- October 3 2023
Stitch announces $25 million Series A extension to expand enterprise payments product
Stitch has announced a $25 million raise to scale its enterprise payment solutions product. South African payments solutions provider Stitch has announced a $25 million Series A extension round. Ribbit Capital led the funding round with involvement from both new and previous investors, including PayPal Ventures, The Raba Partnership, CRE Venture Capital, and 9 Yards Capital. Stitch launched in February 2021 and has since raised $52 million. The startup enables enterprises to accept, manage and disburse funds through its suite of products. “We’ve seen substantial growth since we emerged from stealth just over two years ago, and we look forward to finding more ways to anticipate and address the needs of the large, global enterprises we serve as the payments landscape continues to evolve,” said Kiaan Pillay, Stitch CEO. According to Pillay, Stitch is on track to process $2 billion in total payment value (TPV) this year and 50 million in payment volume. Stitch started life as one of the firms that bet that Open Banking would unlock better and more personalised banking services. A previous TechCabal article described Stitch as a startup that “offers data and payments solutions that reduce the effort required for businesses to connect to their users’ financial accounts and enable bank-to-bank payments without leaving the existing app interface.” The bet at the time was that this would enable fintech use cases like KYC and onboarding, personal and business financial management, lending, wallet top-ups, and e-commerce checkouts. That bet did not pan out as expected. “There was not a huge amount of traction. I think other markets, especially Western markets have good use over there. But I think it [was] just a bit too early in some of the markets we were targeting,” Pillay conceded. “We started off serving [customers] across this method called pay-by-bank. But in doing so we ended up having almost three distinct areas that we started to work with clients on [and] realised more areas we could offer solutions on,” he added. As the firm explored new product lines it hit a sweet spot with providing full payment solutions for enterprise-sized businesses in South Africa. So instead of trying to be everything to everyone, the fintech pared back its focus. “At the beginning of this year, we reined in our focus. And we sort of went from being a single method and being paid by the bank to being a full-on enterprise PSP (payment service provider). [The result was that] we ended up serving a lot of enterprises.” Stitch hopes to restart plans to expand across Africa. The South African company has maintained a small Nigerian operation but held back on aggressively selling in the West African nation in favour of doubling down in South Africa. A renewed expansion push will see it test the waters with enterprises in Kenya, Ghana, Egypt and Nigeria. Stitch also plans to offer its suite of end-to-end payment solutions to US and UK-domiciled companies. The startup also recently launched WigWag, a separate subsidiary specifically serving SMEs. According to the company, unlike rival payment service providers, Stitch’s go-to-market is built on working closely with enterprise customers to help them fully leverage its API suite to build out payment workflows. “We only focus on a few enterprises,” said Pillay. PayOS, its flagship product enables enterprise customers to accept payments via pay by bank, debit and credit card, recurring debits, cash and manual bank transfer. One such customer is dLocal, the Uruguayan cross-border payment processor that connects global merchants to emerging markets. MTN, the South African telco giant which has recently been boosting its fintech appeal after a deal with Mastercard valued its fintech business at more than $5 billion is also a customer of Stitch. “We really go deep with them on the kind of payment solutions we can offer them and obviously along the way, we find that some of the solutions are applicable to other businesses too.” Stitch has always gone where its clients’ needs have taken it. But it still had to deal with growing competition. “We still want to continue to go deep with all of our existing clients, I think we’ve barely scratched the surface in ways that we can work with them. We’re really excited that we do significant amounts of volume and scale to the existing customers, but it really is only a sliver of their total volume.” Pillay concluded. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- October 3 2023
Exclusive: Paystack expands further into offline payments as Nigeria’s POS volume surges
