AltSchool Africa, the Nigerian educational technology startup positioning itself as the African equivalent of the U.S. coding bootcamp BloomTech, is set to receive strategic support from Intellecap, an advisory firm focused on Asia and Africa. This assistance, fully funded by the Rwandan Innovation Fund, aims to facilitate AltSchool’s strategic planning for its upcoming growth phase, according to information obtained by TechCabal.
In April 2023, AltSchool secured $3 million in funding, with Angaza Capital, a venture capital firm co-managing the Rwandan Innovation Fund, participating in the round, as revealed by Pitchbook data. This investment, previously undisclosed, was instrumental in AltSchool’s financial backing. Adewale Yusuf, AltSchool’s CEO, acknowledged the funding from the innovation fund while choosing not to disclose specific figures.
Established in 2021 with a $30 million loan from the African Development Bank, the Rwandan Innovation Fund aims to bolster Rwanda’s position as a technology hub in Africa. Adewale Yusuf expressed gratitude for the support received from the Rwandan government in a LinkedIn post.
AltSchool established a presence in Rwanda last year at the Norrsken hub, becoming one of the first African companies attracted to the country. With four staff members currently in Rwanda and ongoing hiring efforts, AltSchool joins a growing list of companies, including Flutterwave and Paystack, expanding into the region.
Beyond the initial $30 million AfDB loan, the Rwandan Innovation Fund seeks an additional $30 million from private investors, with an $8.6 million contribution from the government. The fund aims to invest in 150 tech-enabled companies, ten incubators and accelerators, and 20 early-stage growth opportunities across Africa. To date, $6.6 million has been deployed in 11 startups in East Africa.
AltSchool distinguishes itself by offering exclusively online learning with a comprehensive curriculum spanning business, data, engineering, media, and the creative economy. Charging $20-$50 monthly for course durations, AltSchool employs the income-sharing agreement (ISA) model, commonly used by online edtech startups like ALX. The company facilitates internships to connect learners with practical experience, ultimately aiming to help them secure employment.
AltSchool’s commitment extends to supporting approximately 20,000 learners across eight African countries. In addressing the persistent challenge of youth unemployment in Africa, AltSchool aims to equip young people with globally sought-after skills. Notably, the startup’s $1 million pre-seed funding round in 2022 included contributions from VCs such as Voltron Capital and Obda VC, along with notable individuals like Paystack’s Sola Akinlade and Nigerian musician Folarin “Falz” Falana.