Africa’s leading identity verification and digital platform Smile Identity has raised $20 million in Series B funding to expand its product and services into new markets.

The funding round was led by Costanoa and Norrsken 22, with participation from other Investors such as Two culture capital, Courtside Ventures, Value stream Ventures, Intercept Ventures, Latitude, Future Africa, and 500 fintech. Lexi Novitske from Norrsken 22 will also join Smile identity’s board as part of the series B funding. This brings the total funds raised to $31 million including $7 million in series A funding raised in 2021.

Investors King understands that the recent funds raised will help Smile identity to expand its product and engineering team, accelerating the development of specialization of its AI-powered biometrics, document verification, anti-fraud and compliance solutions tailored for new African markets.

The startup is optimistic that the money raised will enable it to partner with the governments of African countries as well as ID authorities to create consumer consent standards, enforce local African data protection laws, and share data on fraud and financial inclusion trends.

Speaking on its expansion plan, the company’s CEO Mark Straub said, “we believe the majority of people are honest. The challenge in the digital age is to prove this regardless of how a user is on boards, whether via agents, apps, tablets, the web, blockchains, or paper forms. We are thrilled to have the support of our partners and investors as we solve this problem across IDs, devices, and compliance regimes to ensure Africans are among the most trusted in the world”.

Since its operation in 2017, Smile Identity has been leading the way in digital transformation, providing secure and verifiable identities for millions. The startup has been driven by a desire to ensure that any African, anywhere in the world, can easily verify their identity.

Currently, Smile Identity is developing tools and software that will revolutionize the way millions of Africans prove and authenticate their identities online. Its artificial intelligence and identity verification tools have been specially designed for African faces and have a 99.8 percent accuracy rate.

Nigerian energy financial technology startup that provides people access to solar energy and payment plans SunFi, has raised $2.324 million in seed funding.

The seed round was led by Nairobi-based factor (e), SCM Capital asset management, and other participation from investors such as Sovereign capital, Voltron Capital, Ventures platform, and Norrsken impact accelerator.

Speaking on the seed fund raised, SunFi CEO Rotimi Thomas revealed that the investment will help the startup expand its operations and enhance its capacity to adjust clients on the best systems to purchase at the most affordable prices.

With this funding, SunFi also hopes to improve its Fintech features over the following 12 to 18 months, convert more than 4,000 consumers, and expand its existing 29-person workforce.

“This investment seeks to aid SunFi to grow its operations and improve upon its capabilities to suggest the best systems with the lowest costs to customers, typical of every rational customer wanting to be offered the best quality in exchange for a small quantity fee or charge associated with acquiring the facility,” he added.

Founded in 2021, with its headquarters in Lagos, SunFi builds energy financial technology that optimizes and matches the right clean energy solution to meet customers’ needs. From payment plans to installation support and maintenance, the startup got its customers covered.

It also offers a buy-now-pay-later (BNPL) payment option for solar providers, which ultimately benefits end consumers. By filling the credit gap, the startup wants to eliminate the need for solar providers to seek credit from financial institutions.

Investors King understands that SunFi does not manufacture or install solar panels, rather it gives small solar businesses expert advice on choosing the best manufacturers in the market.

After it launched a demo version of its app in November 2021, the demand for solar systems surged to over 200%. SunFi has also partnered with Arnergy Solar, the largest solar installer in Nigeria, to expand access to more consumers.

Tech Start-up operating in Lagos State has so far raised $750 million in 2022, the Special Adviser to the Lagos State Governor on Innovation and Technology, Tunbosun Alake stated on Thursday at the opening of the 4th Art of Lagos (AOT) Conference. 

While noting that the state has become the number one startup capital in Africa, Alake said Lagos now ranks 81 globally as one of the leading hubs for startups.

He added that Lagos is also number one in Africa in terms of the volume of deals that have been sealed from 2019 to date.

Also speaking at the conference, Lagos State Deputy Governor, Obafemi Hamzat noted that Lagos State has been able to provide an enabling environment where startups and small businesses could thrive. 

Similarly, speaking further, Alake revealed that the increasing number of investors putting their money in Lagos state is a result of the conducive environment for investment and not because of the large population. 

“Investors are coming to Lagos because there have been many things we have been doing to encourage and to make sure the ecosystem is right for these investments. And Lagos is a place investor love to come to, not just because of the size of the market but also because of the potential of the returns on their investments,” he said. 

Meanwhile, Lagos State has disclosed that it has plans to enter into the venture market, thereby launching a venture fund of its own. Investors King learnt.

The special adviser noted that the soon-to-be-launched capital venture fund will “write bigger equity cheques for Nigerian startups than most privately-owned VC”.

“We are working to launch a Lagos venture fund of bigger ticket sizes,” Alake said. “Where normal VCs expect to cash in returns in 5 to 10 years, we are going to be able to do more time because we need more mission-critical products that would serve the citizens.” 

“The fund would be cross-sectoral including fintech, agriculture, health, and most importantly, “research and development startups,” he added.