Tech Startup Andela Secures $40M In Funding To Connect African Coders With US Firms
Andela, a startup that trains and outsources African coders to work for global firms, has secured a Series C round of funding to continue the company’s expansion.
The Lagos and Nairobi-based startup that recruits Africa’s best software developers has successfully raised $40 million in the most recent round of funding, according to a press release from Andela.
The substantial investment was led by Pan-African venture firm CRE Venture Capital, while other investors include DBL Partners, Amplo, Salesforce Ventures, and Africa-focused TLcom Capital.
Responding to a severe global shortage of software developers, which has seen around 1.3 million software jobs go unfilled in the U.S. in 2016 alone, Andela was formed to train and outsource software coders in Africa with the intention of working remotely for international companies.
Andela has hired 500 developers thus far since launching in 2014, selecting the best 0.7 percent of the more than 70,000 applicants from across the African continent, the press release revealed.
Seni Sulyman, country director of Andela Nigeria explained the importance of the investment in nurturing the African tech leaders of tomorrow.
“Andela is investing in our continent’s future technology leaders, who are already playing a much-needed role in solving both African and global problems,” said Sulyman, according to Pulse.
“With each new partnership, we are simultaneously proving to the global tech industry that brilliance is evenly distributed irrespective of gender, culture or nationality. As we unleash an entire generation of technologists, we will secure Africa’s role as an equal partner working alongside the rest of the world to advance human potential,” he added.
The company has offices in Lagos, Nigeria, Nairobi, Kenya, and Kampala, Uganda (opened in May), from which their software development teams work for a variety of businesses which include the likes of Mastercard Labs, Viacom, Microsoft, Google, and IBM, along with over 100 other U.S. partner tech firms.
Nurturing future African coders
Chosen developers get six months of intensive training, followed by three-and-a-half years of full-time remote apprenticeship with global tech firms.
Currently, 112 clients trust Andela with their development requirements in the U.S. and 10 other countries.
Over 20,000 aspiring African coders across the continent have already used the company’s free online learning and training tools, and by 2024 Andela hopes to have played a part in preparing 100,000 developers in Africa for jobs, with thousands working for Andela at that point, according to the NYTimes.
Previous investors in Andela include the likes of Facebook founder Mark Zuckerburg, who last year contributed $24 million in Series B funding through the Chan Zuckerburg initiative, BusinessInsider reports.
Andela’s first funding round attracted U.S. venture capitalists including America Online founder Steve Case; seed-stage venture capital fund Founder Collective; San Francisco-based frontier tech firm Rothenberg Ventures; early-stage digital investors Melo7 Tech Partners, and Facebook early member Chris Hughes, bringing the total investment to date to over $80 million.
Sign up for the AFKInsider newsletter — the most compelling business news you need to know from Africa and the African diaspora, delivered straight to your inbox.