South African artificial intelligence startup Locstat has raised approximately €2.5 million (US$2.3 million) in a pre-Series A funding round aimed at accelerating its expansion into the United Kingdom and the European Union.
The round was led by Portugal Gateway Fund (PGF) with participation from ANZA Capital. Locstat said the fresh capital will be used to bolster its go-to-market operations in the UK/EU market, deepen its partner ecosystem, and intensify its engineering and customer-success capacity in its home base in South Africa.
Founded in 2016, Locstat has developed a graph-powered AI and complex event-processing platform designed to ingest and analyse large volumes of connected, fast-moving data from multiple sources. The platform supports enterprise use cases including fraud detection, anti-money-laundering (AML) routines, customer-journey mapping and geo-spatial analytics—delivering insights in real time by modelling entities and their relationships rather than relying solely on conventional tabular data.
The UK/EU market presents a rich opportunity for Locstat: mature financial services, stringent regulatory regimes (especially around compliance, AML and fraud), and a growing appetite for advanced analytics and AI platforms. The company argues that its success in complex African transactional environments gives it a competitive edge when entering Europe’s regulated enterprise space.
As one of the co-founders, Ryno Goosen, stated, “This investment allows us to take a home-grown South African technology, tested in some of the most complex transactional environments in Africa, and bring it to new markets at pace.”
Key planned uses of the funds:
- Building out the UK/EU sales, marketing, and partner network.
- Expanding engineering and customer-success teams in South Africa to support both African and European clients.
- Strengthening product capability to address enterprise requirements in fraud, compliance, risk detection, real-time decisioning.
- Positioning the business toward a full Series A round in the next one to two years.
This funding round highlights several wider trends:
- African-origin AI and analytics startups are increasingly targeting global markets, not just regional ones.
- The UK/EU continues to represent high-value expansion ground for companies beyond Europe, especially in data-intensive and regulated sectors.
- Growing investor appetite for real-time, graph-based analytics platforms in fraud, compliance and risk domains.
- The importance of dual-market strategies: scaling internationally while maintaining R&D and operations in the home region (in this case South Africa).
While the funding provides momentum, Locstat faces some key challenges:
- Sales cycles in UK/EU enterprise and regulated industries are typically long.
- Compliance, data sovereignty and localised regulatory frameworks differ across the UK, the EU and Africa.
- Competition in fraud/AML analytics and decision platforms is intense; differentiation (graph analytics, real-time streaming) must be clearly communicated.
- Execution discipline will be critical: translating African success into European market adoption is non-trivial.
With the launch of its European push, Locstat aims to sign initial enterprise clients in the UK and EU within the next 12-18 months, build out a partner/reseller ecosystem to accelerate reach, and drive recurring revenue growth. Investor lead PGF has flagged that the investment supports a pipeline toward a Series A that could follow once European traction is achieved.
If successful, Locstat could become among the first South African AI-analytics firms to anchor a strong presence in Europe, reinforcing the capability of African tech innovation to expand globally.
Read more on Tech Gist Africa:
Float, South African fintech startup has secured US$2.6 million in funding