$1.5 M Pre-seed funding raised by Kenya’s tappi to digitise African SMEs
An oversubscribed pre-seed funding round has helped Kenyan startup tappi, which uses a chat tool that automatically generates a webpage to assist SMEs in building their online identity, raise US $1.5 million to help digitise and establish online trust for African SMEs.
Using airtime credit or mobile money, tappi, which was founded by Kenfield Griffith and Louis Majanja, enables small and medium-sized business owners to download its app, customize its “look and feel,” and advertise their brand on Facebook, Instagram, and Google Ads in three easy steps.
An oversubscribed pre-seed round led by Mercy Corps Ventures and Chui Ventures, with participation from Digital Currency Group, SOSV, Resilience17, growX ventures, Orbit Startups, and Reflect Ventures, has raised US $1.5 million for the end-to-end digital commerce SaaS solution.
Over 150,000 customers have interacted with tappi since its launch, and it has obtained verified reviews on transactions totaling US $3 million. Tappi plans to use the additional funding to expand its reach into its current markets by strengthening its sales team and utilizing a robust 90% retention rate to increase direct sales. In addition, the startup will create strategic alliances, expanding upon its current collaboration with MTN Nigeria, which has witnessed a 19% month-over-month increase in business ad and business data bundle subscriptions. Talent acquisition and overall brand building will also be the focus of additional investment.
“We are grateful to be supported by great investors who share our vision and the mission to address the untapped potential within Africa’s informal SME markets, particularly in overlooked service industries such as food services, fashion, and agriculture, and health and beauty. We are eager to empower SMEs across Africa by providing them with a trusted identity online to find customers. The current investment will support our mission to make inroads with our customers through direct sales and partnerships across the continent,” said Griffith.
