AltSchool Africa, a Nigerian edtech startup often likened to the U.S. coding bootcamp BloomTech, is set to receive strategic support for its upcoming growth phase. This assistance will be provided by Intellecap, an advisory firm focused on Asia and Africa, fully funded by the Rwandan Innovation Fund. The program aims to aid AltSchool Africa in planning its expansion. In April 2023, AltSchool raised $3 million, with participation from Angaza Capital, a venture capital firm associated with the Rwandan Innovation Fund. Adewale Yusuf, AltSchool’s CEO, acknowledged previous funding from the innovation fund but did not disclose the exact amount. The Rwandan Innovation Fund, established in 2021 with a $30 million loan from the African Development Bank, reflects Rwanda’s commitment to becoming a technology hub in Africa. Yusuf expressed gratitude for the Rwandan government’s support in a LinkedIn post.
AltSchool Africa, which established an office at the Norrsken hub in Rwanda last year, is among the initial African companies attracted to the country. The edtech startup, often compared to BloomTech, is expanding its presence in Rwanda with four staff members and plans for further recruitment. Rwanda has been actively luring companies, including Flutterwave and Paystack, with more expected to follow suit.
In addition to the initial $30 million loan from the African Development Bank (AfDB), the Rwandan Innovation Fund aims to secure an additional $30 million from private investors, with the government contributing $8.6 million. The fund’s goal is to support 150 tech-enabled companies, ten incubators, accelerators, and 20 early-stage growth opportunities across Africa. To date, $6.6 million has been invested in 11 startups in East Africa.
AltSchool Africa focuses on online-only learning with a comprehensive curriculum covering business, data, engineering, media, and the creative economy. It charges monthly fees ranging from $20 to $50 for its courses and operates on the income-sharing agreement (ISA) model common in online edtech startups. AltSchool connects learners to internships, aiming to facilitate job placement. The startup has already assisted around 20,000 learners across eight African countries, addressing the challenge of youth unemployment by providing skills that are globally in demand.
This funding round follows AltSchool’s announcement of $1 million in pre-seed funding from venture capitalists and angel investors in 2022, with participation from Voltron Capital, Obda VC, Paystack’s Sola Akinlade, and Nigerian musician Folarin “Falz” Falana.
Source: TechCabal