Vella Finance to stop crypto trading and focus on SME banking
Vella Finance is dropping its crypto-based offerings to focus on SME banking. In an email to users and subscribers on Monday, October 23, the fintech announced that they would be shutting down all crypto-based services on Monday, October 30. Launched in 2021, Vella’s focus was to enable crypto-spending in Africa and provide infrastructure for businesses to collect payments globally. Though the fintech already has products that service small businesses, it’s ceasing all crypto-based operations — trading, deposits and wallets, fiat and crypto swaps, and crypto — to focus on providing end-to-end business solutions for small and medium enterprises in Africa. In a conversation with TechCabal, Tolu Adedayo, co-founder of Vella, cites business decisions as the main reason for the conclusion. “We’re going fully into SME Banking. Banking requires playing in regulatory confines. We already serve businesses from the onset backed by user and transactional data. It just makes sense to offer an end-to-end banking system to better serve them. It’s a business decision; there’s no way we will run banking and crypto together,” he said. One of Vella’s prominent products is Launch by Vella, a service that allows small businesses to register with the Corporate Affairs Commission for a fee of N18,000 ($14). According to Adedayo, the switch was also informed by a drive to fulfil the needs of SMEs. Adebayo told TechCabal that, “A good number of the SMEs driving Nigeria’s GDP are informal and are financially underserved. What we do at Vella is help them formalise via Launch by Vella, give them instant business bank accounts, and provide them with payment infrastructure to enable payment collections locally on their websites/online stores. Vella also allows them to create invoices and payment links for free.” Alongside these existing features, the fintech will launch new features in its new business model to cater to these needs. “We will be announcing new features in the coming weeks that solidify our full entrance into the business banking space,” Adedayo added.
Read MoreExclusive: Fidelity Bank blocks transfers to OPay, Moniepoint, and Palmpay over KYC concerns
Fidelity Bank, a Nigerian commercial bank, has blocked neobanks like OPay, Palmpay, Kuda, and Moniepoint over concerns that their lax KYC processes are leading to increased fraud cases. Nigerian commercial bank Fidelity Bank is restricting consumer fund transfers to neobanks, including Moniepoint, Kuda, OPay, and PalmPay, said multiple sources with direct knowledge of the matter. A week ago, a small number of customers first noticed that these neobanks were no longer listed on the list of approved financial institutions on the Fidelity Bank app. At least five sources have now confirmed the development. The affected digital financial services remain unavailable for selection on Fidelity Bank’s mobile app at press time. While the bank informed customers that the restrictions were related to an app upgrade, two people with direct knowledge of the matter and other sources at the affected fintechs told a different story. Five people close to the situation told TechCabal that the transfer restrictions began at least two weeks ago over rising fraud and customer verification concerns. OPay denied being affected by the restrictions, despite complaints from customers saying otherwise. Sofia Zab, Palmpay’s Chief Marketing Officer, told TechCabal: “They gave us a notice last week that they are upgrading their systems and will put us back after that is done.” A source at Moniepoint also confirmed the restriction. Fidelity Bank declined to comment for this story. Sources connected to the bank told TechCabal that the restrictions are related to mounting fraud losses. At least three banking industry experts said that Nigerian banks and fintech companies have suffered massive losses to cyber attacks and fraudsters since the start of the year. “The issues are due diligence and KYC,” said a bank source who asked not to be named. “Until they get their house in order, they will continue to experience issues [like being blocked] by banks.” According to two people at fintech startups, while Fidelity Bank did not share specific KYC concerns, the neobanks are working to understand the issues. A highly placed person at a Nigerian bank told TechCabal that before the uptick in cases of fraud, traditional banks rarely bothered with KYC for Neobanks. But that is changing with the rise in fraud; traditional banks are not only requesting to see the KYC verification of these neobank users, but they sometimes want to conduct KYC for the customers. Per people familiar with the matter, neobanks like OPay and Moniepoint sometimes use third-party verification companies to collect and verify customer information. These providers verify customer identity remotely using digital documents and biometric verification. While