Grace Ashiru
Cleva is a fintech company supported by Y-Combinator. tappi is a SaaS startup focused on digitizing small businesses. Two African startups, Cleva and tappi, have been recognized among 50 global startups anticipated to achieve successful exits within the next five to ten years. This recognition comes from CB Insights, a global tech startup analytics firm, in its Future Tech Hotshots report.
The report highlights that the selected startups either incorporate artificial intelligence as a core product offering, specifically target horizontal AI development, or leverage AI as a driving force to create value across various sectors, including cybersecurity and agriculture.
What distinguishes these startups is evaluated based on their exit probabilities and the strength of their management teams, which serve as significant indicators of potential, especially for early-stage ventures. Additional criteria include IP development, which signifies unique and genuinely innovative technology, and the presence of notable investors, indicating aggressive backing from the investment community, suggesting these companies are poised for long-term success.
“Using CB Insights’ proprietary data and metrics—including Exit Probability, Commercial, Maturity, Mosaic, headcount, patents, and funding—we identified the 52 emerging players our data indicates are most likely to exert a significant influence over the next 5–10 years and achieve a strong exit. Corporations and major tech players should keep an eye on these startups, as they are among those most likely to make an impact across industries in the coming years,” states the report.
Meet Cleva
Cleva is a US-registered, Africa-focused financial technology company backed by Y-Combinator. Founded in 2023 by Tolu Alabi (CEO) and Philip Abel (CTO), the startup assists individuals and organizations in Africa in opening US-based bank accounts, enabling them to receive payments in US dollars. Users can open these USD accounts by simply providing their Bank Verification Number (BVN) and government-issued identification, such as international passports and driver’s licenses.
In January 2024, Cleva successfully raised $1.5 million in a pre-seed funding round aimed at enhancing international payments across Africa. This funding round was led by 1984 Venture, a San Francisco-based venture capital firm dedicated to supporting early-stage startups, and included participation from other investors such as FirstCheck Africa, Y-Combinator, The Raba Partnership, and Byld Ventures.
Following the funding round, the startup announced it is in the process of developing various digital products, including USD cards and savings in US assets. Cleva is also exploring API issuance. The company believes these products will empower users to send USD internationally and create professional invoices. Its operational landscape positions it within a competitive remittance market that already features established fintech companies such as Flutterwave’s Send, Chipper Cash, Lemfi, and Afriex.
However, the founders remain undeterred. CEO Tolu Alabi emphasized that the market opportunity, with an estimated value of $18 billion, is substantial enough for Cleva to carve out its niche.
“The challenge we’re addressing—enabling individuals to receive international payments—is not limited to Nigeria or Africa. It’s a global issue; people in Latin America, Asia, and even Canada require the ability to receive dollars for their work and services. We are starting with Nigeria because we understand the market, and it is also significant. However, we believe our backgrounds position us well to tackle this issue on a global scale,” she shared with TechCrunch.
Both founders were born and raised in Nigeria before moving to the United States on college scholarships. Philip Abel attended MIT, while Tolu Alabi studied at the business school at Stanford. They have gained valuable experience working with major tech companies such as Amazon, Stripe, AWS, and Twilio, equipping them with essential technical and product expertise for their startup.
Kenya’s Tappi
tappi is a Kenya-based end-to-end digital commerce software-as-a-service (SaaS) startup that streamlines the process of creating and managing online business profiles for small businesses. Through its platform, it enables SMEs to showcase their products and services, engage with customers, and accept payments.
Founded in 2022 by Kenfield Griffith (CEO) and Louis Majanja, small business owners simply need to create profiles on the app and provide their business information. This allows the startup to generate a SEO-optimized website indexed on Google. The company claims that these websites can be created in two minutes or less and has successfully indexed over 5,000 business pages on Google, facilitating review collection from customers.
“Our aim is to help businesses gain visibility,” stated CEO Griffith in an interview with TechCabal.
In December 2023, tappi secured $1.5 million in a pre-seed funding round led by Mercy Corps Ventures and Chui Ventures. The round also attracted investment from Digital Currency Group, SOSV, Resilience17, growX ventures, Orbit Startups, and Reflect Ventures.
Additionally, the funding round included participation from angel investors and advisors affiliated with global tech companies like Google, Salesforce, and Zendesk. The SaaS company indicated that it intends to utilize the new funding to strengthen its current market presence and focus on talent acquisition and overall branding.
