Mobile tech company Africa’s Talking targets growing Africa footprint.
Founders of Kenya’s mobile tech company Africa’s Talking are selling part of their stake in the company in a transaction that will see them earn $3.6 million (Sh360 million).
The company’s founder and chief executive, Samuel Gikandi, said the cash, part of a total of an $8.6 million (Sh860 million) fundraising from institutions including International Finance Corporation and the investment arm of France’s telecommunications firm Orange, will be used to acquire shares from existing shareholders.
“Of the total raise, $5 million (Sh500 million) is coming into the company while $3.6 million (Sh360 million) is for buying shares from existing shareholders (partial exits),” Mr Gikandi said.
He declined to state the level of ownership the founders are relinquishing to the institutional investors.
Founded in 2010, Africa’s Talking provides a platform for businesses and developers who want to integrate mobile communication and payment services to their applications.
Africa’s Talking will use the balance of the funds to scale up operations at its existing offices, grow its footprint within Africa and invest more in research and development.
“Increasing capacity at our head office [in Nairobi] in anticipation of aggressive growth, scaling up our existing country offices and setting up hubs in Nigeria, Botswana and Ivory Coast to anchor our West African, South African and Francophone expansions,” Mr Gikandi said of the planned investments.
“We are looking into Ethiopia, Ivory Coast, Ghana, Gambia and Botswana. The plan is to scale up to even more markets in the next two years.”
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