Paystack, the Nigeria-based fintech company, is launching virtual terminals, a new product that allows merchants to accept payments with bank transfers for multi-person businesses. The company is positioning itself for faster growth of its “pay with bank transfer” feature, which is witnessing rapid adoption as everyday customers use it as their primary mode of payment during checkout at offline businesses, such as supermarkets or restaurants. Paystack’s virtual terminal is a digital-only alternative to physical point-of-sale (POS) devices that have seen wide adoption in the country over the last few years. These physical POS devices are limited in circulation and cause transaction delays in high-volume situations such as restaurant checkout, where several customers might require payment confirmation simultaneously. Similar delays have plagued direct bank transfer alternatives as sales representatives at various businesses require verbal confirmation from their managers that a payment was successful — an inefficient process in a high turnover environment. Paystack, which operates in four African countries, believes its new virtual terminals can cut the wait time for payment confirmation and ensure a seamless customer checkout experience. The feature supports QR code payments, foreign bank cards and Apple Pay. Business owners can also assign virtual accounts to sales agents who can monitor and verify transactions without contacting their manager or having access to the business’ bank accounts. “Bank transfers are fast becoming the go-to payment method for a growing number of consumers in Nigeria,” says Shola Akinlade, Paystack CEO. “With Virtual Terminal, we’re making it effortless for businesses to accept in-person bank transfers quickly, while providing a dignified customer experience.” Virtual terminal is part of Paystack’s broader strategy to expand beyond web-only payment collection. The company launched in 2015 with a modern payments gateway that was cheaper and faster than existing business solutions developed by market leader Interswitch. Since then, the Nigerian payments market has flourished, with dozens of fintech providing digital fund collection and settlement services. By the end of 2022, electronic payments in Nigeria topped 5.1 billion transactions worth ₦387.1 trillion, a jump from the 154 million transactions valued at ₦38.2 trillion recorded in 2016, a year after Paystack launched. Paystack has also tried to capture a larger market share. Since 2020, it has developed a few products, including a digital storefront for social commerce, to win over more small businesses looking to sell online. But over the last three years, offline payments — a catch-all term loosely referring to agency banking and POS-based payments — have become a key segment driving the growth of electronic payments in Nigeria, Paystack’s primary market. Newer fintechs, such as GTCO’s Squad, OPay, PalmPay and Moniepoint, have cornered the offline market using a network of in-person payment agents and POS devices to offer cash transaction services to individual customers and business owners nationwide. In 2022, POS transactions represented around a fifth of electronic payments volume in Nigeria although industry insiders believe the figure is higher since several companies do not share their transaction data with NIBSS, which operates the national real-time payments infrastructure. Paystack, which is owned by U.S. fintech Stripe, made its re-entry into the offline payments market late last year with the launch of the Paystack Terminal, a point-of-sale device. Now, the fintech is doubling down on this market with virtual terminals and bank transfers. The company first introduced the bank transfer payment method in 2017, which supported seven financial institutions. In 2021, bank transfers represented around 12% of transactions on Paystack, the company told TechCabal. A year later, this figure has more than doubled to 28%. And since the start of 2023, the bank transfer method is surging, accounting for 34% of Paystack payments in Nigeria. The company has since doubled down on this market with new infrastructure and the new Paystack-Titan virtual accounts, a partnership between Paystack and Nigerian financial service Titan Trust Bank which cut the latency of bank transfers to less than 8 seconds. Customers are increasingly adopting the bank transfer method because of its convenience and control, Mohini Ufeli, a Paystack spokesperson, told TechCabal. In a low-trust environment where buyers and sellers want payment confirmation before completing a sale, both parties can conveniently track the status of a transaction. And unlike POS devices where sales agents pace several customers to collect payments, virtual terminals designate a Paystack-Titan bank account to which shoppers can conveniently send funds. The product is launching following a challenging start to the year for the Nigerian payments industry after an ill-timed central bank currency redesign effort triggered the scarcity of the physical naira ahead of general elections. The cash scarcity exposed several weaknesses in existing offline payment solutions which unraveled as the economy declined in the first quarter of 2023. Although Paystack declined to comment on its overall offline payments strategy, the fintech believes its faster bank transfer channel could help it win over more in-person businesses in Nigeria with instant payments confirmation.
