In a major milestone towards empowering women in the African financial sector, female-led tech firm, Herconomy, backed by Google under its Black Founders Fund, is set to build Africa’s first women-focused bank in Nigeria.
Google for Startups unveiled the 25 African startups selected for this year’s $4 million Black Founders Fund with Herconomy as one of the recipients. Black African founders disproportionately lack access to the network and capital needed to grow their businesses.
Herconony was selected from a cohort of 40 startups from Europe and Africa, which includes 25 African startups that embody the diverse entrepreneurial spirit across the African continent. The Startups, led or co-founded by women, make up 72 per cent of the group, highlighting the role women play in shaping Africa’s startup ecosystem.
The funding will provide Herconomy with the capital needed to take its venture to the next level and expand to new markets, supercharging economic opportunities and job creation.
Speaking on the development, Founder of Herconomy, Ifedayo Durosinmi-Etti, stated that early-stage investment is essential for the success of startups and the African startup ecosystem as a whole, adding that this is crucial for Africa to become a global tech leader.
“With the significant decrease in African tech investment in 2023, funds like these could play a crucial role in helping startups in Africa sustain their growth trajectory and bring their innovative solutions to a broader audience.”
“From accessible healthcare to efficient logistics, to innovative fintech solutions, we are harnessing the power of technology to address some of Africa’s most pressing challenges. Herconomy is breaking new ground in the fintech sector with its goal to become Africa’s first women-focused bank. Herconomy has been awarded the fund as well as up to $200,000 in cloud credits, ad support, one-on-one mentoring by industry experts and invaluable connections within Google’s network,” Durosinmi-Etti said.
While expressing gratitude to Google for selecting Herconomy as a recipient of the Black Founders Fund, Durosinmi-Etti, added: “We extend our heartfelt thanks to Google for Startups for choosing Herconomy as a recipient of the Black Founders Fund. We are incredibly honoured and grateful for this opportunity.
The support and recognition from Google will significantly accelerate our mission to reshape the financial landscape for women in Africa. With this funding, mentorship and invaluable connections, we are confident that we can create meaningful change and empower women across the continent. Thank you, Google, for believing in our vision and supporting our journey towards building Africa’s first women-focused bank.”
The Black Founders Fund, now in its third year, aims to help tackle systemic racial inequality in venture capital (VC) funding by providing equity-free grants and mentoring to early-stage Black-led high-growth businesses across Europe and Africa. Since its inception, the Black Founders Fund has facilitated over $205 million in investor conversations, representing a 12-fold increase.
This has sparked significant growth within the participating startups, with their combined monthly recurring revenue now exceeding $6.1 million, marking a seven per cent increase.
