African startups are making significant progress. In this context, the digital economy platform FollowICT highlights the top startup news across Africa over the past week.
South African Startup Cue Raises $5 Million to Expand Its AI Customer Service Platform
South African customer-service technology startup Cue has secured $5 million in a funding round co-led by Knife Capital and FAM Investments to accelerate the development of its AI-powered platform and support its international expansion.
The company plans to invest the new capital in enhancing its AI agents, introducing advanced voice capabilities, strengthening platform security, and expanding integrations for enterprise customers. These improvements are designed to help businesses automate customer interactions while maintaining high-quality support.
Founded in 2015, Cue enables businesses to manage customer conversations across WhatsApp, social media platforms, chatbots, and live chat through a unified platform. More than 500 companies across South Africa and the United Kingdom currently use its technology.
The funding follows a $2 million investment raised in 2024 and reflects the growing demand for AI-driven customer service solutions as businesses seek faster response times, improved efficiency, and seamless communication across multiple channels.
SeamlessHR Rebrands as Seamless Technologies to Expand Into AI and Financial Services
Nigerian HR tech company SeamlessHR has officially rebranded as Seamless Technologies, marking a strategic shift beyond workforce management into artificial intelligence and embedded financial services.
The company currently serves more than 2,000 medium and large enterprises across Africa and beyond, with offices in Nigeria, Ghana, and Kenya. Its broader vision is to create a technology ecosystem that supports both businesses and employees throughout the continent.
Under its new corporate structure, Seamless Technologies operates three core business units: SeamlessHR, its workforce management platform; Breeze, which provides embedded financial services such as payroll financing, earned wage access, and employee self-service; and SeamlessProcure, an enterprise procurement and vendor management solution.
As part of its expansion, the company also introduced BWOP (Blue Collar Operations Platform), a solution designed for organizations managing frontline and shift-based workers, helping digitize attendance, payroll, workforce records, communication, and employee services.
Renew Capital Selects 15 African Startups for Its $250K Venture Lab Program
Pan-African investment firm Renew Capital has selected 15 startups for the first edition of its Renew Venture Lab: EmFi Series, following applications from more than 500 startups across 48 African countries.
The selected founders participated in expert-led training sessions before 47 finalists pitched for a place in the program. The final cohort will receive a support package worth more than $250,000, including technical training, mentorship, and the opportunity to secure future investment.
The selected startups represent 10 African countries and include AgroCenta, Boost Technology, Kutana, and Oze from Ghana; Dots for Africa from Senegal; Fanaka from Zambia; MajibuAfrica from Uganda; Marakisoft from Ethiopia; Regxta, Rigo, and Tradevu from Nigeria; Shiprazor from South Africa; Solimi from Togo; Z Systems from Morocco; and Zendawa from Kenya.
Renew Capital believes these companies have the potential to reshape SME banking and financial services across Africa by developing innovative technology solutions that address the continent’s growing business needs.
Nigerian Founder Jayaike Ndu Launches Tend to Help Users Discover Local Businesses
Nigerian entrepreneur Jayaike Ndu has launched Tend, a discovery platform designed to help consumers find local businesses that primarily operate through Instagram and WhatsApp instead of traditional websites.
Using AI, the platform analyzes publicly available Instagram posts and Stories, allowing users to search for products, services, events, and businesses using natural language while displaying real-time updates such as promotions, new products, and booking availability.
Businesses can connect their Instagram accounts to create digital storefronts without building standalone websites. Tend also supports bookings, payments, event ticketing, digital wallet passes, and customer check-ins through a single interface.
The platform allows businesses to list products and services free of charge, while charging only a 1% fee on event ticket sales, making it an affordable solution for small and medium-sized businesses across Africa.
Vercel Acquires Ethiopian Startup Better Auth to Strengthen AI Identity Infrastructure
US cloud platform Vercel has acquired Ethiopian-founded open-source authentication startup Better Auth, founded by Bereket Engida, to expand its developer platform and strengthen authentication infrastructure for AI agents.
The acquisition comes just over a year after Better Auth raised $5 million in seed funding to develop its open-source TypeScript authentication framework, which enables developers to integrate authentication directly into their own applications.
As part of the deal, Engida and his core team will join Vercel to accelerate the development of next-generation authentication technologies for AI-powered applications.
Vercel confirmed that Better Auth will remain free and open source under the MIT license while continuing to operate under its existing brand and community-driven development model.
Tunisian Entrepreneur Sana Amari Wins COMESA Award for Empowering Rural Women
Tunisian entrepreneur Sana Amari has won the Collective Entrepreneurship Award at the seventh COMESA Trade Fair and Business Conference, outperforming projects from 21 African countries.
Founded in 2022, Amari’s agricultural cooperative focuses on adding value to local agricultural products while preserving Tunisia’s heritage and promoting sustainable rural development.
The initiative empowers rural women by providing them with economic opportunities, practical support, and access to cooperative business models that strengthen their role in local communities.
The award recognizes the project’s success in combining agricultural innovation, women’s empowerment, and community-driven economic development, offering a model that can be replicated across Africa.
TLG Capital Secures $120 Million for Africa SME Growth Fund
Africa-focused investment firm TLG Capital has completed the $120 million second close of its Africa Growth Impact Fund II (AGIF II), with Proparco and Calvert Impact Capital leading the investment round.
The fund is designed to expand long-term financing for small and medium-sized enterprises across Africa by partnering with local banks to increase access to credit for underserved businesses.
AGIF II is built around TLG Capital’s Bank Originated and Mitigated Assets (BOMA) model, which enables the firm to originate SME loans alongside African banks while significantly reducing investor risk through full principal guarantees.
The latest close brings the fund’s investor base to 22 institutions and reinforces TLG Capital’s commitment to supporting African SMEs, improving access to finance, and driving sustainable economic growth across the continent.