- March 11 2025
- BM
A pot of stew now costs 121.05% more: Breaking down PricePally’s Stew Index Report
The cost of making Nigeria’s staple stew has more than doubled in Lagos within a year, highlighting the deepening cost-of-living crisis in Africa’s most populous nation. According to the PricePally 2024 Stew Index Report, preparing a pot of beef stew now costs ₦17,817—soaring by 121.05% from ₦8,060 in 2023—as households grapple with surging food prices and inflation. Between 2023 and 2024, the cost of stew ingredients surged dramatically. A pot of chicken stew now costs ₦15,034, more than double the ₦7,085 price from the previous year, while the cost of goat meat stew skyrocketed by 153.03%, rising from ₦8,227 to ₦20,811. Even a protein-free stew saw a steep increase, climbing from ₦4,387 in 2023 to ₦11,317 in 2024. The sharp rise in stew preparation costs reflects a broader trend of escalating food prices in Nigeria due to supply chain disruptions and naira depreciation. Food inflation stood at 24.08% in January 2025, down from 39.84% recorded in December 2024, after the National Bureau of Statistics (NBS) implemented a rebased Consumer Price Index (CPI) that altered the weighting of key components in the inflation basket. The challenge hits low-income earners the hardest. With the new minimum wage at ₦70,000 per month, a minimum wage earner would now spend 25.45% of their salary to cook just one pot of beef stew per month—a significant burden compared to 24.42% under the old minimum wage of ₦33,000. Tomatoes, which cost ₦1,506 per kilogram in July 2023, climbed to ₦2,625 by September 2024, representing a 21.7% year-on-year increase. Onions saw a dramatic jump from ₦971.86 per kilogram in 2023 to ₦3,000 in September 2024, a staggering 200% increase in just nine months. “For tomatoes, one definite factor is their seasonality,” said Basil Abia, co-founder of Veriv Africa. “When they’re out of season, it’s super expensive to get them. Tomatoes also suffer from very high post-harvest losses due to our poor infrastructure—from transportation to storage. On average, tomatoes can have a 40% to 50% loss ratio, and in some parts of Nigeria, that loss can be as high as 80%.” Beef, which costs ₦4,050 per kilogram in January 2024, surged to ₦6,500 by September. Goat meat, which was ₦3,856 in July 2023, now costs ₦8,500, an increase of over 120% in a year. Without cold storage trucks, the extreme heat during transit from northern farms to southern markets like Lagos leads to substantial post-harvest losses. The combination of reduced supply and consistently high demand—driven by Nigeria’s reliance on onions for stews, soups, and jollof rice—has contributed to surging prices. Meat supply faces even greater structural hurdles. In 2023, Nigeria produced 1.551 million metric tons of meat, which came from beef, poultry, and mutton and goat meat, yet poor transportation networks and inadequate cold storage infrastructure significantly reduce the volume that reaches consumers—and consequently, higher prices. There are also broader economic factors worsening the crisis with inflation driven by inadequate local production and a volatile foreign exchange market. “Foreign exchange has spiked from around ₦700 per dollar just 18 months ago to approximately ₦1500 today,” Abia said. “ This, combined with high fuel prices and the costs incurred from multiple road checkpoints, which can add up to ₦150,000 or more, transmits directly to the final food prices.” While inflation shows signs of slowing, supply chain disruptions could keep food prices higher, leaving policymakers wary of sustained relief.
Read More- March 11 2025
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How can female founders find capital in a world where investors are not looking for them?
