Bamba, a Kenyan-based mobile enterprise software startup, has raised $3.2 million in seed funding. The round was led by Berlin and San Francisco-based 468 Capital, with participation from Presight Ventures, Jigsaw VC, and prominent angel investors. The funds aim to scale Bamba’s platform, which is designed to assist micro-merchants in streamlining their operations.
The startup’s journey began earlier this year, founded by Bastian Gotter, a serial entrepreneur with a deep understanding of Africa’s tech landscape, and Martin Schramm. Bamba focuses on digitizing enterprise management for small businesses in East Africa, a region where mobile money is the backbone of transactions.
Addressing Key Challenges for Micro-Merchants
Micro, small, and medium enterprises (MSMEs) account for 90% of businesses in sub-Saharan Africa. Despite their significant role, these businesses often face challenges in inventory management, customer relationship management (CRM), and accessing credit. Bamba’s platform, which includes an Android app, offers tools to help merchants manage inventory, track payments (both cash and mobile money), and organize customer data efficiently.
“We aim to provide an all-encompassing tool that combines inventory management, CRM, and payment solutions to give merchants a clearer picture of their business operations,” Gotter explained.
Building Credit Solutions
One of Bamba’s standout features is its potential to address the $300 billion credit gap faced by MSMEs in sub-Saharan Africa. By using its platform to track merchants’ cash and mobile money transactions, Bamba plans to offer cash advances based on future cash flow. This approach provides small businesses with access to credit they previously couldn’t secure due to insufficient credit histories.
“These businesses often struggle with lending decisions because traditional models don’t cater to them. Our solution ensures we can provide accurate credit assessments based on real-time data,” Gotter noted.
Strategic Growth Plans
Although still in stealth mode, Bamba has already onboarded 30 merchants for testing and plans to scale rapidly across 12 markets. The startup’s revenue model includes small payment fees and interest from its lending products.
The company’s latest funding will support product development and team expansion, helping it reach more users. Bamba is part of a growing wave of startups innovating within Africa’s enterprise software space, which investors say remains largely untapped.“We believe Bamba is well-positioned to become a category-defining company in the region,” said Ludwig Ensthaler, a partner at 468 Capital.
With its innovative solutions and focus on empowering micro-merchants, Bamba aims to revolutionize how small businesses in Africa operate and grow.
