Africa-focused mobile enterprise software firm Bamba raises US$3.2m to expand
Bamba, a mobile-first enterprise software for micro-merchants in Africa, has secured US$3.2-million in seed funding to scale its app and build out its team.
According to the company, founded this year by entrepreneur and investor Bastian Gotter, it will use the funding to build out its mobile product offer, scale its engineering team and expand its user base across twelve Sub-Saharan African countries with high mobile money penetration.
Bamba is a mobile application focusing on simple tools for merchants to manage their customers, record stocks, receive payments, make payments, and access cash advances against their future cash flow.
A statement released by the company reads, “Micro, small and medium-sized enterprises account for 90 percent of all businesses in sub-Saharan Africa and contribute more than half of all jobs. In 2021, registered and unregistered merchants accepted over US$250-billion in mobile money payments, recording rapid growth. The mixture of receiving/paying out cash or mobile money creates new complexities for merchants; however, it also creates opportunities to digitalise business payment and record-keeping processes further.”
“This digitalisation process has the potential to vastly improve access to credit, one of the most significant hurdles preventing the growth of small businesses in Africa.”
According to the company, the IFC estimates Sub-Saharan Africa's small business credit gap at US$331-billion and its mobile application “sits at the heart of the digitalisation process improving both the payments experience and the access to credit for micro merchants.”
Bamba CEO Gotter said, “We truly believe entrepreneurship is essential to prosperity, so we make running a small business easier by building mobile-first small business software for Africa. This investment allows us to scale the platform, the team and gives us access to insights from our high calibre of investment partners.”
Ludwig Ensthaler, Partner, 468 Capital commented: “We are thrilled to invest and support the team and vision at Bamba. We feel that the investment opportunities in "enterprise" software focused on small businesses in Africa are significant and remain largely untapped. We believe that Bamba is well placed with a great product and a solid founder to build a category-defining company.”
Fabian Hansen, Investor, Presight Ventures added: “We appreciate entrepreneurs that build novel solutions that push boundaries and are thrilled to support Bamba's potential impact across the small businesses ecosystem in Africa.”
Dan Jones, Partner, Jigsaw VC commented, “Bamba sits at the intersection between cash and mobile money, between payments and credit. We believe there is a significant opportunity in this space and are keen to explore it with Bastian.”
Venture capital firm 468 Capital led the round with participation from Presight Ventures, Jigsaw VC, and high profile angels Mato Peric, Leonard Stiegeler, Laurin Hainy and Thomas Stafford.