Female founders’ uphill battle to secure venture capital has only grown steeper with time. Despite well-intentioned initiatives aimed at boosting investor readiness—sometimes leading to complaints of over-mentorship—funding disparities have worsened. In 2024, women-founded startups in Africa received just 1% of total VC funding in Africa, marking a five-year low. On March 7, at Accelerating Investment into Women-Led Businesses, a roundtable organised by Spurt! and the UK-Nigeria Tech Hub, investment experts and entrepreneurs discussed why female founders continue to be sidelined in venture capital—and what it will take to change that. Their conclusion: the problem isn’t just about getting women “investor-ready.” Bias is baked into the system, from due diligence to deal flow, and until investors themselves undergo retraining and redesign their processes, they will continue to exclude female founders. Gender bias among investors “Even among gender-lens investors who claim to be addressing bias, there is a level of cognitive dissonance that reinforces outdated stereotypes in practice,” Temilade Denton, an Environmental, Social, and Governance at Alithea Capital, an impact investing firm, said during one of the group discussions. Several participants agreeing with her, cited instances of women undergoing due diligence facing highly biased—sometimes absurd—questions. In one case, during a meeting, a prospective women-focused Limited Partner questioned whether a female general partner was too fashionably dressed to be taken seriously as an impact investor in Africa. “She was a stylish woman, but he probably expected her to wear Birkenstocks or look scruffy,” Denton added. While some investors vocalise these biases, others keep mute and quietly rule out women based on superficial judgements, while maintaining a blind spot for men. Discrimination creeps into due diligence for female founders Beyond individual biases, there are structural issues in the due diligence process that disproportionately exclude women. At the event, investment support experts from several investment firms—including the Lagos State Employment Trust Fund (LSETF), Leap Africa, the Innovation Fund, and Hoaq Club, an investor in food delivery startup Chowdeck—explored the question: at what point does discrimination enter the due diligence process? Discrimination manifests in investment screening, and some participants like Kristin Wilson, managing partner at Innovate Africa Fund, noted that “a man’s pitch deck is often more polished than a woman’s.” This is not necessarily because women are less prepared, but because men typically have greater access to early funding, mentorship, and professional networks that help refine their materials. “We need to train our analysts to look beyond aesthetics. Just because a deck isn’t visually appealing doesn’t mean the business isn’t strong,” Wilson said during the group discussion. Some participants also suggested that removing demographic biases—such as those related to gender, educational background, or personal networks—could help create a more level playing ground. Additionally, they proposed affirmative action measures, such as offering tax incentives to firms that actively work towards achieving gender balance in their investment portfolios. By rewarding inclusivity, such policies could encourage investors to adopt fairer funding practices and challenge entrenched biases in venture capital allocation. Women still have a part to play Nonetheless, female founders often face scepticism when they do not follow up with investors after receiving feedback. One of the participants noted; “No woman has ever come back after feedback, but men do.” This disparity may stem from confidence gaps, limited access to advisory support, or a reluctance to navigate repeated rejection—factors that ultimately reinforce funding inequalities. To bridge this gap, several initiatives have emerged to support women founders. The Lagos State Employment Trust Fund (LSETF), for instance, provides technical assistance to help women implement due diligence recommendations, improving their chances of securing investment. While such programmes offer valuable support, many female entrepreneurs still struggle to access the advisory services and financial expertise needed to compete on equal footing. As investors work to reduce their biases, women must also take proactive steps to increase their visibility, showcase their growth trajectories, and build strong professional networks. Amaka Opara founding partner of Weave Capital, a multi-stage venture capital firm that invests in and mentors startups, emphasised the importance of this approach. “That’s the only way to get capital in a world where investors aren’t looking for you,” she said.
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- March 11 2025
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Fintava Pay is banking the unbanked in Northern Nigeria
Banking the unbanked became the go to tagline for Nigerian fintechs during the country’s fintech boom between 2020-2023. Many fintechs parroted the claim that they were going to bank 36% of Nigeria’s adult population, or 28.8 million people who had no access to financial services. However, only a few fintechs followed through on that promise beyond the confines of Lagos, Nigeria’s economic and startup capital. In 2022, Tobi Arowolo, Samuel Ojerinde, and Isaiah Tokinbo, launched Fintava Pay, a Banking-as-a-Service (BaaS) platform to allow businesses—microfinance banks, cooperative societies, and agent networks—launch custom financial products aimed at financial inclusion in Northern Nigeria. Unlike traditional fintechs that build direct-to-consumer apps, Fintava Pay provides white-label banking solutions to businesses, super agents, and microfinance institutions, enabling them to offer tailored financial services to their own respective communities. Fintava Pay’s approach is particularly useful for Northern Nigeria where digital literacy is low and financial exclusion is most severe in the country. About 38% of the North East and 47% of the North West’s population are financially excluded. Citizens in this region rely on super agents to get cash and perform banking transactions. Fintava Pay offers a lifeline through its white-label solutions that allows