TechCabal Daily – Safaricom now owns M-Pesa Holding
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Twitter—or X—won’t be free for long. Yesterday, the platform started charging new users in the Philippines and New Zealand a $1 annual fee to join the app. Existing users are exempt from the “Not A Bot” fee, but anyone who wants to join the platform from these regions will have to fork over $1 to write on the platform. The new move will help reduce the amount of spambots and fake activity prevalent in those regions. They’ll be able to read for free, but they’ll have to pay 100 pennies to share their thoughts. In today’s edition Safaricom fully acquires M-Pesa Holding LeapFrog to invest $1 billion in Africa VIBRA shuts down in Africa Kuramo to invest $150 million in female-led startups Nigerian e-hailing drivers demand safety measures The World Wide Web3 Opportunities Acquisitions Safaricom fully acquires M-Pesa Holding GIF source: Tenor Safaricom now fully owns M-Pesa Holding. Yesterday, the telecommunications company announced its acquisition of the entire issued share capital of M-Pesa Holding Company Limited (MPHCL). Per the statement, Safaricom and its parent company, Vodafone International Holdings B.V., had reached an agreement on April 17, 2023, for Safaricom to acquire Vodafone’s entire 100% stake in M-Pesa Holding Company Limited from Vodafone BV. This comes after Vodafones’s CEO Margherita Della said the company was looking to simplify its processes to restore its competitive edge. ICYMI: The agreement was that Vodacom would sell M-Pesa trust company to Safaricom for $1. After receiving approval from shareholders and the relevant regulators, the deal has been sealed. M-Pesa Holdings is different from the M-Pesa service Safaricom offers. M-Pesa Holdings is a corporate trustee that holds all deposits of the M-Pesa service and invests them for the benefit of the customers. Zoom out: The holding company, per Vodafone, had €1.2 billion ($1.3 billion), as at April 2023, in customer funds which Safaricom could invest in short-term securities. 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 LeapFrog Investments to invest $1 billion fund in Africa Image Source: YungNollywood This private equity firm is betting on the future of African startups, one leap at a time. LeapFrog Investments, a private equity firm investing in Asia and Africa, is set to raise $1 billion for its new fund, Emerging Consumer Fund IV. The fund will be invested in healthcare and financial businesses on the continent. A $1 billion fund: Several institutional investors and limited partners have backed the Emerging Consumer Fund IV. These include the European Investment Bank (EIB) and the International Finance Corporation (IFC) which have committed $60 million and $50 million, respectively. Other investors include Prudential Financials ($500 million), AIA Group ($200 million), and Temasek, a Singapore-based investment company. The fund will hold a final close by February 2024. LeapFrog says it will make initial investments of $30–$70 million in 18–20 high-growth businesses. Since launching Fund IV in 2022, LeapFrog investment has invested in Sun King and Jumo in South Africa, Interswitch in Nigeria, Goodlife Pharmacy in Kenya, and Pyramid Group, which distributes orthopaedic and cardiac equipment. Lights out: LeapFrog’s Emerging Consumer Fund IV is a part of the growing queue of global investment firms and development finance institutions who are pumping VC dollars on the continent amidst the gruelling funding winter. Startups Crypto platform, VIBRA, shuts down in all three markets Vincent Li, co-founder of VIBRA. Image source: Afrikanheroes Another setback has befallen the African crypto ecosystem. VIBRA, the Africa-focused crypto platform co-founded by Vincent Li—co-founder of web3 accelerator Adaverse—has shut down in all three of its markets: Nigeria, Ghana, and Kenya. This development contradicts earlier reports that indicated the shutdown was limited to Nigeria alone. What went wrong? Vincent Li stated that the company is currently undergoing a significant pivot. However, multiple reliable sources, including former employees who chose to resign, offer a different perspective. A former employee disclosed that in July, the team of over ten individuals was given the ultimatum to resign or face termination. During this period, it became evident that the company was grappling with existential challenges. In the same month, VIBRA communicated to its users, via email, that it would discontinue services by July 15. Although Li stated that the discontinuation was specific to Nigerian users, messages in the company’s Telegram group suggested a broader closure. Another ex-employee stated that user engagement on the VIBRA app had dwindled, and revenue from transaction fees had fallen. Furthermore, VIBRA had an education initiative, VIBRAinClass, where experts could earn money for teaching Africans about blockchain. However, an ex-employee claimed that VIBRA had a challenge in achieving substantial user turnover from their education initiative, and that may have contributed to the company’s closure. There’s more: Aside from educating users about cryptocurrencies, VIBRA also relied on offering incentives to acquire customers, a common strategy among blockchain startups. However, this approach turned out to be costly for the company. VIBRA joins other Africancrypto startups that have closed in 2023, including LazerPay, which shut down its operations in April, and Pillow, which shut down in June. Accept payments fast with the Paystack Virtual Terminal Paystack Virtual Terminal helps businesses accept blazing fast in-person payments at scale, with ZERO hardware costs. Enjoy instant transfer confirmations via WhatsApp, multiple in-person payment channels, and more. Learn more. Funding Kuramo Capital to invest $150 million in African women-led startups Executives of the Kuramo Capital and Kuramo Foundation Kuramo Capital Management, a private equity firm will invest $150 million in female-led startups across Africa over the next decade, according to a TechTrends KE report. The sub-Saharan Africa-focused investment management firm will make these investments through its Moremi platform—an initiative that empowers women enterprises and promotes gender-equitable fund management. The Moremi platform offers an accelerator programme, a warehousing/lending facility, and a Fund of funds. Kuramo has unveiled the first cohort of the accelerator programme consisting of 40 female
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