While the spotlight often shines on headline-grabbing mega-rounds, the bedrock of Africa’s rapidly growing startup ecosystem lies in the consistent flow of smaller (or missed bigger rounds), yet equally vital, investments. This week’s edition of the African Startup Deal Tracker delves into these under-the-radar transactions, encompassing pre-seed funding, angel investments, and strategic acquisitions that collectively paint a picture of sustained growth and investor confidence across the continent. These deals, spanning diverse sectors from agri-tech to legal tech, highlight the ingenuity of African startup founders and the breadth of opportunities being seized.

Here’s a closer look at the notable under-the-radar investment activity we’re tracking this week:

Lori Systems (Kenya)

• Funding: Raised $2 million.
• Investors: Led by Delta40, with participation from Future Africa, FP Capital, and other investors.
• Total Funding to Date: Over $46 million.
• Sector: Logistics/Trucking.
• Country of Operation: Kenya (key market), Nigeria (largest market), and Uganda.
• Context: The funding round represents a significant decrease in valuation which was down to $5 million (from a previous valuation of approximately $120 million).reflecting broader market trends and the company’s past performance relative to investor expectations. Lori is currently focused on achieving profitability and re-engineering its financing model, including exploring partnerships with banks to directly finance transportation and address working capital constraints inherent in the logistics sector’s payment cycles. The company is also leveraging technology like AI for route planning and exploring the use of electric trucks.

DigiSquad (South Africa)

• Investment: Received an investment from Crossfin Ventures. The specific amount was not disclosed.
• Investor: Crossfin Ventures.
• Sector: Fintech / Payments advisory and platform solutions.
• Country of Operation: South Africa (based in Johannesburg), with clients across Africa and internationally (including the US).
• Focus: Growing the reach of modern payment platforms in under-serviced communities across Africa by providing advisory, consulting, product design, and data and analytics services. They have developed their own payments platform called DigiEngine and have secured a contract with Eskom as a national vending agent.
• Significance: DigiSquad is highlighted as a proudly African, black woman-owned fintech aiming to drive financial inclusion. The investment from Crossfin is expected to help them scale activities and expand their influence by leveraging synergies within Crossfin’s portfolio.