super agents to open bank accounts for users. “It’s not that banks don’t exist in these areas,”Arowolo, the company’s CEO told TechCabal. “The problem is that they are centralised in urban centres, while the majority of the population in rural areas lack the infrastructure or financial literacy to engage with digital banking.” According to the Central Bank of Nigeria’s 2023 annual report, there are approximately 5,000 commercial bank branches across the country, 1,614 (32%) of which operate in Northern Nigeria. Fintava Pay often customises these banking solutions in Hausa, a local language commonly spoken in Northern Nigeria, and carries out transaction verification methods that don’t rely on smartphones, which are still uncommon in the areas it serves. “We still use the CBN mandated approach to opening bank accounts, i.e. the use of BVN and NIN,” Ojerinde said. For verification, Fintava Pay sends OTPs to three family members in different locations. This is to ensure that the agent does not have access to the user’s account. To accommodate users without smartphones for digital banking, the company provides them with ATM cards for cash withdrawals. “Before they receive ATM cards, OTPs will be sent to the three numbers. If the three OTP is not available at that point, the users will not be given cards,” said Arowolo. The startup recently onboarded BusyPay, a super agent network in Kano. “The founder of BusyPay approached us, saying, ‘If I had the technology, I could onboard thousands of people overnight,’” Ojerinde recounted. Fintava Pay claims that within 24 hours of launching BusyPay’s custom banking app, the platform registered 1,000 downloads and began onboarding customers who previously had no access to digital banking. While financial inclusion in Northern Nigeria can be attributed to low digital literacy rates, there is a negative perception of interest-based banking by locals due to religious beliefs. The north is largely Muslim. Partnering with super agent networks like BusyPay has helped Fintava Pay overcome this. “There are people who refuse to open accounts with traditional banks because they associate them with interest-based transactions,” Ojerinde explained. “But when they see a familiar face—a trusted local business or agent—they are more likely to engage with financial services.” Due to users’ low digital literacy, fraud has been a major concern for Fintava Pay. The company risks agents misusing customer data for unauthorised transactions. In addition to requiring three separate phone numbers (including family members) for identity verification and OTP authentication, agents also undergo strict onboarding requirements to ensure trust. “One thing we have struggled against is human error. Some people expose their BVN and bad actors use them to take loans,” Ojerinde noted. To combat fraud in its systems, Ojerinde notes that the team hires ethical hackers to regularly check for loop holes within its system. Beyond providing financial solutions for Nigerians, Fintava Pay is courting interest from across Africa and is currently working with a Zambia business where it plans to replicate its model. “This isn’t just a Nigeria problem,” Ojerinde noted. “Many African markets face the same financial inclusion barriers.” With the potential to become a pan-African Banking-as-a-Service provider, Fintava Pay is exploring fundraising opportunities to fuel expansion. However, Ojerinde—who is currently bootstrapping with his cofounders—is cautious about taking investor money too early. “We don’t want to raise just for the sake of it. We want to prove our model at scale first,” he said. How Fintava Pay makes money Fintava Pay generates revenue through a mix of service fees, subscription plans, and transaction charges. Businesses pay to access its API infrastructure, allowing them to offer financial services without securing a banking license. Partners using Fintava Pay’s white-label banking solutions are charged a monthly subscription fee for platform maintenance and updates. The company also takes a cut from wallet top-ups, bank transfers, bill payments, and ATM withdrawals. Additionally, it earns from issuing debit cards linked to its banking platform and charges businesses that integrate its services via API. So far, the company—which is yet to turn a profit—says it has processed over ₦30 billion ($38 million) in transactions and serves over 100,000 customers, with plans to scale further. The differentiation of Fintava Pay While companies like Bloc, Anchor, and Maplerad offer Banking-as-a-Service, Fintava Pay stands out by focusing on financial inclusion in underserved markets, particularly Northern Nigeria and rural communities. Unlike competitors who provide generic banking APIs, Fintava Pay customises solutions for local financial behaviours. Instead of working directly with end-users, Fintava Pay partners with microfinance banks and agent networks that already have customer trust. This differs from the likes of Moniepoint and Opay which directly operates agent-led banking, but doesn’t offer deep customisation for businesses to run their own fintech solutions. For businesses who use its API to receive payments, Fintava Pay claims it does instant settlement for businesses. Arowolo claims that businesses who
Read More- March 11 2025
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Third-party retailers dominate Starlink sales in Nigeria amid direct sales freeze
