Aruwa Capital Management (“Aruwa”), an early-stage growth equity and gender lens fund investing in Nigeria and Ghana is pleased to announce an investment into Taeillo (the “Company”), a technology-enabled furniture company that locally manufactures and retails mass market and premium Afrocentric furniture and lifestyle products across various product categories, selling directly to its B2C and B2B customers through its e-commerce platform.
Founded in 2018, Taeillo launched as a custom furniture designer serving its B2B clientele, however, in 2020, the COVID-19 pandemic provided an opportunity for the Company to serve B2C customers who needed locally manufactured high quality, affordable, furniture pieces. The Company took advantage of this opportunity and pivoted to a D2C business with the launch of the Amakisi table at an affordable price point of ₦29,999/c.$85. The table quickly gained popularity due to its quality, elegant design and affordability, resulting in the Company selling over 1,000 pieces of the Amakisi table in short period of time. Since then, demand for the Company’s furniture has continued to increase rapidly, causing the team to expand into 10 additional product categories and into East Africa, to meet growing demand.
As a local manufacturer of quality and affordable furniture pieces, the Company’s solution is critical for the African continent where the alternative is to import bulky, expensive furniture from the United Kingdom, United States or China, incurring significant costs combined with an unstable exchange rate, and enduring long wait periods of 3 – 6 months before furniture is delivered. Taeillo is revolutionizing this space by providing locally manufactured well-designed, flat-pack furniture using raw materials sourced from Africa to provide customers with aesthetically pleasing furniture pieces at a fraction of the importation price and with a 50% reduction in delivery time to about 4 – 8 weeks. As a local manufacturer of finished goods, the Company is also creating jobs, and providing economic opportunities for players in the value chain as all its raw materials and fabrics are sourced locally.
The Company has also incorporated augmented reality (AR) and virtual reality (VR) technology into its e-commerce platform to enhance customers’ shopping experience, by creating an immersive experience on the website where customers can shuffle between materials, colours and furniture dimensions before making a buying decision. Leveraging VR technology, the Company is also able to rapidly expand across regions without incurring additional showroom costs, typical with traditional furniture businesses as they offer virtual showrooms to customers. Taeillo is now present in two African countries: Nigeria and Kenya, shipping c.10,000 pieces of furniture to over 5,000 customers in Nigeria and Kenya, with complete ownership of its value chain.
Jumoke Dada, Founder & CEO of Taeillo, said: “We are excited to partner with Aruwa Capital on our journey and welcome them as equity investors in the business. The Aruwa team has been instrumental in providing strategic guidance and making necessary introductions to facilitate our global growth and expansion plans. This investment by Aruwa Capital will take us closer to our goal of becoming the IKEA of Africa by providing quality, ready-to-assemble, made-in-Africa furniture pieces at an affordable price point for the mass market, while also optimizing our operations, delivery time, and customer experience. We are grateful to the Aruwa Capital team for their belief in our vision.”
Adesuwa Okunbo Rhodes, Founder & Managing Partner of Aruwa Capital, said: “We are thrilled to announce this investment into Taeillo as it aligns with nearly all of our investment objectives. Since inception, the Company has maintained its innovative model in a traditional brick and mortar industry, creating a unique value proposition for its customers in a fast-growing, underserved market. By leveraging technology in its value chain, Taeillo has been able to achieve exponential growth in less than 2 years, achieving results that take traditional furniture companies decades to achieve.
In line with Aruwa’s gender lens investing strategy, Taeillo is founded and led by a woman, and has a 50% female representation in its management team. We are very confident in the Company’s ability to scale across Africa and are thrilled to be partnering with the team for the exciting journey ahead.“
Ghana Fintech Awards 2022: DPO Pay Fintech Discovery of the Year
Leading African digital payments company DPO Pay wins the Fintech Discovery of the year award in the 2022 Ghana Fintech awards. As an initiative of Arkel Limited – a Fintech research and management consulting firm – that is supported by the Ghana Fintech and Payments Association, the awards acknowledge the fintech products and services, technologies, fintech firms and dynamic doers in the fintech ecosystem.
