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December 6 2023

TechCabal Daily – Y Combinator-backed fintech shuts down

In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Yesterday, we told you about how Kenyan online marketplace Sky.Garden is bouncing back through a $1.63 million acquisition deal with Lipa Later. But, we know we left you on the edge about the nitty-gritty details of the deal. No teasing here—we just wanted to get all the details right! Our Kenyan reporter, Kenn Abuya wrote all about it here. In today’s edition Nigerian fintech Pivo shuts down Jumia Nigeria’s CEO steps down Lidya shutters European business Bitmama to acquire Moniepoint-backed fintech Kenya halts roll-out of digital IDs The World Wide Web3 Opportunities Fintech Pivo, a Nigerian supply chain fintech, shuts down Co-founders of Pivo; Nkiru Amadi-Emina and Ijeoma Jacquelyn Akwiwu Pivo, a Nigerian fintech startup that raised more than $2.6 million from Y Combinator and over 17 other investors, has closed shop. Despite its promising start, the company had to cease its operations one year after raising a $2 million seed round in November 2022, earmarked for extending operations into East Africa and introducing payment-focused products. Why? The CEO, Nkiru Amadi-Emina, did not deny the shutdown but refused to disclose specific details, stating that she would “be happy to do so at a later date”. Co-founded by Nkiru Amadi-Emina and Ijeoma Akwiwu in July 2021, Pivo offered banking services to small supply chain businesses in Nigeria’s supply chain sector. With two fintech verticals—Pivo Capital, a lending product, and Pivo Business, a business banking product—the company claimed to have disbursed over $3 million in loans and processed more than $4 million through Pivo Business. Zoom out: Pivo’s closure adds to the growing list of African startups that have shutdown in 2023. Startups like Lazerpay, 54gene and Hytch shutdown in April, September and February respectively, due to the economic downturn and a rising funding gap. 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. E-commerce Jumia Nigeria’s CEO steps down Jumia Nigeria’s new CEO Sunil Natraj Sunil Natraj will replace Massimiliano Spalazzi as CEO of Jumia Nigeria. Massimiliano Spalazzi, the current CEO of e-commerce giant Jumia Nigeria, will be stepping down in December 2023 after working with Jumia Group for 11 years. Spalazzi, one of Jumia’s pioneer employees, will be replaced by Sunil Natraj. Natraj, who previously headed Jumia Ghana’s business arm, will start in his new role in January 2024. Natraj’s appointment comes at a time when Jumia suffered a decline in growth from its single biggest market—Nigeria—after the country’s unstable currency exchange system affected Jumia and other businesses. Jumia recently turned its focus to rural markets in Nigeria to ensure profitability. Another view: Natraj’s appointments mirror the current reshuffling process to get Jumia on track towards profitability. The e-commerce board appointed Francis Durfay as the company’s CEO in February. Dufay was announced as the acting CEO after the exit of Jeremy Hodara and Sacha Poginonnec as co-CEOs. Since Francis Dufay took the helm at Jumia, he has implemented painful cuts across the company, including laying off 900 (20%) employees. Also, 60% of Jumia’s top management team who work from the UAE were mandated to work from the continent to save costs. Dufay also earns less than previous CEOs. Lights out: Over the years, Jumia has consistently splurged on marketing and advertising costs as it positions itself in the African market. However, the company reduced its advertising spend by 40% early this year to ensure profitability. The company is looking to expand into more Nigerian cities in the coming months as it focuses on rural markets to ensure profitability. Fintech Lidya shuts down European business, shifts focus to Nigerian market Co-founders of Lidya; Tunde Kehinde and Ercin Eksin Lidya, a small and medium enterprise (SME) lending company, has decided to exit its European lending operations in Poland and the Czech Republic. The seven-year-old company aims to redirect its efforts towards growing its new credit assessment and loan recovery offering for the Nigerian market. Why? Lidya decided to leave the European market three years after it expanded its small business lending services to Eastern Europe. The company is now channelling its focus on Lydia Collect, a loan recovery tool initially developed last year, for its in-house SME lending operations. Tunde Kehinde, Lidya’s co-founder and CEO, expressed confidence in Nigeria’s tech-savvy lending ecosystem, calling it the “ideal launchpad” for Lidya’s solutions that support data-driven decision-making. Lidya Collect, built upon Nigeria’s Global Standing Instruction (GSI) technology, will serve as a robust last-resort system, enabling connected lenders to directly debit accounts of loan defaulters in other banks. The company collaborated with the Nigerian Inter-Bank Settlement System (NIBSS) to integrate Lidya Collect with the existing GSI infrastructure. A new product: Additionally, Lidya unveiled Lidya Bridge, a credit assessment offering introduced in October 2023. Lidya Bridge will analyse 300 data points from borrowers’ bank statements, streamlining the process of evaluating new loan customers. The big picture: Lidya will focus on selling Collect and Bridge to micro-finance institutions and other financial service providers, with over 50 lenders and microfinance banks already signed up for the service. Since its inception in 2016, Lidya has raised a total of $16.5 million in funding, with its latest being $8.3 million in Pre-Series B funding. Introducing Discount Codes Boost sales with percent-based, fixed rate, and free shipping discounts when you sell with Paystack Storefronts and Product Links. Get started here → Acquisition Bitmama in advanced talks to acquire Payday in $1 million equity deal Nigerian fintech Payday, after securing a $3 million seed funding round in February, is now in talks to be acquired by Bitmamaa Nigerian crypto exchange startup. This news comes three months after Payday reportedly began exploring acquisition opportunities. What’s the price? Bitmama is offering Payday investors $1 million worth of equity in the crypto company at a $30 million valuation. This acquisition would be mutually beneficial, as Payday would gain access to