Since October 2024, Nigerian customers seeking to subscribe to Starlink have been unable to purchase kits directly from the SpaceX-owned satellite internet provider, forcing them to rely on third-party retailers. The halt in direct sales, which Starlink says was due to overcapacity, comes as the company, which has rapidly expanded its footprint in Nigeria, faces regulatory challenges and capacity constraints. Starlink’s demand surged in late 2024, making it Nigeria’s second-largest internet service provider by subscriber base. However, since October 2024, new customers have been placed on a waitlist as direct orders remain unavailable. The sales freeze followed the Nigerian Communications Commission’s (NCC) decision to block a proposed tariff hike. New subscribers in major cities such as Lagos, Abuja, Benin City, and Port Harcourt have been unable to place orders directly from Starlink’s website. When attempting to order, prospective customers receive a message stating: “Starlink is currently at capacity in your area. However, you can place a deposit now to reserve your spot on the waitlist and receive a notification when service becomes available. We cannot provide an estimated timeframe for availability, but our teams are working to expand coverage as quickly as possible.” The direct sales freeze has created a market for third-party resellers, many of whom continue to receive shipments. Joshua, CEO of JP Gadgets in Ikeja, Lagos, told TechCabal that he never ran out of stock and even received a fresh shipment from Starlink in January 2025. “Starlink is everywhere in the market. I don’t know why they’re not selling directly to individuals,” he said. “It’s possible they’re indirectly pushing customers to buy from distributors in Nigeria. Distributors order in bulk, which gives Starlink a bigger margin.” To bypass restrictions, some resellers reportedly use foreign addresses—often in neighboring countries like Benin and Cameroon—to facilitate activations. “Nigeria has loose borders,” said Joshua Attah, CEO of The TechCorner in Abuja, who also installs Starlink for customers. This workaround has led to price discrepancies, with Starlink kits officially priced at ₦590,000 ($375) and selling for as much as ₦650,000 ($413) through resellers. Installation costs have also varied widely, ranging between ₦30,000 ($19) and ₦50,000 ($32), depending on location and service provider. Many customers who purchased Starlink kits before the freeze have reported issues with plan selection, with some being forced onto the more expensive “Roam Unlimited” mobile plan. “They’re forcing me to use the mobile roaming plan, which is way more expensive,” said Sochima, a network engineer in Lagos who wanted to be identified by his first name. Starlink’s regional roaming plan currently costs ₦49,000 ($31) per month, while global roaming is priced at ₦717,000 ($456). Starlink has struggled with capacity constraints in Nigeria, particularly in high-demand urban areas like Lagos and Abuja. Elon Musk confirmed in November 2024 that new sign-ups were paused in major African cities due to overwhelming demand. The company’s ability to expand coverage depends on deploying additional satellites or upgrading to high-capacity models such as Starlink V2.0—costly investments that require significant capital. As of February 28, 2025, SpaceX has launched 8,039 Starlink satellites, with 7,082 still in orbit and 7,049 operational. While Starlink has expanded aggressively globally, its satellite deployments prioritize North America and Europe, where demand and regulatory conditions favor business growth. Africa, by contrast, has a lower satellite density, limiting service availability. Some third-party installers have found creative ways to bypass activation restrictions to keep customers online. “If a customer in Wuse, Abuja, couldn’t activate their device due to overcapacity, an installer would use an address in Garki, where capacity was still available, to get it activated,” Attah said. Since October 2024, Nigerian customers have struggled to get support from Starlink, facing prolonged response times—or no response at all—for issues like payment failures and account changes. In contrast, similar requests from U.S.-based users have been addressed almost instantly, according to Attah.” For now, Nigerian customers eager to join Starlink’s network will have to navigate the reseller market or wait indefinitely for direct sales to resume.
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- March 11 2025
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TechCabal Daily – A new Revolut-ion
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning In 2024, Africa saw a slowdown in equity funding deals to Series A (503 deals) and Series B startups (413), with few deals going to tech-heavy players. Growth-stage and seed-stage startups received a combined greater deal flow (1,322) in the same year, which puts a poser on whether later-stage startups are being de-prioritised: are VCs skewed toward early-stage startups? VC firms like Capria have answered plainly. After successes like Mono, Autochek, Carry1st, and BFree, Capria will back two additional African startups with $2–6 million, as it expands its Africa portfolio. TechCabal’s venture capital reporter Muktar Oladunmade caught up with Mobola da Silva, Capria’s Africa partner, to talk about the firm’s strategy and outlook for the continent. Read our column, Ask An Investor. Revolut is reportedly making an entry into South Africa Starlink doubles subscribers in Nigeria, nears top ISP spot Egypt’s inflation slows by nearly half in February World Wide Web 3 Opportunities Companies Revolut is reportedly making an entry into South Africa Image Source: Revolut Revolut, a global fintech giant with £250 billion ($300 billion as of 2023) in total payments volume, is reportedly eyeing a move to South Africa, according to a report by local publication TechCentral. If this plan follows through, it will be the fintech’s first entry into Africa, and its sixth continent. While the fintech giant told the publication that it is still “evaluating” the South Africa expansion and is “quite early in the process,” the move appears to be part of Revolut’s aggressive market expansion efforts. In October 2024, it announced plans to secure a Colombian banking licence to extend its footprint in South America and has also made advanced plans to enter Singapore, its first move into Southeast Asia, hiring key executives to lead the operations. Due to its wide range of products, a Revolut expansion would put South Africa’s biggest fintech players on their toes. The fintech offers multi-currency savings accounts, remittances, FX, cryptocurrency trading, web-based payment processing, and stock and commodity trading services—many of which overlap with fintechs like unicorn TymeBank, Stitch (payment gateway), Yoco, Ozow, Aza Finance, and crypto asset service providers (CASPs) like VALR and Luno, which were licenced in April 2024. However, South Africa is a complex market with strict financial regulations. Revolut will likely launch with a stripped-down version of its app to secure a regulatory foothold, as it did in