NASDAQ-listed Swvl continues profitability streak with $3.1m net profit in 2023
Swvl, the NASDAQ-listed mobility startup that transitioned into a B2B company last year, posted its first full-year net profit in 2023, continuing its reversal of fortune from struggling to a profitable business. The Dubai-born company posted a net profit of $3.1 million last year, a turnaround from a net loss of $123.6 million in 2022, according to its latest financial report. Swvl increased its gross profit more than eightfold to $4.1 million from $0.5 million in 2022. It also posted an operating profit of $12.1 million, compared to an operating loss of $80.2 million in 2022. “Our focus today remains towards improving profitability while resuming our high-paced growth,” said Mostafa Kandil, the company’s CEO. For Swvl, which has endured a turbulent life as a publicly traded company, profitability is critical to support its planned expansion into “high-revenue markets.” The company will expand its strategic partnerships into more Gulf Cooperation Council (GCC) countries, Kandil said. It currently operates in three countries: Egypt (its biggest market), Saudi Arabia, and the UAE. Since 2022, Swvl has made financial changes by reversing its previous acquisitions to reverse its fortunes after its share price of $10 dropped 90%, earning multiple threats of delisting from the NASDAQ. A reverse stock split in January 2022 saw the company’s share price jump to $4 per share, but it quickly fell again. Its share price has gained over 90% in the past year up from $1.21 as of May 1, 2023. It stands at $13.70 at the time of this report. While Swvl achieved profitability off the back of the sale of its subsidiaries and focus on three markets, the mobility company’s revenue took a hit in 2023. Its revenue dropped 48% to $22.8 million, compared to $44.1 million in the previous year. The company’s cost of sales also dropped 57% to $18.7 million compared to the previous year. Swvl generates most of its revenue from selling technology clients use to plan their routes, operate fleet services, or even manage riders. The rest of its revenue is from operating buses. One big positive in Swvl’s report was that it reduced its losses for the first time in recent years. This is significant if the company wants to remain profitable. Its negative cash flow dropped 83.3% to $9.1 million in 2023, compared to the previous year. The company has laid off staff and dissolved subsidiaries in many countries including Argentina, Chile, Mexico, Germany, and Pakistan, by either shutting down or selling its stake in those subsidiaries. These decisions have helped the company alleviate its business pressures. The company’s total assets stand at $21.9 million, a 61.8% reduction year-on-year, while its total liabilities dropped 71% to $15.9 million.
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👨🏿🚀TechCabal Daily – A Quick Pass
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy workers’ day Application for TechCabal Battlefield is still ongoing, don’t miss the opportunity to showcase your startup to a global audience and win an exciting prize. For 2024’s edition of the pitch competition, we’re introducing exciting changes to elevate the experience including pre-accelerator programs, deal sessions, and much more. If you’re a founder building innovation solutions for Africa, we invite you to be a part of TechCabal Battlefield. Apply now. In today’s edition Nigeria stops MultiChoice from increasing subscription fees KYC regulations drags MTN’s MoMo subscriptions down Twiga appoints new CEO BuuPass acquires QuickBus The World Wide Web3 Opportunities Streaming Nigeria stops MultiChoice from increasing subscription fees Across Africa, DStv subscription fees are increasing faster than several exchange rates. In April 2023, MultiChoice increased fees for its DStv and GOtv bouquets by 4.8% across several countries. By November 2023, it announced another 18% price hike in Nigeria, and its southern Africa countries. According to the company, the hikes were inescapable as the cost of its business operations kept rising with inflation. Three price hikes in one year: In the early hours of April 24, Multichoice announced a 25% increment to its customers, which was scheduled to take effect from today, May 1. But Nigeria has had enough of the hikes: The Federal Competition and Consumer Protection Commission (FCCPC), the agency saddled with the function of promoting fair, efficient and competitive markets in Nigeria, and the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) has started investigating the reason for the hike in price. This investigation comes after a petitioner sued MultiChoice