December 5 2023

Court drama over Twiga Foods’ lingering cloud service debt

Four months—that’s how long Kenya’s most funded e-commerce platform has to settle a liquidation claim over unpaid invoices in a $3 million cloud services contract dispute. A Kenyan court sitting in Nairobi has given Twiga Foods, Kenya’s most funded e-commerce platform, and Incentro, a Google Cloud reseller, five months to resolve their dispute over how much Twiga owes Incentro. Incentro claims Twiga owes it $450,000 in unpaid bills and a delayed bonus from Google. But Twiga claims it only owes $94,000. According to Incentro, Twiga fell behind on monthly payments on a three-year contract for cloud services as the e-commerce firm shifted from high growth to try to become profitable. After both parties missed an earlier court deadline to reconcile their invoices last week, the court will now hear the case on March 13, 2024. The $3 million contract at the heart of the dispute committed Twiga to using Google Cloud Services over three years through Incentro, a Google Cloud reseller. In October, TechCabal reported that Incentro was demanding up to $261,878.75 from Twiga in owed bills. Incentro says its claim has now gone up to more than $450,000. The amount includes $209,000 in bonuses which Incentro says it was supposed to receive from Google for additional services that are part of perks Google offers to large customers. Google did not pay this bonus because Twiga failed to sign off on the work on time. In a 158-page affidavit filed at the Milimani courts last week, Incetro alleged, among other things, that Twiga paid more than 559,000 Kenyan shillings (roughly $3,900 at the time) in value-added-tax based on unpaid invoices which totalled more than $239,000. But Twiga denies owing Incentro this much. The tech startup, which still uses Google (but not through Incentro), says it is in talks with Google Ireland Limited, the primary provider of Google Cloud Services. “There is an amount Twiga believe we owe and there is an amount Incentro believe Twiga owe,” Twiga CEO Peter Njongo told TechCabal via text. “As a sign of good faith, Twiga has paid a deposit of 50% of the amount we believe we owe.” Incentro said it did not receive the transfer but got a letter the evening before the court case saying Twiga had paid $47,000. According to Incentro, the payment notice showed the transfer was made to an NCBA account which it had closed.” Companies in countries where Google’s invoice billing is not available use Google Cloud through resellers in order to better control spending on cloud services instead of being billed directly. They still pay the same as if they enabled direct billing via a debit card, but also get additional services and more support. Incentro says the contract it entered into with Twiga means it has to pay Google Cloud’s Africa distributor DigiCloud the balance of the $3 million if the contract is not cancelled by Twiga and Google Cloud. “We are mindful that should we not hear from Google Digicloud that [sic] will have no option…but to demand full repayment of the outstanding total commit value,” part of a letter dated October 12, 2023, from Digicloud CEO Gregory MacLennan, read. The letter which was filed as an attachment to an affidavit pointed out that Digicloud will only release Incentro from the payment obligation if Google cancels the agreement; otherwise, Digicloud would pass on any default penalties to Incentro “in order for Incentro to pass on the same quantum release (and/or associated penalties) to Twiga”. Recall that last week, Twiga Foods announced that it had raised “significant capital” from existing investors, including Creadev and Juven. This new capital was supposed to be used to pay 100 vendors Twiga is indebted to. Twiga has previously raised more than $150 million from 25 investors since it was founded in 2013 making it one of the most VC-backed tech companies in Kenya.

