The Top 10 Startups in Africa and the Secrets to Their Success

When you start a business, your agenda is success. This can be seen from various perspectives, mainly creating value for your clients and making incremental profits.

It’s common to hear about all the startups failing in Africa, which can be very discouraging to an entrepreneur. Before you pack up your laptop and forget your business dreams, there are numerous examples of successful startups across the continent.

We take a look at the top ten startups in Africa based on four criteria:

1. Profitable startups
2. Businesses that have a successful exit or sold a significant share stake
3. African startups that have been listed on the stock exchange
4. Startups with valuations of 100 million USD and above

In addition, the article will look at the secrets these businesses have used to bring about their success.

Jumia

Jumia is the Amazon of Africa. It is an e-commerce store that operates in 14 countries. Jumia became the first African startup to list on the NYSE in 2019. The IPO was a landmark event, raising $196 million. The company's success underscores the massive potential of e-commerce in Africa.

The company has tailored its services to fit the diverse needs of various African markets. It also invested in a robust delivery infrastructure to overcome logistical challenges. This shows adaptability to the customer’s needs and has contributed to its success.

Paystack

Paystack is a fintech business registered in Nigeria. Stripe acquired the payment processing company for $200 million in 2020. This acquisition shows Africa’s fintech potential and provides Paystack the resources to expand.

Paystack ensures high standards of regulatory compliance and security. This is critical in the fintech industry, especially with the high rates of cybersecurity attacks. The business also created a seamless, user-friendly payment processing experience, which plays a big role in consumer loyalty and business success.

Andela

Andela is in the talent development industry. The business identifies and develops tech talent across Africa, bridging the global tech talent gap.

Andela achieved profitability, expanded its operations to multiple countries, and transformed into a talent powerhouse. The company achieved a revenue of $20 million in 2023 and employed 378 people.

The business success of Andela can be attributed to a seamless operations process for screening and identifying top talent. It also empowers its staff through ongoing education and development for employees.

Twiga Foods

Twiga Foods is an Agri-tech business based in Kenya. It leverages technology to streamline the supply chain between farmers and vendors in Kenya.

The company initially focused on Nairobi but has scaled to cover multiple urban centers nationwide. This expansion has allowed Twiga to tap into a larger market of small-scale farmers and vendors, significantly increasing its volume of transactions.

According to Dealroom, Twiga Foods has an estimated enterprise value of $200-300mn as of 2021 and has consistently demonstrated strong financial health through revenue growth and operational efficiencies.

Wave

Wave is a fintech company founded in Dakar, Senegal. It provides nearly fee-free transfers, which sets it apart from many other mobile money services. The company partners with local telecom operators to provide seamless money transfer services.

In its seed round, Wave raised $13.8M. It went on to raise $200 million in September 2021, led by Sequoia Heritage, Founders Fund, Stripe, and Ribbit Capital, which valued the company at $1.7 billion. This was an unprecedented win for the startup.

The startup is actively working on expanding its services to additional African countries, aiming to replicate its success in Senegal and Côte d'Ivoire in other regions.

Branch International

Branch International is a fintech that offers mobile-based microloans, helping individuals and small businesses access credit. According to Techcrunch, it has achieved profitability and expanded its operations to multiple countries. These countries include Kenya, Tanzania, and Nigeria.

The company's expansion strategy focuses on emerging markets with high mobile phone penetration and significant unmet demand for financial services. One of the reasons for this success is the utilization of mobile data to assess creditworthiness. This has made mobile loans easily accessible to their customers.

Cellulant

Cellulant is a leading pan-African payments company that provides digital payment solutions to millions of consumers and businesses. Cellulant operates in 35 African countries, including Nigeria, Kenya, Ghana, Uganda, Zambia, Tanzania, Zimbabwe, and more.

The company serves over 220 million consumers and 33 banks, as well as 600 merchants. Its clientele ranges from small businesses to large corporations, reflecting its versatile service offerings.

Its success can be traced back to its aggressive expansion into different African markets and its wide range of payment services to meet various needs.

Yoco

Fintech startups enjoy success on the continent and Yoco has had its fair share. The company offers point-of-sale solutions to small businesses in South Africa. Today, it serves over 200,000 small businesses and has empowered entrepreneurs with affordable financial tools.

While specific profitability figures are not publicly disclosed, Yoco's strong revenue growth and efficient business model suggest a positive trajectory toward sustainable profitability. However, as of 2021, the company was valued at between $332—498m and has continued to grow.

The business prioritizes the needs of small businesses and continuously develops new products and features. This has led to the company’s success.

Kobo360

Kobo360 is a logistics platform that connects truck owners with businesses needing transportation services.

Kobo360 operates primarily in Nigeria and Kenya but plans further expansion across Africa. The company’s strategic focus on high-growth markets with significant logistical challenges has driven its expansion strategy.

The company also utilizes technology to improve efficiency and reduce costs. This, coupled with building a vast network of truck owners and business clients, has led to its success.

mPharma

mPharma is a healthcare startup focusing on improving access to high-quality medicines across Africa. The company uses data-driven insights to optimize inventory management, minimizing stockouts and waste. This approach helps pharmacies and healthcare facilities maintain adequate supply levels while reducing costs.

The startup operates in several African countries, including Ghana, Nigeria, Kenya, Zambia, and Zimbabwe. The company’s strategic expansion focuses on markets with significant healthcare challenges and opportunities for impact.

Final Thought

A startup in Africa can grow and experience tremendous success. Looking at the success of these businesses, here are a few takeaways for you as you grow and expand your startup.

• Address unique challenges and leverage innovative solutions.
• Build strong networks and secure investment to accelerate growth and scalability.
• Understand local needs and tailor solutions to address them for substantial success.
• Focus on making a significant social impact.