In a big boost to African technology sector, Andela, a startup company that trains software developers and gets them deployed to large global tech companies, has raised $40 million in series C funding.
This investment was led by CRE Venture Capital, an African venture firm, and was supported by other investors such as DBL Partners, Amplo, Salesforce Ventures and an Africa-focused investor named TLcom Capital.
The investment round also saw previous investors Chan Zuckerberg Initiative, GV and Spark Capital participate. This by far has been the most highly funded African company that is actually not based out of Africa.
Andela has stated that the funding will help it in global expansion as it plans to set up two more offices in other African countries.
However, the investment also came under some criticism from locals, who say that Andela is disrupting the local startup community that is sprouting on the continent.
Andela was started in 2014 with a sole objective to train developers from Africa and get them placed in jobs in some of the top IT companies in the world. The concept was to capitalize on the ‘underutilized’ skilled resource pool. According to the company, more than 1.3 million positions in the United States were not filled, and these numbers are just for the year 2016.
The startup has developed campuses in Lagos, Nigeria; Nairobi, Kenya; and Kampala, Uganda for training developers. Once trained, these trained professionals are deployed in large multinational corporations like Mastercard Labs, Viacom, GitHub, etc. The company has helped more than 500 developers get hired by such companies.
Co-Founder Jeremy Johnson states that this is a total “mission-driven, for-profit company,” and he finds Andela to be a “poster-child” that can cause a significant positive impact through its business model.