this mode of verification is faster and more convenient for customers, traditional banks feel it may not always be sufficient. “It’s just a case of a kettle calling a pot black,” one expert said. “While neobanks can be loose about their KYC, the traditional banks also don’t conduct their KYC well. They may be stringent with you when they start, but I doubt if they verify these documents, especially when you change them.” Away from these anti-fraud systems, there are valid questions about whether a bank can unilaterally restrict transfers to another bank, and the CBN Customer Due Diligence Regulations 2023 is silent on the matter. Existing regulations state that banks should have a risk management framework in place to identify and mitigate the risks. It is unclear whether Fidelity Bank communicated to the CBN before it began restricting accounts. Sources close to the situation say the bank likely acted without the regulator’s consent. “They can silently do it. If your house is about to burn down, you have to save yourself,” an industry leader told TechCabal. “Even if the regulators ask the bank, they would deny it and say they are having a technical issue. ”
Read MoreNigerian Fintech Week Day 1: Resilience, innovation and diversification key to building a robust tech ecosystem
Written by Stephen Agwaibor The sixth edition of the Nigerian Fintech Week took off in style at the Landmark Centre in Lagos. The three-day event billed for October 24–26, 2023, is themed “Fintech: Resilience, Innovation and Diversification”. The annual event, hosted by the Fintech Association of Nigeria (FAN), commenced with an opening address by its president, Ade Bajomo. In his speech, Bajomo noted that the three pillars for long-term success in Nigeria’s fintech are resilience, innovation, and diversification in the face of “competitive threats, emerging technologies, and the need to meet the needs of customers.” Bajomo explained that resilience was critical now, particularly in the wake of growing cybersecurity threats in 2023. In his words, “Thirty-three percent of computers are vulnerable to cyberattacks, based on recent surveys.” He also stressed the need for regulatory compliance from fintech firms in which changes require “resilience to adapt, to withstand volatile markets and economic downturns”. Despite the current economic clime, Bajomo disclosed that as of Q2 2023, Nigeria attracted 42% of the share of fintech deals in Africa. He also said that the country boasts the highest number of unicorns on the continent, with over 250 fintechs and 6,000 startups. Nevertheless, he noted that there was still room for more, highlighting the need for richer and deeper talent pools, as there were less than 100,000 developers in Nigeria. He also made the case for inclusion, revealing that 40 million people remain underserved, with other areas of tech ripe for exploration, including agritech and proptech. Bajomo called for more structures and key verticals to be built to allow the tech ecosystem to become self-sustaining. Digital divide shrinking in Africa Presenting the keynote speech on behalf of the African Development Bank (AfDB) president was Lamin Barrow, the director-general of the Nigeria Country Department of the AfDB. Barrow noted that the conference’s theme resonated with the imperative of the times by disclosing that Africa’s real GDP growth rate slowed to 3.8% in 2022 from 4.8% in 2021. Despite these, he highlighted wins for fintech in Africa in which he noted that 33% of adults in Sub-Saharan Africa now have a mobile money account—the largest of any region in the world. He also said that by volume, 70% of mobile money transactions come from Africa alone, which helped countries with more robust financial systems on the continent scale up transfers. Barrow says, “While the digital divide is shrinking in Africa, it still exists.” He disclosed that the AfDB is working towards developing a fintech hub, which 75% of African fintech members will benefit from by 2025. Other event highlights The fireside events included discussions with industry stakeholders like Olumide Soyombo of BlueChip Technologies; Ebehijie Momoh, country manager and area business head for Mastercard, West Africa; Tajudeen Mustapha, head of risk management and compliance at Xpress Payment Solutions; Will Stevens, US consul general; Akeem Lawal, Interswitch Purepay MD; regulatory stakeholders from the CBN, among others. Discussions centred around risk and compliance, digital trust, talent acquisition and retention, and customer-centric innovation. The event also saw the launch of a fintech whitepaper on Nigerian fintech’s cloud adoption. Huawei Technologies published the paper in conjunction with FAN. The paper covered pillars of cloud computing, including cloud plan, cloud run, and cloud governance, bringing to the fore issues on security and compliance, data migration, and adoption roadmaps. To download the whitepaper, visit here.
