2024, like 2023, has been a tough year for African tech startup funding, as the sector continues to feel the effects of the global capital shortage.
Nonetheless, funding is starting to return to the ecosystem, but what will encourage more local and international investors to start investing in the continent’s tech space are success stories. Usually, these take the form of exits, the most common type of which is a trade sale or acquisition.
Here, we take a look at the top 10 M&A deals of 2024.
May – SA fintech company Adumo acquired by Lesaka in $85.9m deal
South African fintech company Adumo has been acquired by counterpart Lesaka in a deal worth ZAR1.59 billion (US$85.9 million), subject to shareholder and regulatory approval.
Adumo is South Africa’s largest independent payments processor, assisting approximately 23,000 active merchants with operations such as card acquiring, integrated payments and reconciliation services Since raising US$15 million in funding from IFC in 2021, it has been on somewhat of an acquisitions spree, buying the likes of SwitchPay, WireCard, GAAP, SureSwipe, iKhokha, and other smaller payment companies.
It has now been acquired itself, by Lesaka, a South African fintech company that utilises its proprietary banking and payment technologies to deliver superior financial services solutions to merchants and consumers in Southern Africa.
The acquisition price is ZAR1.59 billion (US$85.9 million), which will be settled through the combination of an issuance of 17,279,803 shares of Lesaka common stock to Adumo’s current ultimate shareholders, plus ZAR 232 million (US$12.5 million) in cash. Adumo’s ultimate shareholders include Apis Growth Fund I, a private equity fund managed by Apis Partners LLP; African Rainbow Capital, the largest shareholder of Crossfin Holdings; as well as IFC and Adumo management.
March – SA’s PaySpace acquired by Deel
American payroll and outsourcing company Deel acquired South African payroll and HR software and services company PaySpace in a deal that marked its largest acquisition to date.
PaySpace boasts over 14,000 customers utilising its software and services in 44 countries across Europe, Latin America, the Middle East and Africa. Customers include multinationals across various industries such as Heineken, Coca-Cola Beverages and Puma Sports SA. For Deel, the acquisition offers an opportunity to strengthen its footprint in Africa.
May – Kenyan mobility startup BuuPass acquires QuickBus to scale in Nigeria, SA
Kenyan mobility startup BuuPass has acquired QuickBus in a bid to scale in Nigeria and South Africa.
Founded in 2016, BuuPass is a B2B2C mobility marketplace that enables users to search, compare, and book travel tickets via web, app, or USSD.
So far, the startup has sold over six million travel tickets and generated over US$100 million in total value of goods sold, while it has also taken part in the Google for Startups Accelerator Africa and been backed by the Google for Startups Black Founders Fund.
QuickBus, meanwhile, was launched in 2019, and aggregates long distance bus tickets in a marketplace, making it easier for users to compare prices and book journeys, and helping bus companies run their businesses more efficiently.
It has now been acquired by BuuPass in a move that will boost BuuPass’ strategic expansion into South Africa and Nigeria, where it is set to add over 5,000 new routes to its platform. BuuPass will also onboard over 100 bus operators and several high-profile online distribution partnerships, including FNB, Vodacom, and MTN.
May – SA home services marketplace Kandua acquired by Santam
Johannesburg-based online marketplace for home services Kandua has been wholly acquired by Santam, South Africa’s largest short-term insurer.
Founded in 2014 by Arjun Khoosal and Sayo Folawiyo, Kandua helps anyone who needs work done in their home – from small fixes to major renovations – to find a vetted, background-checked professional.
The startup connects over 40,000 vetted home service companies to customers, and raised a “significant” pre-Series A funding round in July 2021. It has now been wholly acquired by Santam, the JSE-listed short-term insurer with a market share in excess of 22 per cent.
Kandua will merge with Santam’s existing home service offering, Home+, forming a wholly-owned, independent subsidiary of the insurer.
June – Yassir acquires Tunisian startup KooL
Algeria’s Yassir, Africa’s market leader in mobility and delivery services, acquired Tunisian startup KooL.
Founded in March 2021, KooL has established itself as the benchmark for meal delivery in Tunis. Its success is based on its unanimously recognised excellent quality of service and exclusive partnerships with Tunisia’s most prestigious brands.
July – SA fintech startup Peach Payments acquires custom software development firm Operativa
South African digital payments service provider Peach Payments has acquired customer software development firm Operativa as a going concern, in the first such deal since it closed a US$31 million funding round, led by the Apis Growth Fund II, last year.
