Ethiopian Developer Raises USD5M for Global Authentication Startup Built from Bedroom in Addis

Bereket Engida, a self-taught Ethiopian programmer, has raised USD 5 million in seed funding for his authentication startup, Better Auth, developed entirely from his bedroom in Addis Ababa before relocating to the United States.

As reported by TechCrunch, an American technology news website, the funding round attracted top global investors, including Peak XV (formerly Sequoia Capital India and Southeast Asia), Y Combinator, P1 Ventures, and Chapter One. The deal marks Peak XV’s first direct investment in an African founder.

Better Auth is an open-source authentication framework designed to help developers manage user sign-ins, roles, and permissions with more flexibility and scalability than traditional services like Auth0, Firebase, or NextAuth. The platform has already gained significant traction globally, with over 150,000 weekly downloads, 15,000+ GitHub stars, and a community of 6,000+ developers on Discord.

According to Bereket, the idea emerged after he repeatedly encountered limitations in existing authentication tools during his remote software jobs. He began building Better Auth using TypeScript, focusing on modular features like team-based roles and customizable user management systems — all available through a few lines of code.

“Most authentication tools store user data externally and lack customization at scale,” said Engida. “I built Better Auth to offer developers more control, with an open-source base and a plug-in structure for advanced features.”

The tool, released on GitHub in September 2024, quickly gained attention among developer communities, especially in the AI startup ecosystem. Better Auth is currently free to use, but the startup plans to introduce a paid enterprise infrastructure that allows cloud hosting and additional integrations.

Bereket, who began programming at 18, is now planning to hire a small team to expand the platform while preserving its community-driven foundation. The startup recently graduated from Y Combinator’s Spring 2025 batch, making it the third Ethiopian-founded company to join the renowned accelerator, after Avion and BeU Delivery.

“Building Better Auth from Ethiopia proves that world-class developer tools can come from anywhere,” said Engida. “It’s a signal to other Ethiopian innovators that global tech markets are within reach.”