Ghanaian tech just got a boost. Local ecommerce startup, Ahonya has closed a round of funding to ramp up its operations. The funding round was led by Dubai based Rio Technology Partners with follow-on participation from existing investors, Savannah Fund.
All parties to the deal have declined to comment on the terms of the new investment, but it is probably safe to peg it in the vicinity of the lower end of Rio’s investment range. The investment firm tends to invest between $250,000 and $2.5 million with a focus on seed, early and growth stage investment opportunities. The official release describes the Ahonya investment as a seed round.
Ahonya is an alumnus of the Savannah Fund accelerator programme and has already received $25,000 in exchange for 15 percent equity in the first instance. Savannah Fund manager Mbwana Alliy described the business as a standout startup of their first accelerator class in 2013. The Ghanaian startup will also be the first of the Savannah alumni to receive follow-on funding from the Nairobi-based fund.
Ahonya’s founders intend to use the fresh cash injection to recruit more manpower and expand the reach of its online electronics retail operation. So far, the startup doesn’t appear to have a lot of local competition…yet. Compared to Nigeria and Kenya, there aren’t that many active e-commerce stores, and it would seem that Konga and Jumia are still fully pre-occupied with conquering the Nigerian market.
Rio Technology Partners’ Percy Grundy will be joining Ahonya’s board. Formerly CEO of Tigo Ghana and Commercial Director for Africa at Millicom, Grundy believes that the combination of Rio’s hands-on approach to investment, expertise in West Africa and financial support, will help the one and half year old startup to successfully scale its operations in Ghana.