$1.55 million boost for WhatsApp business

Sá-wat-de,

Victoria from Techpoint here,

Here’s what I’ve got for you today:

$1.55M boost for WhatsApp business
How to create a fundraising strategy
Wasoko and MaxAB merger is a done deal

Sukhiba Connect’s $1.55M seed extension

Kenyan social commerce startup Sukhiba Connect has scored a $1.55 million seed extension, adding to the $1.5 million it raised last year to expand beyond East Africa.

This new round, led by EQ2 Ventures with support from Accion Venture Lab, Musha Ventures, Quona Capital, and CRE Ventures, will help it grow across Africa and other emerging markets.

Founded in 2021 by Ananth Raj Gudipati and Abhinav Reddy, Sukhiba Connect uses WhatsApp to connect businesses with customers, helping with sales, marketing, customer service, and payments.

With 97% of Internet users in Kenya on WhatsApp, as of 2020, its platform is tailored to integrate with local payment methods like M-Pesa and ERP systems such as SAP and Shopify.

Since its initial seed funding in 2023, Sukhiba Connect has expanded to eight markets in Africa and India.
It’s working with over 35,000 SMEs and has helped more than 30 major companies tap into WhatsApp commerce. Its goal now is to become a top CRM and sales tool in emerging markets.

How to create a fundraising strategy

Money pouring on someone's hand like rain. Used to depict a naira float, following the country's announcement

Raising funds is crucial for startups, but it’s not always easy, even for seasoned founders. Many resort to cold calling or emailing every investor they can find, hoping for a response.

While this scattergun approach might land some meetings, it’s not the most effective way to raise funds.

Some founders seem to have cracked the code, consistently securing funding rounds, while others struggle to even get a reply. The difference often lies in the strategy.

A solid fundraising strategy can make all the difference, even for first-time founders. It’s about more than just reaching out to investors — understanding what motivates venture capitalists (VCs) is key.

Many startups mistakenly think they’re a perfect fit for VC funding without really grasping what VCs are looking for. Knowing how VC math works can help you tailor your pitch and increase your chances of success.

If you’re gearing up for fundraising, take a step back and think about your approach. Are you targeting the right investors? Do you understand what they’re really looking for?

By designing a strategy that aligns with VC incentives, you’ll be better positioned to secure the funding you need. Ready to refine your fundraising game? Dive into the details in Chimgozirim’s latest here.

Wasoko and MaxAB merger is a done deal

Belal El-Megharbel, CEO MaxAB and Daniel Yu, CEO Wasoko

Finally, the Wasoko and MaxAB merger is a done deal after eight long months of talks!

This merger, now dubbed Africa’s biggest tech deal, kicked off late last year. The new entity, still awaiting a new name, will be led by Daniel Yu from Wasoko and Belal El-Megharbel from MaxAB.

The combined company now supports 450,000 merchants, serves 65 million customers, and has over 4,000 employees on board.

Even though the initial plan was to wrap up by early 2024, Yu had warned it might take longer due to the complexities involved. With over $200 million raised by both companies before merging, a lot was on the line. Despite some legal hiccups, the tech integration went off without a hitch in just 60 days.

Yu said merging was an easy decision since both companies had similar goals, but building a pan-African company turned out to be harder than expected. They realised the importance of local expertise after facing some challenges in Senegal and Cote d’Ivoire. With Egypt’s economic issues, the timing for this merger felt right.

The new company isn’t stopping at B2B eCommerce; they’re diving into financial services too. They’ve started offering inventory financing, an e-wallet, and even services like airtime top-ups and utility payments.

They’ve already dished out $20 million in financing with a 99% repayment rate, and in Egypt, digital top-ups are already outpacing their eCommerce revenue.

Despite a tough funding environment for B2B eCommerce, Yu is confident their combined systems and network will give them the edge they need. They’re not just sticking to financing — they’re also looking to tap into new revenue streams by exploring intra-African trade.

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