- October 9 2023
5 vital reasons to attend Moonshot by TechCabal 2023
Are you a tech enthusiast looking for the next big thing in the tech world? Then you should be attending Moonshot by TechCabal happening on October 11th and 12th, 2023. This event is one of the biggest tech events of 2023 and it is poised to be a game-changer. Here are five reasons why you shouldn’t miss it: 1. Cutting-edge technology showcase At Moonshot, you’ll have the opportunity to witness the latest advancements in the African tech ecosystem and have a better peek into the global tech space too. From payments, AI and robotics to virtual reality and blockchain, the event will showcase the cutting-edge innovations that are shaping the future 2. Expert speaker lineup Moonshot has gathered a stellar lineup of tech industry experts, thought leaders, and innovators. These speakers include Bosun Tijani; Nigeria’s minister of communications, innovation, and digital economy, Olatunbosun Alake; commissioner of innovation, science & technology, Lagos state, and Gbenga Agboola; CEO of Flutterwave, among others. Attendees will have the chance to learn from these visionaries through insightful speeches, panel discussions, and workshops. 3. Get top networking opportunities when you attend Moonshot by TechCabal Tech events like Moonshot are a hub for networking. You’ll have the chance to connect with professionals, entrepreneurs, and potential collaborators who share your passion for technology. Forge valuable connections that can boost your career or startup. 4. Hands-On workshops and demos Moonshot doesn’t just talk about tech; it lets you experience it. You can participate in hands-on workshops and interactive demos to get a feel for the technology, learn new skills, and gain practical insights. 5. Meet celebrity Tech influencers and content creators The last but not the least reason is that Moonshot presents you the opportunity to meet celebrity tech influencers and content creators like Fisayo Fosudo and Korty. These tech luminaries have a massive following on social media and YouTube, and they’ll be sharing their expertise and experiences. You can engage in Q&A sessions, take selfies, and maybe even collaborate on exciting projects. Final thoughts on why you should attend Moonshot by TechCabal Moonshot by TechCabal is the place to be for anyone passionate about technology. From exploring cutting-edge innovations to networking with industry leaders and meeting your favorite tech influencers, this event offers an unforgettable experience. Don’t miss the chance to be part of this transformative tech gathering on October 11th and 12th, 2023.
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- October 9 2023
How to open an MPesa account in 2023
With millions of users across the country, M-PESA provides a convenient and secure platform for financial transactions. If you’re new to MPesa and want to open an account, follow this simple guide. 1. Visit a M-Pesa agent To open an MPesa account, you’ll need to visit an authorised M-PESA agent. These agents can be found throughout Kenya, often in small shops and businesses. Look for the distinctive M-PESA sign. 2. Provide identification At the agent’s location, you’ll be asked to provide identification. A Kenyan national ID card or a valid passport are the most commonly accepted forms of identification. You’ll also need to provide a passport-sized photo. 3. Complete the registration form The agent will provide you with an M-PESA registration form. Fill in the required details, which typically include your full name, phone number, and the mobile network you’re using. 4. Receive your M-PESA Menu Once your registration is processed, the agent will set up your M-PESA menu on your mobile phone. You will receive a confirmation SMS with your new M-PESA PIN, which you can change later for added security. 5. Activate your MPesa account To fully activate your M-PESA account, you’ll need to deposit money into it. Hand the agent the cash you want to deposit, and they will load it into your M-PESA account. 6. Start transacting With your M-PESA account now active, you can start using the service for various transactions. You can send money to others, pay bills, buy airtime, and even save money in an M-PESA account. 7. Learn the USSD codes after you open an MPesa account To make transactions easier, familiarise yourself with the USSD codes for M-PESA. For example, dialling *234# will give you access to various M-PESA services directly from your phone. 8. Security tips Remember to keep your M-PESA PIN secret. Do not share it with anyone, and avoid using easily guessable numbers. Safeguard your SIM card, as it is linked to your M-PESA account. Final thoughts on how to open an MPesa account Once you have your account set up, you’ll have access to a wide range of financial services at your fingertips. M-PESA’s convenience has made it an integral part of daily life for millions of Kenyans, and with these simple steps, you can join them in enjoying the benefits of this mobile money service. You can read of M-Pesa transaction charges here.
