Two startups seek funds for expansion after Google training

Two Kenyan startups are looking to raise more than Sh50 million ($5 million) to accelerate its expansion plans and complete development of mobile applications.

E-commerce startup Cloud9-XP and Paygo Energy said they intend to raise more money to rollout a mobile App and expansion of gas cylinders meter warehouse respectively.

Cloud9 is an online retailer of experiences and merchandise, selling a range of outdoor activities and branded apparel while Paygo Energy develops cooking gas cylinder smart meters

The two startups are among 10 others that graduated Friday after participating in the Google Launchpad Africa Accelerator programme held in Lagos, Nigeria.

Startups located in Ghana, Kenya, Uganda, South Africa, Nigeria and Egypt participated in Google Launchpad Africa Accelerator programme held in Lagos, Nigeria. This is the second cohort of innovators for Launchpad Africa. Launchpad Africa kicked-off as a three-month accelerator programme in June that provided African startups with over $2 million (Sh200 million) in equity-free support, working space, travel and public relations backing and access to expert advisers from Google, Africa and around the world.

Cloud Nine Africa Limited’s Tesh Mbaabu, Mesongo Sibuti and Daisy Isiaho said the firm is raising round of funding after completing Google developers Launch Pad programme.

“We put in around Sh8 million when we launched Cloud9 but now we are looking to raise $500,000 (Sh50 million) for marketing, get our brand out and increase the database for experiences,” said Mr Mbaabu, Cloud9 chief executive said in an interview at IMPACT HUB Lagos.

He said the company targets to expand to South Africa because of its huge tourism market that attracts more than 20 million tourists annually.

“Ultimately, we plan to open up the beauty of the whole Africa within five to 10 years,” he said.

For the past four months, Cloud9 has developed a mobile App that it intends to launch at the end of this month.

“We have been piloting the mobile App from August and it will be available to the general public on November 30,” said Mr Mbaabu.

Paygo Energy co-founder and chief executive Fausto Marcigot did not disclose the amount of money it is seeking to raise to expand its distribution and warehousing of gas cylinders smart meter business.

The company, which currently operates in Nairobi, said it injected more than $1.4 million in seed capital it raised in April 2017.

“We got $1.4 million seed capital in April 2017and after this Launch Pad Africa Programme, we intend to raise more money to expand out gas meters all over Kenya.

“We would love to get financial support from Google Launchpad Africa Accelerator programme who have been helpful with mentorship and training,” Mr Marcigot said in the company of his co-innovators Albert Oketch and Samuel Magondu.

Genevieve Simiyu, the country manager for Ghana’s Chalkboard Education startup, said her company is seeking to raise $300,000 in the first quarter of next year to expand digitisation of educational materials to several areas in Africa including Kenya.

Uganda’s EZYAgric, an agricultural startup that provides agricultural data and information to farmers is looking for $500,000 for expansion, said chief executive William Luyinda.