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- October 3 2023
Five key attributes of innovative startups
Noel K. Tshiani is the founder of the Congo Business Network, an organisation committed to building the rising startup ecosystem in the Democratic Republic of Congo. As a fervent advocate for innovation, he actively drives transformation across a diverse spectrum of sectors including fintech, edtech, medtech, agritech, insurtech, and regtech, both in Kinshasa and abroad. Startups are the engines of innovation. They are the ones constantly pushing the boundaries of what is possible, creating new products and services that make our lives better. They are the launching pads where new ideas are tested, refined, and brought to market, ready to grow into the industry giants of tomorrow. But in a sea of startups, only a few manage to navigate the turbulent waters of the business world and emerge as beacons of innovation. So what are the key attributes that make a startup innovative? 1. Unrelenting curiosity Innovative startups are perpetually curious. They are always on the lookout for new insights, approaches, and solutions. This insatiable curiosity drives them to explore uncharted territories, ask challenging questions, and seek answers that can potentially disrupt the status quo. 2. Customer-centricity At the core of groundbreaking innovation is an unyielding focus on the customer. Innovative startups listen to their customers, understand their pain points, and are dedicated to providing solutions that meet their needs. They engage in continuous dialogue with their customer base, improving their products based on feedback, and ensuring that the end product is not just useful but delightful. 3. Agile and adaptable The ability to pivot swiftly in response to market feedback is a hallmark of innovative startups. They have a culture of innovation and experimentation, and they are always looking for new ways to do things. This nimbleness ensures they stay relevant and continue to meet the evolving needs of their market. 4. Collaborative ecosystem Innovation does not occur in isolation. Pioneering startups often foster a collaborative culture internally and extend this collaborative spirit to external partnerships. They collaborate with other companies, universities, and government agencies to share resources and expertise, and to speed up the innovation process. 5. Investment in talent and technology Innovative startups are avid investors in both talent and technology. They attract and nurture a diverse pool of talent, fostering a culture of continuous learning and growth. Concurrently, they harness the power of cutting-edge technologies such as artificial intelligence, machine learning, and blockchain to bolster their innovative efforts. Innovation is the key to success in the startup world, and those who do it well inspire others. They are the vanguards, challenging conventions and propelling us into a future brimming with unexplored possibilities. As we look to the future, let us cultivate these attributes in our entrepreneurial ventures and play our part in shaping a more innovative tomorrow. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More- October 3 2023
WhatsApp hacks are back, and they’re sneakier than before
It took Wuraola Onyeku about three weeks to realise that her partner was logged in to her WhatsApp account on his desktop. The first time she opened her WhatsApp after a night out with her friends to find herself in the middle of a conversation she couldn’t remember typing, she blamed the alcohol. The second time it happened, she blamed her poor memory on fatigue as she didn’t drink any alcohol. “I was always getting responses to messages I couldn’t remember sending, and at a point, I strongly believed I had a health condition that made me forget things easily,” she shared. Two years ago, WhatsApp made the news as thousands of accounts were compromised in a worldwide hack incident facilitated by WhatsApp calls. In recent months, WhatsApp hacks have resurfaced as hackers are discovering more insidious ways to infiltrate the app’s security. Tons of people have complained about their accounts being hacked and the Nigerian Communications Commission(NCC) has put out an advisory for users to be more careful with the platform as it has become the “main” target for hackers. There are several new methods that hackers are deploying to gain access to accounts. Some of the most popular methods include malware embedded in spam messages and links, as well as a call-forwarding hack. The victims can range from close friends and family to random people they find in WhatsApp groups. According to Adesola, a cybersecurity expert, the call-forwarding method involves calling victims and tricking them into calling certain man-machine interface (MMI) codes, which instruct your devices to perform specific actions. “They essentially want to forward calls from the victim’s number to their own number, so when they try to re-register the WhatsApp account using their target’s phone number, they choose the option of a phone call to verify the phone number instead of choosing the OTP option,” he shared. Other methods are more straightforward, like in the case of Onyeku. In April 2023, WhatsApp rolled out a new feature that allows users to operate one account on four devices. This feature means that malicious people can use your phone to scan a code on their laptops and will be logged into your account. Unlike other methods where the main owners are logged out, this allows you to use the account simultaneously. According to Onyeku, she didn’t think about the possibility of someone else sending it because it didn’t feel like a hack as she was still logged in to her account, and she lived alone. “I would have never suspected that someone else was using my account with me, much less my partner if he hadn’t confessed to it,” she shared. One evening, Ganiu Oloruntade, a reporter living in Lagos received a call from a strange number asking if he belonged to a particular WhatsApp group which he confirmed. They further asked him to call out a certain number, which he refused to do. Seconds after he ended the call, he realised that he couldn’t access his WhatsApp account. In the two hours it took for him to recover his account, he kept receiving calls from friends informing him that he was distributing a broadcast message and requesting money. “It was easier to recover it because I had the 2-factor authentication set up, but they already sent messages to all the groups I was a part of and received money from some people. I think they pick numbers from WhatsApp groups and call you to get your voice and send you a code,” he said. Meta has been committed to expanding WhatsApp from an intimate messaging platform to a wider messaging app with “communities” and “channels” features, which puts more users at risk as it exposes phone numbers to a larger group. While the 2-FA can protect users from some hacks, there are more advanced ones that it fails to guard against. According to Adesola, there have been a lot of vulnerabilities on the platform in the past years and some still exist. “When discovered, WhatsApp patches the vulnerability and sends a prompt to users to update their WhatsApp so that the changes they have made to curb the vulnerability can be effected,” he shared.
