Dutch Private Equity (PE) firm DOB Equity has acquired a multi-million shilling stake in multi-disciplinary coding school Moringa, the firm has revealed.
Despite not giving the exact value of the transaction, the PE firm’s move was informed by the increasing demand for software developers globally. Moringa School nurtures the next generation of tech leaders and innovators through market driven education.
“This is a huge opportunity to plug the skills gap by better training tech talent to fit the growing market needs. The increasing global demand for tech talent, together with Africa’s rapidly rising population, makes this opportunity even more pressing. The investment by DOB is earmarked for regional expansion and strengthening of the technical platform. Moringa provides digital and professional training to students, increasing their employability and access to labour market,” DOB Equity Chief Executive Brigit Van Dijk-van de Reijt said in a statement.
On her part Moringa School’s founder Audrey Cheng expressed optimism in partnering with DOB following their investment.
“We’re excited to continue to grow our quality and students served in partnership with DOB. We are looking forward to drawing on DOB’s experience in East Africa, as we build new market-aligned courses and expand our offerings to students in Kenya. Currently, Moringa has served students in Kenya from over 10 countries in Africa and is also looking forward to increasing access to our courses for students from other countries,” Ms. Cheng said.
Last month, Moringa School was fined Ksh. 500,000 by the Competition Authority of Kenya (CAK) for implementing a non-approved merger in 2016 without notifying and getting necessary approvals from the regulator. The school voluntarily informed the regulator of the deal and how the merger was implemented without receiving the requisite regulatory approval. Moringa School was initially owned by Frank Collins Tamre and Audrey Patricia Cheng. Each of them owned 50 per cent of the business. The change of ownership, from joint to sole, happened after Cheng acquired Tamre’s stake in 2016, and was done without CAK’s approval.