Tech startup, Andela has raised $100 million in series D funding. Generation Investment Management (Generation IM) led the current funding round.
Funds raised so far
Prior to the current fundraising, Andela had raised a total of $78 million in three funding rounds.
In 2015, Andela raised $14 million as series A funding. In 2015, the firm raised $24 million as series B funding. Spark Capital and the Chan Zuckerberg Initiative (CZI) were the lead investors in the first two funding rounds.
In 2017, Andela raised $40 million in Series C funding. The funding round was led by CRE Venture Capital, a South African Venture Capital firm, and backed by DBL Partners, Amplo, Salesforce Ventures, and TLcom Capital.
Why Generation IM invested
Lilly Wollman, Co-Head of Growth Equity at Generation Investment Management, stated that the private equity firm believes there is room for growth in Andela’s area of operations.
“The global demand for software engineers far exceeds supply, and that gap is projected to widen. Andela’s leading technology enables firms to effectively build and manage distributed engineering teams. We are great admirers of the outstanding team, mission and culture Andela has built across two continents and five countries.”
Use of the proceeds
Proceeds of the funds, according to Andela’s country director Omowale David-Ashiru will be used for expansion.
“Due to our unwavering commitment to our mission throughout the last four years, Andela has grown into a thriving platform for hundreds of technologists in Nigeria. With this investment, Andela will accelerate the development of Africa’s best tech talent in Nigeria and beyond.”
How Andela works
Andela, trains engineers for six months, before outsourcing them. The company bills its clients per worker and passes some of the revenues to the engineer as a salary. The rest is kept for running costs as well as recruiting and training new engineers.
The engineers have a four year contractual period with Andela. During this time. they can not work for local firms.
Andela was founded in 2004 by Ian Carnevale, Iyinoluwa Aboyeji, Jeremy Johnson and Christina Sass. The firm outsources developers to tech firms across the world.
Andela has offices in Lagos (Nigeria), Kenya, Uganda, Rwanda, and the United States.
About Generation IM
Generation IM was founded in 2004, by former US Vice President Al Gore and one time Goldman Sachs Asset Management head David Blood. As at December 2017, the firm had a total of $18.5 billion in assets under management.