A Kenyan startup aiming to bridge Africa’s digital divide while tackling the growing e-waste mountain has secured $400,000 in debt financing from French development finance institution Proparco. Badili, which refurbishes discarded smartphones and sells them at affordable prices across the continent, has received the facility through Proparco’s “Bridge by Digital Africa” initiative.
The funding highlights the increasing investor interest in circular economy models within Africa, particularly those addressing the continent’s unique challenges of rapid technological adoption alongside significant income disparities and environmental concerns. Badili’s model directly confronts these issues by extending the lifespan of smartphones, reducing the demand for new devices and thus curbing the environmentally damaging extraction of raw materials used in their production.
“Getting validation and trust from Proparco is a great boost to the morale of the team,” stated Rishabh Lawania, Founder and CEO of Badili. He highlighted the significance of the investment as the company enters a phase of profitability and expansion across Africa. “It’s a great pleasure to welcome one of the most progressive and supportive DFIs in the world as part of Badili’s billion-dollar journey,” he added, reflecting the ambitious growth trajectory envisioned for the Nairobi-based firm.
Africa is witnessing a surge in mobile phone penetration, crucial for accessing online services from mobile banking to education and healthcare platforms. However, the high cost of new smartphones remains a significant barrier for a large portion of the population. Badili sources used devices, often from developed markets, and subjects them to rigorous refurbishment processes in Kenya before offering them for sale at significantly reduced prices. This approach not only makes smartphones more accessible but also fosters digital inclusion for marginalised communities, contributing to local economic resilience by enabling participation in the digital economy.
Fabrice Perez, head of the Venture Capital Division at Proparco, emphasised the dual impact of the investment. “Badili’s initiative to refurbishing smartphones locally in Kenya is a game-changer,” he stated. “This project not only promotes economic resilience but also underscores the importance of sustainability in today’s digital economy.” Proparco, the private sector financing arm of Agence Française de Développement (AFD), has increasingly focused on supporting ventures that demonstrate both financial viability and a positive social and environmental impact in developing economies.
The “Bridge by Digital Africa” facility, deployed by Proparco and supported by Digital Africa, is specifically designed to provide short-term financing to innovative African start-ups between funding rounds. This type of “bridging finance” is often crucial for young companies navigating the challenging early stages of growth and seeking to scale their operations. For Badili, the debt facility will accelerate its expansion plans, allowing it to reach more consumers across the continent and further refine its refurbishment processes.
The environmental benefits of Badili’s operations are considerable. Electronic waste is a rapidly growing global problem, with Africa increasingly becoming a destination for discarded devices from wealthier nations. By repurposing these devices, Badili is directly addressing this challenge, reducing the pressure on landfills and mitigating the environmental damage associated with both e-waste disposal and the extraction of minerals required for new electronics. Furthermore, the initiative promotes a circular economy, encouraging the reuse of valuable materials and reducing reliance on finite natural resources.
Beyond environmental gains, Badili’s affordable smartphone offering has a significant socio-economic impact. Increased smartphone ownership unlocks access to essential online services, fostering economic empowerment and improving livelihoods. For many in low-income communities, a refurbished smartphone is the gateway to digital literacy and participation in an increasingly interconnected world.
Proparco’s investment in Badili reflects a broader trend among development finance institutions to support innovative, market-based solutions that address critical development challenges while promoting sustainable and inclusive growth in Africa. As Badili scales its operations and expands its reach, its model offers a compelling example of how entrepreneurial ventures can simultaneously generate economic opportunities, address environmental concerns, and bridge the digital divide in a rapidly evolving African landscape.