Read MoreNITDA’s 2023 Digital Conference kicks off with a focus on emerging technologies
On the first day of the Digital Nigeria Conference organised by NITDA, a focus on how emerging technologies could propel Nigeria was the main theme, as speakers and panelists discussed how Nigeria could propel itself even further. On Tuesday, the National Information Technology Development Agency, Nigeria’s IT regulatory agency, flagged off the 2023 edition of its annual Digital Nigeria Conference in Abuja. Calling the conference “a celebration of progress,” Nigeria’s minister of communications, innovation, and digital economy, Bosun Tijani, chose to celebrate how Nigeria has established its digital economy over the years and the validation of being the top destination for technology funding in Africa in his speech. While Tijani acknowledged that there is still so much more to do in the telecommunications sector, he added that the sector was the highest-grossing in Africa. “Today, Nigeria is Africa’s top destination for technology startup capital. With about $5 billion invested in tech startups on the continent last year, we took 20% of that total investment. That’s just a glimpse of what is possible,” Tijani said. He attributed this progress to “progressives,” describing them as people “who have taken it upon themselves” to get Nigeria to participate in the global economy.” In her keynote address, Funke Opeke, the CEO of Main One, a provider of connectivity and data centers across Nigeria, recommended that the government take a protectionist stance to grow Nigeria’s private sector. Referencing how other countries protected specific industries, Opeke said that the government needs to create a framework that will enable Nigerian startups to “grow in the light of global competition.” “Protections are also critical for national security and economic stability in an increasingly cyber-enabled world; therefore, local technology domiciliation is important. When databases of critical importance to Nigeria’s citizens, such as voter information and government accounts, are hosted offshore, our country faces inherent risks. We are simply sending too much of our proprietary information, skills, and startup venture economy abroad, and we need to do more to retain our data here,” she said. Nigeria and emerging technologies The theme of the first day centered around how Nigeria can use emerging technologies like artificial intelligence and blockchain technology to continue building on the progress that the Honourable Minister referenced in his speech. Speakers all shared how Nigeria and its startups could use emerging technologies to transform and bring innovation to Nigerian industries. In a fireside chat, Kola Aina, the managing partner of Ventures Platform, a Nigerian VC firm, advised emerging tech startups to find relevant solutions for problems on the continent. He added that these startups tend to apply emerging technologies to create “cosmetic” solutions that might not be relevant to Nigeria’s market. Instead, they use these technologies to make their startups look exciting. At another panel session, Oswald Osaretin Guobadia, a former adviser to the government on technology and the managing partner of DigitA, said that the government has yet to implement some of the policies created to help improve the adoption of emerging technologies. He gave the example of the Nigeria Startup Act, which was not yet implemented across the country and said that improved enforcement could help propel Nigeria’s emerging technology scene.
Read More
👨🏿🚀TechCabal Daily – Small Businesses, Big Funds
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy salary day You made it…but the same can’t be said for Twitter—or X—Circles. Elon Musk has placed the feature on the chopping block. Starting October 31, Circles will be disabled across X mobile and web, and users will not be able to tailor posts to Circles. Y? X is yet to clarify. But this user suggests that the Musk-led company might be disabling the feature because Elon Musk himself isn’t in too many Twitter Circles, and so thinks people aren’t using the feature. In today’s edition Absa Bank to invest $665 million in Kenyan MSMEs Patricia set to repay customers Capital Film launches $600,000 film fund VALR partners with Visa The World Wide Web3 Events Funding Absa Bank to invest $665 million in Kenyan MSMEs Image source: Absa Bank Absa Bank, a commercial bank in Kenya, has announced plans to invest KES100 billion ($665 million) in Kenyan MSMEs over the next three years. According to managing director and CEO Abdi Mohamed, the financial institution is offering working capital to help businesses weather unexpected downturns. MSMEs play a pivotal role in Kenya’s economic growth and development. According to the Kenya National Bureau of Statistics (KNBS), MSMEs account for over 98% of all businesses in Kenya and employ over 14.9 million Kenyans. They also contribute approximately 40% to Kenya’s GDP. Absa’s latest commitment to MSMEs comes after it recently launched Wezesha Stock, a real-time digital platform that helps SMEs manage their inventory and trade. Lights out: The investment in MSMEs is particularly timely, given the current economic challenges facing Kenya. The country is experiencing high inflation and rising interest rates—the Central Bank of Kenya has raised interest rates three times this year to combat inflation—which is making it difficult for businesses to access capital. Absa Bank Kenya’s investment will help to cushion MSMEs from these challenges and support their growth. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Startups Patricia set to repay its customers Image source: Zikoko Memes Patricia is trying to regain trust by reimbursing its customers. In its latest move, the Nigerian-focused crypto platform has partnered with DLM Trust, a trust company licensed by Nigeria’s Securities and Exchange Commission (SEC), to facilitate the repayment of $2 million in customer assets which were lost during a hack last year. DLM Trust will serve as an escrow trustee, holding the funds on behalf of Patricia and its customers until they are ready to be disbursed. When? In a statement published by Nairametrics, DLM Trust stated that the first batch of repayments to Patricia’s customers is set to commence on November 20, 2023. Kehinde Lawal, a senior associate at DLM Trust, stated that Patricia has already provided funds to expedite the refund process and that these funds stem from Patricia, its partners and investors. Lawal emphasised DLM Trust’s role as a trustee ensuring timely payments, with specific payment plans and disbursement strategies to be communicated to users in the coming days. This comes after the CEO, Hanu Fejiro, confirmed last week that users with assets on the platform can now exchange their assets for shares, which are to be managed by an SEC-licensed third-party trustee. Per Lawal, plas for this are still in the works. Zoom out: Patricia’s repayment announcement comes at a perfect time as its users, more recently, started discussing plans to stage peaceful protests to demand release of their assets. Paystack is live in Kenya After 10 months in private beta, Paystack announced that all business in Kenya could now accept payments with our growth tools. Learn more → Entertainment Capital Films launches ₦500 million ($653,250) film fund The Milkor 380 Drone Capital Film Productions, a film financing firm, has launched a ₦500 million ($653,250) fund, to invest in several Nollywood movies. According to Adim Isiakpona, CEO of Capital Film Production, the firm is closing its third fund which will fund six movies in 2024. Capital Film previously raised $800,000 across two funds to support the production of seven films. Isiakpona told TechCabal that the fund will grow to $50 million. Capital Film Productions invests between ₦50 million ($65,325) and ₦100 million ($130,650) in each film, covering only 50% or less of the movie project’s cost, per the CEO. The firm also offers advisory services to filmmakers, and works with them on the scripting and casting stages to ensure the film’s marketability and a viable return. The fund is the latest episode of tech players who are pouring investment into Nigeria’s teeming film industry. Nollywood’s appeal to these investors is its fast return on investment of 24 months or less, which is typically shorter than the return cycle on other tech investments. Investors also reportedly earn up to 3x of the amount invested in the movies. The big picture: New investments from tech players in Nollywood represent a mutually beneficial relationship. The Nigerian film industry will gain valuable business advisory insights that would help the film industry compete globally. Investors on the other hand will make up to 3x returns in record time. “Black Book” a Nigerian movie which got a slew of investment from Nigerian tech prodigies like Nadayer Enegesi (Eden Life), Olumide Soyombo (Voltron Capital), and Ezra Olubi (Paystack), recently became the most streamed African film across 69+ countries on Netflix. Crypto VALR partners with Visa to issue payment cards Image source: VALR VALR customers can now use their cryptocurrency anywhere Visa is accepted. The South African crypto exchange has announced its partnership with payment giant, Visa, to issue Visa cards and develop digital payment solutions in South Africa and beyond. VALR customers will now be able to use their cryptocurrency holdings to make and receive payments globally using the Visa network. According to a report from Mariblock, the digital payment solutions are “soon-to-be-announced.” Zoom out: So far, Visa has partnered
Read More
