Terragon, a prominent data and cloud martech company in Africa, has successfully raised $9 million in a Series A funding round, validating the maturation of the cloud and martech market in Africa.
Terragon offers a range of products to its clients, primarily telecommunications and financial services companies, providing them with valuable data on the continent’s growing consumer markets. One of its main products, Adrenaline, serves as a telco-data monetization solution, enabling telcos to diversify their income and marketers to access specialized audiences that are otherwise unavailable through traditional marketing channels. These tools empower Terragon’s corporate clients to delve into various combinations of behavioral and demographic information, reaching consumers through multiple online and offline channels, and linking to various touchpoints, including online sales and payment systems.
The company initially secured $5 million in Series A funding in 2018, which was used to further develop Adrenaline into the Terragon Marketing Cloud, comprising over 150 million segmented profiles in Nigeria. Now, with the recent $9 million investment in Series B, led by Orange Ventures with participation from various other investors, Terragon aims to expand its focus on offering mobile B2C messaging backed by deep consumer insights from big data. The company plans to enhance its cloud-native capabilities on its platform, develop localized ML (Machine Learning) and AI solutions, and establish a Pan-African presence, building upon its current expansion efforts in Ghana and Kenya.
Terragon’s growth and success are attributed to its pioneering approach in leveraging mobile phone numbers as unique identifiers for digital services in Africa, where nearly half a billion users subscribe to mobile services. Unlike Europe, which predominantly relies on email addresses, Africa’s mobile-first nature has allowed Terragon to harness multiple data sources effectively through solutions like TrustPid, enabling precise customer tracking and engagement for advertisers and marketers on the continent.
Furthermore, the relatively less stringent comprehensive privacy regulations in Africa compared to Europe have facilitated Terragon’s growth on the continent. The company’s revenue has increased tenfold since its Series A funding in 2018, with a projected 100% year-over-year growth rate until 2023. Terragon boasts an impressive list of partners and clients, including Microsoft, Unilever, Access, Fidelity, FCMB, and telecoms like MTN, with a customer retention rate of over 50% quarter over quarter.
Investors, such as Orange Ventures, recognize the enormous potential in Terragon’s software products, as they serve as fundamental building blocks for enterprise AI across Africa. With protected intellectual property, an inventive business model, and a strong presence in multiple markets, Terragon is well-positioned to establish a strong leadership position across the continent.