Made a fortune from $TRUMP? Should you buy meme coins?
Meme coins like $TRUMP are dominating social media feeds, promising quick riches and skyrocketing gains. But are they worth the gamble, or are they just fleeting internet trends? Meme coins are a type of cryptocurrency driven largely by internet culture, memes, and social media hype. Unlike Bitcoin or Ethereum, which are built on robust technologies and have clear use cases, meme coins typically have little to no real-world utility. Their value comes from buzz, not substance. From Dogecoin to $TRUMP The story begins with Dogecoin, a cryptocurrency born as a joke in 2013. What started as a parody of Bitcoin gained serious traction when online communities and later high-profile figures like Elon Musk embraced its charm. Dogecoin’s success sparked many imitators, including Shiba Inu and Floki Inu, and set the stage for meme coins like $TRUMP, which lean on political branding and viral marketing. As former Coinbase CTO Belaji Srinivansan said on a thread on X (formerly Twitter), meme coins operate as ‘zero-sum lottery.’’ Early investors reap the benefits, while those that join late are left holding assets that rapidly lose value. The dynamic makes meme coins both exciting and risky. Why do people keep investing in meme coins? The rise of memecoins can be attributed to internet trends, the excitement of making quick money, and how people think and act. These coins are like inside jokes on the internet that everyone can join in on. People buy them not just to make money but also to feel they are a part of something fun and trendy. What makes memecoins popular also makes them risky. Their value often depends on social media buzz, with platforms like X (formerly Twitter) playing a big role. A single tweet from a celebrity and influencer can make the price skyrocket or crash just as quickly. Take the $TRUMP coin for example. This meme coin used Donald Trump’s political brand to get attention. It saw massive trading activity, and 20% of it was worth $14 billion in just one day. But its value, on Wednesday, has dropped to $42.80, from its all time high of $75.35 recorded on January 19, showing how unstable the market can be. Another big factor is FOMO, or ‘the fear of missing out.’’ When people see others making money, they rush to invest without fully understanding the risks. Sometimes, this gamble works, but many end up losing a lot of money. This was the case for 24-year-old Tosin, who got into meme coins in 2022 by trading a coin called Freecoin. “There was so much hype about it, and everyone around me was buying. I didn’t want to sit back while others were making generational wealth. So, I jumped in and bought a few units with my last cash,” he shared. Tosin invested about ₦5,000, but the value of Freecoin plummeted, leaving him with no profits. “Buying when a meme coin is trending is always a bad idea,” he said. Ater the launch of the $TRUMP coin, 25-year-old Sandra Ubochi, a crypto trader with five years of experience, decided to invest in another meme coin called Saylor Coin. “I put in $500, expecting to make at least $2,000, but things didn’t go as planned. The value dropped so much that it fell below $1,” she explained. Should you buy meme coins? The question of whether to invest in memecoins boils down to your risk tolerance and understanding of the crypto market. Experienced crypto traders can make quick profits from memecoins by riding short-term trends. But for most people they are a risky bet. Without proper research and a clear plan for when to buy or sell, the potential losses can outweigh the gains. Memecoins like $TRUMP show both the excitement and danger of the crypto world. Some people strike it rich quickly, while others lose big. If you are thinking about investing, remember that success in this space isn’t about luck. It requires careful research, a skeptical mindset, and an understanding that the difference between making money and losing it can be razor-thin. Sandra views trading meme coins as a fun activity, without expecting major profits. “Only trade money you can afford to lose, and make sure you understand how the market works before getting involved,” she advises. For potential investors, the takeaway is clear: approach memecoins with caution, knowledge and willingness to accept losses. Whether they are a fleeting trend or a lasting part of a crypto culture, memecoins like $TRUMP remind us of the thin line between opportunity and risk in the digital age. The celebrity effect Celebrity endorsements play a significant role in the rise of meme coins. Donald Trump’s $TRUMP coin is a prime example. Launched amid significant online buzz, it drew immediate attention and trading activity. Similarly, Afrobeat superstar Davido was tied to a hypothetical meme coin. In June 2024, TechCabal reported that the Nigerian Securities and Exchange Commission issued a disclaimer alert to investors regarding $DAVIDO coin backed and promoted by Davido. This was done after $Davido coin raced to a $10 million market capitalization just four hours after it launched. The celebrity effect cuts both ways. Public sentiment can shift rapidly if a celebrity distances themselves from a coin, its value can plummet, leaving investors at a loss. Celebrities like Kim Kardashian, who was fined in 2022 by the U.S. SEC for failing to disclose compensations for promoting cryptocurrencies. Regulatory and legal concerns Meme coins also present unique challenges for regulators. Unlike established cryptocurrencies, which are often designed with clear purposes, meme coins exist in an obscure legal space. The U.S. Securities and Exchange Commission (SEC) has indicated that some meme coins may qualify as securities under the Howey Test (a rule set by the U.S. Supreme Court to figure out if a deal is an investment contract. If it is, the deal is considered a security), subjecting issuers to potential lawsuits and penalties. Anti-money laundering (AML) compliance and Know Your Customer (KYC) requirements add another dimension to scrutiny, as meme coins often
