GoLemon to pilot next day delivery, slashing delivery time by over 40%
GoLemon, the grocery delivery startup founded by four ex-Paystack staff members, will begin testing a next-day delivery next week, sources familiar with the matter told TechCabal. Currently, GoLemon’s earliest delivery time is two days after an order is made. Reducing delivery time by over 40% could help the company make more inroads in a market accustomed to same-day delivery from competitors like Mano, Price Pally, My FoodAngels, and Chowdeck. GoLemon confirmed it will now run round-the-clock operations to achieve faster delivery times. “Our operations now include overnight shopping (what we call picking and packing), processing, early morning quality checks, and real-time inventory management,” GoLemon co-founder Abdulrahman Jogbojogbo told TechCabal. According to a person familiar with the company’s operations, the tech team is developing a dashboard that will improve order tracking and communication within the team. This is an improvement over the Slack bots it previously used. The team will now work in shifts, improving overall efficiency. Industry reports show that faster delivery also implies increased fulfillment costs. However, GoLemon says its delivery prices will remain unchanged. Introducing next-day delivery will be a critical shift for a company that has previously shared that it prioritises quality and affordability over speed. During a panel session at Moonshot by TechCabal, GoLemon CEO Yinka Adewuyi said the company’s typical customer, who makes bulk purchases and has an average basket size of ₦50,000, is not in a rush to get their delivery. This allows the startup to sort deliveries based on proximity and provides a cost advantage with delivery fees as low as ₦300. While slow shipping allows a company to control fulfillment costs, it also makes the grocery delivery service less attractive to impulse buyers—a demographic fueling the growth of startups like Chowdeck, which sources groceries from malls and local markets in 40 minutes, and Mano, which sources from its dark stores located in various locations in Lagos and Abuja. PricePally and MyFoodAngels source produce directly from farmers and open markets. “We’ve always had next-day delivery in our sights,” said Jogbojogbo, a GoLemon co-founder. When the eight-month-old startup was in the pilot phase, it only delivered on weekends, he shared. The company has been pacing itself so it can “focus on building direct relationships with more farmers, manufacturers, and distributors who are aligned with our quality standards.” “The [current] 36-hour window probably buys [GoLemon] enough time to find the requested item and keep to the expected delivery time,” said Olapeju Umah, CEO of MyFoodAngels. Sourcing is not the only element in quick grocery delivery—it also helps if the business sets up its inventory to access more items on demand. If a startup cannot afford its warehouse, it could partner with a storage space provider. However, forecasting demand can help businesses optimise inventory. GoLemons says that it has built a smart prediction model that is already helping them stock the right items and quantities. The shorter delivery time can level the playing ground for GoLemon’s competition with older players. “[But] our goal isn’t fast commerce; it’s about providing a balanced grocery commerce experience that’s accessible to all, with groceries sold at the lowest prices and highest quality,” Jogbojogbo insists.
Read MoreMoniepoint taps Stanbic IBTC CFO for its microfinance bank after $110 million raise
Moniepoint, the Nigerian fintech that recently raised $110 million at a billion-dollar valuation, has appointed Bayo Olujobi as the Chief Financial Officer (CFO) of Moniepoint MFB, one of its subsidiaries. Olujobi, who has about 20 years of experience in finance, joins Moniepoint from Stanbic IBTC Bank, where he was CFO and non-executive director. Olujobi’s appointment as CFO comes eight months after the MFB partnered with the country’s Corporate Affairs Commission (CAC) to digitise operations for 2 million small and medium businesses. He will also play a significant role in the company’s goal to onboard 30 million businesses over the next five years. Moniepoint also plans to expand its digital payments, banking, foreign exchange (FX), credit, and business management tools across Africa. “I am really excited to have the opportunity to join Moniepoint at this time. The bank has developed an unparalleled customer proposition across the business and personal banking segments and I believe it is on the cutting edge of delivering what the consumer craves—a secure, convenient and easy platform to manage their financial lives. Moniepoint is right at the forefront of this movement,” Olujobi said in a press release seen by TechCabal. His appointment continues a trend of top fintech startups tapping up talents from banks and other fintechs. Since April, Moniepoint and other fintechs have ramped up compliance hiring, poaching top talent from banks and other fintechs.
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👨🏿🚀TechCabal Daily – KCB loses $7.7 million
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! As far as contactless payments go, rings may be about the coolest thing to put an NFC chip in. NFC-enabled rings are as useful as they are flashy. With them, you don’t have to bend your wrist awkwardly to tap and pay, unlike with wearables like a smartwatch. Yet, reviews say NFC rings “don’t quite work as they should,” but you should be good on your third try—just carry your card as a backup. What other cool accessories that double as devices come to mind? KCB customers overdrew accounts by $7.7 million during glitch MTN’s MoMo PSB has applied for PSSP and PTSP licences Funke Opeke steps down as MainOne MD, takes advisory role Kenya’s tax collector begins monitoring mobile transactions World Wide Web 3 Opportunities Banking KCB customers overdrew accounts by $7.7 million during glitch Image Source: KCB Group Technical glitches at KCB Group, Kenya’s largest bank, allowed customers to withdraw more than their actual balances, leading to a loss of about $7.7 million (KES 1 billion) between October 11 and 31. The issue arose during critical data migration from on-premise to a colocation centre hosted by iColo, a tier 3 data centre. A subsequent attempt to integrate cloud databases resulted in a synchronisation error. This led to real-time balance updates failing, which then allowed customers, mainly those with KCB-M-PESA target savings accounts, to withdraw up to triple their saved amount. The bank has since restricted the accounts of overdrawn customers and told them to regularise their accounts so they can recoup the funds. An investigation by TechCabal has revealed multiple service disruptions and system outages over the last few weeks, a pointer that the lender is struggling to patch its systems as it modernises its IT infrastructure. Lapses in technical operations have become a concerning issue in the Kenyan banking sector over the last few years. Ecobank Kenya lost “millions of dollars” between 2020 and 2022 due to vulnerabilities in its card operations team, which left the bank exposed to potential fraud by merchants and staff. Similarly, Equity Bank was targeted in a debit card fraud case where $2.1 million was stolen. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Fintech MTN’s MoMo PSB has applied for PSSP and PTSP licences Image Source: Zikoko Memes MTN Nigeria is going all in on fintech, swapping signal towers for something a bit more… moneyed. The telecom giant applied for two payments licences: the Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences. With the PSSP licence, MTN will be able to process payments for merchants and users alike. Imagine them as the new digital wallet you didn’t know you’d need, smoothly zipping your money from A to B. And if they secure the PTSP licence, they’ll have the green light to roll out POS terminals across the country—basically bringing cashless, card-swiping to every nook and cranny of Nigeria. Yet, MTN will have Moniepoint, OPay, and Palmpay to contend with in this segment. This isn’t MTN’s first fintech rodeo either; MoMo is one of the leading mobile money operations in Nigeria with 5.5 million wallets to show for it. And if all goes to plan—i.e., the CBN approves—these licences will make MTN a heavyweight in the financial services ring. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Companies MainOne founder and managing director Funke Opeke retires Image Source: TechCabal In November 2024, tech trailblazer Funke Opeke is retiring as Managing Director for West Africa at MainOne, the connectivity giant she founded nearly two decades ago. Opeke will still be around in an advisory role, offering her expertise as MainOne completes its transformation under new owner Equinix. Who’s filling her shoes? Wole Abu, the current CEO of Liquid Intelligent Technologies Nigeria, who’s already plotting the company’s next big moves in internet services and data centres. He resumed on November 1. The company hosted an exclusive dinner party to welcome him to the MainOne family this Tuesday. Equinix snagged MainOne for a cool $320 million in 2022, with plans to keep the MainOne brand alive under “Solutions by Equinix.” And they aren’t playing small—three shiny new data centres and a massive fibre expansion are in the works, set to make waves in Africa’s connectivity landscape. Equinix’s big leap into West Africa via MainOne has cemented its role as a heavyweight in the region’s tech ecosystem. Opeke’s journey with MainOne has been game-changing. Back in the day, she led the charge to bring West Africa’s first private submarine cable ashore, setting the stage for a connectivity revolution. Today, MainOne stands tall as Nigeria’s go-to internet provider, trusted by top banks and telcos alike. Introducing Paystack transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → Economy Kenya’s tax collector begins monitoring mobile transactions Image Source: Sauce.co.ke Kenya’s new tax compliance methods may bring back the antiquated methods of saving money under mattresses. The country recently got fresh funding from the International Monetary Fund—a $606 million loan. One of the loan conditions was that Kenya must increase its tax revenue—Kenya is gunning for KES 20 trillion ($158.8 billion) in the next five years. The Kenya Revenue Authority (KRA) is using technology to up the country’s tax compliance strategy and make sure it hits this audacious goal. In its brief to the
Read MoreKCB customers overdrew accounts by $7.7 million following system glitches during migration
Technical glitches during a critical data migration allowed customers at Kenya’s largest bank, the KCB Group, to withdraw sums above their bank balances. Customers withdrew around $7.7 million (KES 1 billion) from October 11 to 31, ten people familiar with the matter told TechCabal. The bank has restricted the accounts of customers who overdrew their accounts and has notified them, people familiar with the matter said. The bank is also prepared to use loan recovery companies. After migrating its databases from on-premise to a colocation centre, the bank attempted to integrate its cloud databases, leading to a syncronisation error. “After moving servers, the balances were not updating in real-time at the backend. That’s why customers could overdraw the accounts,” one person familiar with the matter said. KCB-M-Pesa target savings accounts, which allow people to access short-term loans and save, were the worst hit. “People could withdraw up to three times the saved amount,” said one person with direct knowledge of the account. The technical glitches, which lasted over three weeks, paint a picture of the bank’s struggles to modernise its IT infrastructure. A high-priority notice sent to KCB staff during the crisis showed that employees were sometimes“unable to access affected systems,” resulting in hours of service interruption or total outage. KCB Group declined to comment. At a crisis meeting on October 12, top executives discussed how to address the issue and explored recovering the lost funds. The bank has since held other similar meetings. Fraud is a growing concern in Kenya’s financial services sector, with banks losing about $130 million yearly, according to credit reporting agency TransUnion Africa. Most banking fraud cases go unreported, as lenders resolve them quietly, albeit with the knowledge of the Central Bank of Kenya (CBK) and other financial sector regulators.In 2023, Kenya’s Financial Reporting Centre (FRC), an agency that tracks money flow in financial institutions, flagged more than $600 million linked to card fraud, corruption, and terrorism.
Read MoreMTN Nigeria to obtain two additional payment licences for MoMo PSB
MTN Nigeria, the country’s biggest telco, has applied for Payment Service Solutions Provider (PSSP) and Payment Terminal Service Provider (PTSP) licences for its fintech subsidiary MoMo PSB, reflecting its growing focus on digital payments in Nigeria. The PSSP license allows MoMo PSB to offer payment processing gateways, develop financial solutions, and provide merchant aggregation and collection services. With a PSSP license, MTN can process its payments, reducing what it currently pays to other PSSPs. Beyond fixing the internal payment needs of the telco business, MoMo PSB can also address the payment processing needs of merchants and partners. The PTSP license will allow MoMo PSB to deploy and service POS terminals, develop POS applications, and offer training and support to over 302,000 merchants, agents, and 5.3 million users on the MoMo PSB platform. These new licenses put MTN’s fintech arm in direct competition with established platforms like Interswitch and Flutterwave. In the PoS market, MoMo PSB will be competing with leaders such as Moniepoint, Opay, and Palmpay. MTN’s other fintech subsidiary, Yello Digital Financial Services (YDFS), applied for the licenses and paid ₦200 million for them, according to the company’s Q3 2024 report. MTN Nigeria declined to comment on the applications. MTN launched YDFS in 2018, with a super-agent licence to facilitate bill payments and person-to-person transfers. However, this license restricted YDFS from holding customer deposits in digital wallets. In 2022, MTN launched MoMo PSB with a Payment Service Bank (PSB) license, offering services such as airtime and data sales, bill payments, and money transfers. The PSB license still limits MoMo PSB’s offerings, excluding services like lending, foreign currency transactions, and insurance underwriting. In Nigeria, acquiring a payment service provider license generally includes a ₦100,000 application fee, plus an additional ₦100 million license fee once the final approval is issued. By the end of Q2 2024, MoMo PSB reported 5.5 million active digital wallets and 302,800 agents and merchants.
Read MoreEquinix appoints Wole Abu as MD for West Africa
Equinix, one of the world’s largest infrastructure companies and the parent company of MainOne, has appointed Wole Abu as Managing Director of its West Africa business. Wole Abu will replace Funke Opeke, who founded MainOne and continued to lead it after its $320 million acquisition by Equinix in 2022. Wole’s appointment as Managing Director for Equinix’s West African business follows shortly after the opening of Equinix’s newest data center in Johannesburg and in his role, he will oversee the Equinix business in West Africa, work closely with both local businesses and multinational companies to build on the strong foundations for connectivity and growth in the region bringing the opportunity of Equinix to the West African region, the company said. MainOne founder and MD Funke Opeke resigns, transitions to advisory role Before this appointment, Abu was CEO of Liquid Intelligent Technologies Nigeria business and the Africa Data Centre. He previously worked at Airtel and Pan African Towers. “I’m excited to be joining Equinix, as we share a common vision for expanding digital infrastructure across Africa,” Abu said in a statement provided by Equinix. “This mission is crucial for bringing life-enhancing services to the region and bridging the digital divide. By empowering both enterprises and individuals, we’re enabling broader participation in the global digital economy. I’m eager to contribute to this transformative work and help create a more connected, accessible digital landscape throughout Africa.”
Read MoreMainOne founder and MD Funke Opeke resigns, transitions to advisory role
Funke Opeke has resigned as MainOne’s Managing Director for West Africa weeks after the internet connectivity provider finalised its post-acquisition integration with Equinix. According to three people familiar with the matter, Opeke, who founded MainOne in 2008, will transition into a strategic advisory role for the West African region through March 2026. She will be replaced by Wole Abu, the CEO of Liquid Intelligent Technologies Nigeria, three people familiar with the matter said. Abu previously served as Pan African Towers’ CEO and Vice President of Sales at Airtel Nigeria. Abu will lead the company’s focus on growing its internet service provision and data centre business, one person familiar with the matter said. Equinix plans to launch three major data centre projects and extend its fibre capacity, TechCabal previously reported. The post-acquisition integration, which began in 2022, MainOne, Solutions by Equinix will retain its brand. The company operated two data centres in Lagos that are now fully controlled by Equinix. The leadership change marks a new beginning for MainOne, Nigeria’s most prominent internet connectivity provider with a roll call of major banks and telcos as clients. In April 2022, MainOne was acquired by Equinix, the world’s largest global data centre and colocation provider, in one of the largest exits in Africa’s tech ecosystem. MainOne did not immediately respond to a request for comments. Funke Opeke was appointed MainOne’s MD for West Africa after Equinix’s $320 million acquisition of MainOne in April 2022. She had been the company’s CEO for over a decade and had led its growth since 2010 when it landed the first private submarine cable on the West Coast of Africa. In 2023, Main One began laying a 27-kilometer fibre optic cable to cover the Yaba area of Lagos, known as Nigeria’s Silicon Valley. That led to several startups choosing to have offices in Yaba and midwifed the Nigerian tech ecosystem. MainOne’s fibre investment was instrumental to the growth of startups like Andela, CcHUB, Paga, Hotels.ng and Flutterwave.
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👨🏿🚀TechCabal Daily – Getting to No
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! If you need something to reignite your relentless optimism, you should read this article by Kola Aina, a prominent African investor. He argues that despite the historic funding downturn, the African tech ecosystem presents the world with an opportunity not to be taken lightly. Raising a $50 million VC fund for the first time Starlink pauses new subscriptions in Kenya Botswana’s inDrive drivers feel earnings pinch Kobo360 CEO resigns a year after her appointment World Wide Web 3 Opportunities Venture Capital A first-time fund manager raising a $50 million growth-stage fund Image Source: Getty Images Getting people to give you money when you have limited experience is hard—just ask any founder raising an early-stage round how many NOs they got because of their lack of experience. If you flip the script, venture capitalists also face this classic chicken-and-egg dilemma: LPs want experience, but you need LPs to trust you before gaining that experience. Speaking to *James, an entrepreneur and consultant raising a $50 million venture capital fund to address the shortage of growth-stage financing for African startups, I got the sense that solving this dilemma is expensive and difficult. This is mostly because there’s a need to educate high-net-worth individuals and institutional investors about the venture capital and tech landscape in Africa. Even before speaking to LPs, he had to identify a gap that his fund would fill. The gap he saw was in the “missing middle” between early-stage funding and growth-stage funding. While early-stage funding is relatively abundant, with numerous pre-seed and seed rounds, many African companies struggle to secure Series B funding and beyond, he said. James aims to fill this gap by leading and co-investing in deals, writing checks ranging from $2 million to $5 million. Read Muktar’s conversation with James here. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Internet Starlink pauses new subscriptions in Nairobi due to network overload Image Source: TechCabal One key goal for every business is to become oversubscribed. That is true for Elon Musk-owned satellite internet service provider Starlink in Kenya. Since its launch in the East African nation in July 2023, it has gained popularity among Kenyans seeking more reliable alternatives to local ISPs like Safaricom. With faster speeds and relatively cheaper subscriptions, Starlink has grown to become Kenya’s tenth-largest ISP with over 8,000 subscribers. This figure is likely to increase. That growing demand has strained its network capacity and it could no longer support additional customers. Starlink was forced to suspend new subscriptions in Kenya’s capital, Nairobi, and five neighbouring regions. Customers in those areas have been experiencing service disruptions. “Starlink is working to increase internet capacity in dense urban areas in Africa as fast as possible,” said Elon Musk on X on Monday. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Ride-hailing inDrive drivers in Botswana feeling earnings pinch Image Source: TechCabal Rising fuel costs in Botswana and competition for rides with Bolt are hitting the pockets of drivers of the ride-hailing platform inDrive. Some drivers say their earnings have reduced by as much as half. Drivers also pointed out their frustration with the commission inDrive introduced in February as another contributor to reduced earnings. The ride-hailing app introduced the commission after five years of commission-free operation. On the commission, it says it has yet to receive any formal complaints from drivers although there are channels available to voice such concerns. Additionally, inDrive said like any other business, it had to introduce the commission in order to be sustainable. inDrive also refutes the claim that the app has seen a decline in rides since the launch of Bolt and it says it has actually seen a surge in ride activity. Despite having enjoyed a fair amount of popularity since 2019, over the past year, inDrive has been plagued by complaints from drivers, riders, and public transport operators. The introduction of the commission and its subsequent impact on earnings is just the fuel to the fire. With Bolt now in the foray, it has set the stage for an interesting competition landscape for ride-hailing in Botswana. Introducing Paystack transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → Logistics Kobo360 CEO resigns a year after taking the reins Cikü Mugambi, former Kobo360 CEO On October 29, Cikü Mugambi, CEO of Kobo360, a Nigerian logistics startup informed employees that she was resigning from her position. Her resignation comes one year after assuming the position. Mugambi had joined the seven-year old startup in 2021, from International Finance Corporation (IFC), one of Kobo360 ’s investors. She worked as chief of staff and head of investor relations. In 2023, Obi Ozor, Kobo360 co-founder and ex-CEO exited the startup to pursue a political career and appointed Mugambi his replacement. On the call announcing her exit, Mugambi hinted that the difficulty of raising fresh funding for the startup, which had previously raised about $78 million in debt and equity by 2021, partly influenced her decision, according to sources close to the company. Those sources say her exit is bittersweet because Mugambi is leaving the company in a better business position than when she joined. “The revenue from the Nigerian business is now able to pay for operations and break even.” CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin
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The first-time fund manager raising $50 million to focus on the deep-end: investing in “the missing middle”
*James, a first-time fund manager raising a $50 million fund, shares insights on finding the right investors and how to convince them to sign those cheques. Raising money is no easy feat—just ask any startup founder who has closed a funding round. These conversations can stretch on for months, sometimes years, and finding the right investors often feels like searching for a needle in a haystack. These same challenges also extend to venture capital firms when they are raising capital. While there is no shortage of stories about the difficulties of raising funds as an African startup founder, little has been said about the unique problems of African investors raising their first funds. In this two-part series, an African entrepreneur and consultant who has partnered with an accelerator manager and an experienced tech operator to launch his first fund shares his experience. While he has clear goals—developing a model that will change how African VCs return capital to their investors and investing in “overlooked” early-stage startups that have not raised growth-stage capital—the journey to achieving them has been difficult. (This interview has been edited for clarity) TC: What is the size of the fund you’re targeting? *James: We want to lead and co-invest in deals. We’re targeting a fund size of $50 to $70 million and plan to write checks ranging from $2 million to $5 million on average. This means that even for Series B rounds, we’ll be co-investing alongside other investors. TC: How did you reach that amount? James: We started by considering the number of companies we wanted to support and worked backwards. We assessed our capabilities, network, and overall resources, as well as the type of transformational support we aim to provide. We intend to have a very intentional platform strategy for our fund, offering meaningful assistance rather than spreading ourselves too thin with an overly large portfolio. By estimating the ballpark number of companies we plan to support, we conducted financial modelling and arrived at that fund size. Additionally, we’re leveraging our backgrounds, resources, and sectors of expertise based on our previous experiences. This includes the networks we can provide to the companies we invest in and the direct support we can offer. All these factors informed our ultimate choice of fund size. TC: How much of your own money did you have to put up for your fund? Yewande: 1%-3% of the fund. TC: What made you think of starting a fund? James: I have a background in entrepreneurship and strategy consulting. Although I wasn’t an entrepreneur for a long time, my experiences and some challenges with the African VC industry led me to start a VC fund. First, the VC ecosystem on this continent is quite young—venture capital as an asset class here is probably around ten years old, so it’s still in its infancy. When I looked at the number of VC firms and their focus, I noticed that many are investing in early-stage companies. However, there’s a significant dearth of growth-stage VC investing. It’s always great to hear about companies raising pre-seed and seed rounds, and we celebrate those achievements. But then we don’t hear anything about them for the next four years; they don’t seem to reach Series B funding. This could be because the companies weren’t great or because scaling ownership is hard and things happen. But it can also be due to the lack of growth-stage investors. In talking with friends who work at DFIs (Development Finance Institutions) that are LPs (Limited Partners) in many VCs on this continent, I found that when they looked at the potential returns, many funds weren’t on track to deliver the expected returns to their LPs by the end of their fund cycles, which often conclude around 2024 or 2025. This suggests that the model might be broken. There are a few things that need to change—not only in portfolio construction but also in the level of support provided to companies. That’s why we’re working on a model that we believe is different in how we approach investments. TC: How did you develop your thesis? James: We found alignment not necessarily on specific verticals or sectors, but on overarching themes that transcend individual industries. We focused on the types of companies we wanted to invest in and the attributes or “X-factors” we sought in those companies. One key theme was investing in digital infrastructure—the infrastructure for the new economy. Another was the concept of network effects across sectors, sub-sectors, or verticals. These were crucial overarching themes that could be applied to many areas. We reached this alignment by bouncing ideas off each other based on our experiences, the gaps we observed in funding certain types of companies and the kinds of businesses we wanted to support. From there, we adopted a sector approach, starting by identifying the sectors or sub-sectors we wouldn’t invest in, as well as the specific pockets within sectors we wanted to avoid. To inform these decisions, we drew upon our collective experiences—our “secret sauce.” In terms of sectors, we’re interested in HealthTech, ClimateTech, and certain areas of FinTech—especially companies building infrastructure for the new economy and enabling verticals within FinTech. Sustainable mobility is also a key area of interest for us. Initially, we focused on the growth stage, but we ultimately broadened our scope to include earlier stages—from Series D down to seed and Series A. We believe there’s a “missing middle” between seed and Series A, a gap that’s often overlooked. We find this space particularly interesting and see the potential in enabling companies within it. So, while we began by considering growth-stage investments, we expanded our focus to include early-stage companies. TC: What challenges do first-time funds face when talking to LPs? James: One of the first challenges as an emerging manager is the lack of a track record. If you don’t have a history of investing, potential LPs may ask, “Why you?” It’s crucial to clearly explain to LPs why you are the right
Read MoreStarlink suspends new subscriptions in Nairobi due to network overload
In a surprise move, Starlink has paused new subscriptions in Kenya’s capital, Nairobi, and five neighbouring regions, citing high demand straining its network capacity. The five regions are Kiambu, Machakos, Narok, Murang’a, and Nakuru. Starlink said its network capacity could not support additional customers, highlighting the company’s rising popularity in Kenya but raising questions about its capacity to scale in densely populated urban areas. “Nairobi and neighbouring areas are currently at network capacity. This means that too many users are trying to access the Starlink service within Nairobi, and there isn’t enough bandwidth to support additional residential or roaming customers now,” Starlink said. “Starlink is working to restore service in the disrupted areas and a notification will be sent once the residential plan is back.” Starlink beams internet to users using Low Earth Orbit (LEO) satellites, which are about 1,000km from the earth’s surface–increasing information speeds with rates of up to 300Gbps. Starlink did not immediately respond to requests for comment. Since its launch in Kenya in July 2023, the number of Starlink users has grown more than tenfold, driven by promotions on kits and cheaper monthly plans. For instance, in August, the company introduced a $15.15 (KES1,950) monthly kit rental plan for users who can’t afford to buy the hardware, which costs $350 (KES 45,000). Starlink’s expansion, which offers faster speeds and relatively lower prices, has upset local ISPs like Safaricom. On July 15, Safaricom asked the Communications Authority of Kenya (CA) to assess the risks of allowing satellite internet providers to operate without an agreement with local companies. Safaricom wants CA to block satellite internet providers with operations in other countries, a move that could lock out Starlink.
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