SA startups returned $17 million in exit returns to investors in 2022
SA VC investors made $17 million from exits in 2022, a 3x return. However, loss-making deals still outnumbered the return-making ones. According to the 2023 Southern Africa Venture Capital Association (SAVCA) survey, exits in the South African ecosystem returned investors R318 million (~$17 million). This represents a three-time return multiple on R83 million (~$4.4 million) invested in such deals. However, despite the returns, the total number of losses incurred on exits was R80 million (~$4.2 million). Additionally, the returns represent the third consecutive year where exit returns have plummeted in the country. Since 2017, the only year that exit activity did not record a loss, in the cumulative sense, was 2019 when the number of returns and losses on exits was the same. Most exits in the SA ecosystem over the last five years have been loss-making. (Image source: SAVCA) SA’s complex exit market Over the years, South Africa has been heralded as the exit hub of the continent, consistently leading other VC hubs in Africa. Several reasons have been attributed to South Africa’s impressive mergers and acquisitions (M&A) dominance. These include active capital markets and banking systems, mature companies that can snatch up startups, and others. The land of mergers and acquisitions: how South Africa continues to strike gold with tech exits However, as more data becomes public, it has been clear that most of the exits have been loss-making for investors. Exiting too early has been hypothesised as one of the reasons why such transactions might not reap the desired results for those involved. According to Keet van Zyl, co-founder and partner at venture capital firm Knife Capital, there is some legitimacy to the hypotheses. Van Zyl states that in some instances, there is a disconnection between the growth capital needed by startups and what is available, so it makes sense to sell instead of trying to embark on more fundraising. On average, according to van Zyl, South African startups exit after three to four rounds of funding. Do South African startups exit too early? Experts have their say “Despite the increasing availability of deal-flow, there remains a significant follow-on financing gap for high-growth local startups with proven traction,” van Zyl told TechCabal in August. “Therefore sometimes when startups try to raise growth capital, they turn to strategic investors who seize the opportunity and make a full acquisition offer.” However, according to van Zyl, this trend is not necessarily bad as it allows for an increased number of smaller exits – which then recycles capital into the ecosystem – instead of a long road to unicorn building and a lack of liquidity for investors. Knife Capital will write $3-$7 million checks for SA growth-stage startups with $50m expansion fund In August, van Zyl’s Knife Capital announced a $50 million expansion fund which would invest in B2B companies that are globalising South African technologies and opportunistic investments in the rest of Africa. The specific focus will be on growth and expansion stage companies at Series A extension and Series B funding stages.
Read More
Can improving user experience help Africa’s e-commerce industry grow?
Image source: Africa business pages In Africa where physical infrastructure challenges hinder traditional retail, e-commerce has emerged as a powerful driver of economic development. Online marketplaces, from global giants to local startups, are expanding rapidly to cater to diverse consumer needs. According to a report by the United Nations Conference on Trade and Development (UNCTAD), the e-commerce sector in Africa has witnessed exponential growth, with an annual expansion rate of 21.7% since 2000. This growth is projected to continue as recent statistics from Agusto & Co revealed that the continent’s e-commerce market could reach a value of $75 billion by 2025. At the heart of this transformation lies the rise of digital payment solutions, which have played a pivotal role in enabling and sustaining Africa’s e-commerce boom. By offering mobile banking and microfinance services, online transactions have become seamless for consumers and businesses. In spite of this growth, challenges still persist. E-commerce businesses in Africa often contend with complex and evolving regulatory environments. Regulations can vary from one country to another and may affect payment processing and cross-border transactions. Across different African countries, preferred payment methods vary significantly. For instance, while mobile money is widespread in East Africa, West Africa may have a stronger preference for card payments or cash-on-delivery. This variability can create challenges for e-commerce businesses looking to operate across multiple African markets. “Fragmented markets