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.
– SA’s Happy Pay raises $5m seed round to scale ad-subsidised payments network
South African startup Happy Pay has closed a US$5 million seed round to scale its ad-subsidised payments network, a model that removes interest and fees from consumer finance entirely.
A BNPL startup, Happy Pay provides zero-cost installment payments through its ad-subsidised payments network. Its platform connects merchants with high-intent shoppers, enabling consumers to split purchases into interest-free installments while helping retailers grow through performance-based customer acquisition, conversion, and basket expansion.
The model removes interest and fees from consumer finance entirely, shifting the cost of installments to the merchants and brands that actually benefit from the resulting sales.
Happy Pay, which already has more than 600,000 registered users, has now raised US$5 million in seed funding in a round led by global technology investor Partech. It also saw participation from Futuregrowth Asset Management, 4Di Capital, E4E Africa, Equitable Ventures, and Felix Strategic Investments.
– SA fintech startup littlefish raises $9.5m Series A funding to power merchant infrastructure for African banks
South African fintech startup littlefish, a merchant operating system powering the relationships between Africa’s biggest banks and the merchant class, has closed a US$9.5 million Series A round of funding as it works to transform how financial institutions serve small and mid-sized businesses across the continent.
Co-founded in 2021 by Brandon Roberts and Miod Davith Kahwa, the Johannesburg-based littlefish is a merchant operating system that transforms acquiring banks into fintechs and small businesses into digital enterprises. By integrating directly into POS devices and core banking systems, littlefish enables Africa’s largest financial institutions to deliver unified, digital-first merchant services at scale.
The platform sits at the intersection of banking infrastructure and commerce enablement. Its commerce layer consolidates point-of-sale applications, back-office CRMs, merchant portals, payments, and APIs into a unified orchestration layer that integrates directly into POS devices and core banking systems.
– Kenyan social commerce startup Twiva raises funding from Jobtech Alliance
Kenyan startup Twiva, which is transforming the opportunity landscape for African creators by replacing sporadic brand deals with structured demand, performance-based earnings, and integrated financial services.
Disrupt Africa reported in October 2022 on the launch of the Jobtech Alliance, an ecosystem-building initiative around inclusive jobtech in Africa steered by Mercy Corps and BFA Global, which aims to create an enabling environment for entrepreneurs to build platforms that deliver quality livelihoods, are inclusive, and enable users to engage in decent work.
It has run several cohorts, but is now also making direct investments in relevant ventures, most recently in Nigeria’s Bumpa and Kenya’s Flowcart, both e-commerce ventures.
– Morocco’s GoSwap Raises Funding Round To Scale Electric Scooter Battery Swapping
Moroccan electric mobility startup GoSwap, founded by Hamza Slimani, has raised its first funding round from Azur Innovation Fund, with plans to secure over MAD 20 M (~USD 2 M).
The Casablanca-based company is scaling its automated battery swapping network for electric scooters, already operating 20 swap stations across CashPlus stores and Petrom and Shell stations.
The funding will support expansion into cities like Marrakech and enable compatibility with more electric motorcycle models.
GoSwap’s model, selling scooters without batteries and offering pay-as-you-go swaps in under 10 seconds, aims to cut costs and eliminate charging delays.
– Moniepoint Acquires Kenya’s Sumac Bank To Expand East Africa Push
Nigerian fintech unicorn Moniepoint Inc. has acquired a controlling stake in Kenya’s Sumac Microfinance Bank, securing a long-sought entry into East Africa’s largest economy.
The deal grants Moniepoint a deposit-taking license, critical to its credit-led growth strategy, and allows it to bypass the Central Bank of Kenya’s freeze on new licenses.
By acquiring 78% of the 20-year-old lender, Moniepoint gains regulatory infrastructure to scale lending to SMEs and compete with existing players.
