Startup unicorns are valued at $1 billion or more and have a market capitalization of above $1 billion.
Some African firms have surpassed the $1 billion mark, earning them the title of unicorns.
In the financial space, these African businesses include Jumia Nigeria, Flutterwave, Interswitch, Fawry, and a few others.
Esusu, a fintech that provides rent reporting and data solutions for credit building to immigrant and minority groups, has entered these unicorn clubs after receiving $130 million in a Series B funding round.
Esusu, which has been around for four years, now has a $1 billion valuation, making it one among the few African unicorns in the United States and abroad. Jones Feliciano Family Office, Lauder Zinterhofer Family Office, Schusterman Foundation, SoftBank Opportunity Fund, Related Companies, and Wilshire Lane Capital were among the investors in the round.
Additionally, current investors Concrete Rose Capital, The Equity Alliance, Impact America Fund, Next Play Ventures, Serena Ventures, Sinai Ventures, and TypeOne Ventures re-invested in the new funding round, as did Motley Fool Ventures, which was the lead investor in the company’s $10 million Series A round last July.
The business is required to use the funds to expand its workforce and accelerate development through innovative products, all while developing the most complete financial health platform available.
Techbuild’s Take
There aren’t many unicorn startups in Africa. It’s difficult to blame the founders for this. They are confronted with some harsh facts on their journey: there is little government assistance for entrepreneurs, finance channels in Africa are limited, and the majority of founders have no previous business experience. This makes it difficult for African entrepreneurs to launch a billion-dollar business.
The continent’s story is changing thanks to investors. Recognizing that Africa is the world’s second-fastest-growing market. It’s also one of the most popular startup markets, and investors aren’t taking any chances.
Thanks to VC funding, companies like Opay, Flutterwave, Andela, and Interswitch have been able to achieve this status.
With this funding, Esusu becomes one of the few startups of over 900 black-led and owned enterprises throughout the world that have earned the desired unicorn valuation.
Esusu intends to use the funds to treble the size of its staff, supercharge development via innovative technology, and construct the most complete financial health platform available.
The startup strengthens financial identities while supporting individuals, families, and communities to achieve their long-term financial objectives, according to the founders, a Nigerian-born American Abbey Wemimo and Indian-born American Samir Goel, who grew up in immigrant homes and experienced firsthand this financial exclusion.
As a result, there is anticipation that more African companies may achieve unicorn status as the continent develops.
Featured Image: Co-founders of Esusu
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