- January 17 2024
Exclusive: Backed by $750k grant, Aboyeji and Koschitzky-Kimani are launching the YC of Africa
Iyin Aboyeji, the founder of the VC firm Future Africa, and Mia von Koschitzky-Kimani, a general partner at the firm, are launching Accelerate Africa, an accelerator backed by a $750,000 USAID grant. Aboyeji and Koschitzky-Kimani, who have two unicorns and several exits between them, hope to produce the next generation of global businesses. “The big idea is to become the YC of Africa,” Aboyeji told TechCabal. Accelerate Africa’s first cohort will run for eight weeks and admit ten pre-seed and seed-stage startups across all sectors and from any of Africa’s 54 countries. During the programme, Accelerate will work with founders to improve their storytelling, build their team, and figure out business development and product development. The launch of Accelerate Africa comes as accelerators are quietly shutting down across the continent. Y Combinator, arguably the world’s most famous accelerator, is also beating a retreat from Africa. The accelerator’s summer 2023 cohort had only three African startups. “We are looking for founders with great ideas and massive market opportunities. The impressive ones who would have gotten into YC but can’t because YC is closing their doors to Africa, so to speak,” Aboyeji told TechCabal. Aboyeji doesn’t find the American accelerator’s refocus on its homeland surprising. “When capital is scarce and expensive, you will focus on the demography you know. Especially if you have had egg on your face several times.” Last year, YC-backed companies like 54Gene and Dash shut down in clouds of controversy after raising significant amounts of money. Accelerate Africa will fill the shoes of now-retreating American accelerator Y Combinator, a funding magnet and a mark of credibility for African startups. Iyin Aboyeji is confident of success. “We have an African perspective, which YC lacked. We also have access to regulators and leaders at [traditional financial institutions like] banks and can provide guidance grounded in the context of Africa’s market and business realities.” How will Accelerate Africa measure success? Unlike the recent trend of accelerators running remotely, Accelerate Africa will work with the startups in person throughout, and the ten selected startups will be divided into two groups of five. For the first six weeks, the programme will run concurrently in two cities—Nairobi and Lagos—headed by Koschitzky-Kimani and Aboyeji. In the final two weeks, five startups in Nairobi will join the teams in Lagos. The first cohort will run from April to May. The accelerator will measure its success by the amount of follow-on funding the ten startups get during and after the programme. However, unlike YC, participating in the accelerator does not come with guaranteed funding from the accelerator itself. This distinction is important to Aboyeji because of an earlier experience in the pilot phase of the accelerator, where all 25 startups received investment for participating. “Finalising those equity investments was a messy process, as we realised later on that the thesis of the Future Africa fund did not align with some of these businesses.” At the end of the accelerator programme, participating startups will get a chance to pitch to investors on demo day. This will include angel investors who typically write $25,000-$50,000 cheques, Series A and Series B investors, and Future Africa, whose cheque size ranges from $250,000-$500,000. But Aboyeji is clear that the accelerator is not a pipeline into Future Africa’s portfolio. “We may invest or might not.” The accelerator is separate from the VC firm, but the programme will be facilitated by some staff of Future Africa and may raise some concerns about a potential conflict of interest between Future Africa and its new accelerator program, considering that some startups may hold ideas and technology similar to existing portfolio companies. “We’re not signing NDAs,” admitted Iyin Aboyeji, “but we have no interest in building startups ourselves.” He also said Future Africa has a reputation for ‘Chinese walls’ within its portfolio, so startups can rest assured their information won’t be shared with potential competitors.
