The African tech economy is gradually expanding, shifting focus from fintech to non-financial services sectors, with edtech, logistics etc. gaining prominence recently.
The expansion has propelled an uptick in fundraising among non-financial services startups. From mobility to digital bookkeeping to agriculture to home services, investors are finding new markets through startup ideas.
Thus, SweepSouth, South Africa’s online home services platform, has secured $11 million in a funding round led by Alitheia IDF with participation from current investors like Naspers Foundry, The Michael and Susan Dell Foundation, and Futuregrowth Asset Management. New investors like Endeavor Catalyst, Endeavor’s Harvest Fund II, Caruso Ventures and E4E Africa also participated in the round.
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The eight-year old startup, which provides on-demand home services, said it will use the new funding to drive its expansion and grow its infrastructure.
SweepSouth was co-founded in 2014 by Aisha Pandor and Alen Ribic, and has since then found footing in cities across South Africa, Nigeria, Kenya and Egypt.
“This new funding round is an important one for our team as we continue to scale in South Africa, and further grow our operations in Kenya, Nigeria, and Egypt. We’re excited to continue SweepSouth’s work in connecting customers with home service providers across the continent, building a platform that empowers domestic workers and local tradespeople,” Pandor said.
Alitheia IDF is a pioneering private equity fund that identifies, invests in and grows SMEs led by gender-diverse teams to achieve high financial returns and social impact for communities in Africa. Alitheia IDF was driven to invest in SweepSouth by its growth potential.
“We are proud to support SweepSouth’s growth as it expands its platform that substantially improves the financial and social outcomes for domestic workers across Africa, most of which are women,” Polo Leteka, principal partner at Alitheia IDF said.
Home service, with this inflow of funds into SweepSouth, is tipped to become another sector to watch as the African tech economy burgeons.
Alen Ribic, the co-founder of SweepSouth, said investing in SweepSouth is a way of boosting tech-based home service delivery that offers convenience.
“We’re excited about bringing new shareholders on board in our mission to build technology that aids in providing meaningful connections – giving customers access to safe, convenient services, and home service providers access to decent work opportunities under dignified conditions,” he said.