Hello dear reader,

Each week, we cover startups solving geography-specific problems or those enabled by local context, as well as look at those expanding beyond their current markets.

This week:

  • A safer taxi option in Brazil

  • Saving languages in Nigeria

  • And providing basic services to the African population

Location, Location, Location

Brazil: Uber with a Twist

An urban mobility startup from Brazil, Rhino, raised a $3.2 million seed round. Rhino offers secure rides in São Paulo for affluent individuals.

The Product

On the surface, it’s like Uber—but with armored vehicles, trained drivers who pass background checks, pre-set climate control options, and even door-opening service from your driver.

For businesses, Rhino ups the ante with bilingual drivers (English/Spanish/French/Japanese) and a concierge service for scheduling trips for employees or clients.

The Business Model

Similar to Uber, Rhino charges per ride via the app. For business users, the exact model is unclear but could involve personalized pricing.

The Local Angle

  • A Place of Many Dangers: Overall, São Paulo is ranked 24th globally in a crime index developed by Numbeo, which is worse than Damascus and Lagos. When it comes to more violent crime, São Paulo has a 8.4 homicide rate, which is substantially lower than the country average of 23.4. However, London, Moscow, and even Delhi are all substantially lower.

  • The Rise of the Rich: São Paulo has over 80,000 millionaires. The city is ranked 17th by the number of billionaires. São Paulo state accounts for 75% of the country’s luxury market. Also, Brazil’s adding millionaires faster than any country in the world, and it’s reasonable to assume that most of them are in São Paulo. The point is, there’s enough people for Rhino-like services and the market is sure expanding.

Nigeria: Saving Languages

Nigerian edtech company Lingawa raised $1.1 million in a pre-seed round to preserve indigenous African languages.

The Product

Lingawa connects students with tutors for 1-on-1 or 1-on-2 online lessons. Users fill out a short questionnaire to be matched with a tutor. The platform also offers gamified quizzes and spaced repetition exercises, accessible via web or app.

Currently, Lingawa features just Yoruba and Igbo but plans to add more languages.

The Business Model

Lingawa offers tiered pricing:

  • 1-on-1 tutoring: Weekly packages start at $18 per session, while a 25-lesson bundle drops to $12 per session.

  • 1-on-2 tutoring: Similarly structured but at a slightly reduced rate per lesson.

The Local Angle

  • The Country of Many Languages: Nigeria is home to over 500 languages, about a quarter of Africa’s total linguistic diversity. For comparison, Europe has around 200 languages.

  • On the Edge of Extinction: The number of endangered languages in Nigeria is estimated to range from 27 to as high as 172, depending on the source. Take Igbo, for instance, cited as being spoken by 31 million people. Yet, this figure may be outdated, and UNESCO in 2012 even predicted that Igbo could disappear by 2025, though that hasn’t come to pass. Alarming signs of decline remain, however, with one study revealing that only 50% of native Igbo speakers use the language daily. Additionally, cultural dynamics contribute to its vulnerability—examples (one, two) suggest a perception of native languages as less prestigious, with fears of being labeled uneducated.

  • The Culprits: English’s dominance in education, media, and public life is the main reason many Nigerians point to for the decline of native languages. A study on Yoruba’s diminishing use highlighted several contributing factors: 90% of respondents blamed a preference for Western culture and English, 85.7% pointed to parents neglecting to teach their children the language, 72.8% mentioned job opportunities outside the language-speaking areas, and 65% cited Nigeria’s linguistic diversity itself as a challenge.

Kenya: Charging Forward

Kenya-based Stima, raised an undisclosed amount to help African EV businesses improve efficiency.

The Product

Stima offers a solution for e-mobility providers to monitor their EV fleet and charging operations. Their product—a monitoring platform to track battery health in real time, receive battery safety alerts, predict maintenance, etc.

Through its software, Stima extends battery lifespans from 1,200 to 1,800 charging cycles and reduces the number of batteries needed per driver from 1.5 to 1.3.

The Business Model

Stima offers a subscription to their platform, with pricing depending on the number of batteries the client connects to it.

The Local Angle

  • The Growth is Just Beggining: Kenya is in the very early stages of EV adoption. In 2021, e-motorcycles had a 0.05% share of total motorbike sales. Just two years later, they account for nearly 4%, with 2,557 units sold.

