South Africa is rapidly becoming a hub for innovative startups, with a growing number of entrepreneurs leading the charge in industries from fintech to proptech. These businesses are not only reshaping sectors but are also addressing the region’s most pressing challenges. From affordable tech solutions to empowering financial inclusion, these startups are making waves locally and globally. As 2024 unfolds, here are eight promising South African startups to watch.
Jambo: Bridging the Digital Divide
Launched in 2021, Jambo is revolutionizing digital connectivity with its Web3 smartphone, the JamboPhone. Priced at just $99, the device is designed for young people in developing nations, offering access to digital assets and global opportunities. With $37.5 million in funding, Jambo aims to bridge the digital divide, combining affordable hardware with services like financial tools and educational content.
Naked Insurance: Disrupting the Insurance Industry
Since 2018, Naked Insurance has been transforming the insurtech landscape with its fully digital platform powered by AI. The company’s transparent, customer-centric approach has drawn $31.7 million in funding, including $17 million from its recent Series B round. By offering car, home, and contents insurance, Naked allows users to direct excess funds to charitable causes, ensuring both financial security and social impact.
Ukheshe Technologies: Powering Financial Inclusion
Fintech startup Ukheshe Technologies, based in Johannesburg, is at the forefront of digital payment solutions. Launched in 2018, Ukheshe raised $42 million to enhance its service offerings, including acquiring EFT Corporation Limited. The platform helps businesses accept micro-payments via a simple API, making digital financial services accessible to Africa’s unbanked populations.
Flow: Automating Property Marketing
Proptech startup Flow, founded in 2018, is transforming the way real estate businesses market properties. With $6.4 million in funding, Flow’s platform automates social media marketing, targeting the right audiences and optimizing ad performance through data analytics. This innovation cuts marketing costs while boosting business outreach locally and internationally.
Lulalend: Empowering SMEs with Digital Financing
Lulalend, established in 2014, addresses the financing gap faced by South African SMEs with quick and flexible online loans. The startup has raised $35 million to expand its loan offerings and digital banking platform. Lulalend’s easy-to-use platform streamlines the loan application process, giving businesses the capital they need to grow rapidly.
Carscan: Revolutionizing Vehicle Inspections
Carscan, founded in 2019, is transforming the auto tech industry with its augmented reality app. By using AI to conduct vehicle inspections, Carscan delivers accurate, 360-degree reports that benefit car owners, dealerships, and insurance companies alike. With ZAR 20 million in funding, the startup is set to make vehicle inspections more efficient and reliable.
Yebo Fresh: Fighting Food Insecurity in Townships
Yebo Fresh, launched in 2018, is a grocery delivery service focused on South Africa’s underserved townships. With $5.5 million in funding, Yebo Fresh allows residents to order fresh produce via WhatsApp or field agents, offering free, 24-hour delivery. The company not only tackles food insecurity but also creates job opportunities, boosting economic growth in local communities.
Planet42: Improving Access to Mobility
Founded in 2017, Planet42 is a mobility fintech company that makes vehicle ownership accessible through flexible financing solutions. With $32.4 million raised to date, including $30 million in its most recent round, Planet42 enables customers in underserved markets to lease or rent-to-own vehicles. The company uses data analytics and innovative credit models to promote greater mobility and economic opportunity.
Shaping the Future of South Africa’s Economy
South Africa’s entrepreneurial ecosystem is flourishing, with startups tackling key challenges and making significant strides in digital connectivity, financial inclusion, and beyond. These innovative companies are poised to shape the future of business in South Africa and inspire similar movements across the globe.