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- October 3 2023
TechCabal Daily – Nigeria wants more tech bros
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Twitter—or X—is getting sued over its name. A marketing agency called X Social Media has filed a lawsuit against the company for trademark and service mark infringement. According to The Verge, the company says it has lost revenue due to market confusion since Twitter’s rebrand to X. The big picture here is that X Social Media is not alone: just about everyone in the market is confused about X—the advertisers, the users, the builders, and more importantly, ex-Chief Twit Musk himself. In today’s edition Event: Save on tickets for the Moonshot Conference Nigeria to equip 3 million people with tech skills Uganda shuts down six unlicensed stations Jumia to sell Starlink across Africa Kenya’s new plan to manage e-waste The World Wide Web3 Job openings Save 25% off tickets for The Moonshot Conference Wondering what’s in store for Nigeria’s digital future? You can find out at the Moonshot Conference! From October 11 – 12, join some of Africa’s most audacious thinkers and builders as they network, collaborate, share insights and celebrate innovation on the continent. Listen to Bosun Tijani, Nigeria’s minister of communications, innovation and digital economy, as he shares his agenda for Nigeria’s tech ecosystem with Juliet Ehimuan, Oswald Guobadia, and Tomiwa Aladekomo. Take advantage of the Independence Day flash sales and save 25% off all Moonshot Tickets for the next 3 days! Buy your tickets here. Economy Nigeria to equip 3 million people with tech skills Image Source: YungNollywood Nigeria is getting new sets of tech bros. The country’s minister of communications, innovation, and digital economy, Bosun Tijani, has announced plans to equip 3 million early-to-mid-career Nigerians with tech skills by 2027 as part of the ministry’s strategic blueprint. A strategic blueprint? Bosun Tijani, on his Twitter page, shared a link to the draft of the blueprint dubbed “A Strategic Plan for the Federal Ministry of Communications, Innovation & Digital Economy”. The strategic blueprint articulates the ministry’s vision to help diversify and deepen its economy through the use of digital technology and innovation. The blueprint contains a five-pillar agenda: knowledge, policy, infrastructure, innovation, entrepreneurship & capital, and trade. According to the blueprint, half of the trained professionals will be retained within the local talent pool, while the remaining half will be exported as global talents through remote opportunities. Zoom out: Beyond equipping Nigerians with tech skills, its strategic blueprint represents a positive development as the country looks to close its digital literacy gap and position itself across the Fourth Industrial Revolution (4IR) technological domains. 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. Policy Uganda shuts down six unlicensed radio stations Image source: YungNollywood Uganda has taken a stern stance on unauthorised broadcasting. Yesterday, the Uganda Communications Commission (UCC) shut down six radio stations that were allegedly broadcasting without licences, a clear infringement of the law. Under the Uganda Communications Act 2013, it is categorically illegal for any entity to transmit content without obtaining a broadcasting license duly authorised by the UCC. The affected radio stations: The six radio stations facing this clampdown are Divine Partners, Hot FM, Millenium Community Radio, Salt & Light Christian City Church, Mgahinga Investments, and Welsto Company Limited. Consequences of such violations: Offenders may face a substantial fine, possibly up to twenty-five currency points. In Uganda, the value of one currency point is determined by the finance ministry and serves as a basis for calculating fines. In this context, the penalty could be assessed based on the current value of a currency point, and the total fine would be 25 times that value. Alternatively, those found guilty may be subject to imprisonment for a maximum of one year, or both penalties combined. Internet Jumia to sell Starlink across Africa Image source: Starlink You can now order Starlink on Jumia. According to Jumia’s chief commercial officer Hisham El Gabry, the e-commerce giant has partnered with SpaceX to sell the satellite broadband services Starlink across Africa. The partnership will help sell Starlink terminals in areas that lack formal addresses and city mapping. The sales of Starlink on Jumia will begin with Nigeria in the coming weeks, according to El Gabry. Users in Nigeria will be able to order Starlink satellite terminals and other kits on Jumia’s site and get them delivered to their doorsteps through Jumia agents. Jumia will extend the sales of Starlink’s product to the other African countries in which it operates. Side bar: Starlink launched in Africa earlier this year, with Nigeria being the first to receive its service. Since its launch, it has expanded to 11 African countries and is set to expand to 8 more according to its availability map. The product has faced several regulatory pushbacks on its adoption on the continent, with some countries like Senegal and Zimbabwe tagging its sale as illegal. Zoom out: Africa has the lowest internet penetration in the world. Jumia’s partnership with Starlink represents a way forward for the continent in deepening its internet access. Get pregnancy care with Preggify Pregnant, ambitious, and busy? Preggify’s got you covered with 24/7 access to pregnancy information and maternal healthcare support for you, your spouse and caregiver(s), all at the convenience of your fingertips. Experience it now at Preggify.com. Cleantech Kenya’s ICT Authority to manage e-waste in the country Stanley Kamanguya CEO of ICTA Kenya is turning trash into treasure. Through a partnership with the National Environmental Management Authority (NEMA) and Public Procurement Regulatory Authority (PPRA), the ICT Authority (ICTA) is spearheading an e-waste management initiative to promote sustainability and job creation in Kenya. This initiative is a step to address the issue of electronic waste (e-waste) in the country. Public institutions can now deposit their discarded electronic devices at the National Refurbishment, Assembly, and e-waste management facility in Nairobi’s