countries like Mexico before applying for a banking licence. The fintech could choose to focus on basic services like digital wallets and remittances before gradually expanding to other products like crypto trading and stock investments. It could offer its services as a SaaS tech company without establishing a local subsidiary. This phased approach would help it find a workaround to secure e-money or payments licences while testing the market. BEE (Black Economic Empowerment) rules could also be a challenge. Many foreign fintechs choose to partner with local companies to improve compliance, and Revolut could take a similar path—working with South African banks or fintech firms to avoid full ownership and equity requirements. But even with a cautious entry, Revolut faces stiff competition from well-established digital banks and payment providers. South Africans are already loyal to platforms like TymeBank, Capitec, and Standard Bank’s digital services. Convincing users to switch—especially with limited local brand awareness—won’t be easy. Yet, with Revolut’s global might, if the expansion goes through, it will be a test of resilience for South African fintechs. Are you a freelancer or remote worker? Fincra wants to understand the challenges and opportunities related to cross-border work payments for freelancers and remote workers in Nigeria. Please take just a few minutes to complete this survey. Internet Starlink doubles subscribers in Nigeria, nears top ISP spot Image Source: Google Starlink has rapidly ascended to become Nigeria’s second-largest internet service provider (ISP), surpassing FiberOne Broadband Limited by the end of 2024. According to the Nigerian Communications Commission (NCC), Starlink’s subscriber base more than doubled within a year, reaching 65,564 users. Despite its premium pricing, the satellite internet provider’s high-speed connectivity—offering speeds of up to 250 Mbps—continues to attract customers frustrated with the inconsistent performance of local ISPs and mobile network operators. Starlink initially planned to double its monthly subscription fees from ₦38,000 to ₦75,000 for existing users by January 27, 2025. However, as demand surged, the company postponed the tariff increase. This isn’t the first time Starlink has faced pricing challenges in Nigeria; a previous attempt to raise tariffs in 2024 was blocked by the NCC, though it later approved adjustments for telecom operators in February 2024. As Starlink gains ground, its main competitor, Spectranet, has seen a decline in subscribers, dropping from 113,869 in late 2023 to 105,441 in Q3 2024. Unlike fiber-based ISPs, Starlink’s satellite technology allows it to provide internet access without geographical restrictions, making it an attractive option for users in underserved areas. Despite its rapid expansion, Starlink still faces challenges, including regulatory scrutiny and the current lack of mobile connectivity. As demand for reliable internet grows in Nigeria, Starlink’s continued success will depend on how it navigates pricing, regulation, and service improvements. Stay up to date with the latest Paystack news Subscribe to Paystack to be among the first to know about our blog posts, product updates, events and more. Subscribe here→ Economy Egypt’s inflation slows by 1,120 basis points in February Image Source: Al Arabiya Egypt’s inflation rate tempered in February, easing pressure on consumers and businesses after two years of rising prices. The data shows that urban consumer prices rose 12.8% last month, down from 24% in January—the lowest level since March 2022, when the country’s financial crisis took hold. This sharp decline comes as the impact of last year’s foreign currency crunch fades. The shortage of dollars had fueled a booming black market and sent prices soaring, making basic goods increasingly unaffordable. The easing pressure on its currency likely impacted the inflation slowdown, offering relief to Egyptians struggling with
Read More- March 11 2025
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LOTUS Bank expands football bet as Nigerian banks deepen sports sponsorships
LOTUS Bank, a non-interest commercial bank, has partnered with Inter Lagos FC, a Nigerian National League (NNL) club, to provide critical financial support to strengthen its domestic and international ambitions. The move, its second in three years, highlights a growing trend among banks leveraging sports sponsorships to expand their brand influence and community engagement. “Football, like most sports, is a powerful tool for youth engagement, economic opportunity, and social cohesion. Our collaboration with Inter Lagos aligns with our vision of supporting initiatives that create lasting impact,” said Kafilat Araoye, Managing Director and CEO of LOTUS Bank. Banks in Nigeria are increasingly investing in football as a way to boost brand visibility and community engagement. In August 2024, PremiumTrust Bank inked a four-year, ₦1.2 billion deal with the Nigeria Football Federation (NFF), while Zenith Bank has supported Nigerian football development since 2015. These investments align with global trends. Nielsen’s 2022 Global Sports Marketing Report found that sports sponsorships increase purchase intent by 10% and significantly boost brand awareness. “LOTUS Bank shares our passion for innovation and progress, and we’ve seen their dedication to sports development firsthand,” said Inter Lagos FC co-founder and CEO, Lanre Vigo. “Partnering with a forward-thinking financial institution strengthens our drive for excellence.” Football is Nigeria’s most popular sport, making it a prime marketing vehicle for banks looking to connect with customers. Similar moves have been seen globally: In 2024, Morgan Stanley partnered with ESPN for TV series “In The Arena: Serena Williams” which allows the banking giant to connect with diverse audiences as part of its larger marketing strategy. In Nigeria, sports sponsorships are also increasingly being used to drive financial inclusion, with banks aiming to expand their customer base beyond traditional urban markets. In 2022, LOTUS inked a partnership with Ikorodu City FC, another NNL side. If anything, banks’ increasing bet on football signals its growing power as a branding tool and a strategic play for deeper customer engagement.