for the price hikes and sought an injunction barring the company from increasing its prices. A three-member Competition and Consumer Protection Tribunal (CCPT), which heard the petition, delivered a ruling on Monday restraining MultiChoice from increasing its tariffs and cost of products and services scheduled to begin on May 1. The tribunal also ordered that the injunction remain in effect until a final decision is made on the case. All parties in the lawsuit are required to appear in court on May 7th, 2024 at 10:00 am to discuss the case further. Nigerians react: The increment riled Nigerians up across social media with some netizens advising others to abandon the pay TV. An X user, TheMahleek, tweeted, “DSTV premium subscription don pass a minimum wage. Na to dey watch EPL from WhatsApp status.” Another X user, OlamideOfficial said, “Someone needs to explain to me like a 2-year-old why DSTV keeps increasing their subscription packages”. MultiChoice has its reasons: In a four-page letter submitted to the FCCPC, MultiChoice may have answered OlamideOfficial’s question, detailing the reasons for the price hikes in their cable services. Adamu Abdullahi, acting executive vice chairman of FCCPC revealed in an interview with Channels Television that the company cited the cost of electricity, generator operations and the cost of dollars for some spare parts are some of the reasons for the price increase. He continued in the interview saying the FCCPC suspects the company may be abusing their market position by engaging in unfair practices. Abdullahi explained that limited consumer choice in the market allows this company to potentially act with impunity. “If the FCCPC confirms these suspicions, they will take legal action as mandated by their authority,” he said. The whole country will now wait for the tribunal’s final judgement to see if the hike will be effected. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Telecoms KYC regulation affects MTN MoMo revenues KYC—short for know your customer—regulation has been a major taking point amongst Nigerian fintech. Neobanks across the country have been heavily criticised for having lax KYC measures. Former regulation by the CBN allowed people to register with neobanks without providing any form of identification—NIN and BVN. Bad actors soon began exploring this loophole to transfer fraud proceeds into such accounts. The CBN soon caught up with this trick and revised its regulation to only allow for the opening of accounts linked with proper identifications. Users have had to adjust to this transition as the once easy-to-open neobanks now require stringent account opening processes. This, in turn, has affected the growth and user count of fintechs and MTN’s fintech arm—MTN MoMo—was not left out. The news: In its latest financial report, the telecom stated that “KYC requirements and the delays in CBN approvals for some of our commercial initiatives impacted the growth of active wallets.” MTN’s fintech arm closed the first quarter with 4.8 million active wallet users, reflecting a decrease of 566,000 compared to the previous quarter. Similarly, the number of MoMo agents declined by 94,000. It was not all gloom as the fintech added over 75,000 new merchants in Q1, pushing the total number of merchants within its ecosystem to more than 400,000. Zoom out: MTN’s financials also revealed that the company made more money via data revenue than it did with voice. Data revenue grew by more than 50%, while voice revenues grew by 14.9%. The telecom made ₦318.9 billion ($228 million) and ₦349.5 billion ($251 million) on voice and data respectively. Enjoy hassle-free transactions with Fincra Collect payments without stress from your customers via bank transfer, cards, virtual accounts & mobile money. What’s more? You get to save money on fees when you use Fincra. Start now. Companies Twiga Foods gets new CEO Twiga gets a breath of fresh air! Last year, the e-commerce startup suffered bouts of trouble: it delayed payments to suppliers and staff, had multiple rounds of layoffs and was also involved in a legal tussle with Incentro Africa over a $450,000 cloud bill. While the cloud bill payment was settled out of court, Twiga’s tumultuous year culminated with the resignation of its CEO, Peter Njonjo,
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JAMB results 2024 errors and solutions