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- October 2 2023
Uganda closes six radio stations for operating without licences
The six radio stations, including Hot FM and Millenium Community Radio were allegedly running operations without licences, per Uganda’s Communications Act. Uganda has shut down six radio stations after the Uganda Communications Commission (UCC) discovered that they have been broadcasting content without licences. This is against Uganda’s communications laws detailed in the Uganda Communications Act, 2013. Per legislation, it is illegal for anyone to transmit content without obtaining a broadcasting license authorised by the UCC. Those who violate this law may face a fine of up to twenty-five currency points. In Uganda, the value of one currency point is set by the finance ministry and is used as a reference point for calculating fines. For this violation, it means that the fine could be calculated based on the current value of a currency point, and the total fine would be 25 times that value. Alternatively, the affected stations may be imprisonment for a maximum of one year, or both. “Notice of closure is hereby issued to the owners and management of the radio stations for repeated failure to obtain a valid broadcasting license from the Commission,” the UCC said in a statement. The affected radio stations are Divine Partners, Hot FM, Millenium Community Radio, Salt & Light Christian City Church, Mgahinga Investments, and Welsto Company Limited. According to the Communications Act 2013, setting up and running TV or radio stations is regulated by the Uganda Communications Act 2013. To do so, a player needs a licence from the UCC, which considers factors like technical facilities, station location, social impact, and environmental assessment. Breaking this rule is an offence punishable, with corporate bodies’ representatives also held liable. The Act grants the right to broadcast but requires responsibility. It prohibits actions to prevent broadcasting, except when authorised by the law. Compliance with laws against explicit content and privacy invasion is also stipulated in the law. Licence holders and producers must ensure broadcasts follow public morality and keep records for at least sixty days, maintaining broadcasting standards and values. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- October 2 2023
Next Wave: When is the ultimate Eldorado for a startup founder?
Cet article est aussi disponible en français <!– In partnership with –> 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 First published 1 October 2023 Tech startup founders face a series of challenges on the path to success. When do they finally get to reap their rewards? The thing with arguments like how much a founder should earn is, it is subjective. We can speculate and harmonise based on an industry standard but who sets it anyway? If indeed there is a standard for how much a founder should earn, it is still subjective and mostly dependent on the founder to set. Over the past few weeks, some of the work done by the TechCabal team has not gone unnoticed. Ngozi Chukwu’s story on PayDay and its current up-for-sale status set off a major debate on X, formally Twitter, regarding what founders should actually earn. I know these issues are usually thrashed out at the ideation stage but the decision on whether to earn your coins from the first day or not, as a founder, is still open-ended. This is according to interviews I held with four founders, including the founder of a startup studio I spoke with for this article. Abraham Augustine argued in the last edition of the Next Wave that investors betting on African founders have their work cut out for them. At least five startups including Float and Kloud Commerce had bitten the dust between 2022 and 2023. A lot of times the issues behind these failures are familiar—cash burn, corporate governance, toxic work environments, power tussles, and so on—but the core of the problems is always down to conversations about money. More money means more staff, more inventory, greater advertising spend and an audacious will to execute. A sample of African startups that have gone from raise to bust. | Infographic by Victoria Olaonipekun, TC Insights In 2022, 47% of startups failed after running out of cash, according to Skynova, a firm that makes invoicing software for small businesses. Money, which is usually decided by the startup founder in the very beginning, can set the tone for further hires. Entrepreneur and venture capitalist Peter Thiel is of the opinion that low CEO pay is one of the ground requirements for a startup’s success. How much should startup founders earn? Startup founders don’t earn much