Read More- March 11 2025
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Silver Box acquires Kenya’s Mobius Motors after failed rescue attempts
Silver Box, a Middle East-based company that invests in tech products and services, has acquired Mobius Motors Kenya, taking over the struggling automaker six months after it announced plans to shut down. The acquisition ends months of financial struggles, including unpaid debts, supplier disputes, and a failed rescue plan. As part of the acquisition, John Kavila has been appointed as the new COO. CEO Nicolas Guibert, who backed the sale and called Silver Box the best option for sustaining and growing Mobius, will also leave the automaker post-acquisition. “I am deeply honoured to lead Mobius Motors, a company renowned for its bold and innovative approach in creating a truly unique Kenyan brand,” Kavila said in a statement seen by TechCabal. “Mobius Motors has built an exceptional foundation, and we are eager to build on this success by focusing on expanding our market share and increasing accessibility for Kenyan consumers.” Silver Box plans to expand Mobius’ market presence, roll out new models, and strengthen its service network. However, it remains an open question whether the brand can overcome the challenges that led to its collapse, including stiff competition from second-hand imports, weak demand, and financial instability. Founded in 2009 by British entrepreneur Joel Jackson, Mobius set out to build affordable, rugged SUVs suited for African roads. The company raised $56 million from investors like Playfair Capital, Chandaria Industries, the U.S. government’s DFC, and Pan-African Investment. Mobius’s first model, released in 2014, was priced at $10,000 (KES 1.3 million), far cheaper than traditional SUVs. Despite launching multiple models, including Mobius I, II, and III, the brand struggled against the dominance of second-hand imports from Japan, the UK, and Asia. Production was based on pre-orders with refundable deposits, indicating low demand. Mobius entered voluntary liquidation in August 2024 after failing to secure a turnaround. The company postponed a scheduled creditors’ meeting after receiving an acquisition offer from an undisclosed buyer on August 14. Two automotive dealers were reported to be interested in the brand, and Kenya’s Trade Ministry had explored potential rescue options. Beyond its SUV lineup, Mobius owned a well-equipped Nairobi production facility capable of vehicle frame fabrication, anti-corrosion treatment, assembly, painting, and quality testing. It also had a research and development unit and a distribution deal with Chinese automaker BAIC, which helped launch the Mobius III. Now under Silver Box, Mobius has reopened its service centre and will restart production of the Mobius III by July 2025. A new model, continuing its focus on off-road SUVs, is expected by December 2025. The new owners could leverage Mobius’ Nairobi plant to produce their models or continue refining Mobius’ existing designs.
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- March 10 2025
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Capria VC wants to back two more African Series A startups with $1-$3 million each
Capria VC, a global venture firm with $207 million in assets under management, runs a unique model for investing in emerging markets by backing startups and local fund managers. Globally, it has invested in 17 fund managers, giving it indirect exposure to nearly 400 portfolio companies, while directly investing in only 41 startups. “This model is powerful because it gives us broad access to market insights. It’s a huge data set, which benefits both us and our portfolio companies,” Mobola da Silva, the Africa partner at Capria, told TechCabal. Capria’s African partners are Global Ventures, Lateral Frontiers and Atlantica Ventures. She joined Capria in 2023 initially as a venture partner before transitioning to a partner in 2024 and relocating from Lagos to Nairobi to strengthen Capria’s on-ground presence on the continent. Before joining Capria, she spent 14 years working at the intersection of venture capital and emerging markets and held senior roles at the Draper Richards Kaplan Foundation, the uMunthu Fund, and Alitheia Capital. “The common theme (of my career) is deploying capital into the most promising opportunities and backing founders best positioned to scale transformative businesses,” da Silva said. Capria invests $1-3 million in startups with capital also reserved for follow-on investments. The firm has directly invested in six African startups, focusing on sectors driving large-scale impact and innovation, like fintech, agtech, HRtech/jobtech, edtech, healthtech, and B2B SaaS. “These industries represent key areas where technology and entrepreneurship can create transformative solutions in emerging markets,” da Silva explained. It counts Moniepoint, Paymob, and Seamless HR in its direct portfolio. In MAX, it invested alongside Global Ventures, one of its partner firms. In its indirect portfolio, it is exposed to LipaLater, Klasha, and Figorr, among others in Africa. Venture capital firms are often split between investing teams and support teams that guide portfolio startups. Besides its unique investing model, Capria also has a unique support approach. It has an in-house AI team comprising four developers, founding partner Will Poole—an ex-tech entrepreneur with sector expertise—and a member of its support team. “The AI team is a resource available to all our portfolio companies. Any company can approach us and say, “We’re thinking of implementing AI in this way, but we have challenges—how can you help?” They don’t have to use the AI team, but it’s an option. Of course, there’s some prioritisation. The team can’t work with all companies simultaneously, so they phase projects depending on workload,” da Silva said. TechCabal spoke to da Silva to understand the firm’s investment thesis and plans for Africa. This interview has been edited for length and clarity. How do you source and identify promising