DPO Pay’s Country Manager of Ghana, Frank Anwelle, said: “We are very proud and humbled to receive the Fintech Discovery of the Year Award. Our Team at DPO Pay extends their appreciation to the Ghana Fintech & Payments Association for recognising the hard work and commitment we hold to growing African businesses on a local and global scale. Our innovative approach to simplifying payment processing across Africa continues to drive the core objective of DPO Pay as a merchant-focused solution.”
The award judged international fintech companies operating in the Ghanaian Fintech space on providing best-in-class infrastructure for the deployment of fintech solutions and the ease of integration with third parties to offer financial and non-financial services. The Fintech Discovery of the Year Award recognizes international fintech companies, working within the local Ghanaian ecosystem to provide multiple choices to the industry and clients, ranging from payments infrastructure, credit and debit cards, mobile money, merchant acquisitions, and other payment methods, leading to an integrated financial sector.
Throughout 2022, DPO focused on bringing payment solutions closer to local businesses in Ghana. As part of its efforts, the company has partnered with Mastercard to enable thousands of businesses in Ghana to offer their customers greater choice and convenience by pivoting online and accepting digital payments. It has enabled enable merchants to safely, seamlessly and securely accept a wide range of digital payment methods including mobile money and via e-wallets – both locally and from abroad – in the currency of their choice.
In addition, at the end of 2022 DPO released a new version of their payments app, DPO Pay Mobile. With several new features, DPO listened to merchant feedback to redesign and redevelop DumaPay. The app, previously DumaPay, now offers a variety of new features to allow for easier, more convenient transactions no matter where in Africa their businesses are. The new mobile payments application allows businesses to securely transact in multiple currencies across Africa.
Founded in 2006, DPO has developed integrated payments technology to support businesses of all sizes in over 20 countries and accepts payments securely and swiftly in all currencies and through many payment methods, including virtual cards, mobile money, and e-wallets.
Heifer International Selects ThriveAgric, DigiCow and Brastorne as Winners of the 2022 AYuTe Africa Challenge
Heifer International announced today the 2022 winners of the AYuTe Africa Challenge that supports agritech innovators: ThriveAgric of Nigeria, Kenya’s DigicCow and Botwana-based Brastorne Enterprises. ThriveAgric is a fast-growing start-up boosting farmer incomes and production with its breakthrough “agriculture operating system.” DigiCow is an agritech firm using digital tools to modernize production on small-scale dairy farms, while the digital technology for feature phones developed by Brastorne Enterprises is narrowing Africa’s rural digital divide.
“At a time when Africa is facing unprecedented food-related challenges, it is incredibly inspiring to see these young African champions firmly focused on an agriculture-led future that provides farmers with the innovations they need to succeed,” said Adesuwa Ifedi, senior vice president of Africa Programs, Heifer International. “We launched this competition in 2021, challenging African youths to bring us innovations poised to provide the positive disruption our farmers urgently need. ThriveAgric, DigiCow and Brastorne are more than ready to meet the moment,” she noted.
As winners of the 2022 AYuTe Africa Challenge, the three companies will receive a sizeable monetary investment: a total of USD 1.5 million in grants, along with ongoing support from a team of expert advisers accomplished business veterans to help them translate their funding into an aggressive expansion strategy. This is part of Heifer International’s commitment to support young entrepreneurs developing affordable tech innovations as they work to scale their businesses. Doing so makes new services and technologies available to African farmers to overcome long-standing challenges while attracting a new generation to unlock the huge potential of agriculture on the continent.
All three of the 2022 winners are helping African farmers by providing a novel solution to everyday obstacles:
ThriveAgric addresses a key challenge for small-scale farmers in Africa—a lack of access to finance, technical advice, business skills and market opportunities. It does so by using a proprietary Agriculture Operating System to help a team of 2,000 field agents support some 500,000 farmers across 22 Nigerian states with insights to improve their production and profits.
“We’ve developed the technologies, strategies and partnerships we believe can build the largest network of productive, profitable farmers Africa has ever seen,” said Uka Eje, Thrive Agric’s co-founder and CEO. “ThriveAgric’s 500,000 farmers are already producing and earning much more than the average Nigerian farmer. Investors are responding to our potential and this prestigious award from Heifer International will accelerate our plans to expand across the continent.”
