In a groundbreaking development for Kenya’s tech landscape, tappi, a startup dedicated to assisting SMEs in establishing their online presence through an innovative chat tool, has successfully raised $1.5 million in an oversubscribed pre-seed funding round. The funds are earmarked to drive the digitization efforts of African SMEs, enabling them to build online trust and expand their digital footprint.
Founders and Vision:
tappi was founded by the dynamic duo of Kenfield Griffith and Louis Majanja. The startup’s mission is to empower SMEs by providing them with the tools and platform to create a robust online identity. The heart of tappi’s offering lies in its chat tool, which not only facilitates communication but also automatically generates a webpage for SMEs, simplifying the process of establishing an online presence.
The Three-Step Process:
SME owners can easily adopt tappi’s solution by downloading the app, customizing their business “look and feel,” and promoting their offerings through a seamless three-step process. This process extends to Google Ads, Facebook Ads, and Instagram Ads, with payment options encompassing airtime credit or mobile money. This approach not only democratizes the digital advertising space but also ensures accessibility for a broad spectrum of SMEs.
Oversubscribed Pre-Seed Round:
tappi’s pre-seed funding round was oversubscribed, underlining the investor community’s enthusiasm for the startup’s vision and potential impact. The round was led by prominent investors, including Mercy Corps Ventures and Chui Ventures. Notable participation came from Digital Currency Group, SOSV, Resilience17, growX ventures, Orbit Startups, and Reflect Ventures. The diverse range of backers reflects a broad interest in tappi’s approach to digital commerce SaaS solutions.
Angel Investors and Global Tech Advisors:
The pre-seed round also saw contributions from angel investors and advisors affiliated with leading global tech companies, including Google, Salesforce, and Zendesk. The involvement of seasoned professionals from the financial sector further underscores the strategic value that these backers see in tappi’s innovative model.
Milestones and Impact:
Since its inception, tappi has made significant strides, capturing verified reviews on transactions totaling $3 million and engaging with over 150,000 consumers. The startup’s impact is not only measured in financial transactions but also in the empowerment of SMEs across various sectors, including food services, fashion, agriculture, health, and beauty.
Strategic Partnerships and Market Expansion:
The pre-seed funding will enable tappi to consolidate its position in existing markets by bolstering its sales force, leveraging a robust 90% retention rate. Additionally, the startup plans to forge strategic partnerships, building on its existing relationship with MTN Nigeria. This collaboration has already resulted in a 19% month-on-month growth in business ads and business data bundle subscriptions, showcasing the potential for mutually beneficial partnerships.
Talent Acquisition and Brand Building:
Recognizing the critical role of talent in its growth journey, tappi will allocate a portion of the funding to talent acquisition. Building a skilled team will be instrumental in enhancing the platform, expanding market reach, and providing top-notch support to its growing user base. Furthermore, the startup will focus on overall brand building to solidify its position as a go-to solution for SMEs seeking to establish a trusted online identity.
Founder’s Vision:
Kenfield Griffith expressed gratitude for the support from investors who share tappi’s vision. He emphasized the mission to unlock the untapped potential within Africa’s informal SME markets, particularly in service industries often overlooked. Griffith highlighted the sectors of focus, including food services, fashion, agriculture, health, and beauty. The current investment is poised to propel tappi’s mission further, fostering customer connections through direct sales and partnerships across the continent.
Conclusion:
As tappi secures $1.5 million in pre-seed funding, it not only marks a significant milestone for the startup but also signifies the growing recognition of the pivotal role SMEs play in Africa’s economic landscape. The infusion of capital, coupled with strategic partnerships and a focus on talent and brand building, positions tappi as a catalyst for digital transformation within the SME sector. The journey ahead promises not only financial growth but also the empowerment of countless businesses seeking to thrive in the digital age.
Source: Disrupt Africa