Read More- January 17 2024
How Isaac Sesi is countering food loss in rural farming communities
This article was contributed to TechCabal by Sefakor Fekpe via bird story agency. Isaac Sesi picks up a small bucket of maize to demonstrate the latest iteration of his moisture-measuring device. Powering the device with batteries, he presses a button. A white screen shows the types of grain to select for the test; he selects the maize category and then presses another button to take the reading. Sesi is demonstrating the latest model of the GrainMate moisture meter, his solution to countering food loss in rural farming communities. “Moisture content is one of the physical quantities that are essential in determining the quality of your end product, so we have come up with the GrainMate to make it easy to know how much moisture content you have in your product,” Sesi explained. As a young man from a farming community in the Ashanti region of Ghana, Sesi became familiar with the challenges of storing grain the hard way, witnessing the difficulties his parents and other farmers experienced when trying to store their farm produce. He dedicated his academic career to finding a solution to this food loss. His first iteration of the device was completed in 2018. The idea was to help farmers, aggregators, feed producers and anyone in the grain value chain to easily measure moisture content in their grain before storage, feed preparation or processing. “One aspect of food security is in the process of being able to reduce or mitigate post-harvest losses because 30 per cent of the food that we produce is lost and if we can cut down on these losses, that will bode well for our food security because the food that is being lost is food that can feed other people,” Sesi shared. Currently, Sesi Technologies’ GrainMate is less expensive compared to other, imported, moisture meter brands. Sesi’s company offers two models. One is for regular grains, which is sold at 800 Ghanaian cedis ( about US$65) while a second model extends to high-value commodities such as shea nuts. That version costs 1000 Ghanaian cedis (about US$83). Sesi graduated from Kwame Nkrumah University of Science and Technology (KNUST) and used his final year research project to come up with the GrainMate. “In Ghana, with research, you just finish and put it on the shelf so you move on with your life but we thought that we developed something pretty good so we wanted to make it beneficial to farmers so I started Sesi Technologies to commercialise the output of my research at KNUST,” Sesi said. The company’s breakthrough came with a sale of 150 of the devices. Since then, Sesi has depended on revenue from sales of moisture metres and other services, while his company has received funding from a range of sources. “We started with no money, absolutely no money. We just started by trying to commercialise this technology and how we were able to manufacture our first batch was that we got some pre-orders so we asked the client to pay for 70% so that we could use it to finance the initial inventory,” Sesi shared. Sesi was determined to reach as many farmers as he could, which pushed him to participate in different start-up support programmes. He emerged as the overall winner of the GoGettaz Agripreneur Prize, an award for African agri-food innovators and entrepreneurs who are developing solutions for the agriculture value chain, in 2019. “We won the overall US$50,000 prize”. This prize helped him to scale both production and human resources. “We have about 25 people in our team and that tells you that our wage bill every month is substantial and we’re making progress. We also have our field team who are in charge of providing services that we provide to farmers,” he explained. Over 5,000 farmers have now tried out the device, with uptake still slower than he and his team of mostly 20-somethings would like. “There’s very slow adoption to new technology and so we have not seen the kind of rapid adoption that we are looking at,” he explained. However, feedback from the current pool of users keeps Sesi and his team motivated. “For instance, poultry farmers use our device to check the moisture content of the different components of the feed before they put it together. When they do that they tell us that once they know the moisture content they see the quality of the feed is high, productivity is high and their birds don’t suffer from diseases because our device helps them. “There was a time when the device was not there to check the right moisture for storage, I bagged the maize thinking that they were safe but when I needed them at a point to use them they were all green in the bag and I lost a lot of money,” explained Kofi Korsah, a commercial maize and poultry farmer and one of Sesi Technologies’ clients. Joseph Oppong Akowuah, a local professor and expert in post-harvest