If you’re looking for an insight into startups and the potential for success in Ghana, this article is for you Chinabased. There are a number of interesting startups currently working in the country, and it is possible that many more will follow. Here are some examples:
OZE provides digital and embedded finance products for small businesses. It has a client base of 125,000 business owners in Ghana and Nigeria. Using its platform, businesses can accept mobile money and bank transfer in both countries. They also have access to credit and alternative credit scores. The average loan amount from OZE is about $5,000. However, the startup has plans to expand into new markets across Africa.
Last year, OZE raised $700,000 in seed funding. This round was led by European early-stage venture capital firm Speedinvest, with Savannah Capital and Cathay AfricInvest Innovation Fund also participating. In addition to its loan product, the company offers an on-demand business coach and a monthly business seminar. As part of its growth plan, it plans to add more staff and acquire more customers. By combining data gathered from business performance and psychological insights, OZE can create loans that are more profitable for the lender. For example, they can offer a business a higher credit limit and lower interest rates than a traditional loan.
The company has also recently launched a payments integration to allow businesses to accept credit and debit cards in both countries. To make it easier for business owners to manage their loans, OZE also generates alternative credit scores and generates behavioural data to predict a business’s ability to repay. Finally, OZE offers a business app that collates and analyzes payables, sales and customer data.
The Jetstream Group is a Ghana-based startup that provides a one-stop-shop for a wide variety of logistics services for businesses. It counts an unnamed Asia-based global shipping line as its biggest customer. As an added bonus, the company boasts of providing a seven-figure revenue stream. Using a white-labeled internal system, Jetstream offers LCL aggregation services and trade finance for customers who need help filling large purchase orders.
In addition to the company’s logistics service offerings, Jetstream also demonstrates its ability to aggregate private sector logistics providers on the African continent. The business notably claims that its service revenue grew by a whopping 512% from March 2020 to March 2021. However, it is not only the sheer size of its revenue that matters. For the company, the growth is also a reflection of the burgeoning market for cross-border logistics in Africa. At present, the market is estimated to be worth at least $32 billion, and is expected to grow significantly over the next decade.
While the company’s logistics services may be the star of its show, it is its trade finance program that stands out. It offers a range of embedded finance products for small businesses and digital recordkeeping tools.
Startups in Ghana
Dash, a Ghanaian fintech startup, recently raised a $32.8 million seed round. The company was founded three years ago and has 200,000 users. Its platform connects mobile money users to bank accounts. Despite its relatively young age, the company has already racked up more than $250 million in transactions.
According to Founder Institute Managing Director Simon Turner, Dash’s round is part of an emerging trend of fintech deals in Africa. Last year, 60 percent of Africa’s total VC funding came from startups in the fintech space. He says that a large part of that success is due to Dash’s leadership team, led by CEO and co-founder Daniel Boampong. However, some may question the decision to raise a relatively small amount of capital. Nevertheless, the round marks a significant milestone for Dash.
As an investor, he sees a number of benefits for Dash. While he notes that the firm is still in its “early stages,” it has a great opportunity to attract investors and grow, as its business model is unique. The company’s products can be used by mobile money users to pay for goods and services and also can help small businesses in Ghana and other African countries access capital.
In addition to its core financial offerings, the company offers a variety of insurance and pension products. That makes it one of the few startups in the country to offer both financial services and insurance.