Google’s Africa Investment Fund makes first investment in Uganda’s SafeBoda – TechCrunch

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Internet giant Google announced today that it has made the first investment from its Africa Investment Fund in the Ugandan super app SafeBoda.

The undisclosed investment comes two months after Alphabet CEO Sundar Pichai announced the tech giant’s intention to commit $ 1 billion over the next five years to “technology-driven initiatives,” which includes an investment fund for l. ‘$ 50 million Africa for early stage and growth start-ups on the continent. This was announced at the Google for Africa event in October.

Prior to launching the fund, Google proved useful in startup journeys through its Google for Startups Accelerator Africa program.

The acceleration program has supported more than 80 startups in the seed to Series A stages with mentoring and unequal resources. Collectively, they raised over $ 100 million in venture capital.

Google also recently launched the Black Founders Fund, a $ 3 million non-dilutive fund earmarked for 50 startups each year.

Fintech startups and those from Nigeria, Kenya, Egypt and South Africa are the most watched by venture capitalists. Last year, fintech startups accounted for 25% of VC funding flowing into Africa, while Big Four startups received more than half of the continent’s total funding.

Venture capital firms and institutional fund managers who spoke to TechCrunch recently say they want to close this funding gap by investing in neglected regions and sectors of the continent. Nitin Gajria, chief executive of Sub-Saharan Africa, Google, is one of them and expressed those sentiments when the company announced the Africa Investment Fund in October.

“We don’t limit ourselves to certain verticals. We are focusing on investments where we believe Google can add value, “the CEO said in October.” If there are founders building compelling products that solve real challenges in Africa, that would fit our investment thesis perfectly. “

While Google’s investment in SafeBoda serves as a first reminder of Gajria’s statement, startups from the Big Four markets are likely to fill the fund’s portfolio over the next couple of years.

The Ugandan startup was launched as a two-wheeled platform before embarking on a super app plan two years ago.

It now offers travel, package delivery, food and shopping, payments, savings and other financial services to over 1 million customers in Uganda and its second largest market, Nigeria. The company has more than 25,000 drivers who have completed over 40 million orders in both markets.

SafeBoda has rarely announced any of its funding rounds since its inception in 2017, but people familiar with the company’s reports say it has raised over $ 20 million. Its investors include Gojek’s GoVentures, Allianz X, Transsion Holdings, Beenext, Unbound and Justin Kan.

SafeBoda said Google’s Africa Investment Fund investment will help “drive its growth in Uganda and Nigeria by expanding its transportation-based app to offer new payment and financial services solutions for its expanding group of clients. : passengers, drivers and traders “.

“SafeBoda welcomes Google to its community and is excited to continue driving innovation in transportation and informal payments in the boda boda (East Africa) or Okada (West Africa) industry,” said co-founder Ricky Rapa Thomson in a note.

“This vital industry is the lifeblood of African cities and fuels economic development. SafeBoda is thrilled that leading global companies like Google see the importance of supporting startups working to achieve these goals. ”

A spokesperson told TechCrunch in a written statement that the investment in SafeBoda was made to “strengthen a relationship with a potential future partner who has a strategically aligned vision of better logistics and transportation.” When asked how much investment to expect in the next year, the spokesperson said Google has no expectations in this regard.

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