make it difficult for companies to thrive because the country-specific e-commerce landscape can make things difficult,” said Taiwo Adeeko, global head of operations at Payaza Africa Limited at a recent TechCabal Live on Friday, October 8, 2023. Facilitating interoperability of digital payment systems and collaboration between fintechs, governments, and traditional banks is an important step in reconciling this challenge. Complex or unreliable payment processes are a leading cause of cart abandonment in e-commerce as complicated checkout processes result in 18% of customers abandoning their carts. A seamless checkout and payment experience reduces friction in the purchase journey, increasing the likelihood of customers completing their transactions. Optimising the checkout process converts potential customers into satisfied and loyal buyers in the e-commerce industry. Additionally, infrastructure and connectivity issues still hinder access in some regions, which in turn hamper the ability to process online payments smoothly. Slow or unreliable internet connections can result in transaction failures or lead to a frustrating user experience. In a continent with a 66% unbanked population, there should be more payment infrastructure across the continent that doesn’t require the processes of a traditional bank account as advised by Felix Manford, CEO and co-founder, Tendo. The synergy of services like mobile money and mobile wallet services provided by Payaza and the likes has become instrumental in providing a secure and efficient way to store and transfer money. This has allowed a vast number of previously unbanked individuals to participate in e-commerce transactions. Trust is paramount in e-commerce. Shoppers need to be confident that their payment information is secure as potential customers are often hesitant to make online payments due to concerns about the authenticity of sellers, product quality, and delivery reliability. “In terms of establishing trust, there has to be an inherent desire to understand customer points with payments,” said Evelyn Wangari, director, financial services East Africa, Copia Global. A seamless payment experience, backed by robust security measures, bolsters trust and encourages more people to shop online. The e-commerce success story in Africa is inextricably linked to the ability to create a secure, efficient, and accessible payment ecosystem. As Evelyn Wangari said, “Payment fuels the e-commerce engine which then leads to embedding financial services. The opportunity for convergence is now.” ******* This article is part of the TechCabal Live series brought to you by TechCabal in partnership with Payaza. Payaza is a payment service provider that enables online and offline businesses/merchants to process payments and transactions across Africa.
Read MoreAfter success with Gangs of Lagos and Brotherhood, Capital Films launches ₦500 million fund
Capital Film Productions, a film financing firm co-founded by a former tech professional, has launched a new fund to invest in Nollywood movies. Capital Film Productions, a film financing firm founded by Adim Isiakpona, a former Google employee, and Hamza Kassim, a business opportunity manager at Shell, has launched Act 3, a ₦500 million fund, to invest in a lineup of Nollywood movies. Both co-founders were executive producers of the Nollywood hits Gangs of Lagos and Brotherhood; Isiakpona was also an associate producer on Sugar Rush. In the past three years, Capital Films has raised $800,000 across two funds to support the production of seven films. The company said it saw a 37% cumulative return on both funds. Capital Films pools funds from retail investors—it had 37 investors in the last two funds—and accepts a minimum investment ticket of ₦10 million. The company invests a minimum of ₦50 million and a maximum of ₦100 million in each film. Isiakpona, the firm’s CEO, told TechCabal that it picks the movies it invests in by reviewing the history of the filmmaker and their business model. The average budget of each movie “depends on the movie and story,” and the average return cycle for investment is 24 months. Nollywood is currently on a path to globalisation, with new films backed and licenced by international streaming giants Netflix and Amazon Prime. Gangs of Lagos ranks in the top 10 non-English movies on Amazon Prime, while The Black Book was watched more than 70 million times in less than three weeks on Netflix, the biggest streaming platform. Read more: Nollywood is the hot new investment for tech founders; returns are up to 3x Capital Film also offers advisory services to filmmakers and works with filmmakers on the scripting and casting stages to ensure the film’s marketability and a viable return. “We want to understand the distribution model, the production timeline, and the cost. We always try to ensure