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Cross-border payments: Building products and services with excellent customer experience
This article was contributed by Nimide Fala, Vice President of Client Experience at Zest, and Eytan Messika, Co-founder at Nilos as part of the Emerging Trends in Cross-Border Payments: A Growth Guide for Stakeholders report authored by Aroghene Favour Ndulu and Paschal Okeke. For African businesses and consumers, cross-border payment solutions must nail four critical things: speed, affordability, accessibility, and reliability. Small businesses need cash flow, so they want instant payments. Imagine an SME importing fabrics from China. If payments are delayed, goods get stuck, and cash flow suffers. Freelancers face the same issue when waiting on international payments. Affordability can’t be ignored. High fees are a dealbreaker for most. Businesses, especially SMEs, operate on tight margins, so every dollar counts. They want affordable solutions with clear, transparent fees and no hidden surprises. A couple of fintech platforms are solving this by reducing transaction costs and offering predictable exchange rates, which makes life easier for businesses. Accessibility is crucial. Not everyone has access to traditional banks; mobile money is often the go-to method in Africa. Solutions must work where businesses and consumers are, whether through mobile wallets, bank transfers, or local agents. M-Pesa is a great example. It’s made sending and receiving payments simple, even for micro-businesses in rural areas. Trust is everything. Businesses and consumers need to know their money is safe, the process is secure, and payments will arrive on time, with no errors and no headaches. Fintech platforms can tackle this by investing in fraud prevention and real-time tracking so users can confidently send payments. Solutions that get these basics enable growth, build trust, and make cross-border payments more seamless. Improving speed and transparency The solution is brutal simplicity. Most providers try to build complex systems, but the winners will be those who ruthlessly eliminate steps. Think early Amazon: one-click ordering worked because it removed friction. African payments need their “one-click” moment. Bring blockchain into the picture. Blockchain improves speed and solves the “black hole” problem, where businesses wonder, “Where’s my money?” It creates a transparent, shared ledger that shows every transfer step. Transparency also means communication. Real-time tracking, such as when monitoring a package, builds confidence. Send instant updates through email or an in-app so users know exactly where their payment is and when it will arrive. Providers must work with local banks, mobile money platforms, and regional systems to move payments quickly. A global network means nothing if it can’t reach the last mile. Onafriq is a great example; it has connected directly with mobile wallets across Africa, ensuring payments arrive even in remote areas. Pain points of SMES in cross-border payments The biggest pain isn’t technical – it’s uncertainty. SMEs can’t predict when they’ll get paid or what it’ll cost. This unpredictability kills growth. It’s similar to what kills most startups: not running out of money, but running out of confidence about money. Payments that take days to clear disrupt cash flow, supplier relationships, and customer experience. SMEs don’t have the luxury of waiting. They need funds to move quickly and stay competitive and agile. Understanding customer preferences East Africa is the heartland of mobile money, led by pioneers like M-Pesa in Kenya and Tanzania. Mobile wallets are king for customers here because they’re fast, accessible, and don’t rely on traditional banks. Businesses and consumers often prioritise tools that integrate with these platforms seamlessly. For example, a Kenyan merchant receiving payments from Uganda will likely prefer M-Pesa-integrated solutions over bank transfers because they are quicker and more widely trusted. The mobile money infrastructure in East Africa is well established, and even small vendors in rural areas use it daily. Volume of mobile money transactions in Africa in 2020 to 2022 (in billions), by region Source: Statistica Bank transfers dominate in West Africa, particularly Nigeria. The region relies more on banks than East Africa, and fintech solutions are often designed to integrate with existing banking systems. However, cash remains significant for many informal businesses. Southern Africa, particularly South Africa, shows a mix of preferences. Businesses and consumers use digital wallets, bank transfers, and card payments. Platforms like Ozow and PayFast are popular for their focus on seamless digital payments, while traditional bank transfers remain relevant for larger transactions. Southern Africa has higher banking penetration and a tech-savvy population comfortable with digital wallets and online platforms. Francophone Africa leans heavily on regional solutions like GIM-UEMOA {the interbank payment network) and local digital platforms like Orange Money. Customers here prioritise solutions that work across the West African Economic and Monetary Union {WAEMU), where the CFA Franc is shared. A business in Senegal paying a supplier in Cote d’Ivoire will often prefer platforms like Wave or Orange Money for cross-border transfers because they’re fast, affordable, and tailored for the region. Regional integration and shared currency make it easier to adopt localised solutions. Meanwhile, North Africa, Egypt, and Morocco, particularly, rely heavily on bank transfers and the growing use of digital wallets. With strong trade ties to Europe, businesses prefer solutions that bridge local systems with international banking, while younger consumers are driving digital adoption forward. Product and service localisation in cross-border payments Product adoption happens faster when providers tailor their solutions to local realities like language, currency, and preferred payment methods. A platform might have great features, but if it’s not available in the local language, it becomes a barrier. Constant currency conversions and reliance on US dollars add friction and costs. When businesses can pay and get paid in their local currency, it simplifies operations, cuts costs, and builds confidence to transact globally. It is also crucial to integrate local payment options to ease customer adaptability. The best localisation is about fitting into existing behaviour patterns. M-PESA succeeded because it matched how Kenyans already handled money. That’s the key: build around existing behaviours, don’t try to change them. You can read the full report here. __________________ Nimide Fala is the Vice President of Client Experience at Zest, a fintech subsidiary of Stanbic IBTC Holdings. She is passionate