The SMS option is currently the only working UTME result channel for checking the JAMB 2024 scores. But the JAMB portal will also be updated soon for candidates to access their results and also print them. Technical difficulties or other issues may happen when you’re trying to check your JAMB 2024 results. Here’s a breakdown of common errors JAMB candidates might face and how to overcome them: 1. “Unable to Find Your Results” Error on JAMB Portal This error typically indicates an incorrect registration number or a mismatch between the details entered and those on JAMB’s database. Solution Double-check your registration number: Ensure you’re entering the exact 10-digit number provided during registration. Verify details: Make sure you’re on the correct website and entering your details accurately. 2. “The Results checking website is down” Error on JAMB Portal High traffic during peak result release times can overwhelm the JAMB website, causing temporary outages. Solution Be patient: Try again later after the initial rush subsides. Check alternative platforms: JAMB also releases result through SMS. Explore this option too. 3. “Under Investigation” Message from JAMB While uncommon, JAMB might take slightly longer to process results for some candidates due to verification processes. Solution Wait for some time: JAMB will typically notify candidates through their registered email or SMS once the processing is complete. Contact JAMB support (optional): If the delay seems unreasonable, you may contact JAMB support through their official channels for further information. 4. “Invalid Login Credentials” Error An “Invalid Login Credentials” error might occur due to incorrect phone numbers or passwords. Solution Verify your phone number: Ensure you’re using the same phone number registered with JAMB. Check your password: Make sure you’re entering the correct password associated with your phone number for accessing the SMS service. 5. “Insufficient Balance” Error (SMS Platform) Depending on your mobile network provider, checking your JAMB results 2024 via SMS might require a specific balance. Solution to this JAMB results issue Top up your phone: Ensure you have enough credit on your phone to receive the SMS containing your results. Contact your mobile network provider for details on SMS charges. 6. No Response from SMS This is a situation that occurs after using the SMS option to check your UTME results, and you receive no response and yet get debited for using the service. Solution to this issue Verify the phone number you are using to send the SMS: Only the number you used in registering for JAMB can be used to access the SMS result checking. So if you are using another number, you may not receive and response. Exercise patience: If you are sure you are using the number you registered JAMB with, then just excercise a little patience. Network issues and channel traffic overload may contribute to a delayed response. Rest assured if you are using your JAMB registrted number to check your v2024 JAMB score, it will eventually come through. Final thoughts on JAMB results 2024 errors and solutions If the errors persist or you have further questions, don’t hesitate to contact JAMB’s support team through their official channels or by physically visiting a JAMB CBT office.
Read MoreTwiga Foods hires Jumia’s Charles Ballard as new CEO
Four months after the abrupt resignation of founder and CEO Peter Njonjo, Twiga Foods has hired Jumia Kenya’s Charles Ballard as its new CEO. Ballard is joining Twiga from e-commerce giant Jumia where he has been the chief executive since April 2023. He joined Jumia in 2019, first as head of performance and planning before rising to chief operating officer in 2021. Njonjo’s exit, which many considered as him being forced out by investors, capped a tumultuous year for Twiga, a B2B e-commerce startup founded in 2014. He also resigned from the company’s board, handing control to investors who have injected more than $150 million in debt and equity since 2017. Other operational problems like delayed payments to suppliers and staff, layoffs, and a legal dispute over a $450,000 cloud bill which was eventually settled out of court are now in the company’s rearview. It will hope Ballard’s appointment will be a breath of fresh air. “With a career spanning over 15 years, of which 9 years in the Kenyan market, Ballard brings a wealth of experience in e-commerce, retail, and financial services. Most recently, Ballard was CEO of Jumia Kenya, a leading e-commerce company, where he led the transformation of the business toward profitability,” Twiga said in a statement. “We are delighted to welcome Charles as our new Chief Executive. His deep understanding of the Kenyan e-commerce and retail landscape, his proven operational grip, his entrepreneurial drive, and his passion for the Twiga Foods opportunity make him the ideal leader to steer Twiga into its next phase of growth and success,” said Hein Pretorius, Twiga board chairman.