that we keep our investment to 50% of the project’s cost, but it can vary from 25% to even less than 25%. We don’t go beyond 50% to ensure that we are not overindexing in one field project,” Isiakpona said. Tech-focused professionals are increasingly investing in Nollywood Capital Films’ launch comes as more tech-focused professionals are increasingly financing Nollywood movies or even creating them. The Black Book was directed by Editi Effiong, a former software engineer, and was financed by African startup founders and investors like Nadayer Enegesi (Eden Life), Olumide Soyombo (Voltron Capital), and Ezra Olubi (Paystack). Nollywood appeals to these investors as the return cycle on investment—often 24 months—is shorter than the return cycle on startup investments, which happen in exits and IPOs that are few and far between in Africa’s tech ecosystem. “Nollywood is on the precipice of growth, and we see ourselves contributing to this growth by providing structure and increasing capacity, either through funding it or through the process of producing the films,” Isiakpona told TechCabal. For filmmakers, introducing outsiders can offer a new perspective and bring change to an industry that is only beginning to entrench itself in the global economy. Tolu Awobiyi, a filmmaker with a decade of experience and the producer of Bling Lagosians, told TechCabal in September that the VCs have helped filmmakers with business advisory, investment risk management, and stakeholder management. “I have learned more about navigating the pitfalls of our business from my interactions with my VCs. You find that the VCs who traditionally are interested in film investments are usually very hands-on because they usually have a creative leaning; that is why they are attracted to film investments in the first place, and their experience investing in other industries gives them critical knowledge relevant to managing the risks of a high return environment such as ours,” Awobiyi stated. As the firm launches, it is closing its third fund, which will fund six movies in 2024, and Isiakpona told TechCabal that the fund will grow to $50 million. “In a way, CFP is a dream come true for us. It all started off as a scrappy idea with ‘Our First Act,’ raising funds from our personal finances to support film projects, to a ‘Second Act’ that saw us managing Liquidity Provider’s funds. From these experiences, we’ve seen firsthand how access to adequate funding and support can uplift the entire production of a film and potentially the industry,” he said. Read more: Can streaming platforms solve Nollywood’s distribution problem?
Read MorePatricia customers to receive first batch of repayments in November as company appoints trustee
Patricia has engaged the services of DLM Trust, an SEC-licensed trust company to handle the disbursement of repayments to customers. DLM Trust, a trust company licensed by Nigeria’s Securities and Exchange Commission (SEC), will handle the disbursement of repayments to customers of Nigeria-focused crypto platform Patricia. It is Patricia’s latest move to repay $2 million in customers’ assets lost in a hack last year. DLM Trust confirmed the partnership in a statement published on Nairametrics on Tuesday. The company will serve as an escrow trustee—a third party that holds money or an asset on behalf of the other two parties in a transaction. Per the DLM statement, the first batch of repayments to Patricia customers will be disbursed starting November 20, 2023. Kehinde Lawal, senior associate at DLM Trust, told TechCabal that the company has received some funds from Patricia to issue refunds to customers. In September, TechCabal reported that the Lithuania-based company has raised some funds to repay customers, though its CEO, Hanu Fejiro didn’t provide further details of the investment. “The funds are coming from Patricia and its partners/investors. We are acting as a trustee [and] making sure that we pay the customers as at when due. Payment plan and disbursement strategies will be made available to the users in the coming days,” Lawal said. However, this repayment plan is tricky because DLM Trust doesn’t handle digital assets and the stance of its regulator—the SEC—on cryptocurrency. In May, Bloomberg reported that the SEC was considering allowing tokenized coin offerings on licensed digital exchanges that are backed by assets including equity, debt, and property with the exemption of crypto. Last week, Fejiro confirmed to TechCabal that Patricia is asking users to convert their debt tokens to company shares which will be managed by an SEC-licensed company. Lawal disclosed that the plan is still in the works. “There have been discussions around converting debt to equity. It’s subject to the users’ discretion. And it is a part of the overall debt management strategy. That is in motion,” he said.
