Algiers-based ride-hailing startup TemTem has secured USD 4 Mn in what is Algeria’s largest Series A round. MENAbytes reports the investment was made by Tell Venture Automotive, a spinoff of Luxemburg-headquartered financial services company, alongside other unnamed investors.
The ride-hailing scramble for Africa isn’t just real, but a hot competition in a hot market. The continent represents a faster growth avenue than Europe, where multiple firms have become bogged down in back and forths with city regulators. In the Middle East and North Africa (MENA), the ripe ride-hailing market prompted by a population of 180 million.
Algeria’s over 41 million people backed by a steady growth of technology adoption is a promising opportunity for ride-hailing firms. Founded just last year, TemTem can be said to be one of the latest players in the space. It has up to 45,000 users, completes 70,000 rides monthly and has 4000 drivers on its platform.
The USD 4 Mn raise comes at a rather interesting time. Just last week, Uber finally acquired its MENA ride-hailing rival Careem in a deal worth USD 3.1 Bn. In November last year, Careem made known its intentions to expand to Algeria, but it is unknown whether it has kicked off operations.
What also stands as significant competition for TemTem is Yassir, an app that was launched in September 2017. But TemTem has a larger war chest of funding – USD 5.7 Mn in total – which leaves Careem as the only possible substantial competition the startup needs to worry about.
Founded by serial entrepreneur Kalem Haddar, TemTem operates in Algiers and the coastal city of Oran. During its USD 1.7 Mn angel (seed) raise last year, the ride-hailing firm said it was going to expand to 10 new Algerian cities.
It’s obvious where the new capital reception will be channeled towards, as the startup looks to become a market leader in the North African country’s mobility sector.
Meanwhile, French cab-hailing company Heetch is also hoping to steal a march in the western corner of the continent where linguistics may give it an advantage. In May this year, the firm landed USD 38 Mn to expand operations to Algeria, Cameroon and Senegal. Taxify, on the other hand, is mostly concerned about English-speaking African countries.
As the best-funded Algerian startup, all eyes are now on TemTem. Ordinarily, the startup will increase in fleet and number of cars. The firm has smashed a self-set funding record in the country – it’s USD 1.7 Mn seed last year was Algeria’s largest startup investment.