Read MoreI am betting on banking, not fintech
This article was contributed to TechCabal by Uzoma Dozie. I am going to do banking, but better. The vast majority of our current crop of African fintechs claim to make banking easier—banking the unbanked/underbanked, etc. But there are limitations to banking when seen only through the fintech lens; and those who have fintech experience, without banking experience, will struggle to genuinely scale and make a real impact or create meaningful value for their customers or their investors. The fintech narrative that permeates all tech and finance discussions is quite superficial and global VCs have been hypnotised by and bought into the narrative, with their chequebooks; and I can see why. Africa has a highly mobilised market that has traditionally been underserved by the larger institutional banks. Banks haven’t been able to serve the un- or underbanked; and fintechs have, on the surface, plugged that gap. However, in their rush to sign up new customers and continuously update their pitch decks with their CACs, the fintechs seem to have forgotten the fundamentals of banking; how to create value for customers whilst extracting value to make the bank a revenue-generating entity. Signing up customers is great; monetising customers is greater still, but generating mutually beneficial value for all is truly the greatest. Fintechs won the UX battle and they won the dialogue with potential customers; they made banking a little more palatable, a little sexier to the masses. And that’s important because banking is mostly unsexy—risk management, data management, cybercrime, corporate and financial governance—all deeply unsexy to many people. But do you know what is worse? Having your data stolen because the platform holding your life savings hasn’t invested in protecting itself from cyber attacks. What’s even worse? Having chosen a fintech to hold all your business banking funds, and the platform has such poor governance or understanding of treasury management that they cannot release YOUR funds to cover YOUR payroll because it hasn’t understood the difference between investment funds and customers’ funds. Keeping customers’ money safe is the bare minimum when it comes to banking. As a financial services institution you are storing value, and if you do that properly, you are creating more value. This covenant, this trust, cannot be broken—this is not a technology play, it’s a banking play. Eat, sleep, dream, and breathe banking fundamentals for many years, then use technology to build upon your deep-rooted foundations. That’s how it has to be done. I’m currently reading Chris Skinner’s book, Intelligent Money, and he is also fixated on how we store value and keep it safe. He looks at the crucial frameworks [which are banking-led, not fintech-led], the importance of banking knowledge, and also the ability to manage [and anticipate] risk — all of which must be considered when keeping customers happy. And by happy, I mean, keeping their money safe and not breaking the covenant of trust. But whilst I’m betting on banking, this doesn’t mean that I’m not an advocate for tech-powered banking. In fact, advocate seems too lightweight a term to describe me. I cannot entertain a world of banking that isn’t massively enhanced and revolutionised by technology. This doesn’t make me a fintech. Here’s why. Technology allows us to process huge amounts of data, at scale, and fast. This allows us to make much better, more targeted banking decisions on areas such as risk mitigation [loan defaults etc.] and allows more frequent and better decisions [basically, better banking]. Technology also allows us to crack down on cyber security, giving us the advantage to see attacks in real-time and trace the money [in most cases] back, reinforcing the need to build trust through security. It also allows us to build banks with better operational capital efficiency; onboarding new customers digitally, and removing the high cost of physical branches. The reduction of costly overheads can then be passed on to customers who can enjoy a lower cost of banking whilst receiving high-quality services. Technology also forces better corporate governance; digital trails [RIP paper trails] provide transparency at every level — from bottom to top—something fintechs have not always been so hot on. At Sparkle, we are very clear on who we are—a bank-led service provider powered by a fintech structure. We are a banking service building a self-sustaining [and subsequently profitable] business. We are not simply building a following that is subsidised by venture capital for a lengthy, undefined period. In the same way, we are building value and managing risk for our customers, we do the same thing for our investors. And this is why I’m betting on banking and not fintech. — Uzoma Dozie is a banker, tech investor, and financial inclusion advocate. He is the CEO and Founder of Sparkle. Before launching Sparkle, he was the GMD and Bank CEO of Diamond Bank where he successfully implemented a merger with Access Bank Plc.
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JAMB 2024 results are now out for checking
The JAMB exams are over, and the results are now available for candidates to access. JAMB offers multiple ways to access your scores once they’re available. Here are three convenient methods to check your JAMB results 2024: 1. The JAMB eFacility portal This is the official platform for accessing your JAMB 2024 results. It offers a secure and detailed view of your scores. Here’s how to use it: Visit the JAMB eFacility Portal: Open your web browser and navigate to https://efacility.jamb.gov.ng/CheckUTMEResults. Log in with your credentials: Enter the email address and password you used during your JAMB registration. Access your results: Click on the “Check UTME Results” button. You’ll see your scores for each subject tested if your results have been released. Print for your records: The portal allows you to print a copy of your results 2024 for your reference. 2. The SMS method to check JAMB 2024 results The JAMB system also allows you to use text messages to check your JAMB scores 2024. TechCabal can confirm that this method currently works fine for candidates to check their JAMB 2024 scores. Below is an image of a candidate that checked this morning using this method. This option does not require internet access but you will need airtime balance to use it. Here’s how it works: Open text message app: On your mobile phone, launch your text messaging application. Compose your message: Create a new message and type “RESULT” (in capital letters) followed by a space and then your JAMB Registration Number. Send the SMS to JAMB: Send the message to either 55019 or 66019. Receive your results (if available): JAMB will reply with an SMS containing your JAMB results 2024, including your scores for each subject tested. 3. Visit a JAMB CBT Center to check JAMB 2024 results You can also visit a JAMB CBT centre where you registered for your exams to check your 2024 JAMB scores. It’s important to note that this method is generally not required. However, if you have exhausted the other options and have a compelling reason to visit the centre, by all means, do so. Final thoughts on JAMB 2024 results are now out for checking These methods will easily help you check your JAMB 2024 results once they’re released. Upon viewing your results, you’re advised to contact JAMB directly if you have any disputes or reservations. Please, do not pay anyone to help you alter your results as it’s impossible and against the law.