Read MoreGates Foundation-backed i3 to invest $1.6 million in 15 African healthtech startups
Investing in Innovation Africa (i3), a Gates Foundation-backed group of donors, pharmaceutical manufacturers and African government institutions will invest $1.6 million in 15 healthtech startups across the continent. The initiative will give $50,000 equity free grants to ten early stage startups and up to $225,000 each to five early stage startups who are solving problems in healthcare delivery, pharmacy services, and product distribution. Now in its third cohort, i3 will select early-stage startups that have a proven product-market fit and annual revenues exceeding $10,000, while growth-stage companies must demonstrate national-level operations and revenues of at least $500,000. This comes amid a decline in venture capital funding in Africa. Healthtech startups have received the smallest chunk of funding in the past year. They raised $42.2 million in the first half of 2024—-about 6.5% of the total fund raised. Funded by global healthcare heavyweights including the Gates Foundation and Sanofi’s Global Health Unit, i3 will provide 15 African startups with a mix of financial, market, and partnership support to improved access to healthcare. “With the right resources, African-led companies can scale commercially while reaching underserved communities,” said Dr. Uchenna Igbokwe, CEO of SCIDaR, which coordinates i3 alongside Salient Advisory. Since its launch in 2021, i3 has invested $3 million in 60 startups across 16 African countries. In its second cohort, i3 funded 29 startups, including Nigerian startups Wella Health, Famasi, and Healthtracka, with a $50,000 equity-free grant. Beyond funding, i3 will provide startups strategic customer introductions, bespoke deal facilitation, and tailored partnership readiness support. The program also seeks to drive impact through over 150 strategic connections with healthcare organizations, aiming for $30 million in contracts while creating local jobs across Africa. Applications close on February 28, 2025, with selected startups to be announced on April 30. A virtual Q&A session on February 21 will address potential applicants’ questions.
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TechCabal Daily – Bento boxed in
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning If you’re a venture capitalist investing in Africa, take our short survey to share your insights on investment priorities, challenges, and predictions for 2025. Your input will contribute to a comprehensive analysis of the trends shaping Africa’s venture capital landscape. Take the survey now. South Africa’s Stitch acquires ExiPay Bento Africa faces LIRS & EFCC scrutiny amid tax scandal Tanzania will roll out a new currency next month Kenya receives credit rating upgrade World Wide Web 3 Events Startups South Africa’s Stitch acquires ExiPay Image Source: Stitch Twenty-seven days into 2025, and the M&A market is off to a brisk start. South African fintech startup Stitch has acquired payments startup ExiPay, marking the first major deal of the year. The acquisition allows Stitch to offer online and in-person payment solutions for large enterprises, giving it a stronger foothold in the enterprise sector. For pace, 2025 is faster than 2024, when the first big deal didn’t come until February—Carbon’s acquisition of Vella Finance. 2025’s early momentum suggests we might see more deals lining up faster this year. M&A lawyers, you’ve been warned: your calendar is about to get packed. Startups are waking up earlier, looking to acquire rather than build from scratch. Stitch CEO Kiaan Pillay made that clear in a call with TechCabal, explaining that building ExiPay’s in-person payment tech internally would’ve taken 18–24 months—slowing down their strategy to fill a crucial gap. By acquiring ExiPay, Stitch got the solution it needed, fast. It’s a strategy we’re seeing elsewhere, too. SeamlessHR, for instance, considered acquiring PaidHR twice to bolster its HR-tech offerings. With consolidation becoming the name of the game, startups are increasingly looking to acquire businesses that complement their existing products, not just build new ones. M&A isn’t just about growth; it’s about gaining competitive advantage. Whether it’s access to new tech, licences, or market share, acquisitions are becoming a core strategy for African tech companies eager to solidify their positions in a cutthroat market. A promising start for 2025—let’s see if the rest of the year can keep up. Bonus: How much did Stitch pay to acquire ExiPay? That’s not been disclosed, following a trend of African startups being shy about sharing how much things cost. Read about Stitch’s acquisition of ExiPay here. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Startups Bento Africa faces LIRS & EFCC scrutiny amid tax scandal Image Source: Bento If you were anywhere near Nigerian Twitter last week, you probably saw the explosive tweet from Hack Sultan, co-founder of edtech AltSchool, accusing HR-tech startup Bento Africa of only remitting 100 naira in taxes for employees—while collecting millions. The tweet went viral. Suddenly, Bento wasn’t just another HR payroll service in a sea of options; it was the topic. Old accusations against Bento resurfaced, showing that the issues date back to 2023. Yet, there’s a lot that’s not been shared or reported. Here’s an excerpt from our exclusive report this morning that shows just how serious the allegations against Bento are: “Bento Africa, a Nigerian technology HR startup founded in 2019, is facing allegations of failing to remit tax and pension payments on behalf of clients. The allegations, which are now being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC), triggered a client exodus.” Bento’s CEO, Ebun Okubanjo, confirmed the investigations but insists the company is addressing the issues. He points to Nigeria’s “manual” tax remittance process as the culprit, explaining the delays were unintentional—and that these issues only affect “a small, vocal” percentage of Bento’s clients. But here’s the question: How did these issues go unnoticed for months? We’ve unpacked the issues here. Economy Tanzania to change its currency in February Image source: Shutterstock In October, Tanzania’s apex bank, the Bank of Tanzania (BoT) announced plans to introduce new notes. The bank told financial institutions that it was phasing out bank notes created between 1985 and 2003. In its memo to those banks, BoT said, “The deposit or exchange of old banknotes shall last for three months from 06 January. 2025 to 05 of April 2025 from which they shall cease to be a legal tender.” Last week, the bank announced that its new currency is now ready for circulation. The newly minted paper bills—TZS 1000 ($0.4) blueish bills, 2000 ($0.8) brown bills, 5000 ($2) violet bills, and 10000 ($4) red bills—will enter into circulation from February 1, according to BoT governor Emanuel Tutuba. The new currency comes with minimal design changes but improved security features and new appended signatories. The move comes as Tanzania seeks to combat counterfeit currency. This is not Tanzania’s first time is modernising its currency. In 2023, the BoT said it was working on a digital currency. At the time, the bank gave no time frame for when it would launch the digital currency but said it was exploring the issuance of different forms of CBDCs, including tokenised and account-based digital currency. Tanzania’s currency change follows Sudan’s recent currency change. In December 2025, the Sudanese government introduced new 500 ($0.20) and 1,000 ($0.50) banknotes as part of efforts to stabilize its war-torn economy. The move aimed to demonetise the old notes, rendering banknotes looted during the ongoing civil war worthless. Never miss an update from Paystack Subscribe to Paystack for a curated dose of product updates, insights, event invites and more. Subscribe here → Economy Kenya gets a positive credit rating from Moody’s Image source: Shutterstock Kenya has received a credit rating upgrade from Moody’s Investors Service, changing its outlook from negative to positive, signalling renewed confidence in Kenya’s ability to manage its debt and lower financial risks. Moody’s highlighted better debt affordability and reduced borrowing costs, which could help the government access funds
Read MoreBento Africa under investigation by LIRS and EFCC; CEO Okubanjo denies allegations
Bento Africa, a Nigerian technology HR startup founded in 2019, is facing allegations of failing to remit tax and pension payments on behalf of clients. The allegations, which are now being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC), triggered a client exodus. High-profile clients like Moniepoint, Paystack, Kobo360, and Bamboo ditched Bento in 2024, according to multiple sources with direct knowledge of the matter. Two former clients who asked not to be named confirmed TechCabal that Bento is under investigation for allegedly forging tax receipts, delaying pension contributions, and other financial discrepancies. A former client also reported the company to the Economic and Financial Crimes Commission (EFCC) raising questions about Bento’s practices and the regulatory gaps in Nigeria’s growing HR-tech sector. Fuelmetrics, a digital inventory management company for petrol stations that used Bento, claims it incurred ₦50 million ($108,000) in unpaid taxes and pension contributions between 2023 and 2024. “[LIRS] made us understand that there is an ongoing investigation on Bento and that we are not the only company affected in this scam, dating from 2023 till date,” read an internal memo seen by TechCabal. On Friday, Akintunde Sultan, co-founder of edtech AltSchool, also publicly accused Bento of forging tax receipts and remitting ₦100 monthly after “collecting millions of naira in payments from startups.” Sultan’s allegation has added further pressure on Bento, suggesting the startup mismanaged pension and tax payments. Bento’s CEO and co-founder, Ebun Okubanjo, acknowledged that the company had received complaints from the LIRS regarding unpaid taxes and confirmed the company is working on a plan to settle outstanding tax obligations for affected clients. However, Okunbanjo insists that these discrepancies affect “a very small percentage of Bento users, who happen to be very vocal in the tech ecosystem.” While he declined to disclose the number of businesses Bento serves, the company reported over 900 enterprise users in 2021. He attributed the payment delays and discrepancies to the inherent limitations of Nigeria’s complex and outdated tax and pension systems. “A zero percent error rate is hard, maybe impossible,” Okubanjo wrote on LinkedIn. [Such discrepancies represent] “less than 1% of the taxes or pensions or remittances or salaries we have processed.” Nigeria’s HR-tech sector is largely unregulated, leaving significant gaps in oversight and accountability. As a result, underpayments or failed remittances can be attributed to systemic inefficiencies rather than deliberate malfeasance, allowing companies to sidestep liability by blaming technical or operational challenges. A former Bento employee, who asked not to be named for fear of retaliation, claimed CEO Okubanjo intentionally delayed pension and tax payments despite client funds being available. Internal documents reviewed by