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 Africa’s Happy Pay Launches AI-Powered Advertising Platform After $6.1M Pilot
South African buy now, pay later (BNPL) platform Happy Pay has officially launched Happy Ads, an AI-powered advertising platform that charges retailers only when their campaigns generate completed sales. The launch aims to reshape digital advertising by linking marketing costs directly to business outcomes, rather than charging brands based on impressions or clicks. Happy Pay provides interest-free installment payments through an advertising-subsidised payments network that connects merchants with consumers ready to make purchases.
During its pilot phase, Happy Ads generated more than ZAR 100 million ($6.1 million) in merchant sales, delivering over 268 million impressions and an average return on ad spend of 20 times. The platform enables brands to promote products and offers to more than 800,000 registered Happy Pay users, alongside two million customers across its partner network. The company also expects to add another six million users to its network in the near future, potentially expanding the platform’s reach among consumers and retailers.
Happy Ads operates on a cost-per-acquisition model, allowing retailers to determine the commission they are willing to pay and charging them only when a transaction is completed. Its AI-powered recommendation engine personalises product suggestions based on shoppers’ browsing behaviour, purchase history, and interests, using transaction data to continuously improve recommendations. The launch follows Happy Pay’s $5 million seed funding round in March, as the company expands its approach to combining digital payments, customer acquisition, and performance-based advertising.
Disrupt Africa and Touch Inspiration Launch Accelerator to Help Non-Technical Founders Build Apps
African tech startup news platform Disrupt Africa has partnered with Kenya-based digital product development company Touch Inspiration to launch Disrupt Launchpad, an accelerator designed to help entrepreneurs turn app ideas into working products and bring them to market. The programme targets founders who have a clear vision for a digital application but lack the technical skills, development teams, or financial resources needed to build and launch it.
Under the partnership, Touch Inspiration will provide professional application development services at startup-friendly rates, drawing on its expertise in web and mobile applications, AI-powered solutions, and business platforms. Disrupt Africa, meanwhile, will help participating ventures reach a broader audience of potential users, customers, and investors. The collaboration is designed to bridge the gap between having a promising business idea and developing a functional product that can be tested in the market.
Disrupt Launchpad is open to aspiring entrepreneurs and existing startups with clearly defined app ideas. In addition to affordable development services, selected ventures may qualify for equity-based partnerships, potentially reducing the upfront cost of building their applications. The initiative addresses a common challenge facing non-technical founders: securing the expertise and resources needed to transform an idea into a market-ready product. By combining technical development with media exposure and ecosystem access, the programme aims to give entrepreneurs a stronger foundation for launching and growing their businesses.
Kenyan AI Startups Neural Labs Africa and Me-Nasoma Win KSh 1.3M in Meta AI Academy Pitchathon
Kenyan artificial intelligence startups Neural Labs Africa and Me-Nasoma have won a combined KSh 1.3 million in equity-free funding at the inaugural Meta AI Academy Kenya Pitchathon. Each startup received $5,000, equivalent to approximately KSh 645,000, along with advertising credits from Meta to support product development and business expansion. The competition was organised by Meta in partnership with This Is Digital to support entrepreneurs developing AI-powered solutions to challenges across key economic and social sectors.
The startups emerged as winners from a competition that attracted more than 426 applications, with 10 finalists selected to present their innovations to a panel of judges. Participating ventures developed solutions spanning healthcare, education, financial services, retail, and legal technology. Neural Labs Africa was recognised for NeuralSight, an AI-enabled teleradiology platform designed to connect healthcare facilities with remote medical specialists. The solution supports medical image interpretation and diagnostic reporting, including at facilities operating with limited internet connectivity, potentially improving access to specialist healthcare services.
Me-Nasoma, meanwhile, has developed an accessibility-focused platform that converts written documents and web pages into audio content. Available through mobile and web platforms, including a Chrome browser extension, the solution enables users to listen to written materials and is designed to support learners and people who face difficulties accessing conventional text-based content. Beyond the financial awards, both startups have been invited to showcase their solutions at Meta’s Regional AI Summit in Istanbul, Türkiye, on November 24. The opportunity could help them connect with technology industry stakeholders, while their next challenge will be turning the funding and increased visibility into sustainable growth and wider product adoption.
Arigo Capital Launches $150M anAble Africa Fund I to Back High-Growth Enterprises Across 55 African Countries
Arigo Capital, an investment management firm focused on African enterprises, has launched anAble Africa Fund I, its inaugural pan-African investment fund, targeting $150 million in capital commitments. Announced on August 31, 2026, the fund aims to invest in high-potential businesses across all 55 African countries, supporting entrepreneurs building companies capable of competing and expanding in regional and international markets. The launch marks Arigo Capital’s entry into pan-African fund management as it prepares to raise institutional capital and establish a regional operating structure.
The firm plans to adopt a phased regional operating model that combines a continent-wide investment mandate with local expertise in identifying opportunities, evaluating businesses, and managing portfolio companies. Its approach is intended to help Arigo Capital navigate differences in regulatory frameworks, economic conditions, financing availability, and market structures across African countries. By building relationships with entrepreneurs and local business networks, the firm aims to identify companies with strong growth potential and support their expansion beyond domestic markets.
However, Arigo Capital has not disclosed any initial capital commitments, confirmed investors, or a timetable for completing the fundraising process. The $150 million figure therefore represents the fund’s fundraising target rather than capital already secured. Details regarding investment ticket sizes, priority sectors, and target investment stages have also yet to be announced. The fund’s progress will depend on its ability to attract institutional investors, establish its regional operations, and identify scalable African businesses capable of competing across regional and global markets.
Nigeria Reclaims Africa’s Startup Funding Lead With $635M Raised in Nine Months
Nigeria has regained its position as Africa’s leading destination for startup investment, attracting $635 million in funding between January and September 2026, according to data from Africa: The Big Deal, an investment tracker covering the continent’s startup ecosystem. The total represents a 157% increase from the $247 million raised during the same period in 2025, marking Nigeria’s strongest first-nine-month funding performance since 2022.
The recovery was largely driven by major investments in established companies operating across mobility, financial technology, e-commerce, and digital assets. Mobility financing company Moove led the funding activity with $250 million, followed by payments technology firm Flutterwave, which secured $100 million. E-commerce platform Jumia attracted $50 million, while digital asset infrastructure provider Yellow Card raised $40 million. Together, the four companies accounted for $440 million, representing approximately 69% of Nigeria’s total startup funding during the nine-month period.
Beyond the large transactions, Nigeria also recorded an increase in the number of startups securing investment. A total of 77 companies raised at least $100,000, compared with 70 during the corresponding period last year. Nigeria outperformed Egypt, which attracted $445 million, Kenya with $201 million, and South Africa with $182 million. Across Africa, startup funding reached approximately $2.16 billion during the first nine months of 2026, reflecting a slight decline compared with the previous year. The figures highlight the continued influence of large funding rounds on the continent’s investment rankings, while the growth in the number of funded Nigerian startups offers an additional indicator of activity within the ecosystem.