Renew Capital has selected 15 startups from more than 500 applications across 48 African countries to move into the next stage of its first Renew Venture Lab: EmFi Series.
Renew Capital, a pan-African investment firm with operations in 13 countries, chose the companies after a highly competitive selection process. The firm supports technology founders building businesses across Africa and has spent more than 10 years investing on the continent.
The large number of applications points to a major change in Africa’s startup ecosystem. Many of the continent’s strongest embedded finance opportunities now come from technology companies already serving small and medium-sized enterprises (SMEs), not only traditional fintech firms.
Africa’s SMEs create most of the continent’s jobs. However, they still face an estimated $330 billion annual credit gap.
Meanwhile, Africa continues to grow as a global technology hub. The continent has the world’s largest mobile money market. Smartphone adoption in sub-Saharan Africa is also expected to rise from 54% in 2024 to 81% by 2030, while data costs continue to fall.
These trends create new opportunities for technology companies to offer financial products through their mobile apps. This approach could help more SMEs access funding, grow their businesses, and create jobs.
Startups working in digital payments, smart distribution, logistics, healthcare, and agriculture can reach millions of SMEs that banks do not currently serve. They can also use customer data to assess businesses before offering financial products.
All 500-plus applicants joined expert sessions with founders from some of Africa’s fastest-growing companies. They also received guidance from leading embedded finance and Web3 companies.
In response, Renew Capital selected 47 startups for a pitch competition. The firms also received a startup support package worth more than $250,000.
Renew Capital picked 15 companies for advanced technical training and possible investment. The selected startups come from Ethiopia, Ghana, Kenya, Morocco, Nigeria, Senegal, South Africa, Togo, Uganda, and Zambia.
Matthew Davis, Co-Chief Executive Officer of Renew Capital, said: “The next generation of Africa’s small business banks won’t be banks. They’ll be startups that already understand how SMEs operate, have their data and have earned their trust. These 15 companies are building from that advantage. That’s why we’re paying attention.”
External links
Renew Capital: https://renewcapital.com
GSMA Mobile Money Programme: https://www.gsma.com/mobilemoney/World Bank SME Finance: https://www.worldbank.org/en/topic/smefinance
