Bloc Smart Africa is leading $1m. round in SA’s township ISP

The BLOC Smart Africa fund (BLOC SA) – initiated by the Smart Africa Alliance and managed by Bamboo Capital Partners – has announced an investment of $585 000 in TooMuchWifi, a South African internet service provider.

BLOC SA was the lead in the $1 million preseries A round. This capital came from Connectivity Capital, Atreyu Investments, and a European Family Office, as well as existing investors who made follow on investments.

The funding will be used to scale operations in order to expand into new markets and increase market presence.

TooMuchWifi is a term that refers to bridge the connectivity gap by providing fast, affordable, fibre-backed Internet that is uncapped to densely populated areas in South Africa such as townships.

Based on the data bundles purchased, township residents can expect to pay R200 per gigabyte. TooMuchWifi, however, has brought the price per gigabyte down to below R4. This is 20 times more than the value of data from mobile network operators.

TooMuchWifi – A more equitable future

“We believe that one of the steps we can take towards a more equitable future is to ensure that all South Africans have access to fast internet for school, work and entertainment.”TooMuchWifi chief executive Ian Thomson says, “To date, TooMuchWifi has saved Capetonians living in townships over R700 million (about $50 million) in data costs. We have trained and employed more than 245 previously-unemployed young people from the township communities we serve.

The start-up has proved to be a real challenger among the internet service providers in Africa, believes Lacina Koné, chief executive and director-general at Smart Africa Secretariat.

“Their commitment to lower the cost of data and empower the under-served communities by giving them access to affordable internet and training previously unemployed young people is in line with our vision and objective at Smart Africa.”

TooMuchWifi founder Jean-Philippe de Schrevel is the managing partner of Bamboo Capital Partners. He describes TooMuchWifi among the most capital-efficient internet service provider they have ever seen in Africa.

“It is one of the few South African operators having demonstrated an ability to operate and scale in underserved communities, with exceptional client satisfaction and retention, by successfully combining its proprietary ERP software and unique leadership development culture. We are pleased to support the growth of TooMuchWifi and their mission to increase connectivity across South Africa.”

Get latest news from African Startup ecosystem

Latest stories

You might also like...