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If you have been following the latest news about the tech industry, you may have noticed that there are a lot of changes taking place. One of these is the exit of a number of YC-backed companies. Another is the rise of multi-supply chain and multi-city businesses. There is also a trend toward E-commerce platforms and Fintech businesses. Here are some of the things to watch for in the tech space in Africa.

E-commerce platform

The MaxAB e-commerce platform serves retailers in Egypt and Morocco. It connects buyers with sellers on one single platform. In addition to this, the company offers financial services. With its fintech product, merchants can pay suppliers via the MaxAB platform and get credit facilities from the company to help finance their working capital.

The startup’s fintech business also enables MaxAB to predict a merchant’s financial status. Since launching last year, the bill aggregation product has grown five times in transaction value.

To build its business, MaxAB has launched in a new city every month this year. Its total investment is $46.2 million. Among its major investors, RMBV, a private equity firm with an impact focus, led the Series A investment. Besides RMBV, the round was also participated by existing investors such as British International Investment and Silver Lake, a private equity firm.

The startup is looking to expand across the Middle East and North Africa. To do this, MaxAB plans to partner with non-banking and banking institutions.

Fintech business

In October last year, MaxAB, an Egyptian fintech startup, acquired WaystoCap, a B2B e-commerce platform for business-to-business (B2B) merchants. In addition to providing a new, complementary product to its merchants, the acquisition was also a good way to solidify its technology into a multi-supply chain business. It will enable MaxAB to grow into a global player.

The first is the aforementioned bill aggregation product, which has grown by five times in transaction value since the start of the year. This product uses a number of internal technology tools to predict the financial status of its merchants. Most small and medium enterprises, or SME’s, receive invoices after weeks or months. By providing an accurate view of the financial health of their merchants, MaxAB can provide them with credit facilities, capital financing and other financial services that they might not otherwise qualify for.

The second is the aforementioned B2B e-commerce platform, which offers an integrated, slick and local approach to delivering a plethora of products and services to small businesses and SME’s. With a little bit of tweaking, MaxAB’s solution can deliver over 2,000 different products.

Exit of YC-backed companies in Africa

The number of YC-backed companies in Africa has reached 95. A total of $1.3 billion in funding has been raised so far. These startups have 6193 employees. Most of these startups were founded in 2020.

There have been some high-profile exits via acquisitions. In fact, a significant number of African ventures have raised funding from leading early stage funds. Debt funding is also becoming a common fundraising strategy for African ventures. While this is not the only route to building a business in Africa, it is growing in popularity whotimes.

Alternative financing models are also emerging. These include hybrid models, which combine elements of angel investing, crowdfunding and venture capital. Unlike conventional funding models, these alternative approaches allow for more granular risk management. They are still in their nascent stages, so there is a lot of room for improvement.

One of the biggest limiting factors for startup entrepreneurs in Africa is the lack of access to capital. Many banks in the region have not made it easy for SMEs to access finance. This creates a situation where many African businesses appear unattractive due to perceived risks. However, many measures are being put in place to make more finance available for African ventures starsfact.


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