Emerald Africa Financing Facility Boosts East African Startups with Strategic Investments

Emerald Africa Financing Facility Boosts East African Startups with Strategic Investments

By Staff Writer, 12 December 2023

Emerald Africa Financing Facility, a key player in championing digital innovation and inclusive finance across sub-Saharan Africa, has recently unveiled its commitment to economic growth in the region through two strategic investments in East African startups—Patasente and Sevi.

These investments underscore the organization's dedication to fostering development, especially in the rural small and medium-sized enterprise (SME) sector.

Patasente: Revolutionizing Agricultural Value Chains

Emerald Africa Financing Facility has partnered with the Ugandan startup Patasente to enhance its tech-enabled procurement, payments, and factoring platform.

Patasente, with a vision to transform the Ugandan agricultural value chain, facilitates seamless transactions between sellers and buyers, promoting favorable payment terms.

Emerald Africa is enthusiastic about contributing to Patasente's growth, emphasizing the importance of supporting SMEs, farmers, aggregators, and processors within the Ugandan agricultural ecosystem.

This strategic investment aligns with Emerald Africa's overarching goal of promoting digital innovation and inclusive finance in rural areas.

Sevi: Closing Financial Gaps in Buy Now Pay Later (BNPL) Space

In its second strategic move, Emerald Africa Financing Facility has invested in Sevi, a B2B platform operating in the Buy Now Pay Later (BNPL) space.

Sevi specializes in supply chain financing, offering vital support to micro, small, and medium-sized enterprise (MSME) buyers and sellers by facilitating quick and convenient credit for stock purchases.

Sevi's impact extends beyond urban centers, with approximately 30% of its current end customers situated in rural areas.

Emerald Africa is particularly excited about Sevi's potential, given its focus on enrolling rural/agri anchor partners.

This investment reflects Emerald Africa's commitment to acting as a crucial bridge for startups in the agri/rural fintech space, propelling them towards future funding rounds and sustained success.

Selection Criteria and Invitation to Innovators

Under the leadership of Alex Simuyandi, the Emerald Africa Financing Facility has outlined specific criteria for potential investments.

Actively seeking tech-enabled digital ventures with a rural or agricultural focus, the facility provides working capital or cash flow financing to SMEs at the pre-Seed/Seed stage, with funding up to $250k.

These ventures must showcase a minimum viable product, maintain a positive gross lending margin, and demonstrate a credible pathway to scale.

Notably, the experience and insight of the management team into the sector are considered crucial factors in the selection process. The facility invites innovators meeting these criteria to contribute to the transformative growth of the African digital landscape.

Charles Rapulu Udoh / AfrikanHeroes

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