Technology
African Tech Companies Are Growing Through Acquisition, Not Funding
The tech sector in Africa changed noticeably in 2025. Instead of raising large rounds of funding, many companies chose to grow by buying or merging with others. Data from industry reports show that mergers and acquisitions reached a record high. A total of 67 deals were closed last year, up from 39 the year before.
This shift shows that many founders and investors now see acquisition as a way to gain scale, enter new markets, or add new products. In many cases, deals were done because markets for public listings remained quiet and funding rounds became harder to secure.
These deals helped companies avoid the uncertainty of public markets. They gave buyers the chance to take over existing customer bases and local licences. This change in strategy suggests that consolidation is now a part of how tech companies on the continent plan their growth.
Tools and Online Services in Acquisition Strategy
As more tech firms expand through acquisition, they often rely on practical tools to manage larger and more scattered operations. Common services include project management platforms, shared storage solutions, and customer support systems. These tools allow companies to merge teams, align workflows, and respond quickly to user needs after a deal is completed.
Cross-border operations also raise the need for secure remote access. Some firms use encrypted browsing tools to safely link with internal systems while operating in new or less-regulated markets. VPNs are one of the most common solutions for this purpose. They help ensure that sensitive data stays protected during transitions and early-stage integrations.
Some companies test such tools using a VPN free trial to determine whether they meet the technical requirements of new locations. This can help assess performance before investing in a long-term solution, especially during early stages of a merger where operations may still be shifting. Simple steps like this often make a difference in how smoothly the post-deal period unfolds.
How Acquisition Has Shaped Key Sectors
Acquisition activity in Africa’s technology scene was broad in 2025. Fintech accounted for a large share of the deals. Moniepoint picked up smaller financial software firms in Nigeria. Rank, which used to be called Moni, bought companies to improve its banking licence and expand payment options.
E-commerce and logistics saw changes, too. Twiga Foods made moves to secure its supply chain by buying local distributors. Logistics platform Logidoo acquired Kamtar in a cross-border deal that brought more regional reach. Telecom and media also saw activity when AXIAN Telecom added a strategic stake in Jumia.
Healthcare and tech services were part of the trend as well. HearX bought Eargo to bring new health solutions together. In deep tech, Adapt IT purchased ResRequest to add software tools to its portfolio. These examples show that buyers are looking across different sectors, not only in finance.
Cross-Border Expansion and Global Reach
African tech companies did not limit their acquisitions to the continent. Some deals took these firms into Europe and the Americas. A number of African startups made purchases or established operations in the United Kingdom and the United States. This included deals where tech firms acquired specialised service providers to enter new markets.
Countries such as Uganda, Senegal, and Morocco also hosted acquisitions by African companies from outside their borders. These moves gave buyers access to new customers and technology. They also helped sellers find exit options when local investors were limited.
This pattern of global expansion shows that African tech firms are no longer seen only as local players. They are active in a wider market and interact with international partners in ways that were rare a few years ago.
What This Means for the Future
Now in 2026, the pattern set in the previous year is already shaping how African tech companies approach growth. The record number of acquisitions in 2025 marked a new way forward. Many firms are choosing to buy their way into markets, licenses, and customer networks rather than rely on long fundraising cycles.
This year, analysts expect acquisition-led growth to remain a top strategy. Companies that move early can gain access to talent, local market knowledge, and operational infrastructure without having to build everything from the ground up.
Sectors like fintech, logistics, healthcare, and cloud services are already seeing follow-up deals. As 2026 continues, acquisition appears less like a side strategy and more like the main way tech companies in Africa plan to grow.
Technology
Capillary Technologies Acquires SessionM from Mastercard
By Modupe Gbadeyanka
A software product company established in 2012, Capillary Technologies India Limited, has acquired the customer engagement and loyalty company, SessionM, from Mastercard.
This followed a definitive agreement signed by the global leader in AI-powered customer loyalty and engagement solutions with the renowned digital payments firm.
The acquisition of SessionM is the latest in a series of strategic moves by Capillary, following its successful listing on the Indian Stock Exchange in November 2025.
With SessionM in its portfolio, Capillary reinforces its position as a global leader in enterprise loyalty, offering a leading platform to the world’s most sophisticated enterprise brands.
Mastercard has identified Capillary Technologies—consistently recognised as a Leader in The Forrester Wave as the ideal partner to lead SessionM into its next era of growth.
As part of the agreement, a specialised team within SessionM will transition to Capillary, ensuring that the platform’s deep technical expertise is preserved.
SessionM’s esteemed global customer base—which includes Fortune 500 retailers, airlines, and CPG brands—will continue to receive the same high-calibre support and service they experienced before the acquisition.
“M&A has been a key growth strategy for Capillary over the years, and as a public company, we are delivering on that promise to our shareholders and the market.