management who uses the device to educate farmers explained the importance of having young entrepreneurs like Sesi innovate and sell local solutions. “It can help farmers move away from the indigenous approach of checking the level of moisture in their produce by using a scientific approach…These are very critical,” he explained. Akowuah believes the government’s support for entrepreneurs like Sesi under the Planting for Food and Jobs (PFJ), an initiative aimed at increasing production and increasing revenue for farmers, will have a far-reaching impact. “If we want to get this technology on a wide scale, there must be some kind of policy intervention from the government because I think one of the critical issues has to do with training, exposure, and making farmers aware of some of these technologies,” he advised. Sesi is optimistic about growth and is eyeing a local manufacturing facility employing skilled engineers to increase production capacity and push mass adoption of the GrainMate device. “In the end, the goal is to be able to produce and assemble more,”
Read More
- January 17 2024
TechCabal Daily – How TymeBank beat time
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Google isn’t done with its layoffs. After last week’s round, hundreds of Google employees across ad sales woke up unemployed today, as the company’s ongoing layoffs continue. Google is reportedly laying off 1,000 people in this week’s round. So far, the company has laid off at least 13,000 employees since 2023, and per some sources, it’s unfortunately not done yet. In today’s edition TymeBank achieves profitability in fifth year General Atlnatis acquires Actis Vodafone and Microsoft forge $1.5 billion partnership Sun King secures $7 million in debt financing The World Wide Web3 Opportunities Fintech TymeBank achieves $215 million in annual revenue GIF Source: GIPHY TymeBank has made history. The South African digital-only bank is the first to turn a profit in the country within five years. In December 2023, it reached over $215 million in annualised revenue. The digital bank also achieved a 30% growth in its SME lending portfolio in 2023. This achievement comes after TymeBank announced it had reached eight million customers in October 2023. There’s more: Tyme’s Philippines operation, GoTyme Bank, a joint venture with the Gokongwei Group, is not far behind. In 14 months, it reached 2.3 million customers, surpassing Tyme’s South African operation. What’s their success strategy? TymeBank’s digital banking channels are supported by in-store kiosks in partnership with local retailers to deliver the most affordable banking, at 10% of what the big banks charge. Tyme also attributes its success to consistent innovation in technology, product offerings, and customer experience. In the past two years, the global digital banking sector has seen significant growth. If you think this isn’t big news, less than 5% of the world’s 400 neobanks are reportedly profitable. This places TymeBank in the top 5% of digital banks globally. Another neobank also made the news yesterday. Nigerian neobank Kuda secured $20 million in funding last year. However, unlike typical fundraising situations where a new round leads to a higher valuation, Kuda’s valuation remained unchanged at $500 million, matching its 2021 Series B round of $55 million. This isn’t bad news, but the flat valuation does point to the tech ecosystem’s funding winter. Per TechCrunch’s report, the company also reached 7 million customers and has 5x-ed its Nigerian user base. Kuda has set ambitious targets: profitability in five years and 50 million customers across four continents. However, with its operations currently limited to Nigeria, South Africa and the UK, achieving these goals will require considerable expansion into new markets which means it needs more money. 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. Acquisitions General Atlantic acquires Actis Big news in the clean-tech world: General Atlantic (GA), the New York-based growth equity giant, is swallowing up London’s Actis, a leading investor in African energy infrastructure, in a move that signals GA’s serious commitment to sustainable plays. Here’s the deal: The $12.5 billion Actis acquisition creates a $96 billion powerhouse with a diversified portfolio spanning sustainable infrastructure, real estate, growth equity, and credit. With investments in 17 African countries and projects like Accra Mall and Azura Energy, Actis knows the African infrastructure landscape like the back of its hand. This gives GA a crucial entry point to a continent ripe with renewable energy potential. Both firms talk a big game about “combined expertise” and “enhanced offerings.” Translation? GA gets Actis’s Africa intel and on-the-ground network, while Actis benefits from GA’s global reach and fundraising muscle. Win-win. Infrastructure is hot: Investors are pouring money into energy transition projects and data centres, and GA is positioning itself at the forefront of this megatrend. Last week, Black Rock acquired Bayo Ogunlesi’s Global Infrastructure Partners (GIP) in another $12 billion deal. This Actis deal shows that GA is also playing hardball in the infrastructure game. Both acquisitions are a major signal that sustainable infrastructure is no longer a niche play, but a core investment strategy for the world’s biggest players. This deal shines a light on Africa’s growing importance in the global infrastructure picture. With its abundant sunshine and young population, the continent is a prime target for renewable energy investment. This deal could mean major investments in clean energy projects across Africa, bringing much-needed electricity and economic opportunities to millions Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. AI Vodafone and Microsoft forge $1.5 billion partnership Vodafone Group CEO Margherita Della Valle and Microsoft chairman and CEO Satya Nadella. Source: Vodafone Group In more AI news, Vodafone has partnered with Microsoft to invest $1.5 billion over the next 10 years in AI and cloud services developed with Microsoft. Microsoft will also invest in Vodafone’s standalone IoT platform, which will become a separate business by April 2024. Their collaboration focus: Both companies have identified five key areas to focus on including generative AI, scaling IoT, Africa digital acceleration, enterprise growth, and cloud transformation, to foster economic growth, financial inclusion, and improved public services. The partnership will also see M-Pesa—the mobile money service Vodafone owns via its Kenyan partner Safaricom—expand into other African countries. Microsoft will host M-Pesa on its Azure cloud platform and see to the launch of new cloud-based apps. Boasting over 50 million users across East Africa, M-Pesa’s journey westward might not be a simple stroll through familiar territory. West Africa presents a distinct landscape, where other mobile money platforms like MTN Mobile Money and Orange Money reign supreme, with over 60 and 50 million users respectively. AI in Africa: While Vodafone and Microsoft might be announcing major AI moves, African governments are still a bit behind. Across the continent, only a handful of governments are developing AI policies, with Rwanda leading the way
Read More- January 16 2024
Six months after posting $45 million loss, TymeBank reports a profit
South African neobank TymeBank has incredibly swung its fortunes around, reporting a profitable December 2023 six months after posting a R858 million (~$45 million) loss. Six months after posting a staggering R858 million (~$45 million) loss on June 30, 2023, South African digital bank TymeBank recorded its first month of profit in December 2023. The company did not state how much the profit was. Launched in February 2019, the Neobank claims to be the first digital bank on the continent to become profitable, driven by the 8.5 million customers it has thus far. According to financials for the year ended 30 June 2023 seen by TechCabal, TymeBank’s cumulative losses by the aforementioned period stood at R6.8 billion (~$359 million) with R1.6 billion (~$85 million) in cash. “These losses substantially represent the Bank establishment and build costs,” TymeBank said then. “The ability to continue as a going concern is dependent on ongoing procurement of capital and funding of operations for the Bank.” The company had further stated that its financial position cast doubt on its ability to settle its debts and continue operating beyond October 2024. That doubt seems to have been cleared, taking into consideration today’s announcement. A remarkable swing According to TymeBank, the digital bank’s swing to profitability was driven by by strategic partnerships with the likes of Pick n Pay and Boxer, The Foschini Group (TFG) and the Zion Christian Church (ZCC), the ~30% growth of its lending portfolio year-on-year, as well as combining digital channels and in-store channels for customer acquisition. The company also credited the achievement to its venture capital backers. “We are extremely proud of our achievement, particularly when you consider that globally, less than half of the top 100 digital banks are profitable,” said Coenraad Jonker, CEO of TymeBank. In May 2023, the entity announced a $77.8 million pre-Series C round led by Norrsken22 and Swiss global impact investment firm, Blue Earth Capital and has raised $260 million in total. TymeBank also acquired fintech startup Retail Capital in August 2022. Currently valued at $965 million according to Jonker, TymeBank plans to raise as much as $100 million this year at a $1 billion-plus valuation. The funding will drive further expansion into Southeast Asia with an entry into Vietnam.
