Who’s Funding Tanzania’s Startups? A Quick Look at the Game-Changers from fintechs, AI to Edtechs.
These are the top 10 funders who have backed Tanzania startups including Fintechs, Healtech, Agritechs and even EdTech from ideas to global trendsetters.
Introduction
Tanzania's startups are rewriting the rules of innovation and global ambition. KopaGas, now a flagship exit following its acquisition by Circle Gas for $25 million, Nala has shattered expectations by planning a $120 million Series B after a 40 Million fundraise to enhance cross-border payments, signaling its unstoppable rise. Similarly, Ramani which raised $32 million to digitize supply chains micro-distribution centers in consumer-packaged goods sector. And then there's Selcom—its acquisition of Access Microfinance is turning heads across Africa, setting new benchmarks.
How have these trailblazing startups defied the odds to create global waves from Tanzania? The following article explores the early investors who recognized their potential and fueled their remarkable journeys.
Tanzania’s startup ecosystem is on fire right now, especially in fintech, food tech, and e-commerce. But who's actually funding these startups? While local investors are starting to make their mark, the big bucks are still coming from international players—especially the Americans and Germans.
From accelerators to venture capital funds, the money flow is real. Let’s dive into some of the top players making a difference in Tanzania’s startup scene by funding and seed-ing the next breakouts.
1. Hustle Fund
Hustle Fund has been a game-changer for Tanzanian fintechs. They were an early backer of Tembo and Ramani.io, both of which are doing great today. Their focus on providing funding and mentorship to early-stage startups has helped these companies grow rapidly, laying the groundwork for future success.
2. Acumen
Acumen is a powerhouse when it comes to impact investing. They’ve supported KOPAGAS (a clean energy solution) and Silabu (an innovative social learning app). Acumen's investments are proof that social impact and profitability can go hand in hand.
3. DEG Impulse
DEG Impulse, backed by Germany's DEG, has funded a wide range of startups in Tanzania, including Tembo, Dawa Mkononi, Inalipa, BioBuu, and Safiri. Their support of Tanzanian entrepreneurs is key to the growth of businesses that focus on tech and infrastructure development.
4. Y Combinator
The prestigious Y Combinator has endorsed some of Tanzania’s best and brightest. Ramani.io and NALA both went through Y Combinator and went on to raise major Series A rounds. This endorsement has helped these startups raise further funding and accelerate growth.
5. Visa
While not always transparent about their direct involvement, Visa is believed to have supported AzamPay and Beem, two fintechs that are making strides in Tanzania. Their contribution to the ecosystem is paving the way for e-payments and digital finance in East Africa.
6. Baobab Network
The Baobab Network, a top-tier accelerator, has invested $100K in startups like Medikea and Swahilies. These startups benefit from hands-on support, mentorship, and access to a global network that positions them for success on the international stage.
7. Catalyst Fund
Catalyst Fund has been supporting tech solutions for climate adaptation and resilience. They invest $200K in pre-seed startups and follow up with Seed and Series A funding. Tanzanian startups like Medikea and MazaoHub have benefitted from the fund, helping them scale sustainable solutions for the region.
8. Launch Africa
Launch Africa is a Pan-African VC that invests in seed and pre-Series A startups across the continent. In Tanzania, they've backed Credable, AfriTrack and Inalipa, fintechs that are revolutionizing access to digital services.
9. Funguo Program by UNDP Tanzania
Funguo is an accelerator program that has granted $1.5M to 42 Tanzanian startups across sectors like fintech, edtech, and more. Startups such as Settlo, Mtabe, Waga, Sheria Kiganjani, and Amala have benefitted from Funguo’s support, which has played a crucial role in their development and growth.
10. Africa Eats: Investing in the Food We Eat
Africa Eats is all about investing in food startups. These food-focused companies, like Rogathe Dairy, EA Fruits, Swahili Honey, GoldenPot, and Obri Oil, came out of Fledge Accelerators and now have sales in the tens of millions. They’re proving that food startups are more than just important—they’re a huge investment opportunity.
11. Tony Elumelu Foundation: Fueling Early-Stage Entrepreneurs
The Tony Elumelu Foundation has been empowering early-stage entrepreneurs since 2015, offering grants and mentorship to startups in their infancy. Over 100 entrepreneurs have benefitted from this program, many of whom have gone on to launch successful companies like EA Fruits, KilimoFresh, Swahili Honey, and Tembo. These companies later attracted VC funding, proving that the Tony Elumelu Foundation is a launchpad for success.
12. Local Investors: Pontem Ventures, Warioba Ventures, Ennovate Ventures, and Serengeti Angels
While Warioba Ventures, Ennovate Ventures, and Serengeti Angels are locally led and are really pushing the ecosystem forward, the reality is we still need more local investment to truly scale. These local investors have been supporting some of the most exciting Tanzanian startups, including:
Tembo: A fintech revolutionizing digital payments.
Tunzaa: Making investing accessible to everyone.
Medikea: Innovating healthcare through tech.
Dawa Mkononi: A high-flying startup changing the way we access medical products.
Their involvement is vital for the development of the local startup scene, and their success shows just how important local investment is in fueling the next generation of Tanzanian startups.
Conclusion:
Tanzania’s startup ecosystem is growing, with international investors playing a massive role in this expansion. While local investors are starting to show up, Americans, Germans, and other international backers are currently driving the bulk of the funding. With the continued support from accelerators and venture capital, Tanzanian startups are well-positioned to scale, innovate, and disrupt industries across Africa and beyond.
For entrepreneurs, the future looks bright. With these investors backing them up, it’s only a matter of time before Tanzania becomes one of Africa’s biggest startup hubs.
One last thing: Putting my thoughts out there means inviting feedback, nice or tougher ones, and that’s fine. Maybe I missed something, maybe I could be clearer, or maybe I just like a good debate. Either way, I’d rather risk a few raised eyebrows than say nothing at all. So, what do you think, brilliant insight or room for improvement?