TechCabal showed instances where payments were delayed for up to ten months. Okunbanjo attributed payment delays to the manual nature of the process and insisted that missed payments are made immediately they’re brought to the company’s attention. Despite his rebuttals, there are significant concerns about Bento’s internal processes and its ability to manage client funds in a timely and transparent manner. As part of plans to solve the reconciliation errors, Okubanjo claimed Bento and other HR tech players unsuccessfully lobbied for a direct API integration with Nigeria’s tax and pension systems. Despite Bento and Okubanjo’s stringent denials, industry experts and former clients remain skeptical. “It is uncommon to hear of payment glitches that last a calendar year,” said a HR-SaaS expert, who asked to not be named so they could speak freely. Okubanjo’s past fuels some of the scepticism. In 2023, he was accused of creating a toxic workplace and briefly stepped aside as CEO. In a 2020 viral video, he berated a customer who complained of poor services at his gym. The payment delays and ensuing legal issues have cost Bento some business, with prominent clients like Paystack and Helium Health ditching the company in 2024. Okunbanjo downplayed these departures, suggesting Bento’s strategic shift towards traditional businesses is a deliberate move to reduce reliance on venture-backed startups, which are vulnerable to funding downturns. He also claimed that small and medium enterprises (SMEs) are better clients, as they typically require fewer new features and are less expensive to retain. Despite the challenges, Okunbanjo claims Bento is profitable, processing about ₦4-5 billion ($2.6 million) in monthly salaries with around ₦24 million ($15,871) in monthly revenue. How late payments go undetected Several cultural and systemic factors allow these issues to go undetected for months. The design of payroll applications makes users assume taxes and pensions are remitted digitally. But on the backend, Bento manually initiates these payments through a bank. This process can result in delays of weeks or even months. Because employees receive timely salary payments and corresponding bank alerts, neither they nor their employers typically notice the discrepancies in tax and pension remittances. This can persist as long as salary payments continue uninterrupted. Additionally, employees often show little interest in actively monitoring their pensions, assuming the funds would be eroded by inflation. A lax tax culture and distrust in government institutions also contributed to a lack of scrutiny in the tax remittance process. Okubanjo claimed that only a handful of clients request regular short-term records for reconciliation. Conversely, some companies only requested audits and records when regulatory issues arose, often requiring years of data that were difficult and costly to compile. Okubanjo described these requests as close to impossible for Bento’s lean team to fulfill, citing the extensive manual effort required to gather receipts from Pension Fund Administrators (PFAs) across different states. This lack of long-term documentation triggered Kobo360, one of Bento’s prominent startup clients, to lodge a complaint with the Economic and Financial Crimes Commission (EFCC). A former HR manager at Kobo360 who asked not to be named as they were not authorised to speak on the matter, recounted discovering missing pension payment receipts only after an employee requested pension documents in September 2023. The former HR manager claimed Bento obstructed the EFCC investigation by refusing to provide records of the company’s pension throughout the five
Read MoreSouth African fintech Stitch acquires ExiPay to expand into in-person payments
Stitch, a South African fintech startup that provides online payments infrastructure for large enterprises, has acquired ExiPay, a startup that offers in-person payment solutions for retail businesses. The acquisition, for an undisclosed amount, will allow Stitch to integrate online and in-person payments into one platform, making it easier for businesses to track payments across different channels. This move expands Stitch’s product offerings, allowing it to provide an omnichannel payment solution that combines online and in-person payment capabilities for its enterprise customers. The acquisition is a direct response to the growing demand for integrated payment solutions in South Africa’s retail market, where the gap between online and in-person payment systems remains significant. Stitch has integrated ExiPay’s six-person team into its operations, rebranding the service as “Stitch In-person payments.” Stitch will sell this new service to existing clients, including major corporations like Bash, MTN, Cell C, and MultiChoice. “The in-person payments space has not been disrupted for enterprises,” said Stitch CEO Kiaan Pillay. ”Many players are doing this for smaller businesses in the market, but no one is tackling this for enterprises; it was the big reason we wanted to do this.” Stitch’s decision to acquire ExiPay rather than partner with larger in-person payment providers reflects the company’s desire to retain control over its technology stack. According to Pillay, building a similar solution in-house would have taken 18 to 24 months, delaying the company’s strategy to offer a unified payment platform. Founded in 2022 by Derek Keats and Willem Büchner, ExiPay allows physical stores to accept in-person payments through point-of-sale (POS) terminals. The company claimed it was processing R2 million ($106,000) in daily transactions in 2023. In 2024, it received €5.4 million ($5.6 million) in private cash-to-equity funding from Izwe Africa, a fintech group that provides credit to small businesses in Ghana, Kenya, and Zambia. “This deal is attractive for both ExiPay and Stitch investors. We are sitting under one roof,” Pillay added. Founded in 2019, Stitch has raised $52 million in funding, expanded into Nigeria, and has previously spoken of plans to expand into Kenya, Ghana, and Egypt.
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“On some days, I make ₦70,000;”TikTok Live is the new storefront for Nigerian business owners
Jude Okafor, a menswear trader on TikTok, is no stranger to live selling. At least three times a week, he goes live to showcase a mix of new and thrifted jeans to his audience. Before each live session, Okafor posts reminders to ensure his followers know about the upcoming sale. During the live sale, which may stretch up to four or five hours, Okafor holds up a pair of jeans, showing them off to the camera. He announces the price, features, and quality—details that static images or text descriptions can’t capture. His audience of 200 viewers bid on items in real-time. Once he agrees on the price, buyers send payment to the account details displayed on the screen and follow up with a direct message to confirm receipt. The dynamic mirrors the energy of a bustling Nigerian market, where traders call out to attract buyers and haggle to strike a deal. “I am grateful for social media, I don’t have a shop so I get sales mostly from TikTok, friends and referrals,” Okafor said, highlighting how TikTok has become an important sales channel for small business owners. Okafor’s success is part of a larger trend: live sales on TikTok are becoming a preferred method for small businesses to increase sales and boost brand visibility. The rise of social commerce on TikTok is happening despite the absence of TikTok Shop, a feature that allows users to buy directly on the platform. Vendors selling live on TikTok The rise of social commerce TikTok Shop was launched in 2021 through a collaboration with Shopify, enabling businesses to sell directly from their videos and live streams. Users in the U.S, UK, and other Asian markets can use the Shop feature, but it is unavailable in any African country. Livestreams are filling this gap. Screenshot TikTok shop in the US and Malaysia Social commerce, or shopping on social media platforms, has grown explosively globally. In 2023, social commerce accounted for 18% of online sales, with over 85% of customers shopping online. This growth is largely driven by increased smartphone penetration and internet access, making social media platforms like TikTok an integral part of daily life. For small businesses, social media platforms like TikTok are a cheaper alternative to traditional commerce. Unlike physical stores that require extensive overhead, platforms have minimal costs. “Our unstable economy and high unemployment are driving individuals to explore entrepreneurship. Affordable solutions like WhatsApp Shop provide an easy setup to reach target audiences without the hefty overheads of an e-commerce platform,” Majolie Obaje, Marketing Lead at Jiji, said. Impact on Nigerian businesses For businesses like Okafor’s, TikTok offers an engaging way to reach customers. Without TikTok Shop, however, the process can be tedious. Buyers must leave the app to complete their purchases, a layer of friction that can lead to attrition. Yet, business owners are adapting. Maryam Musa, who runs a fashion brand goes live at least twice a week. ”In December, I was very consistent, and I made over ₦500,000 in three nights,” she shared. For Koforowola Adedeji, a thrift vendor in Abule-Egba, the frequency of her live sales depends on how quickly she uses up a bale of clothes. “On some days, I make ₦70,000, and if I haven’t made enough from the bale I got, this means I still have more live sessions to do,” she said. Charles Udeozor, former Head of Logistics at Konga, points out that live selling on platforms like TikTok offers a sense of control that traditional e-commerce platforms can’t match. “When sellers realized they could bypass the risk of unfulfilled logistics and high commissions, they moved away from e-commerce platforms. There’s a real sense of empowerment in controlling the process,” he says. Shifting consumer behaviour and traditional e-commerce While TikTok’s Live sales offer new opportunities and channels for businesses, traditional e-commerce companies like Jumia and Konga still have an edge, with features like delivery tracking, refund policies, and pay-on-delivery. They appeal to users who value reliability and transparency, which may be an issue in the unregulated world of live sales. However, as social commerce grows, even traditional e-commerce players are integrating social elements into their models. “E-commerce platforms will have to continue advertising on social media platforms and I believe a partnership with these platforms will also help,” Konga’s Udeozor told TechCabal. “To stay ahead, e-commerce platforms will integrate social elements, partner with social commerce sellers, and leverage their reach and community trust,” Majolie added. “For instance, Jiji already encourages sellers to engage directly with buyers through integrated chat options,” she adds. Whatever the future brings to e-commerce and social commerce, the present looks good. “Even if TikTok Shop was available in Nigeria, I will still be doing the live sale. I can’t trade the visibility it brings,” Sylvia Ebere, said a fabric vendor. On the strength on what the livestreams offer right now, the present is looking good.
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Starlink becomes Kenya’s 8th largest ISP amid growing regulatory concerns
Starlink has become Kenya’s eighth-largest internet provider, surpassing established players like Liquid Telecommunications. The Elon Musk-owned company has grown its subscriber base to 16,746 subscribers and gained a 1.1% market, according to the latest data from Kenya’s Communications Authority (CA). Starlink’s growth, from the tenth largest ISP in June 2024, suggests that the company has dominated Kenya’s satellite internet market. Other satellite ISPs including Viasat, Indigo Telecom, and NTvsat have less than 300 subscribers and may be forced to exit the market. Starlink’s rapid growth drives demand for high-speed internet in Kenya, especially for homes and businesses that are not served by fixed broadband. However, Starlink’s growth has raised some policy concerns. Kenya’s telecom regulator has proposed a tenfold increase in charges for satellite internet providers. The move comes amid growing concerns from rival ISPs led by Safaricom, Airtel Kenya and Jamii Telecoms, about Starlink’s fast rise. The proposed regulations would increase the cost of a 15-year license from $12,302 to $115,331 and introduce an annual 0.4% levy on gross turnover. The tough rules could favour established ISPs but hurt smaller players. Satellite ISPs like Viasat and NTvsat may struggle with the higher costs and slow expansion in remote areas. They may also be forced out of the market as they currently have less than 300 subscribers. In December 2024, Starlink began routing African users through a dedicated ground facility in Nairobi, Kenya, known as a “point of presence,” where its space-based network connects to terrestrial internet infrastructure. Starlink users say this upgrade has improved performance, with average latency for users in Kenya dropping from 120 milliseconds (ms) to just 26 ms. Since April 2024, Starlink has been offering its customers several perks, including a 30-day promotion between April and May 2024 that cut the installation kit price from $688 (KES 89,000) to about $348 (KES 45,000). The firm has overhauled its pricing model to attract more subscribers. For instance, Starlink launched a 50GB data plan for $10 (KES 1,300), undercutting Airtel’s $23 (KES 3,000) and Safaricom’s $39 (KES 5,000) bundles. In August 2024, the company introduced a hardware rental plan to reduce entry costs. Starlink plans to launch satellites in 2025 that will deliver the internet directly to mobile devices and eliminate the need for hardware kits.
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Bolt enters grocery delivery while others run for the door
Grocery delivery in Nairobi is a smaller market compared to food delivery. Few players, including supermarket chains like Naivas and Carrefour, have ventured into it with varying levels of success. The high cost of delivery — which can cost over KES 100 ($0.77) per delivery — makes it less appealing to most residents, who prefer buying affordable groceries from roadside stalls, popularly known as “vibandas.” However, residents in upscale neighbourhoods, where such stalls are scarce or unavailable, are the primary target customers for online grocery shopping. Bolt Kenya wants to tap into this business with Bolt Market. The product is integrated into its Bolt Food app. “The move is part of Bolt’s strategy to expand its services, grow its market share, and establish itself as a trusted platform for convenient, on-demand grocery delivery,” Bolt said in a statement in December 2024. Before COVID-19, in-person dining and in-store shopping were commonplace in Kenya, with online food and grocery purchases limited to early adopters in urban areas. The pandemic spurred a shift that forced retailers to adopt delivery models, partner with platforms, and innovate with options like same-day delivery, driven by consumer demand for convenience and safety. As of 2023, 9.3% of Kenyans shop for food and groceries online, projected to reach 16.7% or 10.5 million consumers by 2027 due to the demand for convenience and efficient delivery services. Bolt Market is a push to diversify Bolt’s services beyond ride-hailing and challenge established players in a market where speed and convenience are key. This tough market has forced out players such as Jumia Food, which ceased its food delivery business in Kenya and other African market due to unprofitability and stiff competition. Bolt Market believes it can do things differently but has adopted a cautious approach. Grocery delivery is a tough business with pain points such as high delivery costs that discourage price-sensitive customers and competition from rivals like supermarket chains (Naivas and Carrefour), Glovo, and Uber Eats. Bolt is currently offering Bolt Market in Nairobi’s upscale Kilimani area and targeting customers within a 10-kilometre radius of its store, including Upper Hill, South C and Riverside. Customers using the Bolt Food app can order groceries from 8:00 AM to 11:00 PM or schedule deliveries 24 hours in advance. Bolt is also offering free delivery within a 3-kilometre radius and discounts of up to 80% to attract customers. “The high demand for fast and convenient delivery services makes it an ideal location for a central delivery hub,” Edgar Kitur, Bolt Food’s General Manager told TechCabal. As part of the test, Bolt is offering free delivery within a 3-kilometre radius and discounts of up to 80% to navigate aggressive pricing and more affluent rivals. Bolt Market’s circumspect launch reflects the harsh realities of the logistics business in Kenya, where similar businesses have failed. With many consumers preferring affordable “vibandas,” the market is niche and relies on upscale areas where convenience and reliable service outweigh cost concerns. “Our average order value is between KES 300 ($2.32) and KES 38,000 ($293.78), varying by user to local pricing differences,” Kitur added, signifying an affinity for high-end customers. Thus, Bolt’s cautious launch in Kilimani is designed to gather data on service efficiency, customer satisfaction, and market viability before it can take the next step. “The Kilimani store will provide sufficient data to evaluate service efficiency, customer satisfaction, and market viability,” Kitur added. High delivery fees in Nairobi discourage many potential customers, especially outside high-end neighbourhoods, where a KES 100 ($0.77) delivery fee could buy a kilo of tomatoes. Joseph Makau, a frequent delivery app user, told TechCabal that customers who might consider grocery deliveries often prefer bundling groceries with other items from supermarkets. “I would rather do my monthly shopping with groceries on top from the supermarket instead of ordering groceries alone,” the same user said. “Carrefour doesn’t charge for deliveries for large orders. For small orders (capped at anything more than KES 1,000 ($7.73)), they charge KES 129 ($1) only,” Kariuki, another customer who uses rivals like Naivas and Carrefour interchangeably, told TechCabal. At least five customers who have used grocery delivery services once or twice told TechCabal that they liked ordering from home, comparing prices, and accessing personalised offers. However, some find delivery charges high, especially if they are far from stores. To address this, restaurants and retailers have since introduced same-day delivery, timed purchases, and buy-and-collect to expand choices and convenience. Bolt Market claims it has access to over 2,000 products, including fresh produce from local suppliers, household essentials, and beverages. While it did not specify partners, it sources groceries locally to ensure supply consistency, employs AI logistics for delivery optimisation, and enforces quality checks throughout. Bolt Market is also exploring new pricing strategies, such as discounts based on order size and distance, and hinted at future subscription plans to offer regular customers predictable pricing and cost savings. Subscription models benefit logistics firms by providing steady revenue and improving demand forecasting. “Indeed, while delivery costs are a major concern for customers, our platform addresses a wider array of operational challenges vital to the overall experience,” Kitur said. Expansion beyond Kilimani to estates like Parklands, Eastleigh, and Lavington is planned, with a later rollout outside Nairobi in the pipeline. However, there are no set timelines. For now, Bolt Market will use data from Kilimani to refine its service and determine customer response to pricing in a competitive and price-sensitive market. “As the service expands, we may also explore subscription plans for regular users,” Kitur hinted. Subscription models save customers money through discounts and predictable pricing. Logistics firms benefit from steady revenue and better demand forecasting. .