Read More- January 16 2024
Vodafone inks $1.5 billion deal with Microsoft to develop digital payments for African SMEs
Vodafone, the third-largest mobile network operator in the United Kingdom, has signed a $1.5 billion deal with Microsoft to develop new digital and financial services for SMEs across Europe and Africa over the next decade. The 10-year deal will also see both companies invest in artificial intelligence (AI) and the Internet of Things (IoT), according to a joint statement on Tuesday. As part of the partnership, Vodafone will invest $1.5 billion in cloud and customer-focused AI services developed in conjunction with Microsoft, while the global software company will invest in Vodafone’s managed IoT connectivity platform, which connects 175 million devices and platforms worldwide. The platform will become a standalone business by April 2024, the statement said. Margherita Della Valle, Vodafone Group chief executive, said the company “has made a bold commitment to the digital future of Europe and Africa” and hopes that the partnership will “accelerate the digital transformation of our business customers, particularly small and medium-sized companies.” Vodafone will use OpenAI technology running on Microsoft’s cloud computing platform Azure to enhance customer service operations including its chatbot, TOBi. The company also intends to become part of the Azure ecosystem and make the IoT platform available to a vast developer and third-party community using open APIs. The deal will also see Microsoft house M-PESA, Africa’s largest financial technology platform, on Azure and enable the launch of new cloud-native applications. Vodafone and Microsoft will also be launching a purpose-led program that seeks to enrich the lives of 100 million consumers and 1 million SMEs across Africa. The program is intended to improve digital literacy and youth outreach programs, as well as offer digital services to the underserved SME market on the continent. According to the World Bank, SMEs account for 60% of jobs in Africa.
Read More- January 16 2024
10 startups to compete for funding at Africa Tech Summit
Ten African startups looking to raise between $500,000 to $15 million will pitch to investors and industry experts at the Africa Tech Summit in Nairobi on February 14th and 15th. The event’s organisers received over 250+ entries before making the final cut of 10 startups across sectors like fintech, agritech, e-commerce, Web3, and climate-tech. The investment showcase is a creative way for the ten startup finalists to get the capital injection needed for growth. Startup funding on the continent in 2023 slowed compared to the record-breaking year of 2022. Per Africa: The Big Deal, a curated funding database, African startups experienced a 39% drop in funding received in the previous year—falling to $2.9bn in 2023 from $4.6bn recorded in the previous year. The selected startups for this year’s showcase include: Node Bio, a Kenyan climatetech startup utilizing cutting-edge plant science to develop crop treatment that effectively combat the adverse effects of climate change. Their innovative solution, Farmchef, enables plants to withstand drought, extreme heat, and other water-related stressors. Valu, a leading Egyptian Buy Now Pay Later (BNPL) lifestyle-enabling fintech platform in MENA, offers customers and businesses convenient and comprehensive financial solutions. Bingtellar, a Nigerian crypto startup building payment infrastructure for global citizens including freelancers, remote workers, contractors, businesses. Their ramp product simplifies the process of buying and selling crypto and facilitates swift money transfer across Africa. Dukka, a Nigerian startup digitizing payments and bookkeeping solutions to assist small businesses across Africa to accept all digital payment methods. FutureLink Technologies, a Ugandan startup is a digital marketplace that is simplifying financial access for individuals and facilitating payments for financial cooperatives. Tausi App, a Kenyan beauty tech company that leverages technology to link beauticians to potential customers. Tausi has registered over 6000 beauticians so far. Feegor, a Nigerian B2B e-commerce company that connects small and medium enterprises (SMEs) to manufacturers and major wholesalers. Peercarbon, a Kenyan climate fintech startup that leverages granular emissions data and cutting-edge sustainable finance technology to empower African SMEs. Peercarbon’s Software as a Service (SaaS) platform provides real-time insights, making it easy for businesses to track their carbon footprint. Regxta, a Nigerian fintech startup that makes financial services accessible to underserved communities and micro-businesses in rural and peri-urban areas across Africa, including internally displaced persons and refugees. URBANET, a Kenyan startup that promotes international dialogue on development activities worldwide, providing insights on municipal and local governance, sustainable urban development, and decentralization.