“By bringing SessionM into our portfolio, we are not just expanding our footprint across the globe; we are further strengthening our loyalty capabilities to deliver one of the industry’s most comprehensive offerings.
“Our mission remains to provide enterprises across industries with specialised, AI-native loyalty technology solutions,” the chief executive of Capillary Technologies, Aneesh Reddy, commented.
Technology
Emergent Ventures, Others Invest $2.2m in Potpie
By Dipo Olowookere
About $2.2 million pre-seed round to help engineering teams unify context across their entire stack and make AI agents genuinely useful in complex software environments has been announced by Potpie.
Potpie was established by Aditi Kothari and Dhiren Mathur, who were determined to unify context across the entire engineering stack and enabling spec driven development.
As generative AI adoption accelerates, most tools focus on surface-level code generation while ignoring the deeper problem of context.
Large language models are powerful, but without access to system-level understanding, tooling history, and architectural intent, they struggle in real production environments.
Traditional approaches rely on senior engineers to manually hold this context together, a model that breaks down at scale and fails when AI agents are introduced.
The platform enables teams to automate high-impact and non-trivial use cases across the software development lifecycle, like debugging cross-service failures, maintaining and writing end-to-end tests, blast radius detection and system design.
It is designed for enterprise companies with large and complex codebases, starting at around one million lines of code and scaling to hundreds of millions.
Rather than acting as another coding assistant, Potpie builds a graphical representation of software systems, infers behaviour and patterns across modules, and creates structured artefacts that allow agents to operate consistently and safely.
A statement made available to Business Post on Monday revealed that the funding support came from Emergent Ventures, All In Capital, DeVC and Point One Capital.
The capital will be used to support early enterprise deployments, expand the engineering team, and continue building Potpie’s core context and agent infrastructure, it was disclosed.
“As AI makes code generation easier, the real challenge shifts to reasoning across massive, interconnected systems. Potpie is our answer to that shift, an ontology-first layer that helps enterprises truly understand and manage their software,” Kothari was quoted as saying in the disclosure.
A Managing Partner at Emergent Ventures, Anupam Rastogi, said, “In large enterprises, the real challenge is not generating code, it is understanding the system deeply enough to change it safely.
“Potpie’s ontology-first architecture, combined with rigorous context curation and spec-driven development, creates a structured model of the entire engineering ecosystem. This allows AI agents to reason across services, dependencies, tickets, and production signals with the clarity of a senior engineer. That is what makes Potpie uniquely capable of solving complex RCA, impact analysis, and high-risk feature work even in codebases exceeding 50 million lines.”
Technology
Expert Reveals Top Cyber Threats Organisations Will Encounter in 2026
By Adedapo Adesanya
Organisations in 2026 face a cybersecurity landscape markedly different from previous years, driven by rapid artificial intelligence adoption, entrenched remote work models, and increasingly interconnected digital systems, with experts warning that these shifts have expanded attack surfaces faster than many security teams can effectively monitor.
According to the World Economic Forum’s Global Cybersecurity Outlook 2026, AI-related vulnerabilities now rank among the most urgent concerns, with 87 per cent of cybersecurity professionals worldwide highlighting them as a top risk.
In a note shared with Business Post, Mr Danny Mitchell, Cybersecurity Writer at Heimdal, said artificial intelligence presents a “category shift” in cyber risk.
“Attackers are manipulating the logic systems that increasingly run critical business processes,” he explained, noting that AI models controlling loan decisions or infrastructure have become high-value targets. Machine learning systems can be poisoned with corrupted training data or manipulated through adversarial inputs, often without immediate detection.
Mr Mitchell also warned that AI-powered phishing and fraud are growing more sophisticated. Deepfake technology and advanced language models now produce convincing emails, voice calls and videos that evade traditional detection.
“The sophistication of modern phishing means organisations can no longer rely solely on employee awareness training,” he said, urging multi-channel verification for sensitive transactions.
Supply chain vulnerabilities remain another major threat. Modern software ecosystems rely on numerous vendors and open-source components, each representing a potential entry point.
“Most organisations lack complete visibility into their software supply chain,” Mr Mitchell said, adding that attackers frequently exploit trusted vendors or update mechanisms to bypass perimeter defences.
Meanwhile, unpatched software vulnerabilities continue to expose organisations to risk, as attackers use automated tools to scan for weaknesses within hours of public disclosure. Legacy systems and critical infrastructure are especially difficult to secure.
Ransomware operations have also evolved, with criminals spending weeks inside networks before launching attacks.
“Modern ransomware operations function like businesses,” Mitchell observed, employing double extortion tactics to maximise pressure on victims.
Mr Mitchell concluded that the common thread across 2026 threats is complexity, noting that organisations need to abandon the idea that they can defend against everything equally, as this approach spreads resources too thin and leaves critical assets exposed.
“You cannot protect what you don’t know exists,” he said, urging organisations to prioritise visibility, map dependencies, and focus resources on the most critical assets.
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