  • Government Support: In 2023, the Kenyan government launched an e-mobility program aiming to green the transport system. This year, it aimed for 200,000 electric motorcycle sales, with plans for over 1 million electric vehicles and 3,000 charging/swapping stations in the future.

  • Saving Money on Gas: E-motorbike owners save 40% on operating costs compared to petrol bikes. Stima’s battery efficiency further increases those savings.

  • A Huge Market—Kenya’s Taxis: Kenya has 3 million motorbike taxis called boda-boda. So far, just 2,000 drivers have switched to electric, but the market potential is enormous, especially for cost-conscious drivers. Both Uber and Bolt are actively pushing boda-boda electrification.

Kenya: Hydro Ambitions

Another African CleanTech startup also from Kenya, Hydrobox, raised $9 million to bring hydro-powered mini-grids to local businesses and households.

The Product

Hydrobox provides containerized hydropower plants, designed to operate in remote areas using run-of-river systems. The plants generate electricity by diverting river water through a reservoir, canal, and pipeline to spin turbines. The water is returned unchanged to the river, ensuring minimal environmental impact.

The Business Model

Hydrobox operates via two approaches:

  • Hydrobox-as-a-Service: Hydrobox handles everything from design and financing to plant operations, selling electricity to customers.

  • Hydrobox-as-a-Product: Customers finance and own the plants, while Hydrobox focuses on building and operating the power stations.

The Local Angle

  • Kenya’s Electricity Challenges: Despite 84% of Kenyans having access to electricity, rural areas often remain underserved. Monthly nationwide blackouts disrupt critical infrastructure, with only 15% of connected medical facilities enjoying reliable power. Decentralized mini-grids like Hydrobox offer a promising solution.

  • Hydropower Potential: Kenya generates 22.1% of its electricity from hydropower, which pales in comparison to neighbors like Ethiopia and Uganda, where the share exceeds 90%. Yet Kenya’s untapped hydropower potential is estimated to be at least 10 times higher than its current capacity.

  • Expansion to DRC: Hydrobox plans to enter the Democratic Republic of Congo, where nearly all electricity is hydro-generated but access is abysmal—just 19% of the population and only 1% in rural areas have electricity. With DRC’s vast hydro resources, Hydrobox can replicate its Kenya model at a larger scale.

Uganda: Pure (Water) Potential

And yet another CleanTech startup from Africa, Spouts International from Uganda, raised $3 million. Its mission is to provide clean water access to millions living in the region.

The Product

Spouts’s main product is a line of three ceramic water filters designed for households, small businesses, and government institutions. It’s a fairly simple design but effective. The filter is made from clay and contains tiny pores that act like a filtering mechanism, blocking impurities and allowing clean water to pass. In 2023, the company expanded into the cookstove business, providing 80,000 cookstoves to date.

The Business Model

The model is straightforward. Spouts sells its filters directly and through retail outlets, with prices ranging from ~$30 to ~$80 depending on the filter’s size. Unlike traditional filter producers using the razors-and-blades model, Spouts’s filters last five years and cost just $10 to replace.

The Local Angle

  • Uganda’s Clean Water Disaster: 81% of people in Uganda lack access to safe drinking water. That’s 38 million people in just one country. There’s “automating customer service flow management” value and “providing people with clean water” value, but for some reason, the former will always raise infinitely more money.

  • The Price of Water: Urban populations spend 22% of their income on clean water. With an average urban income of $125 per month, that’s $27.50 spent on water. Assuming 22% is a valid stat, Spouts filters could save a household $1,622 over five years. A lot of caveats here, but you get the idea.

  • Water and the Economy: Poor water supply costs developing countries 1.5% of GDP annually. Another study found that healthcare-acquired infections—i.e., infections caught in healthcare settings—cost Uganda 1.4% of GDP each year.

From Here to There

Movopack: Packaging the UK Market

Movopack, based in Milan, raised €2.4 million in seed funding to launch its operations in the UK. The company provides sustainable packaging for online stores.

MediSun Energy: Osmotic Energy for the Middle East

Singaporean company MediSun Energy raised a $8.75 million seed round to move beyond its current operations in Southeast Asia to the Middle East. The company uses the method called Reverse Electrodialysis to harness the energy generated from the difference in salt concentration between seawater and freshwater to produce clean, renewable energy while also improving the efficiency of water desalination processes.

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