App-based Businesses are Thriving in Africa for a Multitude of Reasons. First being, there are 650 Million Africans who have a Smartphone in the Saharan Continent and even this Number is growing rapidly. This intense Market penetration is a breeding ground for App-based Businesses to Flourish. Now it has become all the more Easier to reach Millions of people with Products. In the First Quarter of 2024, the African smartphone Market had grown 24 Percent compared to previous year. This makes Africa the Third Fastest Growing Smartphone Region in the World for Q1 of the current year. More Areas in Africa have access to LTE which allows for faster and larger amounts of Mobile Data Transfer than previous Wireless Standards. It is also important to note that Digital technologies are bypassing institutional failures. Also, Africa’s Mobile Money Market is witnessing an Exponential Growth which has significantly reduced the cost of sending and receiving Money. Finally, the Start-up Ecosystem in Africa is burgeoning into a Behemoth with the Number of Tech Hubs Tripling between 2016 and 2021. The African Tech Space has seen Substantial Foreign Investment. For instance, YCombinator has invested in Flutterwave, Reliance HMO, Paystack, BuyCoins, Oolu and many more.
Here Are Top 10 App-Based Businesses in Africa
Jumia
Headquartered in Germany, this E-Commerce Giant is one of the Largest Online Shopping Platforms on the African Continent. It offers a range of products including Electronics, Fashion, and Groceries, with services like Food Delivery and Payment Processing. It is also called ‘Amazon of Africa’. With over 10 Million Downloads on the Google Play Store, Jumia is currently in multiple African countries including Nigeria, Ghana, Kenya, South Africa. In 2019, Jumia got listed in the New York Stock Exchange. Jumia has been funded by Rocket Internet, MTN, Millicom, Blakeney Management, Orange, Summit Partners, AXA Group, CDC Group, Goldman Sachs, Pernod Ricard and Mastercard.
Flutterwave
It is a FinTech Firm that originated in Nigeria. Flutterwave provides Payment solutions to Businesses across Africa. It enables Businesses to make and receive Payments seamlessly across Borders and supports Mobile Payments, Card Payments, and Bank Transfers. Headquartered in San Francisco and Lagos, Flutterwave was founded in 2016 by Iyinoluwa Aboyeji, Olugbenga Agboola, and Adeleke Adekoya. It has received funding from several Investors such as Y-Combinator, Visa Ventures, Mastercard, Avenir Growth Capital, Tiger Global Management, Salesforce Ventures, B Capital Group, Alta Park Capital, Whale Rock Capital, Lux Capital, Glynn Capital and Green Visor.
Paystack
Paystack is a Nigerian-based payments processing platform that facilitates online transactions for businesses in Africa. It was acquired by Stripe in 2020 and is one of the leading FinTech companies on the continent. Headquartered in Lagos, Nigeria Paystack was founded by Shola Akinlade, and Ezra Olubi in 2015. It received funding from several investors including Tencent, Stripe, Y Combinator and Visa. Its Angel Investors are Sudeep Dalamal Ramnani, founder of SportyBet, Toro Orero, Managing Partner at DDF among others.
SafeBoda
SafeBoda is a Motorcycle Ride-Hailing App providing Transportation and Delivery Services in Uganda and Kenya. It has expanded its services to include payments, allowing users to send money, Buy Airtime, and Make Payments. The founders of SafeBoda are Alastair Sussock and Ricky Rapa Thomson created SafeBoda in 2015. Its Investors are Google’s Africa Investment Fund, Shell Foundation, UN Capital Development Fund, and Global Innovation Fund. Other investors in SafeBoda include Argor, Aria Group, and TO VC (New York).
M-KOPA
M-KOPA is a pay-as-you-go platform that offers affordable solar energy solutions through mobile technology. Users can pay for solar-powered devices (such as lights and mobile chargers) via mobile money services like M-Pesa. Headquartered in Kenya, M-KOPA was founded by Jesse Moore, Chad Larson, and Nick Hughes in 2011. It’s Investors are U.S. International Development Finance Corporation, Standard Bank Group, International Finance Corporation, British International Investment, Mirova SunFunder, Nithio, Sumitomo Corporation and Signal Point Partners.
Twiga Foods
Twiga Foods is an app-based supply chain company that connects farmers to retailers in Africa. The platform enables farmers to sell their produce directly to vendors, improving efficiency and reducing food waste. Headquartered in Kenya, Twiga Foods was Established by Peter Njonjo and Grant Brooke in 2014. It has received funding from several investors such as Creadev, TLcom Capital, IFC, DOB Equity, Juven, OP Finnfund Global, Endeavor Catalyst Fund, Omidyar Network, Wamda Capital, 1776 Seed Investors, Alpha Mundi and Blue Haven Initiative.
YAP
YAP is a digital bank in South Africa that provides mobile-based banking services to individuals and businesses, focusing on low-fee financial services for the unbanked and under banked. It Belongs to the Fintech Industry.
Zola Electric
Zola Electric offers affordable, off-grid solar energy solutions through mobile payments. It targets rural areas with limited access to electricity by providing solar kits on a pay-as-you-go basis. Headquartered in Netherlands, Zola Electric was founded in 2012 by Xavier Helgesen, Erica Mackey, and Joshua Pierce. It has received funding from various Investors such as FMO, TotalEnergies Ventures, DBL Partners, Helios Investment Partners, Vulcan Capital, Lyndon and Pete Rive, Packard Foundation, Calvert Impact, Ceniarth and SunFunder.
Bolt
Bolt (formerly Taxify) is a ride-hailing app that operates in various African cities, offering affordable transportation services. Bolt is competing with Uber and has gained traction in markets like Nigeria, South Africa, and Kenya. Headquartered in Estonia, Bolt was founded by Markus Villig. It has been funded by several Investors including Sequoia Capital and Fidelity Management and Research Co, D1 Capital Partners, Creandum, Naya Capital, and G Squared.
Gokada
Gokada is a motorcycle ride-hailing service based in Nigeria. The company also provides last-mile delivery services and expanded into logistics with a focus on improving the transportation network in Lagos. Headquartered in Nigeria, Gokada was founded in 2017 by Fahim Saleh and Deji Oduntan with the goal of changing the way people travel around the city. Ajoje Capital Partners, Constant Ventures, Full Circle Africa, Sajid Rahman, and Tenet Investment Company are 5 of 12 investors who have invested in Gokada.
What if I were to tell you that all of these Services listed above can be clubbed together into One Single Super App? Yes, I’m talking about CubeTaxi’s GoJek Clone App that has been Designed and Coded to offer 101+ Services. These Life-Enriching Services are Taxi Booking, Transportation, Logistics, Online Money Transfer, Doorstep Delivery of Food and Groceries, Car Pooling, Genie, Medical Services. Parcel Delivery from Location X to Y, Buy/Sell/Rent Real Estate, Cars, and General Items, Track Family and Employees among others. All of these Everyday Essential Services have been categorically divided into 14 Components, of which 4 are Powerful Base Components and the remaining 10 are Additional Components. If you want to capture the Whole Market, Invest in this Brilliant All-Rounder of an App.
