Carbon launches $100K Fund for “Non-Fintech” Solutions in Africa. Carbon is one of the fastest-growing fintech startups in Nigeria has launched a $100K Pan-African fund to support non-fintech solution startup entrepreneurs in Africa.
This $100K Pan-African fund can also be referred to as “Disrupt Fund”, and it is allegedly the first of its kind in Africa. The fund will invest up to $10K per startup for 5 percent equity and also provide access to its API.
This will encourage investors to leverage their growing customer base and innovative technology platform by helping the beneficiaries get to market faster.
With those targets in mind, Carbon is now accepting applications from companies with operations in Nigeria, Kenya, Ghana, Uganda, Cote d’Ivoire, and Egypt.
Startups looking to apply for the fund must have a functioning product, post revenue and be open to the idea of operating in multiple countries. Although the fund has a wide investment mandate, target sectors at this time include insurance, health, and education which have not seen as much investment as the fintech space where Carbon operates.
Chijioke Dozie, CEO and co-founder of Carbon, said;
“There’s a lot more merit in collaborations and deliberate partnerships. Common investor wisdom is to stay in your market and dominate. This assumes that you are expanding on your own but we believe that by collaborating and partnering deliberately, Carbon and other tech companies can scale faster and build more enduring platforms. There are many excellent companies across the continent looking for the kind of scale Nigeria offers and we are excited to partner with them to provide the support and financial investment they need.”
He also said that;
“We are equally excited to expand beyond Nigeria and Kenya by working with a new generation of innovators across the continent and sharing our experience to tackle common obstacles to growth”
For the fourth time in as many years, funding for African fintech firms comfortably outstripped all whatever investments went into other sectors, not that these non-fintech firms don’t hold as much, or perhaps, even more promise.
Carbon launching of $100K Fund For “Non-Fintech” Solutions funds will also provide mentorship, access to Carbon’s customers and payment platform, as well as office space in the Lagos offices of Carbon, easily one of Nigeria’s most promising fintech startups with footprints in payments, loans, savings/investments, and a host of other digital financial services.
Carbon claims to have amassed 2.1 million users since its inceptive in 2016. The company also claims to have disbursed more than USD 63.7 million in loans in 2019 and processed more than USD 140 Mn in transactions.
The co-founder of Carbon, Ngozi Dozie also commented saying,
“The investing environment for early-stage startups has improved in recent years. However, a key issue for most startups that has not been addressed is the cost of customer acquisition. A lot of money is spent on acquiring customers, mainly via social media, when a more collaborative approach among tech companies could be more efficient,” he added. “Our fund will enable this collaboration, allowing others to market to our customer base and vice versa – a win-win for everyone. As the saying goes, ‘if you want to go fast, go alone. If you want to go far, go together”
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