DigiCow is helping small-scale African dairy operations increase productivity with technology that provides free access to livestock management experts and links farmers to skilled and qualified veterinarians, artificial insemination providers and feed supply services—all from their mobile phones.
“I grew up watching my mom struggle to get our cows to produce enough milk, and I’ve spent 15 years working with small-scale dairy farmers, so I know the challenges farmers face,” said Peninah Wanja, co-founder of Nairobi-based DigiCow. “That’s why it’s been so exciting to see 60,000 farmers—many of them women—now using our DigiCow apps to become more profitable and productive. With this new support from Heifer International, I’m confident we can expand our reach to help small-scale dairy farmers across the continent.”
Brastorne‘s apps, such as mAgri, give farmers access to farming information, markets and short-term finance using the capabilities of any feature phone, such as SMS and interactive voice technology. The Brastorne mobile service Mpotsa (“Ask me”) provides rural unconnected mobile users with localized information, and Vuka harnesses USSD technology to allow users on any phone to create profiles, add friends, create chat groups, and more. These technologies have helped farmers realize a 250% increase in yields and achieve 85% savings in communication and information access. The company also boasts 100% youth employment.
“About 80% of Africans cannot afford smartphones or expensive data — but they do have feature phones, and Brastorne is ensuring those phones connect farmers, youth and women to the resources they need,” said Martin Stimela, co-founder and CEO of Brastorne. “We look forward to working with Heifer International to connect the rural poor with equitable access to markets, information and community.”
SAMANU, Ethiopia’s largest FMCG platform raises $21 million
SAMANU factory (Press Release: Norfund)
Norfund and a consortium of private investors managed by 54 Capital announce $21 million growth capital investment into Ethiopia’s largest FMCG platform SAMANU. Increased local production of edible oil will create jobs, increase food security, and provide income for up to 200,000 smallholder farmers.
SAMANU is a platform company with well-established brands operating in Ethiopia’s main FMCG sub-sectors (Tena Edible Oils, 555 and Aura Soap & Detergents, and Chef Luca wheat products). The investment by Norfund will fund the construction of a new solvent extraction plant to produce edible oils based on locally sourced sesame, sunflower and soya beans in its refineries. By reducing the dependency on imported raw materials, the investment aims to create jobs in value-addition and increase Ethiopia’s food security. The completion of a vertical integration project will also allow for increased export opportunities within the sectors the company already operates.
To ensure enough volume of locally produced oilseeds for its refineries, the company intends to develop large oilseeds clusters in Ethiopia over the next six years, providing livelihoods for 200,000 smallholder farmers. In the first six months post investment, the objective is to identify 642 clusters and sign contracts with around 5-7,000 smallholder farmers. Norfund, through its Business Support Facility, plans to use grant funding to assist contracted smallholder farmers with inputs like high quality seeds, fertilizers, training and capacity building, as well as agricultural technology to boost productivity.
Andreas Davidsen, Norfund’s VP of Scalable Enterprises Agribusiness & Manufacturing, said: “We are excited to partner with SAMANU and support the execution of their vertical integration strategy, creating jobs and increasing food security. We strongly believe in the opportunities of local food production in Ethiopia and Norfund looks forward to working closely with the SAMANU management team and 54 Capital to help implement best in class practises and solutions”.
SAMANU is already home to some of Ethiopia’s leading FMCG brands and has ambitious plans to expand its product offering to meet rising demand for high quality locally produced brands. The investment, Norfund’s first in manufacturing in Ethiopia, signals strong institutional backing for the platform.
Saad Aouad, 54 Capital PE Advisors’ Chief Investment Officer, said: “It is a fantastic achievement for our investments in Ethiopia and our local management team to receive further institutional backing. It stands as testament to what we have been able to achieve in terms of nurturing high-quality popular brands and achieving scale through capacity expansion and how we intend to develop the next stage of the business. This investment demonstrates the robustness of this strategy for further enhancing the value chain within Ethiopia. Which will undoubtedly benefit from Norfund’s extensive experience across the continent”.