First Half Of 2024 Africa’s Proptech Funding Landscape

Q1/Q2 2024 Africa PropTech RoundUp.

PropTech RoundUp is your go-to source for industry trends, comprehensive analyses, in-depth insights, and fundraising activities in Africa's rapidly evolving Proptech and Construction technology industry.

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The African Proptech sector has shown notable dynamics in its funding landscape over the past few years. In 2022, startups in this space raised a total of $16.7 million across 10 deals, marking a significant increase from previous years and highlighting growing investor interest. However, 2023 saw a slight decline with $16.2 million raised across 6 deals.

A closer look at 2023 reveals that the first quarter was particularly robust, with $9.4 million raised, suggesting a strong start. Yet, the overall funding environment for the first half of 2024 was more restrained, with only $2.3 million raised, compounded by several undisclosed funding rounds which add to the difficulty in gauging the total funding for the sector in 2024 so far.

While 2023 saw a strong start for African Proptech with over $9.4 million raised in Q1, the funding landscape in 2024 appears to be more cautious. Despite ongoing investment, the first half of 2024 saw over $2 million raised, significantly below the previous year's first quarter. This, coupled with several undisclosed funding rounds, makes it difficult to gauge the total funding.

1. Kubik - $1.9 million

• Segment: Construction Sustainability

• Country: Kenya

• Round: Seed extension

• Founder: Kidus Asfaw

• Investors: African Renaissance Partners, Endgame Capital, and King Philanthropies,

Kubik, headquartered in Kenya, is leading the charge in transforming construction and building technology through a strong emphasis on efficiency and sustainability. The company pioneers sustainable construction practices by converting plastic waste into low-carbon buildings, thereby offering affordable housing solutions and effective waste management options for communities. At the heart of Kubik’s mission is its unique ability to repurpose hard-to-recycle plastic waste into resilient, cost-effective, and environmentally-friendly building materials. This approach enables Kubik to provide clients with construction solutions that conserve resources and reduce environmental impact, all at accessible prices.

Funding Round

June 2023: Secured $3.34 million with investments from Plug & Play, BESTSELLER Foundation, GIIG Africa Fund, Satgana, Unruly Capital, Savannah Fund, African Renaissance Partners, KAZANA Fund, Princeton Alumni Angels, and Andav Capital.

Latest Funding : Raised $1.9 million in a seed extension round from African Renaissance Partners, Endgame Capital, and King Philanthropies.

2. Bosso - $400,000

• Segment: Construction e-commerce

• Country: Zambia

• Round:  Pre-Seed

• Founder: Chisepo Chirwa, Mukopaje Singogo, Ibn Kafwanka, and Salwa Shamapande

• Investors: from Leonard by Vinci, Launch Africa Ventures, Renew Capital, Change-Com, and various angel investors,

Bosso is Zambia’s leading e-commerce platform for all building material needs. Over the last year, the company have helped over 800 hardware stores stock inventory and over 400 homebuilders source their materials, and have raised $400,000 in venture capital. To address the housing crisis in Zambia, the company moved construction material and delivery options online, making prices transparent, affordable, and easy for everyone.

Funding Round

February 2024: Bosso raised an Undisclosed funding from Renew Capital

May 2024: Bosso, secure $400,000 in Pre-seed funding to address Africa's housing deficit. The funding round included contributions from Leonard by Vinci, Launch Africa, Renew Capital, Change-Com, and various angel investors. The capital will be used to enhance Bosso's AI-powered solutions, refine its product offerings, and expand services to improve efficiency in the construction sector. The company plans to open a seed round in August 2024 and source materials for over 5,000 homes by 2025.

3. Birdnest - Undisclosed

• Segment: Rental Solutions

• Country: Egypt

• Round: Pre-Series A

• Founder: Mostafa El-Nahawy and Ahmed Fadda

• Investors: Beltone Venture Capital, CI Venture Capital.

Birdnest is an Egyptian Proptech startup poised to transform the real estate sector in the MENA region, focusing on high-value short-term rental properties. Founded with a vision to innovate property management, Birdnest collaborates closely with real estate developers, institutional investors, and independent property owners.

The startup aims to streamline and enhance the short-term rental experience through proprietary technologies and a dedicated regional quality team. With plans for expansion across key markets such as Egypt, Athens, Dubai, and Riyadh, Birdnest is strategically positioned to meet the growing demand for flexible and high-quality rental accommodations in urban centres.

Funding Round

May 2024: Birdnest raised an undisclosed funding amount led by Beltone Venture Capital, with CI Venture Capital.

4. RE-TEC Solutions - Undisclosed

• Segment: Retail Property Management

• Country: South Africa

• Round: Pre-Seed

• Founder: Aileen Rodel

• Investor: REdimension Capital

RE-TEC Solution is a South African proptech startup, providing intelligent technologies to revolutionize the management of retail property assets. Its innovative platform empowers shopping centre owners and managers with integrated, digital tools that offer aggregated data and insights. This fosters streamlined processes and seamless connectivity between landlords, tenants, and service providers. By enhancing operational efficiency, tenant engagement, and rental revenue, while reducing administrative overheads, RE-TEC adds significant value to commercial properties. Established in 2022, the company leverages its founders' expertise in retail development, management, marketing, and technology to deliver cutting-edge solutions for the real estate industry.

Funding Round

April 2024: RE-TEC Solutions secured a strategic investment from REdimension Capital. The strategic investment from REdimension, alongside access to its vast network, will empower RE-TEC to collaborate with leading real estate owners and managers, optimizing its product suite for maximum client valuation creation and accelerating expansion both locally and globally.

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Methodology: 

The African PropTech RoundUp relies on publicly disclosed information from sources like the company own public release, and primarily focuses on venture capital fundraising, excluding debt, grants, and non-equity financing.

The data were collected at the time of the funding announcement, acknowledging that numerous raises might occur without public disclosure of amounts, making tracking challenging.