December 5 2023

BasiGo gets $5 million loan to ramp up e-bus assembly in Kenya

BasiGo raised nearly $11 million in 2022. It has since expanded to Rwanda. BasiGo, an electric bus company with operations in Kenya and Rwanda has announced $5 million in debt funding from the British International Investment (BII), the UK’s development finance institution and impact investor. The $5 million is borrowed money, and unlike equity funding, where companies give away ownership in exchange for capital, debt funding involves borrowing money that needs to be repaid. This means that BasiGo will repay BII the sum on agreed-upon terms. The funds will be used to scale electric bus assembly in Kenya as the company races to deliver 100 buses in the country. So far, BasiGo has 19 buses on Nairobi streets, which are run by multiple matatu (privately-owned mini-buses used for public transport) companies. Jonathan Green, co-founder, and chief financial officer of BasiGo, said: “Because electric buses in Kenya are powered by the country’s abundance of renewable energy, electrification of public transport in Kenya holds transformative potential.” BasiGo offers its buses to matatu companies based on its pay-as-you-drive model. Customers have an option to buy an electric bus without a battery for a lower upfront cost. However, they can opt for a pay-as-you-drive subscription, which covers the battery lease. This subscription also provides perks like free charging at BasiGo’s stations and maintenance. The K6 electric bus costs $35,600 initially, and the subscription is $0.14 per kilometre. In 2022, BasiGo raised nearly $11 million. After three months of launching in Kenya, it secured $4.3 million in seed funding, with Novastar Ventures leading the round. This funding was supported by various investors, including Moxxie Ventures, Nimble Partners, Spring Ventures, Climate Capital, and Third Derivative, with $930,000 raised in a pre-seed round in late 2021. Then, in November 2022, BasiGo raised $6.6 million in equity funding, with Novastar, Mobility54, and Trucks.vc jointly leading the way. In November 2023, BasiGo received a $1.5 million grant from the United States Agency for International Development (USAID) to support its recently launched pilot initiative in Kigali, Rwanda.