Read More- October 9 2023
TechCabal surpasses 2 million readers as African tech business audience expands: Dive into our impact report
TechCabal’s editors share highlights of the newsroom’s reportorial impact in Q3. Welcome to our first quarterly editorial letter. It has been a hectic quarter for startups. The common themes have been mergers and acquisitions, crypto-based initiatives, the macroeconomic environment funding and the state of web3. How did we leave out artificial intelligence? Most conversations these days have a question or comment on how different the apps we use could look in a few years. Beyond these themes, it’s clear that Africa’s tech ecosystem is maturing. In Q3 2023, understanding this maturity guided a lot of our storytelling. When acquisitions and mergers happen, the audience wants to see figures. How much is the transaction value, and what’s the real story behind the acquisition? Those are the questions we ask when we report these stories. In September, Whogohost completed the acquisition of Sendchamp, while Risevest acquired Chaka. We know one deal was in the mid-six figures, although no one knows how much Risevest paid for Chaka. Thanks for reading and contributing to TechCabal’s growth in Q3 We may not always get all the answers immediately, but TechCabal is committed to finding them. Our audience is resonating with that commitment. In Q3, you and over 2 million people across Africa and the world read and visited our website, while our newsletter hit 143,487 subscribers. Our Sunday newsletter, Next Wave, has over 45,900 subscribers now while Entering Tech now has 55,856 readers. A lot of big stories drove our numbers in Q3, including Sendchamp’s acquisition by WhoGoHost; Float’s ₦5 billion loss; Payday’s plans to sell its business; Jumia’s drive to reassess its business priorities following the loss of a third of its users in one year; and Moniepoint’s entry into retail banking. Our most-read story for the quarter—25,142 eyes—touched on the grim side of AI. In case you didn’t know, AI is currently being used to “undress” people’s photos in a disturbing trend. Read our story on that here. But it’s not all doom and gloom with AI; we covered other perspectives like how AI will create new jobs, attend to us when we go to the hospital, service our food orders, and help companies with their public relations operations. There is a lot to hope for with increased interest in AI. We also kept tabs on the streaming world this Q3. Have you read our coverage of Canal+’s challenges in its European operations? How about DStv exiting Malawi following a high court ruling stopping it from further increasing the prices of its services? All of our reporting has been possible because of the founders and operators who have been gracious with their time and shared their stories with us. TechCabal and the tech ecosystem are on a shared mission to tell the impact stories of tech businesses on the continent. And we do not take the time and effort of everyone who has walked with us on this journey for granted. TechCabal won some awards! Last week, TechCabal and TC Insights won trophies in three categories at the StartupSouth Awards. We won for Best New Media Platform (Technology), Best Startup Intelligence Platform (TC Insights) and Best Startup Ecosystem Newsletter (TC Daily). We are really pleased about this and proud of the hard work everyone the TC team have put in to get us here. We thank StartupSouth for the great honour. Moonshot, the biggest tech festival is here. It’s events season in the ecosystem, with many tech conferences happening around this time, including TechCabal’s very own Moonshot Conference! Moonshot is the conference that brings together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation on the continent. This October, join us in Lagos and meet the founders, business leaders, startups, enterprise companies and more building innovative solutions for huge problems across Africa. Nigeria’s minister of communications, innovation and digital economy, Bosun Tijani, will be in attendance, alongside other eminent speakers: the DG of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi; former Google director for West Africa, Juliet Ehimuan; Flutterwave CEO Olugbenga Agboola; managing director at Xavier Africa, Tavonga Muchuchuti; Lexi Novitske, General Partner, Norrseken22; Voltron Cpital’s Olumide Soyombo, Korty, and many more. Click this link for the full lineup of speakers. And if you’ve not got your tickets, do so now, as October 12 and 13 are almost here! Empowering tech innovators and aspiring entrepreneurs Before we sign off, have you been following our short-video series, My Startup in 60 Seconds and Entering Tech? We created My Startup in 60 Seconds to spotlight founders building the future of Africa tech. Season 1 and 2, which aired in Q1 and Q2 respectively, featured over 24 startup founders from across the continent including Nigeria, Ghana, Morocco, South Africa and more. These innovators are dedicated to conquering critical challenges in health tech, logistics, payments, agriculture, and beyond. Their dedication and innovative spirits are the driving forces behind a more promising future for Africa and the world. Entering Tech, on the other hand, a spinoff of the popular Entering Tech newsletter series, provides practical guidance and assistance for aspiring tech entrepreneurs. Subscribe to our YouTube channel so as not to miss these series! Reach out to us Is something interesting happening in your area that might interest us? Email us at team@techcabal.com. Until next time, Muyiwa Olowogboyega Kelechi Njoku