opportunities in such a fragmented market? At Capria, we prioritise a set of core elements when evaluating startups. We look for exceptional teams, strong revenue traction, and compelling unit economics that demonstrate long-term viability. A startup’s ‘right to win’ in its market is critical, along with an asset-light model that leverages technology—particularly applied AI—to drive scale and efficiency. Additionally, we focus on companies operating in large and growing markets, ensuring they have the potential for significant market impact. Which qualities do you look for in founding teams beyond their product or service, particularly regarding resilience and cultural fit for African markets? At Capria, we evaluate founders and founding teams based on several key factors like founder-market fit. We prioritise alignment between a founder’s skills, experience, and personal qualities with the market’s needs. While this is a strong preference, we may make exceptions for serial entrepreneurs with a proven track record. We also look at their soft skills and coachability. Founders must demonstrate humility and the ability to accept feedback, as this is critical for long-term success. For younger founders, we assess strategic thinking, domain knowledge, passion, and grit—often validated through third-party references early in our diligence process. We also prefer diverse founding teams but, at a minimum, expect founders to be deeply connected within their industry ecosystem. What’s your due diligence process, from initial pitch review to deeper market and team assessments? We have a multi-step process that includes initial screening after the first conversation with the founder, first-level investment committee (IC) approval, due diligence (commercial, financial, legal, and technology), final IC approval, investment documentation, signing, and deal execution. Each step has specific tasks we follow to ensure we run a comprehensive and thorough process. How do you structure investments in Africa? We use several strategies to structure investments in Africa to mitigate the effects of macro risks like portfolio diversification. Capria diversifies investments across different sectors, stages, and regions within Africa, helping spread risk and reduce the impact of volatility in any one area. We also collaborate with local partners who have deep market knowledge and experience is invaluable. They provide insights into navigating the specific challenges and opportunities of the local market. Capria emphasises that strong corporate governance and financial controls within portfolio companies are crucial. This helps ensure transparency, accountability, and efficient use of capital, which are essential in uncertain environments. In some instances, mechanisms such as liquidation preferences or anti-dilution clauses protect against unfavourable market conditions or company performance. You focus on Series A and beyond, avoiding seed-stage startups. Why is that? Our sweet spot is Series A. We rarely invest at seed—definitely not pre-seed—but we’ve made some exceptions. Is it because seed-stage startups are riskier, especially in Africa? Yes, largely. At Series A, while a startup isn’t entirely de-risked, certain risks are reduced. By then, a company should have demonstrated product-market fit and a scalable, repeatable business model. Seed-stage startups are still figuring those things out. Series A funding is meant to scale a proven model. That said, we do invest in seed through some of our India-focused funds, so we’re not completely unfamiliar with it. But for our Africa fund, this is our strategy. What’s your ideal startup? Our strategy is Series A tech-enabled companies in key sectors like fintech (which makes up ~50% of our Africa portfolio), agtech, jobtech and B2B SaaS. We
Read More- March 10 2025
- BM
How South Africa’s Tregter is using WhatsApp chatbots for data collection
In South Africa, where WhatsApp dominates as the most widely used social media platform, the messaging app is evolving beyond just helping people communicate and get services. Tregter, a Cape Town-based startup established in 2019, uses WhatsApp chatbots to gather data for research, even in underserved rural communities. “A big use case for chatbots is data collection,” says Ferdinand Steenkamp, Tregter’s co-founder. “We have assisted multiple vendors with building chatbots, whether that could be to get information out to their clients, or whether they want to collect data more easily.” Tregter works with the Do More Foundation, an organisation that aims to improve the lives of children in South Africa’s underserved communities. “This is a pro bono project, using WhatsApp chatbot to collect data on early childhood development across rural South Africa. This allows the foundation to scale their data collection efforts and target rural communities,” Steenkamp explains. WhatsApp chatbot for the Do More Foundation is accompanied with cloud-based and analytics solutions. Steenkamp notes that the deployment of a WhatsApp chatbot is a hybrid approach combining the accessibility of a mobile messaging platform (WhatsApp) with a cloud-based platform, which, amongst other things, consists of a database where they can collect and analyse large volumes of data securely. “We also created a platform for analysts where they can inspect and visualise their data,” Steenkamp says. This initiative demonstrates how chatbots can facilitate essential research in areas where access is often limited. Tregter operates in a competitive space where several companies are also using data-driven strategies and chatbot technologies. South Africa has over 40 chatbot startups, with about three new companies opening each year in the last decade, Tracxna data shows. However, WhatsApp chatbots are dominant due to WhatsApp’s widespread use—about 40% of South Africans use the platform. Most of these WhatsApp chatbots focus on customer service, sales, scheduling, and information dissemination. Tregter is exploring a growing area of using chatbots for research. By