Yango Ventures Launches $20 Million Fund to Fuel African Startup Growth in Emerging Markets
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Yango Group, a global technology firm, has announced the launch of Yango Ventures, a $20 million corporate venture fund aimed at accelerating the growth of early-stage startups across Africa and other emerging markets. The fund is set to provide financial backing, mentorship, and strategic guidance to startups operating in key sectors such as online-to-offline (O2O) services, B2B SaaS, and fintech.
A Timely Boost for Africa’s Startup Ecosystem
The African venture capital landscape has experienced a downturn, with investment inflows dropping by more than 50% in 2023, according to Briter Bridges. Against this backdrop, Yango Ventures’ entry comes as a much-needed stimulus, offering early-stage companies the resources required to scale their operations. The fund will target startups from seed to Series B stages, focusing on markets in Sub-Saharan Africa, Latin America, the Middle East, North Africa, Afghanistan, and Pakistan.
Beyond financial investment, Yango Ventures aims to leverage Yango Group’s extensive global network and technological expertise to help startups scale efficiently and navigate market challenges.
Yango Group’s Expanding Footprint
Founded as a brand by the Yandex Taxi team in 2018, Yango Group has evolved into a multifaceted technology company offering services in ride-hailing, public transport data, delivery, e-grocery, adtech, maps, entertainment, and AI voice assistance. Headquartered in Dubai, the company operates in over 30 countries across Europe, Africa, the Middle East, South Asia, and South America.
Yango Ride, the company’s flagship mobility service, is active in more than 25 countries, working in partnership with local taxi companies to enhance efficiency through technology. Rather than owning vehicles or employing drivers directly, Yango provides digital tools that support small and medium-sized businesses in its operational regions.
Rivalry in the Ride-Hailing Sector
Yango’s presence in the African ride-hailing space places it in direct competition with global and regional players such as Uber, Indrive, and Gett.
- Uber, which entered Africa in 2013, has expanded across South Africa, Nigeria, Kenya, Ghana, and other nations, offering multiple service tiers, including electric vehicle options.
- InDrive, which launched in Africa in 2018, has rapidly expanded with its unique zero-commission policy, benefiting drivers across the continent.
- Citymobil, backed by investors like MegaFon, has secured $35 million in funding and remains a strong player in Russia’s mobility sector.
A Corporate Venture Trend
Yango Ventures aligns with a broader trend of corporate-backed investment funds supporting emerging market startups. Global tech firms like Google’s Africa Investment Fund and Mastercard’s Start Path program have paved the way for initiatives that foster innovation and digital transformation. By launching its own fund, Yango positions itself as a key player in Africa’s tech evolution, providing critical resources for entrepreneurs driving digital solutions.
With its $20 million commitment, Yango Ventures is poised to make a lasting impact by identifying and investing in high-potential startups that align with its mission of transforming technology-driven industries across emerging markets. The fund is expected to begin deploying capital in the coming months, prioritizing scalable business models and groundbreaking innovations that can reshape the digital landscape.
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