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- October 9 2023
Cameroonian fintech, Koree, wins Ecobank Fintech Challenge
Koree, a fintech that allows customers in cash-based economies to save spare cash on a card, wins $50,000 at the Ecobank Fintech Challenge, edging out almost 1,500 fintechs. Koree, a Cameroonian fintech, has emerged winner of the Ecobank Fintech, ahead of eight finalists and 1,490 pitches. Koree went home with $50,000 in non-dilutive funding while Wolf Technologies, a DRC fintech, took second place and $10,000, and Flexpay, a Kenyan fintech, won $5,000 in third place. Magalie Gauze, the founder of Koree, told TechCabal that her company will use the funds to hire for business development and engineering roles. She added that Koree will also get an office in Douala, Cameroon. “Our team members are located in Cameroon, Ivory Coast, Togo, Nigeria, and Senegal since we started fully remote but having a proper office will help us bond and create a stronger culture,” she said. Koree’s product aims to solve the spare change problem in cash-based economies by using a card and digital wallet to allow merchants to return their customers’ spare change. Merchants can also create loyalty programs where customers can also earn cashback rewards. The eight finalists are Flexpay Technologies (Kenya), IPOXcap AI (South Africa), Kastelo (South Africa), Koree (Cameroon), Kori Tech (Senegal), SmartTeller Technologies (Nigeria), Rubyx (Belgium), and Wolf Technologies (DRC). Oluwole Ogunwande, the CEO of SmartTeller, told TechCabal that although he had gone to many competitions, the challenge was the most difficult. Ecobank, one of Africa’s largest banks with a presence in 35 African countries, has been organising its fintech challenge for six years and Koree is the first francophone and woman-led fintech to win the competition. The eight finalists will be inducted into the Ecobank Fintech Fellowship with other alumni like Piggyvest, Touch and Pay, Moni, and Nala. Micheal Oluwole, the co-founder of Touch and Pay, last year’s winner, shared in a fireside chat at the event that his company has leveraged the sandbox to expand into Ghana and the prize money was used to conduct experiments to help his company’s growth. He added that since last year’s win, his company has doubled its users to two million and is now the largest processor of contactless payments in Nigeria. The challenge’s alumni network has since gone on to raise $90 million in collective funding since participating in the challenge and 10 of the challenge’s alumni have also integrated into Ecobank’s pan-African sandbox, which gives them access to test their products in 35 African countries. According to Dr Tomisi Fashina, Ecobank’s group executive for operations and technology, the bank’s investment in the challenge has helped develop the bank’s fintech unit which saw a 28% increase in digital payments. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- October 9 2023
Next Wave: Somalia should be part of the tech ecosystem conversation in Africa
Cet article est aussi disponible en français <!– In partnership with –> First published 8 October 2023 With the inclusion of venture debt, venture inflows to Africa totalled $6.5 billion across 853 deals – but Somalia did not get any of this share. In a skeletally vibrant African tech ecosystem, the spotlight often shines on well-established hubs in West Africa, such as Nigeria, and in the southern regions, like South Africa. Kenya, Rwanda, and Ethiopia have garnered attention for their growing tech ecosystems. Yet, amid these developments, quiet underdogs exist, such as Somalia. While discussions of fundraising rounds typically bypass the country, its growing potential within its borders should not be ignored. The tech scene in Somalia might be small on the global stage today, but a transformational foundation has been set up based on activities that have been taking place there. With increased visibility and venture capital interest, it could start making a name for itself. Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield <!–Chart section 1 A sample of African startups that have gone from raise to bust. | Infographic by Victoria Olaonipekun, TC Insights Somalia’s geographical location makes it an attractive space for investment Somalia is geographically based in the Horn of Africa and has over 18 million people. It has a strategic coastal location adjacent to some of the world’s busiest maritime routes, and its proximity to the Middle East and South Asia makes it an attractive prospect for global enterprises seeking expansion opportunities. After the stabilisation of the nation following the 2012 polls, Somalia has attempted to work towards rebuilding itself as a regional hub for commerce, transportation, trade, and industry. Several factors have facilitated this development, including the rising adoption of digital technologies, rapid urbanisation, and planned investments in critical sectors such as energy, ports, education, and healthcare. The World Bank supports the nation’s commitment to instituting reforms and re-engaging with the region, which can open channels for human capital rejuvenation and overall economic growth. Per a Somalia startup ecosystem report, there is synergy between the public sector and local entrepreneurs that has given rise to innovations addressing the nation’s most pressing issues. This has jumpstarted the nation’s startup ecosystem, marking Somalia’s potential for growth. For instance, investments have been directed towards renewable energy, with Somalia’s vast resource potential positioning it as a leading contender for onshore wind power generation in Africa, capable of producing 30,000 to 45,000 MW. The emergence of the Service as a Service (SAAS) sector has also supported its startup landscape that cuts across transportation, food, healthcare, and education. However, given these numbers and the potential in Somalia, why don’t we hear about a lot of startup activity in the country, and is there a way to address this? Article continues after this ad Techies Meet Testars Testify is celebrating 22 veteran software testers with impactful years of experience. To read more, click here! Join the first-of-its-kind tech hangout on November 11 at The Zone, Lagos State. Games, food, and networking with tech professionals RSVP NOW A look into the tech players in Somalia Somalia has a growing startup space with key startups in many industries, including healthcare, logistics, renewable energy, mobile money, and communication. For instance, OGOW provides electronic medical records and practice management systems for hospitals and clinics, helping them to boost patient care. Gulivery is a third-party delivery service that helps businesses focus on their services by handling the delivery logistics. SECCCO provides clean, low-cost, and sustainable renewable energy solutions, improving the lives of thousands of Somalis. SolarGen is a renewable energy and water solution provider that focuses on distributing solar products and the engineering, procurement, and construction of world-class projects. SoPay is an all-in-one mobile money solution that allows users to transfer money, pay utility bills, make online payments, and request money. WAAFI is an app that combines mobile money, communication, and productivity. SIMAD iLab is a place where people can learn about and start new businesses—and recently, it launched an innovation theatre, a space for startups and MSMEs, and a corner for private-sector leaders and civil servants. Other players, too, such as accelerators and boot camps, want to make a mark in the tech ecosystem in Somalia. Fikrcamp, for instance, teaches young people how to code in native languages such as Somali and has even expanded to Ethiopia with the same goals. SOMINVEST seeks to attract foreign investment and improve investment policies. The Women Business Accelerator Program offers training and funding for female-owned startups. The Somali Technology Association Centre, established in 2018, offers tech training services. HarHub Business Incubation supports early-stage startups with entrepreneurship training and incubation services. iRise is an innovation hub in Mogadishu offering workspaces and office spaces for startups. The IITE Institute incubator assists SIMAD University students with mentorship and resources. Partner Content: Meet DockHive: A marriage between docker and blockchain technology Admittedly, Somalia has been plagued by political instability and conflict for decades, which has hindered the development of a robust tech ecosystem, so its presence in the African tech ecosystem has been muted. With massive VC investment in Africa, Somalia is yet to spark interest According to the African Private Capital Association, by deal volume, 2022 was a record year for venture capital investment in Africa. Although the total amount of capital invested in African startups dropped slightly in 2022, it remained stable compared to the record set in 2021. With the inclusion of venture debt, venture inflows to Africa totalled $6.5 billion across 853 deals. West Africa remained the top region for venture capital investment in Africa, with Nigeria as the most active country per volume at 22%. Despite these developments in African venture capital, Somalia received no investments or mentions in the African Private Capital Association report. Can
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- October 9 2023
TechCabal Daily – Broken Bridges
