The only African company so far confirmed as a participant in the S23 batch of the renowned Silicon Valley-based Y Combinator accelerator is Rwandan insurtech startup Eden Care, which provides businesses and their employees with affordable, accessible, and personalized health coverage.
The two biggest reinsurers in Africa, Zep Re and Africa Re, support Eden Care, a registered digital health insurance provider. In order to manage all of their employees’ health and wellness needs, the startup offers employers a single platform.
The startup received pre-seed funding a year ago and has since increased that amount after being chosen as the first-ever Rwandan company to participate in Y Combinator, which was instrumental in the early development of businesses like Airbnb, Coinbase, and Dropbox.
YC previously contributed US $125,000 for 7% equity, but as part of its new standard deal, it will also contribute an additional US $375,000 on an uncapped SAFE with “Most Favoured Nation” (MFN) terms.
“Being accepted into Y Combinator is an extraordinary validation of the hard work and dedication our team has invested in our vision and to be part of changing the narrative on startups in Africa,” said Moses Mukundi, founder and CEO of Eden Care. “We are excited to utilise this opportunity to further optimise our technology and accelerate our mission of revolutionising health insurance across Africa.”
Over the past few batches, the number of African startups participating in Y Combinator has sharply decreased. African participation peaked with the W22 batch when 24 startups from the continent participated. Notable alumni from the continent include Flutterwave, Paystack, and Kobo360, as well as Cowrywise, MarketForce, Kudi, WaystoCap, WorkPay, Healthlane, Trella, 54gene, CredPal, NALA, and Breadfast.
Only seven were present in S22 and three were present in W23. Eden Care is the only African company among the 91 startups for the S23 batch that have been revealed so far.
Entrepreneurs applaud Y Combinator for the beneficial effects it has had on their companies despite the ambiguous position it holds in Africa’s startup ecosystem.