globally. On average, the pay generally oscillates between $50,000 to $150,000 a year. Estimates from 80,000 hours say that founders in a Y Combinator program pay themselves $50,000 at the very beginning. If it flops, the figures stay the same but if they go on to raise funding, the money could go up. A 2022 report from an accounting firm, Pilot, says that 46% of founders get paid less than $100,000 annually, while over 5% of founders get paid nothing. Pilot estimates the average salary among founders at $114,000 a year. And if you are bootstrapping, the salary is way less than a founder who is VC-backed. Others have different categories for paying founders and the salary tends to rise at the different levels of fundraising. Article continues after this ad What role do Fintechs and Digital Payments play in shaping innovation within Africa’s e-commerce landscape? At this event, we will highlight the significance of payment methods and processes in the success of e-commerce businesses. To learn more about the intersection between Africa’s e-commerce sector and the fintech industry, join us on Friday, October 6 at 11 AM on another edition of Techcabal Live. Register for this week’s edition of TC Live All of the CEOs — Ope Onaboye of Renda, Uche Ukonu of Smallchops.ng, Ikpeme Neto of WellaHealth, and David Lanre Messan, who runs a venture studio—First Founders —agreed founders should pay themselves modestly. The trio of Onaboye, Ukonu, and Neto followed the same journey of bootstrapping before raising capital from venture investors. Ukonu and Neto emphasise taking a small salary while hoping for a return on the equity the founder owns. Ukonu’s case is special because he bootstrapped all the way to ₦100 million in revenue, with just nine employees. He told me he once took a salary of $27 (₦20,000) and augmented himself with other side hustles while he grew Smallchops.ng. Partner Content: Driving e-commerce and boosting African entrepreneurship: A look at Payaza’s payment solution Messan strongly believes that a founder can only earn $1,000 per month at the product market fit stage, adding that founders should take lesser amounts before getting there. His argument is that founders should invest in their businesses until it pays them back. According to him, the stages to a huge payout start from building, scaling, and then growth. For the majority of founders, the ultimate payout is equity. But the question is if they will ever get to payday from an exit or a major liquidity event (i.e. when the founder can sell all or some of their stake in the business for cash. It is important to note that a lot of tech founders start their business hoping never to fail but the harsh reality is that not all startups succeed. At least 20% of businesses shut down in two years and 45% during the first five years. Only 25% finally make it to 15 years, according to data from the U.S. Bureau of Labor Statistics (BLS). Per Statista, the average startup failure rate in Africa stood at 54 per cent in 2020. Nigeria recorded a 33% failure rate in that year. The West African nation recorded a 61% failure rate between 2010 – 2018, according to The Better Africa report, by Weetracker, an African media firm. Ethiopia (75%), Rwanda (75%), and Ghana (73.91%) topped the chart in that regard. With these high failure rates, there is a tendency to think
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- October 2 2023
TechCabal Daily – Patricia calls for patience
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning To celebrate Nigeria’s 63rd Independence Day, we’re having a flash sale on Moonshot tickets!! Save 25% on all Moonshot Tickets, only for the next 5 days!! Offer valid from October 1 – 6, 2023. Buy your tickets here. In today’s edition Patricia calls for patience Kenya joins PAPPS P1 Ventures announces $25 million fund TC Insights: The future of agent networks The World Wide Web3 Job openings Crypto Patricia calls for patience GIF Source: Tenor Nigerian crypto startup Patricia is asking its customers for some patience. Last Friday, the company held a virtual town hall to give updates about its progress and appeal to infuriated customers. Why? Patricia has had a troubling year. Earlier in May, the startup revealed that it suffered a hack in January 2022 which cost it nearly $2 million. It partially froze withdrawals after the 2022 breach, allowing customers to deposit funds but not move them from wallet to wallet. Instead, Patricia offered to buy those coins from customers and pay them cash to manage the situation. This workaround continued until March 2023. By April 2023, the company launched Patricia Plus, its new app which had no withdrawal restrictions, which triggered a bank run and led to a deficit of 75 bitcoins. The company was then forced to reinstate the freeze in May 2023. Since then, customers have been unable to access their assets. In August, in what it termed a move to protect customer assets, it converted all user assets into its newly minted Patricia Token (PTK) backed by the US dollar. Unfortunately, users were not informed about the conversion beforehand, and still couldn’t access their funds even after the conversion. A repayment plan: Now, the company is effecting a new repayment plan through fundraising. At the town hall, CEO Hamu Fejiro announced that the company had secured some funding and plans to reopen its app soon. While the investors or investment is undisclosed, TradeFada CEO Segun Dania announced, in July, that he had invested an undisclosed sum in Patricia. As the startup revealed its plan to relaunch its app and repay funds, its customers were bothered with the timeline of repayment which still isn’t clear at the moment. Others are considering taking legal action or filing with the appropriate authorities. 