In a move signaling growing confidence in Africa’s rapidly growing technology landscape, global ride-hailing and tech conglomerate Yango Group has announced the launch of Yango Ventures, a $20 million corporate venture fund specifically targeting early-stage startups across the continent. The initiative, unveiled this week, highlights the increasing appetite of established international tech players to tap into the dynamism and potential of Africa’s rapidly evolving digital economy.
While Yango Group, headquartered in the UAE, boasts a global footprint spanning Latin America, the Middle East, North Africa, and other high-growth regions, the decision to earmark a significant portion of its initial $20 million fund for Sub-Saharan Africa highlights the continent’s unique opportunities. Yango Ventures will focus its investments on startups operating in the Online-to-Offline (O2O) space, Business-to-Business Software as a Service (B2B SaaS), and the burgeoning fintech sector — areas seen as crucial for driving digital transformation and addressing local needs.
The fund will target startups from the seed stage through to Series B funding rounds, providing not only crucial capital but also leveraging Yango Group’s extensive experience and global network to help these young companies scale effectively. This hands-on approach distinguishes corporate venture funds from traditional venture capital, often offering investees access to established infrastructure, market insights, and technological expertise.
“We are more than just a tech company; we are an ecosystem committed to empowering entrepreneurs worldwide,” stated Daniil Shuleyko, CEO of Yango Group, in a press release. “Through Yango Ventures, we’re sharing our expertise and network to help startups scale, thrive, and drive meaningful change in their communities. Our mission is simple: let people grow with us.” Shuleyko emphasized the company’s belief in technology as a catalyst for tangible progress, aiming to foster sustainable business growth and contribute to resilient, inclusive economies across the globe by supporting local talent with the necessary tools and resources.
The focus on O2O solutions reflects the unique characteristics of many African markets, where digital penetration is growing rapidly but still intersects significantly with offline commerce and services. Investments in this sector could range from e-commerce platforms with robust last-mile delivery networks to innovative solutions bridging the gap between online and physical retail experiences. Similarly, the emphasis on B2B SaaS acknowledges the growing need for digital tools to enhance efficiency and productivity for businesses of all sizes across the continent. Fintech, a particularly vibrant sector in Africa, is also a key target, with the fund likely to back companies developing solutions for payments, lending, insurance, and other financial services, potentially fostering greater financial inclusion.
Yango Ventures’ initial commitment of $20 million is described as scalable, with plans to expand its capital base in the future as the entrepreneurial ecosystems in its target markets continue to mature. This suggests a long-term vision for the fund and a commitment to sustained engagement with the African tech scene.
The team behind Yango Ventures comprises a diverse group of experts with a proven track record in scaling B2B SaaS and B2C technologies across various industries globally. This experienced board is expected to provide valuable mentorship and strategic guidance to the startups they invest in, drawing from their successes in sectors like mobility (Yango’s core business), entertainment, fintech, and artificial intelligence.
The launch of Yango Ventures comes at a time when the African tech ecosystem is experiencing significant growth, attracting increasing attention from international investors. In 2023, another global ride-hailing platform inDrive announced its own venture and M&A arm with a target of investing up to $100 million in promising startups, particularly those with a mission to challenge injustice and improve lives in emerging markets. This trend indicates a growing recognition of the untapped potential and innovative spirit within Africa’s tech communities.
While inDrive’s focus appears broader in terms of its mission criteria, Yango Ventures’ sector-specific approach could allow for deeper expertise and more targeted support within its chosen areas. The competition for promising African startups is likely to intensify, but the injection of capital and expertise from players like Yango Group is widely seen as a positive development for the ecosystem.
The success of Yango Ventures will likely depend on its ability to identify and nurture truly innovative startups that can address the unique challenges and opportunities within the diverse African markets. Beyond financial investment, the value proposition of access to Yango Group’s global network and technological know-how could prove to be a significant advantage for the portfolio companies.
As Yango Ventures begins its operations, the African tech community will be watching closely to see which startups will benefit from this new influx of capital and expertise. The initiative represents not just a financial investment, but a vote of confidence in the ingenuity and potential of Africa’s entrepreneurs to shape the continent’s digital future. If successful, Yango Ventures could play a significant role in accelerating the growth of Africa’s tech ecosystem and fostering the development of impactful solutions for local communities.