Andela just got bigger with series C funding of $40 Million

October 10, 2017

In three years, Andela has been revolutionizing the tech ecosystem. Founded in 2014 the company is focused on investing in tech talent in Africa. In return for a good job and salary, Andela trains software developers on coding. This innovative model in the African tech space paid off in 2015 when the company secured $14,000,000 in series A funding.[1] In 2016, the company again secured $24 Million funding led by the Chan Zuckerberg initiative, GV (Google’s VC arm), Spark Capital, Omidyar Network, Learn Capital and CRE Ventures.[2]

 

Andela’s recent series C financing of $40 Million (announced today by the New York Times) is led by South African based CRE Venture Capital.[3] Other investors in this round include Spark Capital, GV, the Chan Zuckerberg Innitiative, Salesforce Ventures, DBL Partners, Amplo, and TLcom Capital. Investments into Andela would enable the company expand across the African continent, producing tech leaders.

 

The innovative model adopted by Andela could inspire business models in critical sectors such as health, education, manufacturing, and agriculture, amongst others. In the health sector for instance, many Africans still travel to Europe, America and India[4] to secure quality health care. The estimated loss to Africa on medical tourism abroad is $1billion annually.[5] Imagine that money being spent to develop critical infrastructure in various African countries.

 

With the right business models, more investments would also be needed in the health, manufacturing and agricultural industries to prevent the flight of capital and build wealth in Africa. Businesses that are already blazing the trail include the likes of Ghana’s mPharma in the health sector, Kenya’s One Acre Fund in the agricultural sector, and Nigeria’s Sterio.Me in the educational sector, amongst others.

 

 

 

[1] Tech Cruch, Backed by Spark Capital, Andela will Develop a Continent of Tech Talent 

 

[2] Forbes, Andela Raises $24 Million from Mark Zuckerberg and Priscilla Chan’s Fund to Train African Engineers

 

[3] The New York Times, Start-Up Bets on Tech Talent Pipeline from Africa

 

[4] Africa Renewal Online, India’s medical tourism gets Africans’ attention

 

[5] IMTJ, Africa spends $1 Billion a Year on Outbound Medical Tourism

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