Ian Thomson, founder and CEO of TooMuchWifi.
TooMuchWifi, a South African web service supplier, has acquired $1 million (about R16 million) funding in a pre-series A funding spherical led by fintech investor BLOC Good Africa Fund.
It acquired further capital from different traders Connectivity Capital, Atreyu Investments and European Household Workplace.
In response to Cape City-based TooMuchWifi, the proceeds of the funding will go towards scaling operations to extend its presence in current markets and develop into new communities.
TooMuchWifi works to bridge the connectivity hole in SA by bringing quick, uncapped and inexpensive fibre-backed web to underserved, densely-populated areas, like townships.
Based by Ian Thomson and Jonathan Endersby in 2016, the corporate says it has established fundamental web infrastructure in additional than 35 underserved native communities, with over 120 000 prospects.
“Thus far, TooMuchWifi has saved Capetonians residing in townships over R700 million in information prices. We’ve skilled and employed greater than 245 previously-unemployed younger individuals from the township communities we serve,” notes TooMuchWifi CEO Thomson.
“We consider that one of many steps we are able to take in direction of a extra equitable future is to make sure all South Africans have entry to quick web for college, work and leisure.”
The Competitors Fee (CompCom) information providers market inquiry in December 2019 discovered the price of information in SA was significantly greater than in lots of different international locations.
The CompCom beneficial that telcos scale back information prices and instructed the main operators − MTN and Vodacom − to chop their cell information pricing by half.
Whereas this led to the cell community operators heeding information worth discount calls, information costs in SA are nonetheless significantly greater than counterparts in rising markets.
In response to TooMuchWifi, on common, individuals residing in SA’s townships pay as much as R200 per gigabyte of information, relying on the info bundles they purchase.
The corporate says it has labored to deliver down the price per gigabyte to below R4, by way of the providers it supplies – that is as much as 20 instances the worth of cell community operator information.
The corporate says it is ready to present inexpensive information attributable to its enterprise mannequin.
TooMuchWifi, which owns its infrastructure, says it is ready to run its backhaul community to information centres − these are transit centres that then hook up with different information centres domestically or internationally by way of undersea cables.
“TooMuchWifi has proved to be an actual challenger among the many web service suppliers in Africa,” feedback Lacina Koné, CEO/DG of Good Africa Secretariat.
“Their dedication to decrease the price of information and empower the underserved communities by giving them entry to inexpensive web, and coaching beforehand unemployed younger individuals, is according to our imaginative and prescient and goal at Good Africa. We’re happy to contribute to the expansion of TooMuchWifi by way of the BLOC Good Africa Fund.”
The BLOC Good Africa Fund is a finance expertise affect fund, with a fundraising goal of €100 million, created and managed by Bamboo Capital Companions, a specialist affect investor in rising and frontier markets.