December 5 2023

Exclusive: YC-backed fintech Pivo Africa is shutting down

Pivo, the Nigerian fintech that offered banking services to small supply chain businesses, is shutting down one year after raising a $2 million seed round. Pivo, the Nigerian fintech startup that raised more than $2.6 million from Y Combinator, Ventures Platform, Mercy Corp Ventures, and over 15 other investors, is shutting down. One person with direct knowledge of the business confirmed the closure to TechCabal but did not provide further details. “I cannot provide the specifics at this time but will be happy to do so later,” Amadi-Emina, the company’s cofounder and CEO, told TechCabal via WhatsApp. Founded by Nkiru Amadi-Emina (CEO) and Ijeoma Akwiwu (COO) in July 2021, the startup offered banking services to small logistics and haulage businesses in Nigeria’s supply chain sector. Pivo raised a $100,000 pre-seed round from investors like Microtraction, FirstCheck Africa, and Rally Cap Ventures two months after its launch. It later raised a $2 million seed round in November 2022; at the time, Amadi-Emina told TechCabal that the funds would be used to expand to East Africa and launch new products around payments, a major pain point for supply chain SMEs. Amadi-Emina and Akwiwu both had significant experience in the logistics sector before founding Pivo. Amadi-Emina founded Jalo, an on-demand delivery company acquired by Kobo360 in August 2018. When she and Akwiwu started Pivo, they had no competition in the supply chain sector. Pivo’s market approach Pivo wanted to solve the liquidity problem in Africa’s supply chain by providing financing options for supply chain businesses like logistics service providers, clearing and forwarding businesses, and FMCG distributors. Supply chain financing in Africa was estimated to be worth $41 billion last year. The startup had two fintech verticals: Pivo Capital, a lending product, and Pivo Business, a business banking product. The company claimed to have disbursed more than $3 million in loans a year after its launch through Pivo Capital and processed more than $4 million through Pivo Business. The startup provided credit to these businesses, which need to obtain funds from lenders to finance a transaction before being paid by buyers, only after validating with prospective buyers that the deals were legit. The startup said this approach allowed it to record a 98% repayment rate. Pivo’s shutdown is the latest in a line of African startups that have shut down this year for various reasons. Over a dozen African startups have shut down this year as the economic downturn and a rising funding gap continue to create a difficult environment for African startups.

December 5 2023

Kenya suspends digital IDs amid data protection concerns

Digital rights groups have faulted the government over data protection uncertainty in digital ID roll-out. Kenya’s High Court has paused the roll-out of Maisha Namba, a proposed digital ID system set to replace the failed Huduma Namba. The court, through Judge John Chigiti cites the lack of a data protection impact assessment as the reason for the suspension. The court ruling reads: “The leave granted by the court operates as a stay restraining implementation or further implementation by any person of the respondents’ 1 November 2023 decision to roll out or pilot Maisha Namba,” including the digital card, digital ID, unique personal identifier, and a National Master Population Register before and without a data protection impact assessment, per section 31 of the Data Protection Act.” READ MORE: Next Wave: Maybe Africa needs to pause its rush to adopt digital IDs Maisha Namba was proposed by the state through the ICT minister Eliud Owalo, who argued that the previous digital ID programme, Huduma Namba, was flawed and failed to communicate its intent to Kenyans. The Huduma Namba project cost the state KES 10 billion and received criticisms from multiple digital rights groups before it was eventually dropped. To address its shortcomings, the new administration led by President William Ruto sought to patch these issues via Maisha Namba, which would have started pilot tests in December 2023. However, the project still failed to meet the demands of the public, such as extended participation. Digital rights groups, including Access Now and the Kenyan Human Rights Commission, questioned whether the government had performed a robust data protection impact assessment before launching the service. “It cannot, however, be ignored that a transition of this magnitude comes with pitfalls that must be addressed,” said the rights groups in a joint statement, “especially if the design and implementation process is not conducted in a transparent, inclusive, and human-rights-centered manner.” Per the digital rights groups, there were concerns about transparency and a shaky legal basis, a limited nationwide public participation, and data protection uncertainty. The groups also cited that there was no evaluation of risks related to the exclusion of many Kenyans and the speed of the planned roll-out.

December 5 2023

Ex-Jumia Ghana CEO, Sunil Natraj to head Jumia Nigeria

Jumia Nigeria has appointed former Jumia Ghana CEO, Sunil Natraj, to head the e-commerce business. Massimiliano Spalazzi, CEO of prominent e-commerce business Jumia Nigeria will be stepping down in December 2023 after working with Jumia Group for 11 years. Spalazzi, one of Jumia’s pioneer employees, will be replaced by Sunil Natraj, Jumia Ghana’s CEO, who was appointed last year. Natraj will start in his new role in January 2024. Natraj’s appointment was announced by Francis Dufay, the CEO of Jumia Group, at a media parley that was held today in Yaba, Lagos, Nigeria. “Jumia wants to be a Nigerian company and not a Lagos company. We want to continue what Spalazzi started,” Natraj said at the event. He shared that Jumia plans to expand to more Nigerian cities. Akure and Ilorin are two cities Jumia is considering. The e-commerce firm is also eyeing cities on the way to Ibadan, Warri and Benin in the first quarter of 2024. The broad plan is to build a network that will cover the country in entirety. “We are targeting cities with a population of more than 20,000 people,” Dufay said. He explained that expanding in this manner has worked for a few countries in Ghana, Cote d’Ivoire and Senegal. For him, Nigeria is Jumia’s biggest market. The CEO said the company has had its own fair share of challenges. Part of those challenges involved the reduction of its workforce in the fourth quarter of 2022, and cutting its advertising budgets by 73% in Q3 2023. The group also moved away from a focus on delivering low-ticket items.

