Ethiopian Startup Better Auth Raises $5M to Reinvent Authentication Infrastructure

Ethiopian-founded startup Better Auth has raised $5 million in seed funding to advance its open-source authentication platform.

The company, founded by Bereket Engida and Kinfe Michael Tariku, is focused on enabling developers to build and own their authentication systems without relying on expensive, centralized platforms. The startup’s flagship product is an open-source authentication tool built specifically for TypeScript, designed to simplify login, verification, and session management workflows.

“This funding fuels the next phase of Better Auth,” the company said in its announcement.

With this capital injection, Better Auth plans to scale its infrastructure and team to meet the growing demand from developers. The roadmap includes new features such as a unified dashboard for user management and analytics, enterprise-grade protection against bots and fraud, enhanced email and SMS authentication, and fast, globally distributed session storage.

The company’s expansion marks a significant step from its initial open-source framework to a full-stack security platform. Despite its growing international presence, Better Auth remains deeply connected to its Ethiopian roots.

"We wanted to prove that you can build global infrastructure out of Africa," Bereket said in an earlier interview with Addis Insight.

The startup gained early visibility through its participation in Y Combinator’s Spring 2025 cohort, overcoming visa delays and geographic barriers to reach Demo Day and secure key investor relationships.

"It's still early days, there's so much more to build," the founders said, adding, "We're obsessed with making high-quality authentication the obvious choice for everyone."

The funding round attracted backing from top global investors, including Peak XV Partners (formerly Sequoia Capital India & SEA), Y Combinator, Chapter One, P1 Ventures, and several angel investors.