South Africa’s Most Promising Startups is a gorgeous country that is also one of the continent’s economic leaders. With this in mind, it should come as no surprise that South Africa has some of the best startups.
South Africa’s Most Promising Startups have a variety of advantages over their peers on the continent, allowing them to develop and succeed.
South Africa has robust VC financing in the area, despite a significant drop from $1 billion overall VC funding in 2021 to $500 million in 2022–this is mostly due to external economic reasons that have hit most economies. This comes after years of steady growth in the ecosystem.
Government agencies are also implementing several startup development programs. The National Youth Development Agency award, for example, allows young entrepreneurs to get financial and non-financial help for their early-stage firms.
10 South Africa’s Most Promising Startups
1. NFTfi
- Year Founded: 2020
- HQ: Cape Town, South Africa
- Size: 1-10
- Founders: Jonathan Gabler, Stephen Young
NFTfi is a South African firm situated in Cape Town that was formed in 2020. The company operates in the blockchain sector and has developed a peer-to-peer network for NFT holders that connects lenders and borrowers by utilizing permissionless smart contract technology.
Since its inception, the startup has been highly successful in raising startup capital, with a round of fundraising in November 2021 garnering the company $5 million. It is unclear whether the company has additional funding plans.
2. Naked Insurance
- Year Founded: 2016
- HQ: Johannesburg, South Africa
- Size: 11-50
- Founders: Alex Thomson, Sumarie Greybe
Naked Insurance is a South African startup based in Johannesburg that was formed in 2016. The company operates in the insurance market and delivers quick 90-second quotations for a variety of insurance products, utilizing AI to lower consumer charges.
Since its inception, the company has been extremely successful in raising startup capital, with the most recent funding round raising a total of $17 million. This was a Series B event that occurred in February 2023.
3. Adumo
- Year Founded: 2019
- HQ: Bryanston, South Africa
- Size: 101-250
- Founders: Paul Kent
Adumo is a South African firm launched in 2019 and headquartered in Bryanston, South Africa. The company operates in the FinTech market, assisting businesses and customers with payment processing to improve the country’s financial environment.
This South African firm was successful in raising startup finance, raising a total of $25.9 million over two fundraising rounds. It is expected that the company may seek additional capital in the future.
4. Porcupine Union
- Year Founded: 2020
- HQ: Johannesburg, South Africa
- Size: 51-100
- Founders: Unavailable
Porcupine Union is a South African firm situated in Johannesburg that was launched in 2020. The company works in the consulting industry and offers a variety of services to its customers, including IT infrastructure, branding, culture reforms, and better decision-making.
Despite its rapid expansion, the company has not openly sought startup investment. It is unknown whether the company intends to raise startup capital shortly.
5. Ukheshe Technologies
- Year Founded: 2018
- HQ: Johannesburg, South Africa
- Size: 101-250
- Founders: Clayton Hayward, Jason Penton, Mike Smits, Paul Carter-Brown
Ukheshe Technologies is a South African firm situated in Johannesburg that was launched in 2018. The company operates in the FinTech sector, offering technology solutions for a single API, allowing their customers to accept a variety of payments and combine their technology with other solutions.
Since its inception, this startup has been exceptionally successful in raising startup investment. All total, the company has raised $42 million in initial capital, with additional funding on the way.
6. ARC Business Process Outsourcing
- Year Founded: 2019
- HQ: Cape Town, South Africa
- Size: 51-100
- Founders: Anya Strydom, Farah Lippert
Arc Business Process Outsourcing is a Cape Town-based South African firm that was launched in 2019. The company offers sales and customer service outsourcing to enterprises in the European Union. They provide lower costs and higher efficiencies for their activities.
Despite its recent development, the company has yet to raise any outside capital to pursue its expansion. It is unknown if the team will seek funding shortly.
7. Sendmarc
- Year Founded: 2018
- HQ: Gauteng, South Africa
- Size: 11-50
- Founders: Keith Thompson, Sacha Matulovich, Sam Hutchinson
Sendmarc is a South African firm that was launched in 2018 and is currently situated in Gauteng. The company works in cybersecurity and removes the organizational risk of imposters by ensuring that every email sent is sent by a real person, as well as the risk of phishing assaults.
Since its inception, the company has been tremendously successful in raising startup investment, raising a total of $7 million. This money was made possible thanks to the contributions of nine investors.
8. OfferZen
- Year Founded: 2015
- HQ: Cape Town, South Africa
- Size: 101-250
- Founders: Brett Jones, Malan Joubert, Philip Joubert
OfferZen is a South African firm situated in Cape Town that was formed in 2015. The organization has created a better job marketplace for businesses to connect with talented engineers. The corporation has operations in several countries and has grown quickly in recent years.
The company has had a lot of success in raising outside money, with a total of $5.1 million raised during its Series A funding round. This investment round ended in December 2021.
9. Carry1st
- Year Founded: 2018
- HQ: Cape Town, South Africa
- Size: 51-100
- Founders: Cordel Robbin-Coker, Lucy Hoffman, Tinotenda Mundangepfupfu
Carry1st is a South African firm that was launched in 2018 and is headquartered in Cape Town. The company works in the gaming industry, developing and publishing a variety of entertaining mobile games. They intend to capitalize on the potential of Africa’s fastest-growing gaming sector.
Since its inception, the company has had tremendous success in raising startup capital. The firm received $27 million in funding in January 2023 to help it expand into other areas.
10. KAS Africa
- Year Founded: 2015
- HQ: Midrand, South Africa
- Size: 101-250
- Founders: Unavailable
KAS Africa is a South African firm situated in Midrand that was formed in 2015. The company works in the healthcare industry, developing and manufacturing a variety of items for personal, home, baby, and oral care. Their products are intended to make Africa a healthier place in general.
Since its inception, the company has received a single round of startup funding, with this round garnering the company $10 million from TRT Investments in April 2021 for further expansion.
FAQs
How Many Startups Are There in South Africa?
South Africa now has more than 600 IT startups.
What is the average startup investment in South Africa?
In South Africa, the average Seed Round is valued at $333,000, and the average Series A is worth $1.1 million.
What are the most vibrant startup industries in South Africa?
South Africa’s strongest startup industries include education, transportation, and fintech.
