The new venture enters a burgeoning African venture capital scene alongside established entities like TLcom Capital and Future Africa. These firms have supported startups addressing the continent’s unique challenges. However, the African startup ecosystem faced a downturn, with investments dropping by over 50% in 2023, according to Briter Bridges. In this context, Yango Ventures’ $20 million fund represents a significant boost, potentially revitalising investment activities in the region.
Yango Group, a global technology company, has unveiled Yango Ventures, a $20 million corporate venture fund targeting early-stage startups from seed to Series B stages. The fund focuses on sectors such as online-to-offline (O2O) services, B2B SaaS, and fintech across regions including Sub-Saharan Africa, Latin America, the Middle East, North Africa, Afghanistan, and Pakistan. Beyond financial support, Yango Ventures aims to provide mentorship and leverage Yango’s extensive network to facilitate effective scaling of startups.
Initially launched in 2018 as a brand developed by the Yandex Taxi team, Yango Group offers services such as ride-hailing, public transport data, delivery, e-grocery, adtech, maps, entertainment, and AI voice assistance. Headquartered in Dubai, the company operates in over 30 countries across Europe, Africa, the Middle East, South Asia, and South America. The current CEO is Daniil Shuleyko.
Yango’s flagship service, Yango Ride, has expanded to operate in more than 25 countries. The company collaborates with local taxi companies, enhancing their efficiency through technology rather than owning vehicles or employing drivers directly. This approach supports the development of small and medium-sized businesses in its operational markets. Beyond ride-hailing, Yango has diversified into sectors such as mapping, mobility, entertainment, robotics, and AI smart devices.
In the ride-hailing sector, Yango faces competition from both global and regional players. Notable competitors include Uber, Indrive, and Gett. InDrive entered the African market in 2018 and has expanded across multiple countries, pioneering a zero-commission policy to benefit drivers. Uber has been active in Africa since 2013, starting in South Africa and expanding to countries like Nigeria, Kenya, and Ghana. It offers various services, including electric vehicles and premium options. Citymobil, established in 2007 in Moscow, has secured $35 million in funding and is backed by investors like MegaFon in the Russian market.
Yango’s investment strategy mirrors a growing trend of corporate-backed venture funds stepping in to support emerging market startups. Similar initiatives by global firms such as Google’s Africa Investment Fund and Mastercard’s Start Path program have played a critical role in funding and scaling tech-driven solutions on the continent. By launching Yango Ventures, the company positions itself as a key player in shaping the next generation of digital businesses in Africa and beyond.
Yango Group’s introduction of a $20 million venture fund signifies a substantial commitment to fostering innovation and entrepreneurship in emerging markets. The fund is expected to begin deploying capital in the coming months, with a strong emphasis on startups that demonstrate technological innovation, market scalability, and strategic alignment with Yango’s global operations.