December 5 2023

Lipa Later acquires Sky.Garden for $1.6 million, keeps some staff

The relaunch arrives one year after Lipa Later announced it was interested in rejuvenating Sky.Garden’s e-commerce business. Sky.Garden, a Kenyan e-commerce platform founded in 2017, has relaunched its business one year after it was acquired by the buy-now-pay-later (BNPL) platform, Lipa Later. According to a statement from Lipa Later, Sky Garden’s business has been restructured after acquiring it for KES 250 million ($1.6 million per the current exchange rate). Lipa Later has confirmed to TechCabal that a section of former Sky.Garden’s 50 employees will continue working for the platform, although others have since left the company. It now has a total of 60 staff, and 40 more who are indirectly associated with the firm. “Ever since the acquisition, we have been undergoing a restructuring.” Juliet Wanjiru, head of e-commerce at Sky.Garden told TechCabal. “While we aimed to retain all staff, others pursued different opportunities.” Before Sky.Garden’s business started struggling due to low capital to run operations, it had raised $4 million in a Series A round in 2021. Prior to Lipa Later’s acquisition in November 2022, it had sealed a $600,000 deal, adding up to $5.2 million of overall funds raised from investors. Its former managing director, Martin Majlund, who left the company at the height of its struggles, revealed that 2022 was a challenging year for running B2C in East Africa, hence the call for new investment. The call for a new investor was answered by Lipa Later. Lipa Later has now introduced new features and products onto the platform “far beyond the boundaries of conventional online retail”. Customers will be able to buy products on credit using Lipa Later’s BNPL product. There is also a new product named Sky.Logistics, which will handle deliveries to customers. Merchants will also be able to access financing and transaction monitoring using Sky.Wallet. Recall that in September this year, Lipa Later was in the news over a $1.2 million crowdfunding programme. At the time, the company had said it was not crowdfunding out of necessity. “We recently raised a significant amount of debt investment; we have adequate funding,” Eric Muli, the founder and CEO of LipaLater, told TechCabal. “This public crowdfund is to raise equity investments to improve our debt-to-equity ratio,” Sky.Garden will run operations independently, just like Lipa Later. However, the two entities are under the Lipa Later Group “We have areas of synergy such as we offer Lipa Later as a payment option on Sky.Garden,” Wanjiru told TechCabal.

December 5 2023

Exclusive: Nigerian SME lender Lidya shutters European business

Lidya, the SME lending company founded by Tunde Kehinde, one of Jumia’s original co-founders, has closed its European lending business to focus on growing its new credit assessment and loan recovery offering for the Nigerian market. The 7-year-old company is leaving Poland and the Czech Republic 3 years after taking its small business lending business to Eastern Europe. It will now focus on Lydia Collect, a loan recovery tool initially developed last year for Lydia’s in-house SME lending business but has since become a linchpin for Lydia’s new business direction. “Nigeria’s tech-savvy lending ecosystem is the ideal launchpad for our solutions, which support data-driven decision-making,” Tunde Kehinde, co-founder and CEO of Lidya, said in a press statement. Lidya Collect was built on top of the technology that underpins Nigeria’s Global Standing Instruction (GSI), Carolina Rodriguez, Lidya’s communications lead, told TechCabal. The GSI is a last-resort system that allows connected lenders to directly debit the accounts of loan defaulters in other banks. Lidya said it worked with the Nigerian Inter-Bank Settlement System (NIBSS) to build Lidya Collect on top of the existing GSI infrastructure. The digital lender also announced Lidya Bridge, a credit assessment offering launched in October 2023. Bridge will analyse 300 data points from borrowers’ bank statements to make the process of assessing new loan customers smoother. Lidya will focus on selling Collect and Bridge to micro-finance institutions and other financial service providers. The company says it has already signed more than 50 lenders and microfinance banks. The company says it has analysed more than $50 billion of credit application data from 100,000 potential customers. 32,500 of those small businesses have received $150 million since its founding in 2016.

