Connect with us

Startups

Capiter Investors Sack Founders, Mahmoud Noah, Ahmed Noah for Fund Mismanagement

Capiter has sacked the two founders of the company for mismanagement of funds

Published

on

Capiter

Capiter, an Egyptian B2B startup that brings together FMCGs, Wholesalers, and Merchants in one platform, has sacked the two founders of the company for mismanagement of funds.

In September 2021, Capiter raised $33 million in series A funding to compete in the country’s growing B2B e-commerce and retail space.

However, fast forward to exactly a year later,  Mahmoud Noah (Co-Founder & CEO) and Ahmed Noah (Co-Founder and Chief Commerical Officer), the two founders who led the fundraising, have been accused of funds misappropriation and were eventually relieved of their executive positions by the board of directors, largely the investors in the company.

Here are some of the crisis that has been rocking Capiter lately

It was learned that the decision to sack Capiter’s Founder and Co-founder, came after the two brothers Mahmoud Noah and Ahmed Noah refrained from appearing before the board of directors after internal disturbances, and disagreements over their management method.

They refused to attend the meetings that were held because they were outside Egypt without a clear justification.

News spread on social media that the brothers, Mahmoud Noah and Ahmed Noah were not in Egypt, which was confirmed by sources close to the matter.

As a result of this development, Capiter investors have been searching for potential buyers to absorb the struggling company in the form of an acquisition or merger.

Before Capiter, Mahmoud was the co-founder and COO of Egypt-born and Dubai-based ride-hailing company SWVL (the company, which went public via a SPAC deal last year and lay off 32% of its staff this May). 

With his brother Ahmed, he launched Capiter in 2020 as an FMCG platform that allows small and medium-sized retailers to order inventory, arrange delivery, and access financing to pay for goods.

Some of its competitors include MaxAB and Cartona in Egypt, and in Africa, Wasoko, TradeDepot, and Chari. 

Capiter had 50,000 merchants and 1,000 sellers with more than 6,000 SKUs on its platform.

It was revealed that Capiter startup was on its way to reaching an annualized revenue of $1 billion this year. 

Continue Reading
Comments

Startups

African Startups Raised $3.5 Billion in Six Months

Investors continue to dump billions on African startups in the first half of 2022 as $3.5 billion was invested across a series of startups on the continent despite rising global uncertainties.

Published

on

Start-up - Investors King

Investors continue to dump billions on African startups in the first half of 2022 as $3.5 billion was invested across a series of startups on the continent despite rising global uncertainties.

According to the report published by African Venture Capital Activities (AVCA), this represents an increase of $2 billion when compared with what was invested in the same period of 2021.

A critical analysis of the report showed Financial Technology (Fintech) companies raised more funds than any other niche.

Nigeria had the highest number of closed deals during the period under review. Nigerian startups closed a total of 101 deals within the first six months of 2022. However, in monetary terms, startups in Egypt raised the highest amount of $352 million in 63 funding deals.

Kenya startups raked in $330 million from 54 funding deals while Nigerian startups raised $284 million in 101 funding deals.

Other countries with significant amounts of funds raised include Seychelles with $164 million, Ghana with $133 million in 21 deals, South Africa with $131 million in 50 deals, and Morocco with $108 million in 11 deals. 

A closer look at the result shows that the financial sector takes the lion’s share in the ecosystem. The fintech sector recorded 32 percent of the entire deals and 44 per cent of the total monetary value. This was followed by the Consumer Services and the Industrial Sectors which emerged second and third respectively. 

A further breakdown shows that startups in the financial sector raised $1.54 billion while information technology raised $448 million. 

Other sectors with significant funding include Industrial Services with $430 billion, Energy and Utility raised $360 million, Consumer Services raised $340 million, Communication Services with $173 million, Health Care Services raised $97 million, Materials with $97 million while Real Estate raised $6 million. 

Investors King understands that the African startup ecosystem has been on an astronomical rise since last year. 

It will be recalled that in 2021, African startups raised over $4 billion across 355 funding deals. This is almost three times what was raised in 2020 and 2019. The ecosystem raised $1.7 billion and $1.3 billion in 2020 and 2019 respectively.