Read More- January 16 2024
Canza Finance raises $2.3m to deepen its cross-border trade play
Canza Finance, a Web3 neobank enabling cross-border payments for African startups, has closed a $2.3 million strategic round. The company will use the funding round to acquire licenses from diverse financial regulators across Africa and build the foundation for its innovative FX DeFi platform, Baki. Canza has now raised $5.5 million in total after previously closing a $3.27 million seed round last year. Its latest round was led by Polychain Capital, with participation from Protocol Labs, Avalanche’s Blizzard Fund, 99 Capital, Stratified Capital, Hyperithm, and others. Businesses in African markets like Nigeria, Cameroon, and Senegal that need to make cross-border payments often face slow and expensive traditional methods for sending and receiving international payments. These limitations often stop them from getting good deals on international payments, buying and selling stocks, or earning interest on their money. Pascal Ntsama, Canza’s co-founder and CEO, says the company’s goal is to make it easier for businesses to access financial services that are typically only available to large corporations. Canza works with FX agents in these regions to provide a faster and cheaper way to send and receive money. To complete a transaction, businesses have to submit a valid invoice and complete the KYC/KYB processes. Canza determines the exchange rate for the transaction and completes the transaction within 24 hours. Canza makes money by charging 1% of the transaction processed. The startup hopes to reduce its transaction fees to 0.2% through the introduction of Baki, its synthetic FX exchange on-chain protocol—its new system for exchanging different currencies digitally without real money involved. Through Baki, Canza uses stablecoins—digital currencies pegged to the dollar—to help businesses swap their currencies to the dollar without incurring hefty forex fees. By embracing stablecoins and decentralised finance tools like Baki, Canza helps them to secure dollar stability and overcome traditional forex hurdles. This reduces transaction costs to a mere 1%. The startup claims it processes transactions worth $2,000,000 weekly and currently has 150 clients. “We aim to significantly boost infrastructure development, particularly in Africa. With over 50 countries on the continent, our focus is on expanding infrastructure and obtaining necessary licenses in suitable jurisdictions. Additionally, we will drive the growth of our DeFi infrastructure products,” Oyedeji Oluwoye, co-founder and CTO of Canza Finance told TechCabal. In the coming months, the startup hopes to acquire multiple licenses it needs for virtual asset custodian, broker-dealer, and exchange services, Ntsama said. “We aim to secure a Money Services Business (MSB) license in the United States, obtain a Foreign Exchange (FX) license in Nigeria, and acquire three crucial Virtual Asset Licenses from the Financial Service Commission of Mauritius.“
Read More- January 16 2024
General Atlantic acquires Actis in $12.5bn+ bet on sustainable infrastructure
General Atlantic, the New York-based growth equity firm with $83 billion in assets under management (AUM), has agreed to acquire Actis, a London-based energy infrastructure investor with investments in Africa, to deepen its investment in sustainable infrastructure. The deal, expected to close in the second quarter of 2024, will create a diversified global platform with a combined $96 billion in AUM, the companies said in a joint statement on Tuesday. Financial terms weren’t disclosed, but the General Atlantic’s assets will now cut across sustainable infrastructure, real estate, growth equity, and credit. “The acquisition of Actis extends our global footprint and diversifies our offering with an experienced investing team that has built a business on core tenets that align with ours,” said Gabriel Caillaux, Co-President, Head of EMEA, and Head of Climate of General Atlantic. Actis, which manages $12.5 billion in assets across 17 countries, is an investor in infrastructure projects in Africa, notably Accra Mall, Ikeja City Mall, Rack Centre, and Azura Energy Project. Actis has invested over $2 billion in energy infrastructure in Africa in utility-scale renewable projects, commercial and industrial solar plants, and power generation with natural gas in the past two decades. Michael Harrington, Chief Investment Officer of Actis, said the partnership with General Atlantic will “enhance our offering through our combined expertise, networks, and geographical scope.” The acquisition will see Actis become the sustainable infrastructure arm within General Atlantic’s investment platform. Actis will continue to be led by its Chairman and Senior Partner, Torbjorn Caesar, and will retain independence over its investment decisions and processes with its funds operating under the existing Actis brand. The deal comes amid growing interest in infrastructure investments as global investors have increasingly seen opportunities in energy transition projects and data centers. Renewable energy is a growing segment of the global economy that is expected to require an annual investment of approximately $2.4 trillion by 2030. Last week, BlackRock Inc. the world’s biggest money manager, agreed to buy Global Infrastructure Partners (GIP) for about $12.5 billion. GIP, which manages $100 billion, is owned by Nigerian banker-turned-investor Adebayo Ogunlesi.