Founded in Cape Town in 2012, Peach Payments provides a complete toolkit to help businesses accept, manage and disburse payments through web and mobile. It is the second largest online payment gateway in South Africa, and has also expanded to Kenya and Mauritius.
Last year, the company raised a US$31 million Series A funding round from Apis Partners to accelerate its growth across the continent and grow its product offering, and it is now actioning this expansion with this acquisition, which will see the full Operativa team integrated into Peach Payments. Operativa co-founders Dayne Olivier and Ben Janecke taking on Principal Engineer positions.
November – Ghanaian retail-tech startup Tendo acquires counterpart Shopa to boost supply chain infrastructure
Ghanaian retail-tech startup Tendo Technologies has announced its strategic acquisition of counterpart Shopa in a deal aimed at revolutionising supply chain infrastructure across Africa.
Founded in 2021 by Felix Manford, Evans Boateng, Derrick Mungai, and Primerose Katena, Tendo enables tens of thousands of individuals to launch and grow their online businesses without initial capital by connecting them with suppliers.
It boasts a robust network of over 10,000 retail resellers in Ghana and Nigeria, where it launched in 2022, reaching more than 42,000 customers with a diverse range of products including fashion, beauty, electronics, and fast-moving consumer goods (FMCG).
Shopa, meanwhile, was founded in 2021 by Michael Hammond, Frank Addae and Ulrich Checkap, and optimises the distribution of FMCG through its technology platform that connects retailers directly with suppliers and manufacturers. It has a network of over 3,000 retailers in Ghana, and advanced operational systems.
Both companies received funding and support from the Catalyst Fund Inclusive Digital Commerce Accelerator back in 2021, but they have now merged after Tendo acquired Shopa in a deal structured as a combination of cash and stock.
Ghana-based e-health startup Rivia, which collaborates with clinics to enhance service quality in the healthcare sector, has announced the acquisition of Waffle, a Ghanaian SaaS company specialising in software for small and medium-sized businesses.
Launched in January, Rivia partners with clinics, offering comprehensive support in customer acquisition, financing, and technology to elevate patient service quality and expand clientele reach.
Currently operating in Ghana, with plans to expand to West and East Africa, Rivia provides partner clinics with a hospital management system to handle patient appointments and bookings, records, payment collection, lab, pharmacy, and related administrative tasks, and also offers loans for upgrading their physical infrastructure and augmenting their inventory.
The startup has now acquired Waffle, a Ghanaian SaaS company that has developed hospital and inventory management software. Waffle will now further develop its software under the Rivia umbrella, which was recently rebranded as RiviaOS. Waffle founder Victor Nara has joined Rivia as its chief technology officer.
November – Nigeria’s Shyft Power Solutions acquired by UK’s SteamaCo, secures funding
Shyft Power Solutions, a Nigerian innovator in digital energy solutions that has gained popularity with its community-metering solutions, has been acquired by SteamaCo, a UK-based leader in energy revenue management, in a move to revolutionise Africa’s energy sector, while it has also secured new funding.
Shyft is an energy technology company that develops Internet of Things (IoT) hardware and integrated software to manage energy services intelligently. From novel turnkey metering solutions to patented monitoring and control solutions, Shyft is dedicated to delivering exceptional energy experiences and solving real energy challenges.
SteamaCo, meanwhile, is an Anglo-African technology company that empowers energy providers to deliver reliable, productive, and affordable power to communities in emerging markets. The merger of the two parties occurs alongside a new funding round led by Equator VC and with participation from Praetura Ventures and KawiSafi Ventures.
August – Nigerian ed-tech startup Quizac acquired by Tekedia Capital
Nigerian gaming-anchored ed-tech startup Quizac has been acquired by investment firm Tekedia Capital.
The self-styled “playground for engaged learning”, Quizac allows users to start a quiz game from its thousands of question sets, or create their own set for free.
The aim of the startup, according to its founders, is to “infuse learning with the same excitement and engagement that social media brings”.
“Having witnessed the shift from a pre-internet era to a social media-driven world, we recognised the need for an educational platform that could compete for students’ attention in this new age,” they said.
Quizac was thus designed to empower students, offering them an engaging alternative. It has now been acquired by Tekedia Capital, which will integrate the platform into the Tekedia ecosystem, gaining access to Tekedia’s extensive data assets and resources, which includes Tekedia Institute, the home of Tekedia Mini-MBA.