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. Economy Kenya joins PAPSS Image source: Zikoko Memes Kenya has officially joined the Pan African Payments and Settlement System (PAPSS). Hold up, what’s that? PAPSS is a new way to make instant cross-border payments in local currencies across Africa. Basically, it’s a payment system that allows you to send money to another African country, in your local currency. The service was launched in January 2022, and is currently used by commercial banks and payment service providers in nine African countries: Nigeria, Ghana, Liberia, Guinea, Sierra Leone, The Gambia, Djibouti, Zimbabwe, and Zambia. Kenya becomes the tenth country to join the service. Last Friday, trade secretary Moses Kuria made the announcement noting that the Central Bank of Kenya (CBK) had signed the agreement and completed all the necessary formalities. “This means that Kenyan companies can trade with their peers from other African member states using our local currencies, a major boost for the African Continental Free Trade Area (AfCFTA),” said Kuria. Zoom out: Since launch, PAPSS has reportedly saved African companies over $5 billion in transaction charges they would have incurred using alternative payment methods. With its growing success, PAPSS is expected to be spooned out to all 54 African countries in the near future. Funding P1 Ventures announces $25m first close of second fund GIF Source: Zikoko Memes P1 Ventures, a VC firm, has completed its first $25 million of its second fund of $50 million. Mikael Hajjar, founder and general partner of P1 Ventures told TechCrunch that the VC firm will complete the second fund early next year. P1 says it will use the funds to build African businesses across fintech, e-commerce, healthtech, SaaS and AI verticals. Since its launch in 2020, the firm has invested in 29 early-stage companies across 10 countries, including Money Fellows in Egypt, and Reliance Health in Nigeria. It also recently led a seed round for Gameball, a software company gamifying loyalty and customer retention. An AI focus? P1 Ventures is betting on AI-powered startups with this fund. The firm believes that AI can break down traditional infrastructure barriers faced in agriculture and FMCG retail. The firm has also invested in Nkloso, a startup that gathers data and keeps track of agricultural land using satellite imagery and AI. P1 Ventures The VC firm also uses AI to source deals and support its investing team. Zoom out: In what seems to be a funding winter, the latest development by P1 Ventures raises hope for African startups looking to raise funds, especially for startups who leverage AI solutions. Apply for the MEST Africa Challenge It’s time to unlock the next stage of your startup’s growth. Do this with access to funding, networks, and growth opportunities at this year’s MEST Africa Challenge startup pitch competition. Apply by 9th October 2023. Apply today! TC Insights Beyond agency banking As of 2019, the global density of the agent network reached an average of 228 active mobile money agents per 100,000 adults, seven times more than ATMs and 20 times more than bank branches. In Africa, there are about 460 agents per 100,000 people compared to the 6 ATMs and 5 bank branches for every 100,000 adults. The number of agents increased by an average of 7% quarter-on-quarter (QoQ) in five years, making digital financial services accessible to millions across the continent. As a result, more people now use agent networks for deposits than withdrawals. For every $3 cashed
Read More- October 1 2023
End of an era for Showmax Pro as Showmax 2.0 nears launch
Showmax 2.0 is on the way, but the change has phased out Showmax Pro that aired live sports. It is also clear that the new platform will just focus on premier league matches. However, Showmax has a plan for the affected customers. As of today (October 1, 2023), customers will not be able to renew their subscriptions for Showmax Pro package. This follows an earlier announcement of MultiChoice’s plans to revamp the platform. The new service has not been revealed yet, but those familiar with Showmax’s operations are already aware of a partnership sealed many months ago with NBCUniversal’s Peacock. This partnership will bring in new content and streaming technology to Showmax. The transaction saw NBCUniversal and Sky get a 30% stake in Showmax as the platform seeks to launch its first-ever overhaul in a competitive market already served by other platforms such as Netflix and Amazon Prime Video. “From 1 October 2023, Showmax Pro will no longer be available for subscription. If you have an auto-renewal subscription, you won’t be charged after 30 October 2023, and you can continue to view until the last day of your subscription,” Showmax said in a statement. What will happen to active Showmax Pro subscriptions? Showmax is gearing up for its revamp, focusing on the premier league and Africa’s top football leagues. The current Showmax Pro will be axed by November 30, 2023, as part of this change. Showmax says that new pricing and features will be announced in due course. Current Showmax Pro subscribers in specific regions across the continent will be able to access live sports, live channels, and more through an exclusive DStv Stream and