Tech start-up bags Sh100m in deal as investors eye apps

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Weza Tele co-founder Hilda Moraa with Bosco Mutunga (left) and Sam Kitonyi during a past interview. PHOTO | FILE 

By OKUTTAH MARK, mokuttah@ke.nationmedia.com

Five years ago an early stage start-up accelerator and incubator, Nailab, was founded and was mainly known for producing award winning mobile applications.

This was seen a step forward as some of the award winning apps put Kenya on global innovation map.

This, however, has changed with most of the start-ups in such incubation centres that include iHub, Start-up Garage, mLab, Fablab, 88mph, iLab, and GrowthHub Africa not only turning themselves into viable businesses, but are also attracting suitors.

On Monday, Weza Tele, a provider of end-to-end value added mobility solutions for fast moving consumer goods supply chain management and mobile payment integration processes announced that it had been acquired at more than Sh100 million.

The local technology start-up was acquired by AFB, a financial services company that specialises in providing credit products to consumers in Africa.

“Weza Tele has over the past four months been working on the acquisition details to ensure smooth transition of the business with AFB,” Hilda Moraa, one of the founders said in a statement.

“This is one of the largest acquisitions of a start-up so far, which is estimated to be over Sh100 million whose value is in both cash and stock.”

The AFB said the acquisition is a testimony to large innovator community that companies are keen on acquiring or merging with local start-ups that offer value add solutions developed to fit in their larger company offerings.

The Weza Tele deal follows the acquisition of Dynamic Data Systems by Safaricom.

Dynamic Data Systems were the developers of an Android based application that allows mobile money providers and subscribers to track and monitor all their transactions in a simple and easy way by providing a financial journal on their devices.

After the acquisition late last year, Safaricom rebranded the application to Safaricom M-ledger. Both Safaricom and Dynamic Data System declined to provide the acquisition value.

READ: Safaricom takes on banks with micro-loans product

Weza Tele was founded in 2011 at Nailab as a provider of end-to-end value added mobility solutions for fast moving consumer goods supply chain management and mobile payment integration processes.

Weza Tele’s flagship offering, its MyOrder enterprise, integrates platforms such as Unstructured Supplementary Service Data, Short Messaging Service (SMS) and mobile web to offer a solution that automates order management, distribution, tracking and payment validation for smaller enterprises.

Its customer base consisted of small suppliers, distributors and retailers in industries such as food, oil and gas