The deal, which was closed three days ago for an undisclosed sum, is a boost for both Teraki and Ethiopia’s emerging audiobook and podcast scene.
Nahom Tsegaye, the co-founder of Teraki, told Shega that the startup will use the new funds for expansion and growth, with a possible entry into another African market by 2024.
“We are very delighted to have the backing, and this marks a significant milestone in Terak’s life,” Nahom told Shega
Teraki, which produces, streams, and distributes original Ethiopian audio content, means “The Narrator” in Amharic, and defines the core feature of the app.
Founded by Nahom Tsegaye and Abel Engida, Teraki was established in 2019 for $2,000. Using these funds, Tearki recruited Ethiopian voiceover and acting talent to record narrations of some of their nation’s most popular books.
The founders of Teraki believe informative, and entertaining Ethiopian audio content is being drowned out on international streaming platforms.
When the founders went live with Teraki in June 2021, they told Shega that users face a hard time discovering content, while content creators face difficulties in marketing their work.
Observing the gap between listeners and creators, Teraki was born to serve as a bridge between the two.
As of November, the platform had an estimated 38,000 users listening to everything from novels, self-help books, and children’s literature to podcasts on tech, entrepreneurship, interpersonal relationships, spirituality, and current affairs.
“Our generation is highly and increasingly dependent on technology, and Ethiopian youth are increasingly using Teraki to understand different current affairs and define our place in this world,” said Nahom.
“The youth really don’t have that connection with their elders and those storytellers,” said co-founder Abel Engida.
Renew Capital, which supports innovative companies with high growth potential, has a presence in Ethiopia, Rwanda, Uganda, Nigeria, Kenya, and Tanzania.
Some of the Renew Investments in Ethiopia include Deliver Addis, a pioneer food delivery and logistics startup, Desta Plc, a textile and apparel manufacturer, and Mama Fresh Injera, a commercial manufacturer and exporter of fresh-baked injera.