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Startup Nurseries: The Companies Birthing the Next Unicorn Founders in Africa

Staff Writer

Cairo-headquartered B2B e-commerce startup MaxAB has seen more of this employee-founder mobility in Egypt. Photo credit: MaxAB

When employees of African startups venture out to launch their own companies, much is at stake. From the stringent obligations around intellectual property embedded in their employment agreements to the work culture they are leaving behind, the post-exit period can offer valuable insights into what it’s like to work in an African startup. Yet, year after year, more former employees across Africa transition into founders, signaling a more liberal and progressive employment ecosystem.

Some of these ventures may arise unexpectedly, such as the case of Uber Egypt, where Erik Gordon and Sherine Kabesh started their own businesses after Uber exited the Egyptian market in 2020, or Safeboda’s Kaoru Kaganoi and Zachary John-Pillow Petroni, who co-founded Peach Cars following Safeboda’s collapse in Kenya in 2020. Others may be the result of more deliberate planning.

Understanding which African startups are fostering this upward mobility is crucial, as it not only hints at where the next generation of African founders will emerge but also reveals which companies might not enforce non-compete clauses or other restrictive legal terms. Below, we’ve highlighted the African startups that have become breeding grounds for future founders, a trend likely to persist for years to come:

Jumia

Founded: 2012
Location: Lagos, Nigeria
What They Do: Jumia is a leading e-commerce platform in Africa, offering a marketplace for a wide range of products, including electronics, fashion, and household items. They also provide logistics services through Jumia Logistics and digital payment solutions via JumiaPay.

Jumia has produced several notable founders who have gone on to create their own successful startups:

Paystack

Founded: 2015
Location: Lagos, Nigeria
What They Do: Paystack is a financial technology company that provides payment processing services to businesses. They enable businesses in Africa to accept payments via credit card, debit card, money transfer, and mobile money on their websites or mobile apps.

Paystack has produced several notable founders who have gone on to create their own successful startups:

Uber

Founded: 2009
Location: San Francisco, California, USA
What They Do: Uber is a multinational transportation company that provides ride-hailing services, food delivery, package delivery, and freight transport. It operates in over 70 countries and 10,500 cities worldwide.

Uber has produced several notable founders who have gone on to create their own successful startups:

MaxAB

Founded: 2018
Location: Cairo, Egypt
What They Do: MaxAB is a B2B e-commerce platform that connects food and grocery retailers to suppliers in underserved geographies. They aim to re-engineer the informal grocery and food market using technology and innovative supply chains to meet the needs of retailers.

MaxAB has produced several notable founders who have gone on to create their own successful startups:

Bosta

Founded: 2017
Location: Cairo, Egypt
What They Do: Bosta is a leading logistics-tech company that provides on-demand courier services. They offer a platform that connects users to couriers, enabling seamless delivery of parcels and packages. Bosta focuses on empowering the logistics industry in the region with innovative technology solutions.

Bosta has produced several notable founders who have gone on to create their own successful startups:

OPay

Founded: 2018
Location: Lagos, Nigeria
What They Do: OPay is a financial technology company that provides a wide range of services, including mobile payments, transfers, savings, loans, and other essential financial services. Their platform aims to make financial services more inclusive and accessible through technology.

OPay has produced several notable founders who have gone on to create their own successful startups:

SWVL

Founded: 2017
Location: Originally founded in Cairo, Egypt; now headquartered in Dubai, UAE
What They Do: SWVL is a tech-enabled mass transit solutions provider. They offer intercity, intracity, B2B, and B2G transportation services. Their platform provides a semi-private alternative to public transportation, making it more accessible and affordable for individuals

  1. Ahmed Sabbah (Telda)
    • Founded: 2021
    • Location: Cairo, Egypt
    • What They Do: Telda is a fintech startup that provides digital banking services. It aims to simplify personal finance management by offering features like instant money transfers, spending insights, and a digital wallet.
  2. Mahmoud Nouh (Capiter)
    • Founded: 2020
    • Location: Cairo, Egypt
    • What They Do: Capiter is a B2B e-commerce platform that connects manufacturers, wholesalers, and retailers. It helps businesses manage their supply chains more efficiently by providing a marketplace for bulk purchasing and logistics solutions.
  3. Mohamed Khaled (Hot Desk)
    • Founded: 2020
    • Location: Dubai, UAE
    • What They Do: Hot Desk is a platform that offers flexible workspace solutions. It allows users to book desks, private offices, and meeting rooms on-demand, catering to the needs of freelancers, startups, and remote workers.

The Bottom Line:

The African startup landscape is evolving beyond just creating innovative products and services. It’s now a breeding ground for future founders. As employees gain experience and inspiration from their current startups, they’re increasingly venturing out to launch their own ventures. This trend signals a positive shift towards a more open and supportive entrepreneurial ecosystem in Africa. By identifying the startups that foster this upward mobility, we not only get a glimpse into the future of African leadership but also understand which companies are championing a culture of innovation and growth, even if it means seeing their talent branch out and create new ventures. This dynamic environment promises a bright future for Africa’s startup scene, where the success of one company can lead to the birth of many more.

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