December 5 2023

A $1.63 million bounce back

In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Do you remember Paxful, that bitcoin marketplace that shut down because all its staff—engineers, compliance team members, and security personnel—left to work elsewhere? Well, its CEO, Ray Youssef, has found a new adventure. Youssef was recently appointed CEO of a similar business, NoOnes. Like Paxful, NoOnes allows users to buy and sell bitcoin and stablecoins; and also like Paxful, most of NoOnes’ users are in Africa. So Youssef’s local knowledge should come in handy. In today’s edition Kenyan Sky.Garden relaunches after $1.63 million investment Mastercard invests $27 million in three African funds MTN launches AI chatbot Google postpones the launch of its generative AI model The World Wide Web3 Job openings Startups Sky.Garden relaunches after Lipa Later’s $1.6 million buyout Image source: Zikoko Memes Kenyan e-commerce startup Sky.Garden, has relaunched following a Ksh250 million ($1.6 million) buyout by BNLP company, Lipa Later Group in December 2022. The relaunch includes a move into social commerce and building a merchant marketplace to connect 100,000 merchants in the next year. A relaunch? Yes. In September 2022, Sky.Garden revealed plans to shut down its operations on October 16, 2022, citing difficulties in securing additional funding. However, in November 2022, the e-commerce startup rescinded its shutdown announcement, stating it had found a buyer without disclosing the buyer’s identity. In December, it was revealed that LipaLater had acquired Sky.Garden. Under new ownership, the e-commerce startup is relaunching with four new products. What products? Sky.Garden has introduced new products—Sky.Tickets, Sky.Logistics, Sky.Commerce, and Sky.Wallet—to support its expansion into social commerce. Sky.Wallet offers financing and bill payments, Sky.Logistics provides same-day delivery for local businesses, and Sky.Commerce integrates social interactions with e-commerce, revolutionising customers’ online shopping experience. Additionally, Sky.Garden has also introduced Lipa Later’s buy-now-pay-later model as a convenient alternative payment option. Zoom out: In September 2023, after Lipa Later secured $5 million in private debt issuance, the company still planned to raise $20 million for its expansion plans. This relaunch aligns with the growing e-commerce market expansion in Kenya and Africa, driven by increased internet penetration and more affordable data costs. 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. Funding Mastercard invests $27 million in three African funds Mastercard, through its Africa growth fund, will invest in three African investment firms: Chui Ventures, VestedWorld, and SME Impact Fund. The three firms will receive $9 million, $10 million, and $8 million, respectively. Who are the invested companies? Chui Ventures is a Kenyan early-stage venture capital firm that invests in gender-inclusive startups in Kenya and Nigeria. The firm has a portfolio of over 20 startups, including Fastizers, CrowdForce, Taeillo, Pngme, and Lifestores Pharmacy. VestedWorld is a Nigerian impact investment firm that invests in businesses that are driving financial inclusion and social progress in Africa. The firm has a portfolio of over 30 businesses across Ghana, Kenya, and Nigeria, including Sabi, Shuttlers, Anka. SME Impact Fund, the third recipient of the fund recipients, is a Tanzanian fund manager dedicated to fostering growth in the country’s agricultural sector. The firm has made 44 investments worth over $15 million, directly impacting 23,000 smallholder farmers and generating more than 3,000 employment opportunities. Lights out: The latest investment brings Mastercard’s funds to five on the continent. The firm had previously invested $2.2 million in Aruwa Capital Management and $5 million in Inua Capital. Launched in 2022, the Africa Growth Fund is a $200 million fund aimed at bridging the financing gap in Africa’s impact investment landscape. The fund collaborates with a network of partners who offer comprehensive business development services to portfolio companies, including fund advisory, communications, and diversity/inclusion support. Telecom MTN launches AI Chatbot Image source: TechCabal MTN offers an AI chatbot for its employees alone. The telecom has launched SiYa, an in-house AI chatbot to assist employees with inquiries about company policies and share insights from MTN’s knowledge base. MTN expects the interactions with SiYa to shape the way customer engagement is done at the company. A little about SiYa: The chatbot, SiYa, takes its name from Siya Kolisi, the rugby Springbok captain. MTN said it chose the name to embody qualities—unity, harmony, and effective communication. It is unclear whether MTN is creating a version of SiYa for public use. But MTN South Africa is committed to helping its workforce benefit from the use of artificial intelligence-powered tools. This raises questions about whether other South African telecommunications companies will follow suit with similar AI-powered tools in the future. This is not MTN’s first rodeo at building AI-powered solutions. In 2019, MTN launched Mobile Money (MoMo) “chatbot”. The chatbot enabled users to navigate MTN’s MoMo services, including payments, on various social media platforms such as WhatsApp and Facebook Messenger and via SMS, and provide other useful information. Pay With Transfer support on the Paystack API We made it possible for merchants to white label a Pay with Transfer option on their custom checkout experience. Learn more → Big Tech Google’s Gemini AI launch delayed to 2024 Google has rescheduled its plans to launch its new AI model, Gemini, to early 2024. Sources with knowledge of the decision say the launch event was originally slated for next week, but the AI model is having challenges in responding to non-English prompts. Image source: Zikoko Memes How has Google been faring in the AI race so far? In recent years, Google AI has achieved notable milestones. In 2020, Google AI introduced Meena, an NLP model capable of engaging in human-like conversations. In 2022, the development of PaLM showcased a versatile machine learning model handling tasks like question answering, translation, and code generation. In 2023, Bard, Google’s large language model, emerged as a rival to OpenAI’s ChatGPT, uniquely capable of offering information on recent events, setting them apart. What’s different about Gemini? Gemini will stand out as a revolutionary multimodal AI system.