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TechCabal Daily – Visa makes a point
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF Help us shape the future of African venture capital. If you’re a venture capitalist investing in Africa, take our short survey to share your insights on investment priorities, challenges, and predictions for 2025. Your input will contribute to a comprehensive analysis of the trends shaping Africa’s venture capital landscape. Take the survey now. How Marasoft’s CEO paid employees with suspected fraudulent funds Visa invests in Moniepoint Funding tracker World Wide Web 3 Events Startups How Marasoft’s CEO paid employees with suspected fraudulent funds Image Source: Wunmi Eunice/TechCabal Imagine working tirelessly for two months without pay, only to watch your colleagues lose patience and halt work due to delayed salaries. Then, just as you think the ordeal might end, your boss finally sends the owed salaries—but the funds appear to come from suspected fraudulent transactions. This chaotic scenario became a reality for over 40 employees of Marasoft Pay, a Nigerian fintech startup founded by Emmanuel Marakwe-Ogu. The company, which operated without institutional funding, processed payments online for businesses and individuals in Kenya and Nigeria. Since Marasoft does not hold local licenses in Kenya, it relied on a Flutterwave wallet to process transactions—a common workaround for smaller startups seeking access to new markets and regulatory protection. However, on October 16, a glitch allowed a Marasoft account linked to Marakwe-Ogu’s phone and bank verification numbers (BVN) to withdraw funds exceeding the wallet’s balance. In a WhatsApp group, Marakwe-Ogu acknowledged controlling the account after employees questioned why their salaries were paid from an unfamiliar source rather than the company’s human resources account. That payment became the catalyst for what several employees describe as one of the most turbulent periods of their lives. Within weeks, resignations poured in as staff abandoned their posts. Efforts to maintain a unified stance crumbled when Marakwe-Ogu removed them from the company’s WhatsApp group. Many former employees remain locked out of their accounts and continue to grapple with the fallout. Despite everything, some affected Marasoft employees have returned to work for the startup. Muktar Oladunmade dives deeper here. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Funding Visa invests in Moniepoint Image Source: Moniepoint What is better than funding? More funding. Three months after Moniepoint raised its $110 million Series C funding to become Africa’s latest unicorn, the Nigerian fintech has a new investor: Visa. The global payments giant made a “strategic investment” in Moniepoint, which has built a successful business offering banking services to SMEs and individuals. That investment is around $10 million, according to TechCrunch. For Visa, this investment continues its signature move of strategically investing in promising African startups to expand its payment footprint. It made similar bets on other home-grown fintechs including Interswitch, Flutterwave, and Paystack. With the new funding, Moniepoint plans to focus on advancing contactless payments, widely seen as the next golden egg in the payments ecosystem. Moniepoint’s entry would mean more competition in the contactless payments space. Offering solutions from smartphone-based systems to software POS offerings, startups like CashAfrica, Nearpays, and Touch and Pay have entered the market. However, infrastructural challenges and other factors are slowing adoption rates. Moniepoint’s advantage lies in owning its proprietary technology for both cards and POS machines. This vertically integrated approach, combined with Visa’s expertise, could enable the company to scale quickly in the contactless payments market. With its position as one of the top three POS providers in Nigeria, Moniepoint also has a strong customer base to drive adoption. Beyond Nigeria, Moniepoint may be preparing to build its own contactless payments infrastructure to fuel expansion into other markets. The company has been in discussions to acquire Kenyan fintech Kopo Kopo. Entering Kenya with a robust contactless payments infrastructure could position Moniepoint as a formidable competitor in the region, where the demand for advanced payment systems is growing faster than in Nigeria. As Moniepoint aggressively builds out its payments infrastructure, the fintech seems poised to establish itself as a leader in the contactless payments space. Still, it will face stiff competition from rival PalmPay, the fintech arm of popular OEM company Transsion, which also has ambitions in this fast-evolving market. What’s it like to work as an engineer at Paystack? Paystack’s engineering team builds simple, powerful tools to connect African businesses to customers. Learn more → TC Insights Funding Tracker Image source: Stephen Agwaibor/TechCabal This week, South African insurtech startup Naked secured $38 million in a Series B extension funding round, marking the largest investment in Africa’s insurtech sector. The round was led by global impact investor BlueOrchard, with participation from existing backers Hollard, Yellowwoods, the IFC, and DEG. (January 22) Here are other deals for the week: Nigerian fintech company Moniepoint secured $10 million from Visa, bringing its Series C raise to more than $120 million. (January 23) Egyptian fintech MoneyHash raised $5.2 million in a pre-Series A funding round. Flourish Ventures led the round, with participation fromSaudi Vision Ventures, Arab Bank’s Xelerate Fund, and Emurgo Kepple Ventures. Angel investor Jason Gardner, founder and former CEO of Marqeta, also joined the round alongside existing investors such as COTU, RZM Investment, and Tom Preston-Werner. (January 21) MazaoHub Agclimate Ltd, a Tanzanian agri-tech startup, secured undisclosed funding from the Livelihood Impact Fund. (January 21) CommunityWolf, a South African AI startup, received undisclosed early-stage funding from The Baobab Network. (January 22) Ugandan fintech Flow Global secured an undisclosed equity investment from Inua Capital (January 22) Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, read our predictions on what to expect in African tech in 2025. Click this link to read it. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $103,920 + 2.20% + 5.91% Ether $3,301 + 2.83% – 5.30% XRP $3.12 – 0.12%
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