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy Moonshot Week We’re two days away from the Moonshot Conference where Africa’s most audacious thinkers and doers will celebrate innovation on the continent. For our TC Daily readers, we’ve got some great news: our partner, Enza Capital, is giving out tickets to Moonshot! To win these tickets, simply post on social media using the #MoonshotxEnzaCapital and #MoonshotbyTechCabal, and tell us why you too want to attend Moonshot. That’s it! In today’s edition Dash shuts down Co-founders Bridge Network split up Telkom Kenya loses 1.6 million subscribers TC Insights: Do Africans like credit? The World Wide Web3 Opportunities Two days till the Moonshot Conference Calling all creators Join Korty EO, Fisayo Fosudo, Adetutu Laditan, Abiodun Animashaun, and Ruth Zakari at Moonshot to learn hw to create engaging content, monetisation options, and how to grow your audience for long-term success Get your ticket now! Startups Dash shuts down Dash, a Ghanaian fintech founded in 2019 to connect mobile money wallets and banks in Africa, is shutting down. The shutdown was confirmed last week at a virtual company-wide meeting where the company informed its 70+ employees that it would be winding down, and laying off all staff members. The startup raised $86.1 million in five years and attracted big-name investors like 4DX Ventures and Global Capital Partners. In 2021, it closed a $32.8 million seed round—the second-largest seed round for an African startup. More than a dash of salt: Dash’s slowdown began when its board started to raise eyebrows at the startup’s reported numbers and ex-CEO Prince Boakye Boampong’s activities. Prince Boakye Boampong Two years after launch, Dash reportedly had 200,000 users and had processed $250 million in transactions by October 2021. Barely five months later, the startup announced that it had reached 1 million users across Ghana, Nigeria and Kenya; it also said it had processed $1 billion in transactions, numbers many now believe to be false. In February 2023, the startup’s board of directors suspended Boampong due to allegations of financial misreporting, and instituted a financial audit of the company. While Dash’s board of directors did not confirm the reason behind Boampong’s suspension, sources revealed that the company’s executives repeatedly hid firm financials and fostered a disorderly workplace where employees were fired at will. Boampong was eventually fired and replaced by Kenneth Kinshua. The internal audit later revealed that Boampong inflated and exaggerated user numbers. Tech publication Weektracker also reports that the audit revealed a shortfall of $25 million in the company’s account. Dash—which has no revenue—was allegedly burning $500,000 per month, paying its ex-CEO Boampong, $50,000 per month. Zoom out: The news has ignited discussions on board oversight for startups and ignited questions on how or if Boampong—who is accused of financial impropriety—is evading accountability for his actions. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. Startups Co-founders of Bridge Network split up Image source: Tenor The founders of Barbados-based crypto startup Bridge Network have split up. Last week, TechCabal confirmed that founding director Kimberly Adams and COO Favour Uzoaru have left the company, leaving former CTO Samuel Eke as the new CEO. How the bridge broke: Founded in 2021 to help people move digital assets from one blockchain to another, Bridge Network raised $3.8 million from about 50 investors including the now-bankrupt FTX. Things began to fall apart when my brother Jaja as the company struggled to gain traction shortly after launch—it saw only 600–1000 transactions daily, one source confirmed. With the company’s struggles exacerbated by the bitcoin crash of late 2022, squabbles began to arise among the founders. While some sources claim that Adams and Uzoaru often discussed kicking Eke out, others sources claim that it was Uzoaru who wanted Adams out. The dispute escalated in December 2022 when Adams requested Uzoaru’s signature to revoke Eke’s access to the company. When Uzoaru declined—and informed Eke of Adams’ plan—Adams requested that both co-founders step down, and restricted their access to company tools which temporarily caused their platform, the Brigde app, to shut down. The co-founders also failed to reach an agreement on how much would be paid in severance. After a slew of letters to investors from both Adams and Uzoaru which saw Adams resigning in February 2023, investors began to lose confidence in the company and began asking for refunds. By April 2023, Uzoaru also left the company to focus on personal projects, leaving Eke as the CEO. Zoom out: According to new CEO Eke, the company has refunded all the investors who demanded refunds and is still operating even though the repayment of investors has left a hole in the company’s finances. The company’s domain name has, however, expired and its token BRDG was delisted from crypto exchange platform MEXC. Eke has, however, assured users that he’s speaking with potential investors to turn the situation around. Telecoms Telecoms: Telkom Kenya lost 1.6 million subscribers in one year GIF Source: Zikoko Memes Kenya’s SIM card crackdown is having adverse effects on its telecoms. Telkom reportedly lost 1.6 million subscribers in one year, according to a report by tech publication Business Daily. Per the report, Telkom had 2.25 million active Kenyan subscribers in June 2023, a 39% drop from March 2022’s 4.14 million subscribers. What went wrong? In April 2022, the Communications Authority of Kenya (CA) began switching off inactive and irregularly registered SIM cards in the country. Per the CA, these SIM cards are used to perpetrate mobile money fraud, cybercrime and money laundering. The CAK had previously carried out similar exercises in 2012 and 2018. Its latest event was scheduled to turn off over 11.5 million improperly-registered SIM cards by October 2022. It is unclear whether this is the number of SIM cards that were deactivated, or if some Kenyans were