Showmax bundle deal. The specifics are as follows: In MultiChoice-native South Africa, Showmax Pro will be offered as part of the DStv Compact Plus Stream package, available at the same price as Showmax Pro. Showmax nakes this offer better by including more sports channels in Compact Plus Stream (note the “Stream” term, as this is an online product unrelated to the traditional Compact Plus package using satellite signals). However, South Africans already enjoy a better deal with Showmax Pro as it streams Champions League matches, a feature not available in other African countries. In other markets where Showmax Pro is available, existing customers will be transitioned to the DStv Stream package at the same price. This package includes all the content already featured in their version of Showmax Pro, except for Champions League matches. DStv Stream, previously known as DStv Now, is currently accessible in ten African markets: South Africa, Kenya, Nigeria, Botswana, Namibia, Ghana, Uganda, Tanzania, Zambia, and Zimbabwe. “There are variations on what’s available in each country, based on the content line-up, local conditions, and currency fluctuation. As an example, Showmax Pro in South Africa included Champions League football while this wasn’t included in other regions due to licensing agreements. The DStv Compact Plus available to subscribers in South Africa is on par with what Showmax Pro customers had access to in this region, and includes events such as the Champions League,” Showmax explained. Circling back, what is NBCUniversal Peacock? NBCUniversal’s Peacock is a streaming service offering a range of content, including TV shows, movies, news, sports, and original programming. It has free and premium subscription tiers, with the premium tier providing an ad-free experience and access to its full content library. Like Showmax, Peacock also features original shows, live streaming of NBCUniversal channels, offline viewing, personalised recommendations, and compatibility with various devices. It’s known for its integration with NBCUniversal properties, including live sports coverage like premier league – which in the case of the new partnership with Showmax, will be offered through Sky Sports.
Read More- September 29 2023
Breaking: Patricia’s appeals for support infuriate frustrated customers
Weeks after converting customers’ assets into its Patricia Token (PTK), Patricia is hoping that its fundraising move will help its repayment plan but frustrated customers aren’t convinced. Nigeria-focused crypto platform Patricia is attempting to raise new financing several weeks after admitting it lost $2 million worth of customer assets to a cyberattack last year. This represents the Lithuania-based company’s latest move to repay customers. Last month, Patricia converted the rest of its customers’ assets into a debt management token—the Patricia token. The abrupt arrangement triggered an outcry from customers, forcing the company to issue a detailed explanation of the token. Despite the new token, Patricia admitted that its repayment plan is tied to its profitability as a platform, although it has no timeline for financial sustainability. With the company’s new fundraising efforts, Patricia is hoping it can raise enough money to repay frustrated customers. At a virtual town hall meeting with users Friday, Hanu Fejiro, the company’s CEO, confirmed that Patricia has secured some funding but he didn’t provide further details of the investment. “We have raised money [and] we have been working very hard to get the money back to you. And when we launch the application, the first set of customers will be able to get their money back immediately and in full.” Two months ago, Seun Dania, founder and CEO of crypto firm TradeFada announced on LinkedIn that he made an investment in Patricia. The value of the investment was undisclosed. Hanu added that the Patricia Plus app — billed for a relaunch soon — is currently undergoing beta testing. But for frustrated customers, these explanations aren’t satisfactory. Patricia Plus first launched in April and immediately triggered a bank run, as customers raced to withdraw their funds after the company admitted to have lost funds due to the cyberattack. Patricia scrambled to control the panic by freezing withdrawals, effectively blocking customers from accessing their assets. Patricia’s attempt to salvage the situation was to unilaterally convert its customer assets to tokens, an action it took without users’ consent which raised legal concerns. The company is hoping that it can successfully use the debt management tokens to repay its customers taking a cue from Bitfinex, a foreign cryptocurrency exchange platform which lost around $72 million to hackers in 2016. Bitfinex offered customers a debt management token, a liability obligation by the company until it repaid them in full. Although Patricia is looking to do something similar, an atmosphere of mistrust, partly stemming from its delay in disclosing the breach, remains a stumbling block in its efforts to get full buy-in from customers. “Just let us know when we are getting our money,” one angry customer wrote in the comment section of the virtual town meeting. Another customer suggested in the comments section that the affected customers stage a protest to the authorities. Others are considering taking legal action against the company. “It is simple, just give us a date we will be able to withdraw,” another frustrated customer wrote.
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