Eden Care becomes first Rwandan company to join Y Combinator

Y Combinator has selected Eden Care Rwandan health-focused insurtech for its summer batch this year. This is the accelerator's first investment in the East African country.

Also, at the time of this report, Eden Care is the only African company listed on the YC directory out of about 71 others from other parts of the world that are in the YC 2023 Summer batch.

However, a source familiar with the cohort told Bendada.com that there are two other African startups in the batch, one from Nigeria and another from the Democratic Republic of Congo (DRC).

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The DRC-based startup is Vaultpay, a fintech that is aimed at providing payments infrastructure for Central Africa. The company was founded this year by Christel Ilaka and Ntambwa Basambombo.

Going by this data, Y Combinator invested in only six African startups [via its biannual accelerator] this year, the lowest record since 2018.

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In March, Garry Tan, YC's president disclosed that the accelerator is shutting down its $700 million Continuity Fund targeted at growth-stage startups describing it as a "distraction from [Y Combinator's] core mission", this decision affected 20% of its employees.

Know more about Eden Care

Eden Care leverages artificial intelligence and machine learning to deliver hassle-free, affordable health insurance solutions. Through these technologies, the company empowers Rwandan organisations with the resources they need to support their employees and their dependents healthcare needs.

"Being accepted into Y Combinator is an extraordinary validation of the hard work and dedication our team has invested in our vision and to be part of changing the narrative on start-ups in Africa" said Moses Mukundi, Founder and CEO of Eden Care. "We are excited to utilize this opportunity to further optimize our technology and accelerate our mission of revolutionizing health insurance across Africa."

With the backing of Y Combinator, Eden Care intends to amplify its efforts and commitment to redefining health insurance in Africa, aiming to extend its footprint beyond Rwanda.

“Being accepted into Y Combinator will be the catalytic force that fuels our growth, enabling us to revolutionize digital health insurance in Rwanda and beyond. It's not just about securing investment; it's about tapping into a wellspring of unparalleled knowledge, global connections, and the collective wisdom of an entrepreneurial community committed to redefining what's possible,” Tshepo Machele, Chief Growth Officer at Eden Care, added.

How much will YC invest in Eden Care?

In 2022, Y Combinator increased its standard deal to $500,000. However, the funding is divided into two; $125,000 on a post-money safe in return for 7% and the new $375,000 on an uncapped safe with a most favored nation (MFN) provision, both are not contingent on any milestones by the recipient company.

"The $125k safe and the MFN safe will each convert into preferred shares when your company raises money by selling preferred shares in a priced equity round, which we refer to below as the “Safe Conversion Financing” (this will typically be your “Series A” or “Series Seed” financing, whichever happens first)," Y Combinator announced.

Read More: What Y Combinator's $500,000 standard deal means

Editor's Note:

We edited the nutgraph to reflect the number of African startups in the cohort.
The article has been updated to include the name of the DRC-based startup (July 14, 2023, 10:59 WAT)