These are the tech-related news that you have missed over the previous week.
- African tech startups raised over $2.9 billion in 2023 despite a decline in funding
- RES4Africa Foundation calls for applications for the RAISEAfrica Initiative
- Nigerian startup shuts down after two years of service
- Glovo crowns Nigeria as the front-runner in the African market for local food consumption in 2023 report
- DSTV and GOTV users are in shock as the financial pressure in Multichoice leads to price hikes on products
African tech startups raised over $2.9 billion in 2023 despite a decline in funding
The African tech startup community could not close the year 2023 with a large amount raised due to the financing decline.
According to a report by Africa the Big Deal, the African tech startup funding dwindled by 39% in 2023. The report stated that African tech startups could raise nearly $3 billion in funding.
However, despite the low funding, Africa’s 2023 result was better than 2022’s report about the descent of the financing.
“In 2022, start-ups in Africa had raised 19 cents of debt for every $1 of equity they’d secured. In 2023, this number went up to 65 cents, and debt made up 38% of all funding raised (vs. 16% in 2022),” the report reads.
RES4Africa Foundation calls for applications for the RAISEAfrica Initiative
RES4Africa Foundation revealed that it was accepting applications for the launch of RAISEAfrica (Renewables Accelerators for Innovative Startups and Entrepreneurs in Africa).
The RES4Africa Foundation efficiently supports the African continent’s energy transition to achieve SDG7.
RAISEAfrica is a new program launched by RES4Africa and is driven towards the empowering and contribution of young African talent and entrepreneurs in a successful and sustainable future for Africa.
The RAISEAfrica initiative has two programs: pre-acceleration and acceleration startup programs.
The initiative is calling out applications from those eligible to participate and contribute to making a better future for Africans. The deadline for applications will close on February 29, 2024.
Nigerian startup shuts down after two years of service
A Nigerian startup company called DropX, which uses technology to enable deliveries for individuals and businesses, has shut down after two years of operation.
The CEO of DropX, Praise Alli-Johnson, announced the unfortunate news in a LinkedIn statement, revealing that although the company started well, building a hyperlocal delivery platform, and was able to onboard 2,000 users with 500 enlisted drivers, the challenges began when the revenue growth did not tally with the activities and volume of work completed.
DropX was founded in 2021 by Praise Alli-Johnson and Oluwatope Liasu. The LinkedIn statement provided a breakdown of how the company met its Waterloo and why it could no longer keep up with its operations.
Glovo crowns Nigeria as the front-runner in the African market for local food consumption in 2023 report
The leading platform for online deliveries, Glovo, shared its 2023 report titled “Glovo Delivered”, which revealed an analysis of its Nigerian users’ consumption behaviour in 2023.
According to the report, there was a surge in local food orders, as high as 25 times the previous year (2022). This report showed the constant request for means like fried rice, meat pie, asun rice, chicken, jollof rice, and stir-fried pasta, which were local cuisines that raised the African market and ranked fourth globally in the consumption of local cuisine.
In 2023, the total number of partners on the Glovo app increased by 192%. Small-medium entrepreneurs (SMEs) have grown by 216% in 2023 compared to 2022.
DSTV and GOTV users are in shock as the financial pressure in Multichoice leads to price hikes on products
In December 2023, Nigerians witnessed a 20% price hike in Multichoice products despite inflation in the country.
Multichoice disclosed that it would be increasing the fees on its products for all African subsidiaries in 2024. The CFO of Multichoice, Tim Jacobs, shared this news in an interview with Daily Investor, where he explained that the anticipated hike in fees would be due to the increasing financial challenges within the company.
He stated that Multichoice was doing its best to keep itself afloat and maintain a healthy balance sheet; therefore, these price hikes across all DSTV and GOTV products were a necessary evil.
“For many years, especially in South Africa, we have priced our products at less than half of inflation. We’ve been concerned and watching the consumer’s wallet. The chances (now) are that we will be looking at inflationary price increases, both in the South African market and the rest of Africa.”
Ayomitide Adeyinka is a content writer, crypto journalist and editor with a Bsc in Political Science. He is also an egalitarian.