Continue Reading

Startups

Kenyan Startup Sendy Shut Down Sendy Supply Due to Current Realities Impacting Tech Companies

Kenyan startup Sendy has announced that it is shutting down ‘Sendy supply’, one of its products that enable easy trade between buyers and sellers within the fast-moving consumer goods (FMCG) industry.

Published

on

Sendy

Kenyan startup Sendy has announced that it is shutting down ‘Sendy supply’, one of its products that enable easy trade between buyers and sellers within the fast-moving consumer goods (FMCG) industry.

The startup disclosed that this move was necessitated as the company intends to shift its focus to another product, ‘Sendy Fulfillment’, noting that the cost of this shift in its business model will see the employment of 54 people or 20% of the company’s workforce.

This move, according to a statement made by the company’s co-founder and CEO Mesh Alloys, is part of a wider strategic focus to “consolidate efforts around solutions that impact more customers and speak to the current and immediate market challenges.”

Alloys further stated that the firm will now be solely focused on ‘Sendy Fulfillment’, the company’s product that allows online brands and large eCommerce brands to store and distribute their products.

He said, “With the growing uptake of digital commerce and recognizing the opportunities it presents for businesses, we are doubling down on Fulfillment to support online merchants with the necessary tools to sell and fulfill directly through digital platforms”.

Back in July, the company laid off 10% of its 300 staff. The company CEO Alloys in a statement stated that it made the move to respond to the “current realities impacting tech companies globally”, which forced the company to rethink how it is doing business, and cut costs. 

Ever since the last layoff in July, the startup has been working effortlessly to ensure continuous acceleration despite the layoff and the tech downturn that has made some processes difficult.

Launched in 2014, Sendy connects customers with packages to dispatch riders and truck drivers via their mobile app. Customers can track the location of their packages in real-time via the mobile app.

Continue Reading

Startups

DAI Magister Academy Launched to Support Emerging Market Start-up Founders

First cohort of ten African start-ups completed as Academy unveils broader roll-out

Published

on

Digital Start Ups - Investors King

A new Academy for early-stage companies has been launched by DAI Magister, the boutique investment bank offering full advisory services for transactions within the climate, fintech, tech-enabled commerce and communications sectors.

The DAI Magister Academy is a free service aimed at companies that have already raised at least $2m, and who are looking to raise a larger round, but one that is below DAI Magister’s traditional $30m+ round size focus.

The Academy has already provided this service successfully to its first cohort of ten African companies and is now rolling out more broadly across the African ecosystem and eventually into other emerging markets such as MENA and Pakistan. In addition, the plan is to provide this service to companies in Europe focused on climate tech, where DAI Magister has deep expertise.

Victor Basta, Co-Head, DAI Magister Ltd, stated: “We have developed this individualized program to stand apart from the traditional and more generic set of services generally offered to early-stage companies.  For us the primary focus is to provide free, tailored advice to each specific company.  This means a far more responsive and knowledgeable approach based on local market experience. To date we have run ten companies through the Academy from across Africa and the response has been terrific.

“Our objective is to help founders and start-ups to focus on what that company needs to improve, highlight and/or get right before it raises a larger round.  Founders get one go at this often challenging milestone, so it is imperative they get the basics right to secure a successful next round of fundraising.”

The DAI Magister Academy focuses on three core areas: reviewing and challenging equity stories; reviewing target investor lists and suggesting additional potential investors; and reviewing the company’s financial model and suggesting improvements where necessary.

Individualized support is provided to each company in the Academy, spending time with the team to understand the business and its focus, as well as analyse how it performs against the three core metrics. The output is a specific customised confidential feedback report.

Basta concluded: “For those founders and companies with huge ambition, the DAI Magister Academy is a resource we would urge them to take advantage of.  This service is entirely free with the work being done by the same professionals who advise larger companies through significant fundraises.  The teams therefore have the knowledge and experience of knowing what best-in-class looks like when an ambitious business looks to raise $30m+ and eventually much more.”

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending