🚀Entering Tech #73: How Maryann Onuoha is driving growth with tech events
Ope from Cowrywise has some things to share! 07 || September || 2024 View in Browser Brought to you by Issue #72 From coding to community management Share this newsletter Greetings ET people Been a minute. While we’ll hate to rat anyone out, it looks like you missed your dose of #EnteringTech goodness last week because someone didn’t submit their draft in time. Please forgive us. Enough fourth-wall breaking, let’s get into it. Our Entering Tech guest today, Maryann Onuoha is having an illustrious career. Growth marketing, events, content and SEO, community management, coding—she’s done it all. But only one of those things eventually captured her heart. When we interviewed her, she had us fan-boying the moment she said she was once behind the popular brand mascot, Ope from Cowrywise. Also, if you’ve ever benefited from Cowrywise’s internship programme, or will benefit in the future, Maryanne may have paved the way. Now, you too can establish a thriving tech foundation for yourself because of the work she did. Emmanuel Nwosu Maryann’s origin story In the superhero context, we call it an origin story. In a Vin Diesel or Jason Statham action movie, they call it the main character arc. In climate science, it’s called the tipping point. Maryann’s life, as she knew it, changed significantly early on after losing her dad to cancer. L-R: Third from left, Maryanne’s father. Sixth from left, Maryann. Image source: Maryann Onuoha This incident, happening during an early stage of her life, made her become financially responsible for herself. While at Imo State University (IMSU) where she studied International Relations, Maryann often didn’t find the courage to call home for money. And university expenses were no joke. She had heard about tech. She had friends. She had tech bros around her. She saw and liked the things they could do with a keyboard, and she wanted to try that too. But she didn’t know where to start. Her friend, Bakare Emmanuel, who was speaking at Devfest Lagos in 2018, invited her to the event. Devfest is a tech gathering for everyone curious about tech. It was right there, in Lagos, where Maryann had her lightbulb moment. Maryann’s plan was to write code and become a software developer. She even learnt how to code three programming languages, including Flutter. But she soon realised that she wasn’t cut out for the coding life. To put it in her words, “I did not enjoy coding at all.” *Newsletter continues after break The Google dream and chasing growth After that trial and error with coding, Maryann discovered her love for writing. She did this for a while, unsure of where it would lead her until she joined Cowrywise as an intern after the pandemic. Content writer, Cowrywise Aug 2021 – Oct 2021 Bitnob Aug 2021 – Dec 2021 Content Marketing Manager, Mara Apr 2022 – Jun 2023 Foundation Board Member, GNOME Foundation Mar 2020 – Present Marketing Associate, Big Cabal Media Jul 2023 – Present Cowrywise wanted to give career starters a shot at working on real projects in a company setting. The only caveat to the internship programme was that its failure would mark the end. It was up to Maryann and her fellow interns to save Cowrywise internships. Maryann as an intern in Cowrywise. Image source: Maryann Onuoha As a Cowrywise intern, Maryann’s cool job was to own the pen of Ope from Cowrywise. She was to continue the good work other voices behind the online persona had built. She wrote emails and blog articles about financial literacy for young adults that helped drive growth for the company. It was an intense schedule. She wrote four articles a day, along with the weekly emails. She said that this routine formed a crucial part of her career growth. She went on to work at Bitnob and Mara before joining Big Cabal Media as a Growth Associate where she plays a big role in driving the events you love so much. But her big break, she says—or at least one where she couldn’t believe her luck—came when she was invited to join the Google Developer Group (GDG) Lagos co-organisers. Maryann at Devfest in 2023 She’d been volunteering at GDG Lagos for over four years, and her dedication shone through the work she did. In 2023, she led the GDG Lagos community growth team that sold over 2,000 tickets to the tech event—double the target. She also grew the X account for GDG Lagos from 5k to 24k followers. *Newsletter continues after ad break Get student discounts for Moonshot 2024! Are you a student looking to fulfill your dream career in tech? Moonshot is giving out tickets to students at ₦5,000 only. As a student, you will get access to all Entering Tech sessions, all workshop sessions, and brand merch. Here is your chance to save a seat at Moonshot 2024. To get tickets, click here. The kids are alright It has taken a complete rewiring and 5 years for Maryann to figure out her tech career and life in general. Today, she contributes to growth efforts at GDG Lagos and TechCabal’s Moonshot. She was part of the programme team that sold over 2,000 tickets last year for Moonshot by TechCabal, Africa’s most audacious tech festival. She’s been co-leading the push for a bigger Moonshot edition this year that will feature important tech conversations with over 4,000 guests in attendance, 85 speakers, and presentations from innovative companies building for Africa. Maryann’s expertise lies in building and growing communities. On the side, she also leads the Women Techmakers Lagos ambassadors, another community initiative by Google. She hopes to build her own community someday. Maryann at Women Techmakers Lagos. Image source: Maryann Onuoha When it comes to entering tech, Maryann says there are no hacks. One thing that helped Maryann grow was speaking with people levels above her. GDG Lagos, where Maryann has volunteered for more than 5 years, was a community that helped shape her journey. She says, “I’ve gotten to a
Read MoreExclusive: Sterling Bank outage caused by migration to new core banking application
Sterling Bank, a tier-2 Nigerian bank with a market capitalization of ₦115.16 billion, is migrating to SEABaaS, a new custom-built core banking application. The migration, which began on August 30, has left its over 3 million customers unable to use any of Sterling’s banking channels. Many of those customers have shared their complaints on social media platforms. “I’ve been unable to open the One Bank app for over five days,” a Sterling Bank customer who asked not to be named told TechCabal. While the bank notified customers about possible service disruptions due to the upgrade, it did not provide specifics. “A core banking application is a critical tool for all financial institutions, so an upgrade of this nature is a big deal,” said a software expert at a Nigerian bank who asked not to be named. Building these systems is time-consuming, expensive, and risky. A botched system upgrade at Royal Bank of Scotland (RBS) in 2012 left over 6 million customers unable to access their accounts. The bank was later fined £56m by regulators. SEABaaS, its new software, was built to Sterling Bank’s specification, three people with knowledge of the matter told TechCabal. A Google search shows that SEABaaS is also a product by Bazara Tech Inc., a Nigerian software company, suggesting that they may have developed the new software. According to Bazara Tech Inc. ’s website, “SEABaaS is a future-proof, platform-agnostic core banking SaaS solution designed to elevate user experience for enterprise customers. Its architecture features microservices, APIs, hybrid cloud, and multi-cloud. It also spans a unified 360-degree customer view, AI and machine Learning capabilities, and intuitive user interfaces.” Bazara Tech Inc. did not immediately respond to a request for comments. Sterling Bank previously used Temenos T24, a banking software used by Keystone Bank and the Central Bank of Nigeria. Finacle is another popular core banking software option First Bank, Stanbic IBTC, UBA, and FCMB use. Changing its banking application could be driven by cost considerations, difficulties in integrating with existing legacy systems, or attempts to avoid vendor lock-in. Sterling Bank did not respond to a request for comments. Sterling Bank will share details of the new banking software and migration process next week after it solves the current downtime, two people with knowledge of the process said. The bank considers the development of its custom banking software a major move in Nigerian banking, the same people said. Before that grand rollout to the press, it will need to pacify customers, many of whom could still not use the One Bank app at the time of this report, so as not to jump ship while it continues its migration.
Read MoreStarlink launches in Zimbabwe at $350 to continue Africa push
Elon Musk-owned Starlink has launched in Zimbabwe three months after securing an operating licence in the Southern African nation. The company will offer its services through a government-approved local partner IMC Communications. According to Starlink’s website, the hardware will cost $350 with a $50 monthly subscription and Starlink mini for $200 and a $30 subscription. Unlike in other African countries where Starlink offers local currency pricing, customers in Zimbabwe will be charged in dollars. Starlink’s launch in Zimbabwe comes as the satellite internet service continues to make inroads into African countries despite regulatory troubles. In August, the company launched in Botswana—its sixth country in southern Africa. In September 2023, Zimbabwe’s regulator the Postal & Telecommunications Regulatory Authority of Zimbabwe (POTRAZ) announced that Starlink applied for a license. The regulator would later crack down on unregistered users smuggling in Starlink devices from neighbouring Zambia, warning that they were breaking the law. In October 2023, some Zimbabwean legislators argued that Starlink’s operating license should be rejected because Musk’s other comapny, X, was being used to allegedly disparage the country’s leadership, including President Emerson Mnangagwa. In May 2024, President Mnangagwa said the telco regulator approved the licence and a local company, IMC Communications, was appointed the official sole and exclusive reseller.
Read MoreTikTok tightens safety net in Africa as user base expands
This article was contributed to TechCabal by Seth Onyango via Bird Story TikTok is taking new steps to protect its growing African user base by launching its first-ever Safety Advisory Council on the continent. This move comes as the ByteDance-owned platform continues to surge in popularity, especially among Africa’s young and tech-savvy population. With smartphones becoming more accessible and internet use skyrocketing, Africa has become a key battleground for social media platforms. With growth comes responsibility, and TikTok is under pressure to address the spread of misinformation and protect its youngest users from online dangers. Governments across Africa are pushing for tighter control over digital spaces, which TikTok’s new council aims to ensure. Fortune Mgwili-Sibanda, TikTok’s Director of Government Relations & Public Policy for Sub-Saharan Africa, stressed the shared responsibility of making TikTok a safe space. The platform’s #SaferTogether campaign, which has already reached thousands in Kenya and Nigeria, is part of this effort, educating users on how to protect themselves online. “This part of the campaign will speak directly to the TikTok community, to join us in making TikTok a safer space for all by ensuring they follow the Community Guidelines and use the safety features made available to them,” she said. “With the additional layer that the Safety Advisory Council presents, we believe that safety can be achieved, collectively.” The new safety advisory council, unveiled in Nairobi, Kenya, last week brings together a diverse group of experts, including academics, digital rights advocates, and local content creators. These members will provide critical insights and guidance on how TikTok can navigate the unique challenges faced by African users. Among them, Professor Guy Berger from South Africa, known for his work on media freedom, brings critical insight into balancing content moderation with free expression. Dennis Coffie, a content creator from Ghana, offers a perspective rooted in the everyday realities of TikTok users, ensuring the platform stays in touch with its grassroots community. Aisha Dabo from Senegal, who co-founded AfricTivistes, provides a strong voice for digital activism and justice, ensuring that TikTok’s policies protect and empower its users. Lillian Kariuki, who leads Kenya’s Watoto Watch Network, will focus on child safety, a pressing issue as younger users flock to the platform. The council also includes Nigerian expert Dr. Akinola Olojo, whose experience in countering violent extremism will help TikTok tackle the more dangerous content that can spread online. Ethiopian academic Prof. Medhane Tadesse brings a deep understanding of peace and security, adding another layer of expertise to the council. Berhan Taye, an Ethiopian researcher known for her work on digital rights, ensures that the council’s decisions respect users’ freedoms while keeping them safe. TikTok’s popularity in Africa has skyrocketed, turning users like Kenya’s Azziad Nasenya into household names. Her “Utawezana” dance challenge not only went viral but also opened doors to major brand partnerships, showcasing the platform’s power to transform lives. But with this fame comes the need for robust safety measures, especially as more young people seek to replicate such success. For many young Africans, content creation on platforms like TikTok isn’t just a hobby—it’s a livelihood. With traditional employment opportunities often limited, the ability to earn a living through social media has become increasingly important. TikTok, with its vast reach and engaging format, has become a significant platform for these digital entrepreneurs, making the work of the new Safety Advisory Council even more crucial. Meanwhile, Africa is on the brink of a digital transformation and its fledgling e-economy is taking shape, driven by progressive policy reforms and the influx of budget-friendly smartphones. These developments rapidly increase internet access across the continent, setting the stage for nearly complete digital connectivity within just over a decade. This widespread smartphone penetration is empowering Africa’s youth, who are not only consuming content at unprecedented rates but also creating it, turning platforms like TikTok into major sources of employment and influence.
Read MoreAfrican climate startups see growing interest from VCs
When Priscillah Wakerera and Soinato Leboo founded Rhea, an agritech startup that provides soil testing to smallholder farmers in Kenya, in 2022, getting funding from investors was much harder. Fintechs and e-commerce startups were still the darlings of VCs. Investments into climate and agri tech were low, while founders who managed to raise funds had to contend with lower valuations than other sectors. Rhea, which collects and analyses soil samples to help farmers choose fertilisers and seeds suitable for their farms, is part of a constellation of African startups that caught the attention of investors at the just concluded AfricaArena climate summit in Nairobi. Rhea was awarded the best climate tech startup at the two-day event. “It was challenging to attract investors because the focus on soil health improvement wasn’t mainstream. However, as we demonstrated traction in our core market and aligned with the growing focus on climate change, impact investing, and agricultural technology, we’ve seen more interest from both local and international investors,” Priscilla Wakarera, Rhea Co-Founder and CEO told TechCabal. While VC funding for startups has been on a general decline, the proportion of money flowing to climate mitigation and adaptation startups is growing. Since 2019, the sector has raised over $3.5 billion. In 2024 H1, the sector received 45% of the $325 million raised by African startups, reflecting the growing interest in the area. Climate tech firms offer solutions for water and sanitation, renewable energy, carbon removal, and land restoration. “The funding raised by everything related to agritech, climate mitigation and adaptation solutions is growing. This is the only sector that holds many promises for the future of African tech,” said Christophe Viarnaud, founder and CEO AfricArena, a tech accelerator. Solutions such as clean energy, circular economy, predictive infrastructure and sustainable agriculture are attracting significant interest from VCs–and event donor funding. Since 2022, for example, the Kenya Climate Innovation Centre (KCIC), a non-profit organisation, has raised over $150 million in funding for small enterprises in the sector. Gerishom Manyengo, a KCIC business analyst, told TechCabal that over 3,000 small businesses in its network are benefiting from a surge in funding for solutions in subsectors such as solar energy, waste management and reforestation. “There is strong interest in scaling up adoption and use of solar energy, and that’s why KCIC with support from Moot Foundation is implementing a solar energy programme in horticulture, dairy and aquaculture in Kenya, Uganda and Tanzania,” Manyengo said. Climate VCs in Africa believe the continent has more potential as they expand their scope of interest to include food production and disaster management. Funding to the sector rose from $340 million in 2019 to $959 million in 2022, hitting $1.1 billion in 2023, according to The Big Deal. Climate subsectors that have received more funding this year include logistics and transport ($215 million) and energy and water ($132 million). Josh Romisher, CEO and co-founder of Holcene–an African-focused climate VC–believes that deals in the sectors will continue growing in the coming years. “Africa is about to grow, it is about to consume and become a massive part of the global conversation on climate issues because we have to grow it differently and better. There are massive innovation opportunities that can be unlocked today,” Romisher said.
Read MoreExclusive: Lagos in talks with IHS and WIOCC to expand fibre duct infrastructure
IHS Towers, Africa’s largest tower company, and WIOCC, a global telecom infrastructure provider, are in talks with the Lagos State Government to complete its 6,000km fiber duct project. The companies will also extend the project to 36,000km, said Olatunbosun Alake, the Lagos State Commissioner for Science and Technology. The initial fiber duct project, which kicked off in 2020, was delayed due to contractual disputes between Lagos State and the contractor, Western Telecoms and Engineering Services Limited. Alake declined to comment on the specifics of the disagreement. “The department handling the project is not under my ministry, but there are plans to relocate them to the Ministry of Science and Technology,” he said. Western Telecoms had previously laid 2,700km of fiber duct and cables between 2020 and 2022. The company secured connectivity deals with major telecom operators, including MTN Nigeria, Airtel, Liquid Telecom, MainOne, Dolphin Telecoms, Swift, and Spectranet. Over 1,000 MTN and Airtel base station sites were successfully connected to the fiber infrastructure. However, the project failed to meet its 2023 deadline for completion. Fidelity Bank and other financial institutions provided the initial funding for the 6000km project, estimated to cost $200 million. Alake did not disclose the cost of the expansion which will be funded by WIOCC and IHS. A WIOCC spokesperson confirmed the talks but declined to comment on the financial commitments involved. IHS did not immediately respond to requests for comments. Home to over 521 startups and headquarters of different multinationals, improving internet quality is vital for the economic growth of Lagos. However, with only 7,864.50 km of fibre deployed out of the needed 36,000 km, high-speed internet remains a challenge. The state aims to attract more investment using fibre ducts to protect the infrastructure. The Lagos State fiber duct project is part of a broader “Dig-Once” policy launched in 2020 to solve inconsistent fiber deployment by telecom and utility companies. Frequent vandalism of fibre cables and cuts from road construction have plagued the existing network. With the dig-once framework in place, construction workers in the state can avoid damaging fiber installations, enhancing the reliability of telecom services. Popular in regions like the Eurozone and the U.S., and gaining traction in emerging markets, dig-once policy aims to install robust, long-lasting ducts that protect fiber cables. Fiber cables typically last 20 to 25 years, but the ducts themselves can endure for 25 to 50 years, providing a cost-effective and sustainable solution for future infrastructure. Lagos is not alone in embracing the dig-once policy. Osun State, the Federal Capital Territory (FCT), and Cross River State have adopted similar strategies. For Alake, the time is ticking as the project needs to be delivered by 2027 when the current administration leaves office.
Read MoreIndependent report finds no evidence of favoritism claims against MTN Group CEO
MTN CEO Ralph Mupita has been cleared of an allegation of giving preferential treatment to an unnamed female executive after an investigation by an independent law firm. The misconduct allegations, filed by an anonymous complainant, made headlines earlier this week and reportedly led to several members of the company’s executive team threatening to resign. One of the allegations was that Mupita transferred responsibilities of MTN South Africa’s CEO to the unnamed executive. The investigation found no evidence of improper conduct, and attempts to engage with the complainant were unsuccessful, MTN said in a statement on Friday. “In its deliberations, the board accepted the report finding and is of the view that the matter has been addressed and is now closed. The board further expressed its full support for the Group Chief Executive Officer and the MTN strategy.” The outcome of the investigation is a sigh of relief for Mupita who has come under fire over the favouritism allegations which raised serious questions about corporate governance at Africa’s biggest telco. On Tuesday, Mupita assured employees that MTN had governance processes in place to address their concerns. Mupita also reportedly garnered the support of ten of the company’s 15 following the allegations. Since 2021, MTN’s South Africa subsidiary has seen numerous high-ranking executives leave the company. These include CEOs Charles Molapisi, Godfrey Motsa, CTO Giovanni Chiarelli, chief strategy officer Marco Gagiano, chief sales and regional operations officer Phillip Besiimire, chief technology and information officer Michele Gamberini and chief sustainability and corporate affairs officer, Jacqui O’Sullivan.
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👨🏿🚀TechCabal Daily – How OmniRetail cracked African e-commerce
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF We’ve got ₦1 million up for grabs. We’ve partnered with Zedcrest Wealth to host the first edition of the Money Titan Tournament at Moonshot 2024. Test your financial literacy by competing in five exciting stages, from Beginner to the Grand Finale, with rewards at every level. If you’re ready to become the Money Titan 2024 and win the cash prize, sign up on the Zedcrest app and join the waitlist. Sign up now. How did OmniRetail crack B2B e-commerce in Africa? Flutterwave names Mitesh Popat as new CFO Funding Tracker The World Wide Web3 Opportunities Companies How did OmniRetail crack B2B e-commerce in Africa? Image Source: Ganiu Oloruntade/TechCabal. African B2B e-commerce businesses raised a combined $423 million between 2021 and 2022 because their value proposition worked: they helped informal retailers stock up inventory faster by connecting them to wholesalers. Fast-moving consumer goods (FMCG) needed to be sold off quickly due to their short shelf life and to accommodate the high demand for these products. But the delivery delay from distributors made this a lingering problem. Retailers were losing money and business was shrinking. B2B e-commerce companies formed partnerships with manufacturers, often deploying their logistics fleet and inadvertently displacing distributors. Soon, this situation kept everyone in a bind: retailers wanted better rates, and the companies had to compete with distributors. These businesses were seeing some red as low margins and unit-level losses became challenges for the business. Yet OmniRetail, a B2B e-commerce company founded by Deepanker Rustagi in 2019 claims it has cracked the code to profitability. OmniRetail does not attempt to replace the middlemen. It offers three products: Omnibiz for retailers, Mplify for distributors, and an embedded finance app, Omnipay for facilitating payments. Retailers place orders on Omnibiz, and the company, using their bulk orders as a bargaining chip, gets favourable discount offers that they pass to the retailers. As soon as these orders tick off, distributors pick it up on Mplify and deliver last-mile to retailers. “The value chain margin in commerce has various layers, including distributors, wholesalers, and retailers. If you can play a role in these different layers of efficiency, you can get a large amount,” said Rustagi. For a company that claims to have achieved net profitability, OmniRetail’s asset-light approach allows it to achieve even greater economies of scale. Go deeper in our OmniRetail coverage here. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Companies Flutterwave names Mitesh Popat as new CFO Image source: Flutterwave Flutterwave has appointed Mitesh Popat as its new chief financial officer (CFO), replacing former CFO Oneal Bhambani who left the company in November 2023. Before joining Flutterwave, Popat spent 18 years at Citi where he served as CFO for the Middle East and Africa (MEA). Popat revels in executing financial business growth strategies. His work navigating financial compliance at Citi in the MEA region is an addition Flutterwave will be keen on having on their team, given their expansion goals. In 2024, the fintech company expanded its payments infrastructure to Southern and Eastern African markets, with its latest licence acquisition in Uganda. Equally, the company is actively cutting off cash-burning products and aggressively pursuing new growth markets. It has shut down its struggling money transfer product, Barter, opting instead to stick with its remittance product, Send. It also shifted its focus to enterprise payments and laid off 3% of its staff who were working on products the company deemed surplus to requirements. Flutterwave is looking to connect more African markets to its ecosystem. And Popat’s new job will see him ask questions daily about how the company will capture more money while losing less—to boost retail investors’ confidence—as it continues to front-pedal its plan to go public. Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Insights Funding Tracker Image source: Stephen Agwaibor/TechCabal This week, Nigeria’s Kredete, a financial software platform, secured $2.25 million in seed funding. The funding round was led by Blockchain Founders Fund, with participation from Techstars, Tezos Foundation, Polymorphic Capital, Launch Africa, Neer Venture Partners, and DNA Fund. (September 2) Here are other deals for the week: Chpter, a Kenyan e-commerce startup, raised $1.2 million in a pre-seed round. Pani led the funding round with participation from Plesion Capital, Techstars, Norrsken, Renew Capital, Viktoria Ventures, and angel investors. (September 2) Tunisian IoT-based smart energy management solution startup Wattnow announced the closing of an undisclosed multi-million dollar funding round. The round was led by Lateral Frontiers and 216 Capital, with participation from Outlierz Ventures, Satgana, Octerra Capital, and other strategic angel investors. (September 4) Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, our State of Tech in Africa H1 2024 Report is out. Click this link to download it. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $56,408 – 1.32% – 1.30% Ether $2,380 – 1.28% – 5.85% Toncoin $4.86 + 6.20% – 15.75% Solana $129.44 – 2.88% – 15.75% * Data as of 06:40 AM WAT, September 6, 2024. Events Inside the big stories transforming the Arabian Peninsula and the world. Introducing Semafor Gulf – your go-to source for understanding the rising influence of Saudi Arabia, the UAE, and Qatar. Three times a week, the Semafor Gulf newsroom will bring you original reporting that examines how the region’s financial, business,
Read MoreBreaking: Flutterwave names ex-Citi executive Mitesh Popat as new CFO
African payments giant Flutterwave has appointed Mitesh Popat as chief financial officer (CFO) nine months after former CFO Oneal Bhambani left the company. Popat held executive positions at Citi including CFO for Middle East and Africa and Global Equities Sales and Trading. He will oversee Flutterwave’s corporate finance functions. With two decades of experience in global financial services across different markets, Popat will be instrumental in driving Flutterwave’s next phase of growth and financial sustainability, the company said in a statement. “I have a deep understanding of the operating environment in Africa and complexity of operating an emerging market business and I plan to bring my experience in growing Flutterwave, while optimising our business model for sustained profitability,” Popat said. The ex-Citi CFO replaces Bhambani who resigned just 18 months after joining the fintech startup. In March 2024, Flutterwave’s chief operating officer, Bode Abifarin left the company after six years of leading its operations. These high-profit exits had raised questions about the company’s much-talked-about IPO plans. Popat’s hiring comes after the company rethought its product strategy to focus on enterprise and remittance. In March 2024, it shut down the struggling Barter, a virtual card and international payments service it launched in 2017. In 2023, it relaunched its international remittances product, Send App, and launched other offerings to help local businesses swap international currencies. “As our new CFO, his work will be adding value to our customers – both enterprise merchants and retail remittance customers, as well as the African fintech ecosystem,” said Olugbenga Agboola, Flutterwave CEO.
Read MoreCracking the code: OmniRetail’s Deepankar Rustagi believes profits are sure
OmniRetail is Deepankar Rustagi’s second stab at a technology-enabled marketplace. For his second turn, he believes he has cracked the code. When Deepankar Rustagi founded Vconnect in 2010, it was one of Nigeria’s first marketplace products for hiring freelancers and artisans. Despite reaching over 400,000 businesses, an absence of integrated payments in a pre-Flutterwave world caused problems, and Vconnect closed its doors in 2017. In 2019, Rustagi took another stab at another marketplace, this time for fast-moving consumer goods. He set out to digitise Nigeria’s traditional supply chain with OmniRetail, a B2B e-commerce startup that connects retailers to manufacturers and distributors. OmniRetail is a function of Rustagi’s sales experience in Tolaram, the Indomie noodles maker, and a first-hand understanding of the bumpy road manufacturers must take to reach retailers. Technology is the asphalt that makes the road smoother, Rustagi believes. Building this road with technology in Africa’s large informal markets is challenging. Traditional wholesalers, who have deep networks of retailers, and buy enough volumes to receive discounts from manufacturers, are difficult to unseat. While one school of thought believes consolidation—such as Wasoko’s recent merger with MaxAB is the answer—Omniretail’s CEO believes in a hybrid approach. He believes the key to success is a mix of consolidation of strong players and technology companies onboarding traditional middlemen. OmniRetai’s pitch to retailers is that they will benefit from joining a “network of networks.” This network comprises three products: Mplify, a platform for distributors; Omnibiz, a platform for retailers; and Omnipay, a payment product. In practice, it looks like a retailer ordering products on Omnibiz, a distributor nearby accepting that order on Mplify, and making payments through Omnipay. OmniRetail has moved quickly since its launch, raising $3 million in 2021 and reporting revenues of ₦59.3 billion in 2022. By 2024, it topped the Financial Times list of Africa’s fastest-growing companies. Rustagi credits this rapid growth to the company’s deep market understanding. Before scaling its model, it used Surulere as a sandbox. “We did our small experiment in Surulere to get the right unit economics right, then we started multiplying into other areas, and now into other countries, and we saw the power of scale.” The company claims to serve 140,000 retailers, 4,500 distributors, and 135 manufacturers and has a monthly gross merchandise value (GMV) of $160 million. OmniRetail makes money by getting a margin from a distributor to sell its products faster to retailers. It also makes money from the manufacturer by providing them insights on how their products move within the market. Information like this can improve efficiency by ensuring they produce just what the market needs at any given time. The revenue lines indicate OmniRetail’s knowledge that merely replacing the distributor is a small-margin game. “The value chain margin in commerce overall looks like 35%, and there are various layers, including distributor, wholesaler, and retailer. Transportation is happening at each stage, and working capital and loans are required at each stage. If you can play a role in these different layers of efficiency, you can get a large amount.” While Rustagi will not be drawn into sharing exact figures, he claims OmniRetail’s net profit margin has increased by 8%. ”Our gross margin has increased by 4%, and our losses have converted into profitability. Today, we are a net profitable company.” It has found early success in food and beverages where “margins are thin, but profitability is sure.” “If you look at how much money you spend in a month, a significant portion goes into buying bread, noodles, pasta, garri, and rice. If we can deliver low-margin categories, then tomorrow, when we onboard other categories, we can grow our margins.” OmniRetail will also grow its business to Francophone Africa and has tapped Steve Dakayi, an ex-Jumia executive, to lead the expansion. In Nigeria, it will expand to 24 cities, almost double the ten it currently operates in. “We are now considering scaling outside food and beverages into other essential goods. We are not doing electronics; it is still another aspect of retail,” he said. Rustagi also discussed the company’s use of Artificial Intelligence, which has captured the imagination of shareholders and business leaders. In 2020, Rustagi says OmniRetail built an AI model that gives retailers data on customers’ buying patterns. Retailers use those insights to stock in-demand brands and improve their turnover. With increased turnover will come a need for loans, which OmniRetail provides in partnership with the Bank of Industry. “You don’t just have to ensure logistics and fulfillment. You have to ensure payments and credit as well.” OmniPay is integrated with 14 financial institutions, including Paga, Stanbic IBTC, Access Bank, and Moniepoint. “Now, we do ₦20 billion in payments every month. And the way it is growing, I think very soon, we’ll be doing 10s of millions every day.” Listening to Rustagi, it’s difficult to believe this sector has generated multiple think pieces questioning its future. It doesn’t feel like irrational optimism; Rustagi genuinely believes OmniRetail has cracked the code. “We are a company that can grow 10x in three years.”
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