Quick Summary:
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Better Auth, founded by Ethiopian solo developer Bereket Engida, raised $5 million in seed funding to scale its open-source authentication platform.
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The round was led by Peak XV Partners with support from Y Combinator, P1 Ventures, and Chapter One.
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Since its GitHub launch in September 2024, the tool has gained over 150,000 weekly downloads, 15,000 GitHub stars, and 6,000 community members.
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The platform offers a flexible, developer-first alternative to Auth0 and Firebase, with a hybrid model combining free open-source tools and paid enterprise infrastructure.
In a landmark moment for African innovation, Better Auth, an open-source authentication library founded by Ethiopian solo developer Bereket Engida, has secured $5 million in seed funding. The round was led by Peak XV Partners (formerly Sequoia Capital India & Southeast Asia) and included participation from Y Combinator, P1 Ventures, and Chapter One.
This funding follows Better Auth’s graduation from the Y Combinator Spring 2025 batch, making it just the third Ethiopian startup to be accepted into the accelerator. The investment signals growing confidence in Africa’s emerging developer ecosystem.
A Mission to Simplify Authentication
Better Auth is committed to making authentication easier, more flexible, and open-source for developers across the globe. With this new capital, the startup aims to:
- Strengthen its community-driven open-source foundation
- Improve developer documentation for faster adoption
- Launch an enterprise-grade infrastructure layer with optional paid cloud services
While the base tool remains free and open-source, this hybrid model ensures sustainable growth while keeping the developer community at its core.
Early Traction and Rapid Adoption
Since launching on GitHub in September 2024, Better Auth has achieved remarkable growth:
- 150,000+ weekly downloads
- 15,000+ GitHub stars
- 6,000+ active developers on Discord
These figures highlight strong interest and adoption, especially from AI startups and early-stage B2B platforms looking for secure and customizable authentication options.
A Disruptive Alternative to Auth0 and Firebase
Investors are excited by Better Auth’s potential to disrupt established solutions like Auth0, Firebase, and NextAuth. These platforms are often criticized for being:
- Too complex
- Expensive
- Inflexible for deep customization
Better Auth offers a refreshing alternative: on-premise control, deep database integration, and full developer ownership of the authentication stack.
According to Arnav Sahu of Peak XV, several portfolio companies were already using Better Auth before the investment—proof of the product’s organic appeal.
The Solo Founder Story: Bereket Engida
Bereket Engida began coding at age 18 after a friend refused to help him build an app. That moment sparked a self-taught journey that led to freelance work and eventually the launch of Better Auth.
Built using TypeScript and guided by open-source principles, Better Auth addresses key pain points around:
- Sign-ins and password resets
- Role-based permissions
- Token management
- Privacy-first user data handling
It’s a solution built from frustration—and from the ground up.
Redefining African Tech Potential
Engida’s journey is rare in African tech. Solo founders are uncommon, especially those building developer infrastructure tools rather than fintech or logistics platforms. His success challenges conventional narratives and proves that world-class software can emerge from any corner of the globe.
Now headquartered between Ethiopia and the U.S., Better Auth aims to become a global infrastructure company rooted in African ingenuity and powered by open-source values.