In what is regarded as the largest ever startup investment in the country, Algerian ride-hailing startup, TemTem has announced the closing of a seed round valued at USD 1.7 Mn. The investment was secured from business angels.
Based in Algiers and looking to scale into other parts of the Northern African nation, TemTem is looking to carve a niche for itself in the ride-hailing business. TemTem was established in February 2018, as the brainchild of Kamel Haddar; a serial entrepreneur who now doubles as its Founder and CEO, and it now boasts an additional presence in Algeria’s second most-populated city, Oran, having started out in Algiers; the Algerian capital. According to the CEO, the startup’s services are also available in Paris, where it exclusively operates an airport ride-hailing service.
Following the investment which is considered the largest ever garnered by a startup in the country, the CEO revealed that the investment came from an angel investor. As indicated by Kamel, the startup currently boasts over 40,000 users who are using its mobile apps to book as many as 70,000 rides monthly. The TemTem Chief also revealed that the startup currently lays claim to over 1,000 drivers on its network, with tens of new ones joining the foray on a daily basis.
As regards the investment, the CEO played up the vital role the latest influx of funding is expected to play in the development and acceleration of the platform’s technology. He also hinted that the investment will buoy the startup’s expansion plans into ten other Algerian cities in the coming months, with Constantine and Setif being notable mentions amongst others. Plans may also be in the pipeline for the startup to go regional in the future but the CEO remains coy on the timeline and specifics of such a move.
According to him, raising what is widely regarded as the largest-ever investment round for an early-stage Algerian startup is a testament to the quality of the vision of TemTem, whilst adding that it gives further credence to the effectiveness and efficiency of its operations from the perspective of a developing market.
Kamel remains unfazed at the timing of the investment which could be thought to be somewhat coinciding with what appears to be an imminent onslaught on the Algerian ride-hailing market share by big names, Careem, who are looking to branch into the country. “Competition is good as it educates the market and Careem could also be a partner. Algeria is a complicated market. A foreign company needs a local partner and we all know that is not easy,” he offered.
With the latest investment, TemTem has now joined an elite class as one of the first regional ride-hailing startups, after Egypt’s Ousta, to garner significant investment. This places the startup on a strong financial footing as it hopes to thrive in a regional market dominated by the likes of Uber and Careem. Kamel also revealed that the injection of funds will support the company’s plans to deploy its services across other parts of Algeria and also boost its marketing strategy.
This publication has been updated to include new information revealed by the Founder.
Image: Kamel Haddar (courtesy youtube)
Get Access to 20+ well researched and insightful African business stories monthly & unlimited access to Free-reads.
If you are a Corporate or a Student, please reach out to us at [email protected]