In a first six months of 2017 that saw the South Africa’s sovereign credit rating downgraded to BB+ from BBB grade, pushing the rating of the economy to junk status local startups are not doing bad at all.
It is shaping up to be a good year for some South African startups looking for new investor money to grow their solutions.
Several local startups continues to attract local and foreign investors with big pockets to expand their solutions.
These startups are transforming business and everyday life in South Africa.
What follows are our picks, in no particular order, for startups to watch that have attracted investors to grow their solutions.
South-African based tech start-up WhereIsMyTransport has announced an investment of £1.2 million (R19.8 million) from Goodwell Investments and Bombardier.
The Cape Town and London-based public transport data and technology start-up offers integrated data solutions for formal and informally run transport in cities across South Africa.
Rand Merchant Investment Holdings through AlphaCode, RMI’s innovation hub for FinTech entrepreneurs, and Nedbank Private Equity (NPE) through its private equity investment vehicle, BoE Private Equity Investments will each acquire minority stakes in Entersekt.
The money will be used to accelerate their business global expansion, and research and development.
The company has developed world-class push-based authentication and app security technology.
Entersekt’s patented security products protect close to 100 million of transactions monthly while complying with the world’s most stringent regulatory guidelines.
Xineoh Wants To Simplify Artificial Intelligence, Machine Learning
Founded in 2014, Bloem-based performance marketing company Xineoh is making waves internationally thanks to its unique vectorization algorithm, which has already generated more than $30 million in revenue for clients across the globe, attracting the interest of investors, with US$2million received in backing to date in 2017.
While its roots are in the City of Roses, Xineoh prides itself on being a global entity, and with offices in Bloemfontein, Cape Town, Oregon, and Vancouver, it truly is a 24-hour operation.
Priding itself on its professionalism and results-orientated philosophy, Xineoh is fast creating its very own Silicon Valley in the heartland of South Africa, offering up local tech whizzes a chance to experience AI and machine learning in a hands-on fashion.
SA’s SweepSouth Gets More Cash from DJ Black Coffee to Conquer Africa
SweepSouth, Africa’s pioneer in using technology to provide on-demand and regular home cleaning services, has raised undisclosed amount of capital from local and global investors to accelerate its growth in the African continent.
SweepSouth is an online platform for booking, managing, and paying for home cleaning services using a laptop, phone, or tablet.
The funding comes from strategic investor Smollan, the international retail solutions company and associate of WPP and Advantage Solutions, as well as from Draper Dark Flow, the Silicon Valley VC Fund for Africa established by Tim Draper.
Existing investors, Identity Development Fund Managers (via their Identity Future Fund) and Africa Angels Network (as CRE VC) also participated in the round, in addition to new incoming private investor Nkosinathi Maphumulo (DJ Black Coffee).
Domestly Wants to Clean South Africa’s Homes and Offices
On-demand cleaning service Domestly has secured an undisclosed amount of funding from South Africa’s Industrial Development Corporation (IDC).
The funds will be used by Domestly to gain market traction and promote job creation.
The start-up also said that the institutional funding from the IDC will help the business in expanding not only its national footprint, but will also allow it to grow its in-house technology team.
Domestly is aiming to advance the way the world cleans their homes. It utilises technology to connect cleaning professionals directly to homeowners through its app, making the service affordable and accessible to everyone, and creating more job opportunities.