Renew Capital has announced strategic investments in two innovative African companies, BuuPass and MPost, aiming to address critical infrastructure challenges across the continent. These investments reflect Renew Capital’s commitment to backing ventures that not only promise high growth but also have the potential to drive significant social impact in Africa’s rapidly evolving economy.

MPost: Transforming Postal Services Across Africa

In many parts of Africa, the absence of physical addresses presents a significant challenge, with millions of people unable to access essential services, including government notifications, banking, and e-commerce. MPost, a Kenyan-based company, is addressing this issue by transforming mobile phone numbers into functional postal addresses. By leveraging the continent’s extensive mobile network — where over 980 million people in sub-Saharan Africa own SIM cards — MPost is revolutionizing how individuals send and receive mail.

Founded in 2016 by Twahir Mohamed, MPost enables users to link their mobile phone numbers to a postal address through SMS, USSD codes, or an online platform. This innovative approach not only facilitates mail delivery but also allows fintech companies, banks, and governments to perform Know Your Customer (KYC) checks on individuals without traditional postal addresses.

MPost has made significant strides since its inception, including raising $1.9 million in a Series A funding round in 2019 and partnering with Kenya’s state-owned Postal Corporation and Safaricom to offer digitized P.O. boxes. The company now serves 80,000 active users and has registered 300,000 users across Kenya, Rwanda, and Burundi. In 2023, MPost relocated its headquarters to Kigali, Rwanda, as part of its expansion strategy, with plans to extend its services into Zambia and other African countries.

“MPost is addressing critical infrastructural gaps in Africa’s postal services. This innovation not only enhances accessibility to essential services but also supports the e-commerce sector by enabling secure and reliable deliveries,” said Laura Davis, Managing Partner and co-CEO of Renew Capital.

BuuPass: Digitizing Intercity Transport

In Africa, where over 30 million people rely on buses for intercity and cross-border travel daily, the transportation sector is plagued by inefficiencies. Traditional paper-based ticketing systems often result in long queues, overbooked buses, and a lack of reliable scheduling. BuuPass, another innovative company supported by Renew Capital, is changing this by providing a digital platform that streamlines ticketing and bus management.

Founded in 2016 by Sonia Kabra and Wyclife Omondi, BuuPass operates on a B2B2C model, partnering with transport companies to offer online bookings and digital schedules. The company has sold over 6 million travel tickets, generating more than $100 million in ticket sales. BuuPass has also secured strategic partnerships with African telcos and super apps like M-PESA, further expanding its reach across the continent.

BuuPass’s growth trajectory has been impressive, marked by its acquisition of QuickBus in 2024, which expanded its services to 16 African countries, including South Africa, Nigeria, and Ghana. The company’s recent pre-seed funding round of $1.3 million, with participation from investors including Renew Capital and veteran Silicon Valley investor Tim Draper, positions BuuPass for continued expansion.

“BuuPass is not only assisting transport operators in running more efficient businesses but also supporting a connected Africa. Efficient transportation is a crucial step in economic development, and BuuPass is an exciting part of the continent’s transition,” said Davis.

Renew Capital’s investments in MPost and BuuPass reflect the firm’s broader mission to support high-growth companies that address pressing infrastructure challenges in Africa. By backing these innovative solutions, Renew Capital is not only contributing to economic development but also ensuring that essential services become more accessible to millions across the continent.

These investments align with Renew Capital’s focus on impact investing, where financial returns are coupled with sustainable social impact. As Africa continues to urbanize and digitalize, the firm’s support for companies like MPost and BuuPass will play a critical role in shaping the future of the continent’s infrastructure and economic landscape.