Read More
- January 16 2024
TechCabal Daily – High on History
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية What’s popping? Here’s your reminder that we—or at least Big Daddy Cabal Media—are hiring. If you want to build Africa’s most important media business, we’ve got open positions for a Senior Product Manager, an Associate Consultant, and a Software Engineer. Apply or share them with your network. In today’s edition Kippa loses $31,000 to internal fraud Nigeria’s inflation reaches 27-year high Showmax 2.0 is bringing cheaper deals SA sees rise in online scams Are regulators gunning for Nigeria’s tech ecosystem? The World Wide Web3 Opportunities Startups Kippa loses $31,000 to internal fraud Image Source: GIPHY Nigerian bookkeeping startup Kippa lost ₦30 million ($31,000) in an internal fraud, a TechCabal investigation revealed. The news: Sources say the fraud came to light in November, a month after Kippa shut down its agency banking app and laid off 40 employees. In October, Kippa shut down KippaPay after facing several macroeconomic issues. The shutdown led to a bank run, and in the withdrawal frenzy, Kippa noticed that a customer without a POS terminal had made unusually large withdrawals. An internal investigation uncovered ₦30 million ($31,000) in the account of a senior manager, revealed to be the source of the fraud. The manager, who cannot be legally named, was arrested in November and has since been released. The kicker? Kippa’s laid-off staff may be the receiving end of the fraud. In October, the company said it would provide one month in severance pay to affected employees, but it has yet to honour that agreement. The internal fraud at Kippa constitutes a significant breach of trust, but the alleged failure to fulfil promised severance packages to laid-off employees further exacerbates the situation. This raises concerns about the company’s commitment to ethical business practices and its ability to uphold employee rights. At this time, Kippa has yet to respond to any of the concerns. 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. Economy Nigeria’s inflation hits 28.92%, a 27-year high Image Source: Zikoko Memes Nigeria’s inflation rate is on its way to the top. Figures from the National Bureau of Statistics (NBS) showed that headline inflation, which tracks the prices of food, energy and other commodities, rose to 28.92%. Food prices, which drive the country’s inflation rates, increased by 33.93% last December. High on history? Nigeria hasn’t witnessed inflation this scorching in 27 years, since the military regime of the mid-1990s. Annual inflation soared to 29.27% in 1996, but many Nigerians still remember the staggering peak of 72% experienced the year before. What is the government doing? The Central Bank of Nigeria (CBN) has faced scrutiny for its hold on the crisis. The apex bank faced criticism for postponing the Monetary Policy Rate (MPR) meeting—a financial policy-making committee—in October 2023, citing a fulfilled “quota” of meetings for the year. This perceived inaction fueled concerns about the government’s commitment to tackling inflation. The central bank is yet to announce its next monetary policy committee meeting. It last held a policy meeting in July 2023. Zoom out: Nigeria faces a stark reality if the inflation figures continue to rise. Businesses may struggle to operate, unemployment could rise, and social unrest could be the order of the day. It remains to be seen to the government’s next step in curbing the inflation. Streaming Showmax 2.0 is bringing cheaper deals GIF Source: GIPHY For the second iteration of its streaming service, MultiChoice’s Showmax will let users watch the premier league on their mobile devices at just ₦2,900 ($3.03). Yesterday, the streaming service announced three new subscription tiers—exclusive mobile-only entertainment, Premier League, and a bundle subscription combining the two—ahead of the February launch of Showmax 2.0. How much? The mobile-only subscription for the Premier League will cost ₦2,900 ($3.03), ten times cheaper than the ₦29,500 ($30) premium DStv subscription. A mobile-only entertainment subscription will cost ₦2,500 ($2.61) a month, while the combo bundle will cost about ₦3,200 ($3.34). Will Showmax 2.0 take off? Streaming is usually considered expensive on the continent due to the high cost of internet subscriptions. The average cost of 1 GB of data on the continent is between $0.75 in Nigeria to $20 in Sao Tome. Arinola