Read MoreExclusive: BuuPass acquires QuickBus, a bus ticketing platform, in a cash and stock deal
BuuPass, a Kenyan travel booking platform backed by Founders Factory Africa and FrontEnd Ventures, has acquired its Nigeria and South Africa-based competitor QuickBus. Both companies declined to share the transaction amount for the cash and stock deal. QuickBus’s developers, product managers and its head of operations in South Africa will join BuuPass’s management team. The acquisition will expand BuuPass’s partnerships with banks and telcos that offer multiple services, such as API integration features. For instance, BuuPass partnered with the M-PESA app, a financial super app, to provide its booking services to around 10 million Kenyans who use the mobile money app. “Quickbus gives BuuPass access to existing integration with major distribution channels in Nigeria and South Africa, such as Vodaphone’s VodaPay app in South Africa,” the startup said. BuuPass will then replace QuickBus branding within existing integrations like VodaPay. Nigerian and South African users will also find BuuPass as their travel booking option across various platforms. The acquisition combines two businesses with different strengths. Buupass, which raised $1.3 million in 2023, is looking to expand into other African countries and will now have access to South Africa and Nigeria. Those new markets will push its active monthly users to 650,000. QuickBus, which first launched in Kenya in 2017, raised over $1 million in a 2020 seed round. New ownership will see it expand interesting products and features like its Cash Advance. Since launching in 2016, Buupass has sold over 6 million travel tickets and generated over $100 million in ticket sales. The platform “covers national and cross-border routes in East and Southern Africa and has served over 16 million passengers,” the company said. The integration processes will entail rolling out additional travel options, such as train and flight bookings, which have been limited in BuuPass’s Kenyan market. “Starting today, BuuPass users can access international routes across 16 African countries, including Kenya, Tanzania, South Africa, Malawi, Nigeria, and Ghana. Major routes, such as Johannesburg to Cape Town and Durban to Capetown, can be found on the platform today, with more to be added by the end of Q2,” BuuPass added.
Read MoreTechCabal’s best-read stories of Q1 2024
With the African tech ecosystem beset by a funding downturn, rising inflation, layoffs and startup shutdowns, the industry was off to a slow and uncertain start this year. Despite these challenges, some major highlights have kept us optimistic at TechCabal as we continue to report news about the ecosystem in the best way possible. Our work captures the players, human impact and business of tech in Africa, providing the content, reporting, data, events and context to help the world understand how tech is changing the continent. From acquisitions and strategic partnerships to company expansions in new markets to regulatory laws for digital nomads to startup pivots and tech ecosystems popping up in unexpected places, here are some of our best-loved stories from Q1 2024. How a clash of visions led to Olu Akanmu’s exit from Opay While Olu Akanmu was CEO at Opay, the fintech grew exponentially, reaching over 30 million users, 500,000 agents, and 100,000 merchants, according to publicly released figures. Unfortunately, due to idea and direction clashes with the company’s broader leadership, Akanmu stepped down as CEO. How Huawei became Nigeria’s biggest telecoms vendor and enterprise business Huawei launched in Nigeria in 1999, two years before Nigeria’s telecommunications revolution. The company has sold servers and storage solutions for top Nigerian banks like UBA, Zenith, Access, Fidelity, Keystone, First Bank, Unity Bank, UBA, and FCMB. In May 2023, a fire at Zenith Bank’s primary data centre caused a service downtime, and attempts to switch to its disaster recovery centre also failed. That incident is thought to have convinced Zenith—a tier-1 bank with a market capitalisation of ₦1.1 Trillion to sign a $10 million deal with Huawei for a storage solution. Patient capital, diverse exits: Verod-Kepple’s vision for the future of African startups Verod-Kepple Africa (VKAV) is a venture capital fund that is partnered with Verod Capital, a Lagos-based private equity firm. The firm’s