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Little, a Kenyan technology firm led by Kamal Budhabatti, plans to sell up to 25 percent of its shares over the next three years to raise Ksh2 billion ($17 million).
The news comes not long after the company sold under 10 percent of its shares to an unnamed Indian investor for $3 million in 2018. The move will see investors buy into Little as executives implement strategies to increase its valuation from Ksh9.52 billion ($80 million) to Sh11.9 billion ($100 million).
Little, which operates an indigenous ride-hailing service, stated that the net proceeds from the proposed 25-percent stake sale will broaden its reach and increase its retail market share.
The funding will also aid in the development of the company’s infrastructure and talent pool through retention and strategic recruitment, while growing its presence in the region.
Budhabatti, the CEO of Little, holds a 15-percent stake in Little through his software firm Craft Silicon, which he founded in 2000.
He stated that some of the investment will go toward Craft Silicon and some toward Little.
“We might get into Little first, then we take it to Craft,” he said. “That means that if someone wants to invest, we will first bring them into Little and, hopefully, Craft.”
“There are too many options. We just want to be careful about who we are bringing on board because we do not want to just bring somebody on board for the sake of money,” he added. “Yes, we are looking for money, but money is not the only thing.”
Budhabatti, an Indian-Kenyan entrepreneur who has played a significant role in the Kenyan tech space, founded Little in 2016 in collaboration with the telecom giant Safaricom. Under his leadership, it has expanded its ride-hailing services to Uganda, Tanzania, Zambia, and Ethiopia and launched operations in West African countries like Ghana and Senegal.
Little announced plans to introduce electric bikes and scooters in universities and select Nairobi estates nearly four months in an effort to expand beyond ride and delivery services.