focusing on underserved rural communities and the use of WhatsApp chatbots.Tregter is betting on accessibility of WhatsApp which makes it an ideal platform for reaching diverse populations, including those in rural areas. “What a lot of companies were doing before was manually collecting data. So they would have a single person responsible for capturing data. This process was not only time-consuming but also prone to errors and inconsistencies,” says Steenkamp. By automating data collection through chatbots, Tregter significantly improves data quality and reduces the time required to gather insights. “We found an instant improvement in data quality and also a massive reduction in the time it takes to get from data received to insights because we have built validations into the data capturing, and it all happens automatically. Once it is captured, it is live, and anyone has access to that data,” Steenkamp says. Beyond research, Tregter sees WhatsApp as the future of customer interaction. “WhatsApp is the app that everybody has,” Steenkamp states. He argues that companies investing millions in bespoke mobile apps for data collection are often missing the mark, as users are reluctant to download numerous apps and some affordable phones in South Africa often do not have space for many apps. As a startup, security and privacy are top priorities. Steenkamp highlights the significance of cloud migration and ensuring users have the necessary access for their tasks while maintaining data protection. “A great first start would be to move to the cloud where, I would not say it is secure by default, but you get a lot more security features,” he explains. Despite these challenges, Tregter remains bootstrapped, focusing on proving product-market fit before seeking external funding. “We do not believe in this idea of taking money and then hoping to find something that works,” Steenkamp says, highlighting a practical approach to startup growth. The company is actively working on producing its solutions, aiming to launch a SaaS platform to reach a wider audience. As AI-powered chatbots evolve, Tregter is keenly aware of the need to adapt to the African context. “We have to look at the customer in South Africa and throughout Africa, and just find out if we can implement those technologies in a way that works for them,” Steenkamp cautions. While AI, voice assistants and augmented reality hold promise, Tregter’s focus remains on leveraging existing platforms like WhatsApp to bridge digital literacy gaps and deliver tangible value. “Most of the population in South Africa understands how WhatsApp works, and so there is immediately a gap that gets bridged,” Steenkamp says.
Read More- March 10 2025
- BM
Touch and Pay fuels 291% growth in prepaid card usage in Nigeria
Touch and Pay (TAP) Technologies Limited, the fintech company behind Cowry card for Lagos’ train and Bus Rapid Transit (BRT) systems, has driven a 291% surge in closed loop prepaid cards usage between 2021 and 2024, according to a report by global market research firm Euromonitor International. Closed-loop prepaid cards are preloaded with funds but can only be used within a specific network or with designated merchants. This growth highlights the increasing adoption of cashless payments, particularly in Nigeria’s largely informal transportation sector. Cashless payments reduce the time and hassle associated with cash transactions and the risk of theft and robbery, which are common issues in the sector. The number of closed loop prepaid card transactions in Nigeria jumped from 2.2 million in 2021 to 8.6 million in 2024, with transaction value rising from ₦6.16 billion to ₦18.03 billion over the same period. TAP is the primary payment provider for Lagos State’s mass transit system, its largest market, though specific data for Lagos was not disclosed. “The rise of prepaid cards is linked to road infrastructure developments and the launch of the Lagos Blue Line train, which has driven demand for Cowry cards since their introduction in 2021,” the Euromonitor report noted. TAP launched its Cowry card in 2020 and now has over five million users, up from 3.8 million in 2023. CEO Olamide Afolabi told TechCabal that 552,000 cards were issued in 2024, surpassing the 400,000 issued in 2023. The company claims to have processed over ₦20 billion in transactions last year. “To use the BRT system, commuters must have a Cowry card. We are the sole provider of the card payment system for transportation in Lagos and several other states,” Afolabi said. Cowry cards, sold for ₦1,000, are contactless payment cards powered by near-field communication (NFC) technology, enabling users to pay for bus and train rides. Funds can be added through the Cowry Wallet app, which also offers a pay-with-phone feature, though most commuters prefer to top up via bank transfers or agents. Lagos resident and consumer data analyst Precious Kuye, who bought her Cowry card in 2021 for ₦400, has used it daily for commuting. “I can easily add money through the app or at the terminal,” she said. Deborah Innocent, a graphic artist, finds the Cowry card more convenient than relying on unpredictable commercial buses. “It’s user-friendly and much easier to use,” she said. In August 2024, SmartCash Payment Service Bank, a subsidiary of Airtel Nigeria, partnered with TAP to introduce new top-up features for Cowry cards. “The growth in card usage demonstrates how technology can subtly influence consumer behavior, even in unstructured markets,” said Uchenna Uzo, professor of marketing at Lagos Business School. “ It underscores the critical role of user adoption in Nigeria’s payment ecosystem—a market that deserves close attention. A thriving retail sector depends on a seamless digital payment system.” While challenges remain, there is growing awareness of the benefits of a cashless transportation system in Nigeria. As adoption spreads, the sector will further integrate digital payments, making seamless, cash-free travel a reality for millions.
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