Angel investors find great value
in startup acquisitions that offer cash payouts while still retaining shares in the company. In a recent interview with TechCrunch, Selma Ribica mentioned, “The return after dilution was eight times my investment.” Ribica, now the general partner at First Circle Capital, invested in Expensya, an expense management startup based in Tunis and Paris which was acquired for over $100 million last June by the private equity firm Medius.
Only a few African or Africa-focused tech companies have been acquired for such significant amounts, emphasizing the potential of Africa-founded products to serve and get acquired by global markets. This marks a shift in the approach of African startups, as they now confront headwinds and macroeconomic challenges beyond their control while developing solutions for local challenges.
One of the success stories is Expensya, founded by Karim Jouini in 2014. Expensya specializes in automated expense management solutions for European businesses. Despite the challenges of the African market, Expensya has successfully navigated and overcome obstacles, positioning itself as a successful SaaS company in Europe.
Global Success and Acquisition
After operating for over eight years and raising about $30 million, Expensya got acquired, with its employees becoming part of an experience that remains elusive for many counterparts in the African tech ecosystem. The acquisition showcased the potential of African startups to complete a full cycle, benefiting not just business angels and VCs, but also employees.
Selma Ribica, reflecting on Expensya’s efficiency and success, encourages more African startups to build and compete globally, creating well-paying jobs at home and keeping local engineering talent from leaving for opportunities abroad.
Karim Jouini advises founders to focus on selling their products, make tweaks as soon as possible, prioritize talent, and share equity along the way, emphasizing the key stages of building, launching, recruiting, retaining, and scaling.