December 5 2023

Exclusive: Payday to be acquired by BitMama after $3m funding round in February

Payday, the once-high-flying fintech backed by Moniepoint, is in talks to be acquired by BitMama, a Nigerian crypto exchange startup, three months after TechCabal exclusively reported that it was speaking to potential buyers. BitMama, led by CEO Ruth Iselema, has reportedly offered PayDay investors $10 million worth of equity in the crypto company at a $30 million valuation. “Favour reached out to me because we’re building products beyond crypto; one of those products is Changera, and it made sense to me,” said Iselema. While Bitmama started as a crypto exchange, it now focuses on global services, including remittance, Iselema shared. Payday is now in talks with Bitmama For the potential acquirer, it will mean they don’t have to start Changera, Bitmama’s relatively new remittance service, from scratch. They’ll also not need to create a new software stack or spend on acquiring new users. “The deal is a work in progress,” maintained Favour Ori, the CEO and founder of Payday. “If the deal goes through, the result will be a strong team with much more efficiency.” Bitmama will take on Payday’s customer deposits and liabilities if the deal goes through, said one person close to the deal. Bitmama and Payday declined to comment on the deal, claiming that acquisition talks were far from done. Publicity highs and lows When Favour Ori started Payday, he gained positive publicity on Twitter with optimism for his version of the company’s future. The company also became a payment partner for Starlink, the Elon Musk-owned internet service provider. Ori’s brash style alsop attracted praise, with one founder admiring Ori’s style of “slapping down overly demanding customers.” Yet Payday had real problems. A wave of complaints claiming customer accounts had been blocked with no information was not disputed by the company, and discontent among employees soon revealed that Ori was earning a salary of $15,000 monthly before slashing it to control the company’s burn rate.