Read More- October 6 2023
Ghanaian fintech Dash shuts down after raising $86.1 milion in five years
Dash, the Ghanaian fintech has shuttered after a tumultuous run. The company did not achieve its vision to solve cross border payments for Africans by connecting mobile money wallets. Dash, the Ghanaian fintech company with a mission to connect mobile money wallets and bank accounts across Africa, has confirmed that it is shutting down operations. The startup’s closure was first reported by WeeTracker. Dash was founded in 2019 by Prince Boakye Boampong, and investors were excited by the problem the startup wanted to solve. Dash was working to ensure interoperability between mobile money wallets and bank accounts across Africa; its solution would have made sending money across Africa easy and efficient. The startup raised $86.1 million in five years and attracted big-name investors. It raised $32.8 million in a seed round—the second largest seed round for an African startup—in 2021. Insight Partners led the round and other investors, like Global Founders Capital, 4DX Ventures and ASK Capital, participated. It went on to raise additional funding with convertible notes and debt financing from October 2021 to 2022. In 2021, Dash began sharing eye-popping growth numbers. Per one publication, Dash claimed to have processed transactions worth $1 billion and said it had acquired a million users from Ghana, Nigeria and Kenya. Those numbers represented a 5x increase in its users in only five months. In February, at least two publications reported suspicions about Dash’s user numbers and metrics, and later that same month, Prince Boakye Boampong was suspended as CEO. Internal audits of Dash’s numbers proved that Boampong misrepresented and exaggerated user numbers. He was eventually fired and replaced by Kenneth Kinshua. New reporting suggests that the damage was already done by the time Kenneth Kinshua became CEO. The publication claimed that upon another audit of the company’s account, there was a shortfall of at least $25 million that was unaccounted for. With a reported burn rate of $500,000 per month and no revenue, Dash’s primary problem appeared to be its high overhead, as it had operations across five countries. As reported by WeeTracker, Boampong was earning $50,000 per month and allegedly diverted at least $8 million. There are claims that the money was used to buy property and luxury cars. Boampong has not spoken publicly about any of the allegations.
Read More- October 6 2023
Exclusive: Cofounders of FTX-backed Bridge Network split after power tussle
The three co-founders of web3 startup Bridge Network have split after a fight for control of the company. They raised over $3.8 million from several investors, including FTX. Two co-founders of Bridge Network, a web3 startup backed by FTX, have left the company after a management dispute. The conflict centred on control of the company and a disagreement over access to the company’s bank accounts. Kimberly Adams, the founding director, and Favour Uzoaru have left the startup, leaving Samuel Eke, the third co-founder and former chief technology officer, as the company’s CEO. Samuel laid off nearly two dozen employees shortly after becoming the company’s CEO. He moved operational funds to a new crypto wallet, which triggered an investigation by Nigeria’s Economic and Financial Crimes Commission (EFCC). “The EFCC investigated the matter and cleared me because the matter was civil and not criminal,” Samuel told TechCabal. He said the layoffs were necessary because the company ran out of cash. Kimberly and Favour declined to comment on the matter. Bridge Network was founded in 2021 after Kimberly shared the idea of a solution that would allow people to move digital assets from one blockchain to another with her co-founder, Favour. They connected on a forum discussion on the social audio platform Clubhouse. At the time, Favour was working at YC-backed fintech BuyPower and was reportedly looking to build his own tech startup. Two sources said Favour recruited Samuel, who could write code in Solidity—a programming language for developing blockchain applications. He also recruited a product designer to join the team. Together, the four-person team worked on the minimum viable product for Bridge Network. The Barbados-based startup raised over $3.8 million from FTX and around 50 other investors. Its primary product was Token Bridge, which enabled interoperability across various blockchain networks, allowing cryptocurrency users to transfer their digital assets seamlessly across networks. The startup was also developing