Investment in Women-led Startups in Africa and MENA Region: Partnership between Village Capital and Standard Chartered
In a significant stride towards addressing the gender funding gap, Village Capital and Standard Chartered have joined forces to invest in women-led startups across Africa and the Middle East and North Africa (MENA) region. This strategic partnership aims to unlock essential resources for women entrepreneurs who have traditionally faced underfunding.
**Tackling the Gender Funding Gap**
The collaboration has unlocked over $1.9 million in catalytic grants, providing crucial financial resources to women-led startups. This funding is instrumental in enabling these startups to scale and compete effectively in their respective markets. Women founders receive less than 3% of global venture capital funding, a disparity that this partnership directly targets[1].
**Ecosystem Building and Expanding Reach**
The partnership extends beyond financial aid, focusing on ecosystem building through expert training, mentorship, and network strengthening. Initially a local initiative in Kenya, it has expanded across 12 countries, demonstrating significant geographical scaling and impact. This broader reach helps develop a sustainable pipeline of women entrepreneurs and leaders who can drive economic growth[2].
**Focus on Technology and Innovation**
By concentrating on women in tech, the partnership supports startups that harness technology to solve local problems, creating more resilient and innovative enterprises. This emphasis on tech entrepreneurship equips women with critical skills and market agility, crucial for success in rapidly evolving economies[2][3].
**Changing the Narrative and Empowering Women**
This initiative is described as "groundbreaking" and poised to fundamentally change the entrepreneurship ecosystem by empowering women and building future talent pipelines[4]. It promotes women's resilience and adaptability, referred to metaphorically as their greatest "tech stack," which strengthens their capacity to pivot and adapt in competitive and volatile markets[2][3].
**Alignment with Broader Development Goals**
Supporting women-led startups aligns with broader economic development and gender equality goals across emerging markets. By fostering inclusive growth through targeted investments and capacity-building, the partnership enhances social and economic outcomes, helping reduce gender disparities in access to finance and entrepreneurial opportunities[2][3][4].
Three startups, BeMe from Pakistan, Dabchy from Tunisia, and FreshSource from Egypt, are the recipients of this investment. Dabchy, an online marketplace for second-hand fashion in Tunisia, has over 750,000 users and 4 million listed items, promoting sustainable consumption and reducing textile waste[1]. FreshSource is an agri-tech startup in Egypt that digitizes fresh produce supply chains, connecting smallholder farmers directly to institutional buyers. The funding will help scale its operations and improve logistics capabilities.
Research shows that women-led startups often outperform their male counterparts, delivering higher returns on investment[1]. However, women-led startups are 75% less likely to receive equity financing than men, and women-founded startups received only 2.3% of global venture capital funding in 2024[1]. Since its inception in 2009, Village Capital has backed nearly 1,800 startups, funneling over $7.5 billion in follow-on capital[1]. This investment by Village Capital and Standard Chartered is a strategic effort to close the gender funding gap.
The partnership underscores Standard Chartered's commitment to advancing women entrepreneurs across its footprint. Regina Mukiri, the bank's Regional Head of Community Impact and Engagement, stated, "Empowering women is critical to sustainable economic growth." The funding is part of Standard Chartered's Futuremakers Women in Tech Financing Facility.
In summary, the Village Capital–Standard Chartered partnership strategically addresses a critical market failure — the gender funding gap — by providing capital, training, and networks to women-led startups across Africa and MENA. Its significance lies in unlocking women’s entrepreneurial potential, fostering innovation, expanding regional reach, and contributing to more inclusive economic ecosystems in emerging markets[2][3][4].
References: [1] Village Capital and Standard Chartered invest $200,000 in three women-led startups across Africa and MENA, TechCrunch, [link](https://techcrunch.com/2022/03/07/village-capital-and-standard-chartered-invest-200000-in-three-women-led-startups-across-africa-and-mena/) [2] Village Capital, [link](https://www.villagecapital.us/) [3] Standard Chartered, [link](https://www.standardchartered.com/) [4] Futuremakers by Standard Chartered, [link](https://www.standardchartered.com/about-us/sustainability/futuremakers)
- This strategic partnership between Village Capital and Standard Chartered aims to empower women entrepreneurs by investing in their businesses, providing access to crucial education-and-self-development resources.
- The investment will support technology-oriented startups, encouraging the development of innovative solutions in Africa and the MENA region, while fostering a sustainable lifestyle that promotes local problem-solving and resilience.
- By targeting women-led startups and addressing the gender funding gap, this partnership aligns with global objectives focused on gender equality, economic development, and business growth in emerging markets.