Read More
👨🏿🚀TechCabal Daily – IROKOtv still stands
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy salary week Good news for remote workers who jump right from bed into their work meetings: beauty filters are coming to Google Meet. The company recently announced that it’s rolling out new features that will “touch up your appearance” during calls. This includes teeth whiteners and complexion smoothening—which can be subtle or heavy. The feature will start rolling out on mobile to early adopters by October 28, but the rest of us won’t be getting it till the end of the year. Onto today’s newsletter. In today’s edition IROKOtv denies shutdown rumours Kenyan court rules against CA’s live protest ban South Africa’s new drone soars MTN appoints a new CEO The World Wide Web3 Events Streaming IROKOtv denies shutdown rumours GIF source: Tenor African streaming platform IROKOtv is standing tall. Yesterday, tech publication Techweez reported that the platform had shut down after “facing challenges”, and being offline for a while. Users had previously reported that the platform’s mobile app and website had gone offline, and no formal communication had been made across its social media handles. Investigations by TechCabal, however, revealed that the platform is not shutting down. CEO Jason Njoku denied the shutdown rumours in a conversation with TechCabal. According to Njoku, the company’s services went offline due to an ongoing migration.“We’ve been migrating platforms for the last few weeks, so the site has been in maintenance mode,” he said. A renewed focus: The CEO explained that IROKOtv is now tailoring its focus to a diasporan audience. “We had to hard pivot away from Africa, which rendered our existing product and platform obsolete. It was harder than expected to untangle everything after 10+ years of building for Nigeria first,” he said. With 89% of its 2023 revenue reportedly from outside of Nigeria, IROKOtv will now double down on its dollar-paying users. In line with this move, IROKOtv is also working to make its service accessible on smart TVs, including Roku, LG, and Samsung, by the end of the year. Zoom out: So far, African streaming services are fighting hard to compete with international streaming services like Netflix. At least four telecom companies—including Vodacom’s VideoPlay, and Telkom’s TelkomOne—have shut down their streaming platforms in the last year. Some market forecasts project Netflix as lead for streaming in Africa by 2029, with MultiChoice’s Showmax coming second, and Amazon Prime as third. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Regulations Kenyan court rules against CA’s live protest ban GIF Source: Tenor The Communications Authority of Kenya (CA) has been called to order. A Kenyan court has issued a series of orders compelling the CA to revisit its regulations that had previously banned TV stations from broadcasting live protests. The court’s ruling, which was issued on October 19, emphasises the importance of upholding freedom of expression and information. What led to the ban? In March 2023, Kenyans, led by defeated presidential contender Raila Odinga, protested against the high cost of living and the alleged illegitimacy of President William Ruto’s regime. The Communications Authority (CA) then censored six television stations for their live coverage of the protests, which saw two people shot, and over 200 protesters arrested. The authority’s director general, Ezra Chiloba, claimed the coverage generated panic and jeopardised peace and warned six media outlets against their coverage of the country’s ongoing protests. However, the High Court suspended the CA’s decision to censure the six TV stations on March 24, 2023. At the time of the ban, the then Director General Ezra Chiloba, accused six Kenyan stations of breaching the programming code. However, the court’s ruling has issued several key orders. What are the orders? The court cancelled the CA’s decision to reprimand six TV stations – Citizen TV, NTV, K24, KBC, TV47, and Ebru TV – for their coverage of Kenyan protests held on March 20, 2023. The court also ruled that Regulation 19(a), (b), (c), and (d)—which prohibit TV stations from broadcasting protests in the name of national security—were in violation of the constitution. The court also suspended the CA’s plan to review the Programming Code, stating that the Code had expired and was of no legal effect. Zoom out: The court has further directed the regulator to review the Programming Code for Broadcasting Services in Kenya that is currently in effect. Due to the complexities of this process, the court has suspended the order for 12 months, allowing the authority time to address the issues at hand. Innovation South Africa’s Milkor 380 Drone makes successful first flight The Milkor 380 Drone South Africa’s Milkor 380 Drone is ready to fly. Milkor, a Pretoria-based defence company, recently ran a successful test flight on its Milkor 380 Drone after three years and seven months of development. Its features: The Milkor 380 drone is said to be the largest drone built in Africa, with a wingspan of 18.6 metres—or as tall as a six-story building—a continuous flight time of up to 35 hours, a range of up to 2,000km, and a maximum altitude of 9,000 metres. The drone is controlled from the ground by three people, including a pilot, a commander, and someone to control the equipment onboard. There’s more: The drone is also equipped with infrared and high-resolution cameras, allowing it to undertake observation, intelligence gathering, reconnaissance, and offensive missions. It can also be used for conservation, combating land and sea poaching, and border control. There’s no set price for the drone, as this varies based on each customer’s specifications. Zoom out: Milkor is now conducting regular test flights and hopes to have four drones ready for the market by the end of 2023. Paystack is live in Kenya After 10 months in private beta, Paystack announced that all business in Kenya could now accept payments with our growth tools. Learn more → Telecoms MTN appoints
Read More