NFT Bridge and Bridge Pay. NFT Bridge allows users transfer non-fungible tokens (NFTs) across blockchains while Bridge Pay is a multi-chain non-custodial payment tool that enables users to connect Web3 wallets to fiat virtual or physical debit cards to spend their assets in the real world. The payment solution was focused on emerging markets. Next Wave: Crypto’s quick-money promise for Africa is collapsing In an email seen by TechCabal, the company’s former chief operating officer called the dispute “a well-coordinated palace coup,” claiming that Kimberly tried to force him and Samuel out of the company. In February, Kimberly tweeted that she left the startup “due to the differences amongst the co-founders and myself on how the project should be run.” The use case for Bridge Networks is compelling. The company’s Token Bridge allows users to easily move one asset from one blockchain to another. This is increasingly important as the number of blockchain networks has grown into the thousands. Given how expensive it is to move assets across a blockchain, Bridge offered access to cheaper alternate blockchain networks. But the startup has struggled to gain traction. One source with knowledge of the company’s numbers said it averaged 1.3 million transactions in three months. “But when Bridge finally launched it, it only saw 600–1000 transactions daily,” the source told TechCabal. As the company struggled to gain traction, sources said Kimberly’s confidence in her team—which had grown to about 25 people—waned. According to one source who worked at the company, “She took a swipe, calling all employees ‘incompetent’ and not of great quality.” It’s unclear if her claims were true. While Samuel, the CTO, wrote in his public profile that he had years of experience working as a software engineer, he only spent four months working in a blockchain-related role before joining Bridge Network. According to the same sources, Favour and Kimberly occasionally discussed possibly replacing Samuel as the company experienced delays in developing other products, NFT Bridge and Bridge Pay. Another source close to Kimberly told TechCabal that it was Favour that Kim wanted out. “The only person who meaningfully contributed to the project was Samuel. The only thing Favour did was connect Kimberly to Samuel,” the source said. The dispute escalated in December 2022 when Kimberly requested Favour’s signature to revoke Samuel’s access to the company’s multi-signatory account, where the startup’s USDC assets were held. In an email to investors, Favour said he believed taking such action without first discussing it with Samuel was unfair, so he declined. He also told Samuel about the situation. Subsequently, Kimberly demanded that the two co-founders step down. In a letter to investors, Favour claimed she restricted him from accessing his work email and the company tools. She also removed Samuel’s AWS account from the backend, causing the Bridge app and website to go offline temporarily. In January 2023, Kimberly told at least one investor that she had asked one of the co-founders to step down to reduce the burn rate. At the time, the price of Bitcoin had fallen 75% from its all-time high in 2021, and Bridge Network’s notable investor, the cryptocurrency exchange FTX, had collapsed, dampening confidence in the crypto market. Kimberly told investors in an email seen by TechCabal, “This decision has caused a ripple effect which brings us to this point,” referring to the ensuing dispute between her and her co-founders. An investor who asked not to be named told TechCabal, “On the one hand, Favour was sending [investor] emails from [his personal email account] saying that Kimberly was trying to kick him and Samuel out. On the other hand, Kimberly told me that they were trying to strong-arm her out of the company.” Kimberly resigned from her position as director of Bridge on January 9 but reversed her decision the following day, citing concerns that her two cofounders could not deal with the pressure of running the business. One of her emails to investors read, “My co-founders have since spent over 100K USD of company funds on legal fees, something I did not approve. These proceedings have hurt our treasury but not my passion and
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- October 6 2023
Twiga confirms it’s in talks with Incentro Africa over $260k cloud bill
Twiga argues that the court case filed by Incentro was done in bad faith. However, it looks forward to settling the matter in a timely manner. Twiga has confirmed to TechCabal that it is in talks with Incentro Africa, a Google services reseller, to resolve their ongoing legal tussle. Twiga was taken to court by Incentro to recover a $261,878 debt. Incentro Africa asked the court to give a liquidation notice to Twiga if the debt remained unpaid. In this case, Incentro is owed money, and its request for liquidation from Twiga implies that Incentro has lost confidence in Twiga’s ability to repay and wants faster resolution. It may also be a strategic move to pressure Twiga into settling the debt and position Incentro as the first to receive payment from selling Twiga’s assets in case