allows applications from companies with operations in Uganda, Kenya, Nigeria, Ghana, Cote d’Ivoire, and Egypt.
Additionally, startups will have access to Carbon’s API and leverage, Carbon’s growing customer base, and innovative technology platform to get to market faster.
Also, the fund will provide mentorship, access to Carbon’s customers and payment platform, as well as office space in Carbon’s Lagos offices.
Carbon co-founder Ngozi Dozie pointed out that startups spend a lot of money on acquiring customers, mainly via social media, when a more collaborative approach among tech companies could be more efficient.
He said:
There are many excellent companies across the continent looking for the kind of scale Nigeria offers, and we are excited to partner with them to provide the support and financial investment they need. We are equally excited to expand beyond Nigeria and Kenya by working with a new generation of innovators across the continent and sharing our experience to tackle everyday obstacles to growth.
Criteria for application
Startups looking to apply for the fund must have a functioning product, post-revenue, and looking to operate in multiple countries.
The fund has a broad investment mandate, but target sectors include insurance, health, education, which have not seen as much investment as the fintech space.
Dozie noted that the pan-African fund would enable the collaboration function smoothly, allowing others to market to Carbon’s customer base and vice versa.
Carbon, a product of OneFi, since it was launch in 2016, claims it has grown to above 2.1 million users.
Notably, it also claims to have disbursed over $63.7 million in loans last year and processed more than $140 million in transactions,m.
In December 2019, the company announced an expansion into the Kenyan market, its Carbon for Business platform for startups, small and medium-sized enterprises (SMEs), and FinTechs, as well as the launch of a new iOS app earlier this month.
Google pan-African fund
In a related issue, Google recently announced the launch of a $1 million pan-African pan-African fund to support innovative ideas around the privacy, trust, and safety of families online across sub-Saharan Africa.
The pan-African fund would be used to support initiatives across sub-Saharan Africa and would be administered by a trusted partner.
Mojolaoluwa Aderemi-Makinde, Head of Brand and Reputation at Google Africa, emphasizes the telecom giant is committed to a safe internet for children, as well as the empowerment of organizations that share this commitment.
She explained:
A third-party partner will administer the pan-African fund on behalf of Google.org, and we will be sharing details on application criteria and deadlines soon.