Shobande, marketing manager of Showmax says the company betting on a mobile-first focus on the continent due to their understanding of the market. Shobande claims watching Showmax for 24 hours costs 1GB—which is how much data one hour of standard definition streaming on Netflix costs. The new app will be available for download by January 23. Zoom out: Currently boasting 5 million subscribers, Showmax hopes this mobile-only move can further expand its reach, particularly among football fans and mobile-first viewers across Africa. This move could have led to increased customer acquisition if it had launched before the AFCON tournament. It remains to be seen if this strategy will lead to a goal or an offside when Showmax 2.0 launches in February. In more news about strategy, MultiChoice has named Andrea Zappia as the new chairman for Showmax. Zappia, who spearheaded new market expansion at European broadcaster Sky, became a Non-Executive board member at MultiChoice Group in September 2023, after the two companies, along with NBCUniversal, formed a partnership to boost African viewership. Zappia is bringing a decade of streaming and broadcast experience to Showmax and we should see results in a couple of months. Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. Cybercrime South Africa sees rise in online scams Image Source: Zikoko Memes (Hassan’s Generosity) South Africa remains a hotspot for cybercrime. One journalist Maya Fisher-French, reported a surge in fake phishing scams after she was tricked by a convincing ad
Read More- January 15 2024
Exclusive: ₦30 million internal fraud sours exit as Kippa scraps severance for laid-off workers
Kippa, the Nigerian bookkeeping and finance startup backed by investors like Saison Capital and Horizone, lost ₦30 million to internal fraud connected to Kippa Pay, its agency banking product, two people with knowledge of the company’s business told TechCabal. The fraud happened for at least four months but was discovered in November, one month after the company shut down Kippa Pay and laid off 40 employees. Despite this, the company has decided against paying those employees the severance packages it promised via email when the layoffs were announced. “In addition to your monthly salary, you will receive severance pay equivalent to your one month’s net salary,” said the email seen by TechCabal. Kippa did not immediately respond to a request for comment from TechCabal. An inside job The extent of the fraud was only revealed in November when Kippa shut down its agency banking product, Kippa Pay. The announcement of that shutdown led to massive withdrawals of funds from customers. In the ensuing rush to withdraw funds, the company noticed that a customer without a POS was also withdrawing large sums of money. Exclusive: How a clash of visions led to Olu Akanmu’s exit from Opay That person was a senior manager; three people with direct knowledge of the matter told TechCabal and the company discovered ₦30 million in one of his accounts. While the person will not be named for legal reasons, he was arrested by the police in November but has now been released. Kippa has been in the news in recent months after TechCabal exclusively reported that the fintech was shutting down Kippa Pay. Ekezie-Joseph told TechCabal that the Naira devaluation influenced the decision to shut down KippaPay. He also cited the struggles of the 500,000+ small businesses on its platform and a market rapidly changing while Kippa was still finding product-market fit. “We had a significant focus on profitable merchants in tier-two cities, but the past six months have been horrendous for them. Socioeconomic fluctuations have exposed the volatility of this segment,” Ekezie-Joseph told TechCabal in October. The product was later integrated into GPay, a payment subsidiary that Bloc, a business bank, owns, in December. Agency banking, a hotly contested space, is capital-intensive. Companies have to buy POS devices, which more than doubled in price last year while balancing other costs like technology, customer acquisition, managing relationships and providing support. For a startup earning in Naira, Kippa resorted to increasing its prices, but its customers revolted, and it quickly backtracked. “We tried to increase our prices to ₦35 to grow margins when devaluation kicked in. But the amount of backlash the price increase was met with and the threat of user churn made us revert to ₦25,” Ekezie-Joseph said.
Read More