of liquidation. Twiga appealed the notice, arguing that Incentro’s court filing was in bad faith. The startup also confirmed that it is in talks with Google Ireland over the cloud service bill. While Twiga is disputing the amount it was billed, the company insists it’s in great financial health. Despite recent layoffs and overall business overhaul, it also disputed the amount and declared its financial health. Twiga objected to the liquidation demand, citing that it was made in bad faith. It is currently engaged in discussions with Google Ireland Limited, the primary provider of Google Cloud Services. “The Company (Twiga) disputes owing the amount of USD 261,878.75 as set out in the Statutory Demand the statutory demand, (which) is made in bad faith and with ulterior motives and in particular and attempt to compel the Company settle a disputed debt and the Company is solvent and still operational,” a court document seen by TechCabal stated. Twiga’s legal head, Daniel Ngugi said that any liquidation proceedings would harm the company’s reputation and trigger cross-default clauses with its lenders. “In the event Incentro Africa Limited is permitted to file and publish a liquidation petition, it will cause extreme damage and prejudice to the Company as a wrongful impression will be created to its employees, business partners, bankers, funding partners, creditors, the Kenya Revenue Authority, etc,” the countersuit argued. Per a person close to the matter, Twiga may have been battling cashflow issues. “It points to a cash flow problem,” a source told TechCabal. Cash flow problems in agro-tech firms like Twiga stem from the seasonal nature of business, which leads to uneven revenue streams and challenges in meeting vendor payment schedules. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More- October 6 2023
Exclusive: VFD’s Nonso Okpala shares the firm’s investing thesis and plans ahead of NGX listing
VFD Group Plc will list its shares on the Nigerian Exchange Limited (NGX) this Friday. The company’s Group Managing Director/CEO, Nonso Okpala, spoke exclusively to TechCabal on the thinking behind the move. After securing regulatory approval, VFD Group Plc, a Lagos-based investment firm, will officially list its shares on the Nigerian Exchange Limited (NGX). According to notes in its 2022 financial statements, VFD Group Plc first considered an NGX listing over a year ago; at the end of September, the company was delisted from the NASD Over-the-Counter (OTC) Securities Exchange. Nonso Okpala, the company’s Group Managing Director/CEO, told TechCabal that VFD was always prepared to list on a stock exchange from its creation 14 years ago. The company was started by 35 friends and associates who raised N2.4 million. “When you bring 35 people together, you need a level of governance that costs more than the initial investment. From the get-go, the core of our business is broad-based shareholding and the necessity of using governance. So we have always known we will get listed at a stock exchange,” Okpala said. VFD’s approach to investing focuses on long-term profitability and fundamentals. “We never play a valuation game, so we are never on to the hottest thing,” said Okpala. “We look at businesses that are focused on serving the needs of their sector. It is more about the sustainability of the businesses. We don’t want them to grow too fast but at their own pace.” “As an investment company, access to long-term and collaborative partnerships and visibility within the investment community is most important for us. The NGX is the only platform that you can do that in Nigeria,” said Okpala. In February 2022, VFD acquired a 5.2% stake in the NGX. Other portfolio companies include VBank, VerifyMe, and Piggyvest, where it holds a 12% stake. “Our business model is a long-term relationship with the businesses we invest in. If you put it in relationship terms, it is like a marriage. In the situations where divorces happen—we call them divestment—we make money regardless. We do not look for exits. The money we have invested is a long-term investment to the success of the business,” he added. A requirement for long-term investing is patient capital. “One key advantage about getting listed is gaining access to more funding and carrying out investment in different sectors, especially those you are precluded from as a non-listed company,” said Okpala. VFD’s funds under management currently stand at N55.7 billion. While the company declined to provide estimates and projections, it expects that figure to increase in the short to medium term following its listing. According to its half-year 2023 financial statements, VFD posted a profit-after-tax of N3.7 billion. The company announced plans to raise N32.5 billion via equity and debt in July after shareholders ratified the move. In the last decade, there has been an intentional effort to woo companies to list on the NGX; telco giants MTN and Airtel are currently listed. Despite this, the sense is that the NGX still has some way to go before it becomes the exchange of first choice for mature companies operating in Nigeria.
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