average ticket size is between $1 million and $3 million, and it has invested in 11 growth-stage startups, like Moove (a Kepple Africa portfolio company), Shuttlers, Chari, and Julaya. All three partners of Verod-Kepple—Ory Okolloh, Ryosuke Yamawaki, and Satoshi Shinada—shared with TechCabal their investment thesis and why they are backing African startups. Wasoko merger fallout Wasoko, a Kenyan e-commerce platform which was founded in 2013 and raised over $140 million from investors, entered into a merger with MaxAB, an Egyptian retail company, without informing their employees. The employees first heard about the merger on a video call attended by MaxAB executives in early December 2023, the same month the deal was announced. This event triggered many other happenings in the company, including the layoff of over 100 employees across departments in both Kenya and India. It also led to nine employees suing Wasoko, claiming they had been unfairly fired. The employees argued that the company did not give them sufficient time to prepare for their exit. Following this, the court barred Wasoko from firing the aggrieved employees, and the company promised to make provisions to aid the exit of said employees, including providing health insurance coverage until March 2024. How Eyowo’s bid to become a fintech giant hit the rocks In 2019, Softcom, a software development agency, shifted its focus from its client-side business to building consumer-facing products, and became Eyowo, one of Nigeria’s earliest digital banks. But, five years later, with three rounds of layoffs, persistent delays in salary payment, and a revocation of Eyowo’s banking licence in 2023, the company’s fortunes, unfortunately, turned. Sources who spoke to TechCabal claimed that Eyowo’s licence was revoked because it stopped offering loans to customers, contravening a regulatory requirement for microfinance banks. In March, the company insinuated it has regained its licence and that there are talks about a possible rebrand as “Entrepreneur Bank”. Fintech giant Flutterwave secures release of $3 million in Kenya In 2022, the Assets Recovery Agency (ARA) in Kenya froze $55 million, belonging to fintech giant Flutterwave, on fraud and money laundering charges. After the charges on the first case were withdrawn in March 2023, the court unfroze the majority of the funds amounting to $52.5 million. The rest of the funds were not immediately released, despite a court order to release them after the ARA sought court approval to withdraw money laundering charges against the fintech startup in July 2023, but the judge denied the request. Finally, in February 2024, over a year later, the court cleared the remaining funds: $3 million; and released it to Flutterwave. It was good news for the fintech giant. What is it like to build a tech ecosystem in Nigeria outside the country’s tech capital? Lagos is to the Nigerian tech ecosystem what Silicon Valley is to the North American ecosystem. Yet, unlike the US, where other states like New York, Seattle and Chicago still have thriving ecosystems that complement Silicon Valley, tech ecosystems outside Lagos struggle to build their identities or get significant attention from stakeholders. Sanusi Ismaila and Excel Ajah are some of the people working to beat the odds by creating co-learning labs and communities in other Nigerian cities like Kaduna and Owerri. These communities are taking shape and building promising tech talent outside Lagos in ways that will be beneficial to the country’s ecosystem as a whole. Bolt launches in Zimbabwe and waives driver commission for six months In January, Bolt, the popular ride-hailing company, expanded their African operations to Zimbabwe, particularly its capital city, Harare. As an incentive for drivers, the company waived its usual standard commission for six months. This move marked Zimbabwe as the third country in Bolt’s strategic move into the Southern African market; after the company launched in South Africa in 2016, and conducted pilot operations in Zambia in 2023. In a similar move, Bolt also launched operations in Botswana in February, about a month later. South Africa eyes Nomad gold rush, targets wealthy remote workers in new draft regulations South Africa is trying to become the fifth African country to start granting digital nomad visas. The
Read MoreTechCabal Quarterly Impact Report – Q1 2024
An ecosystem’s year of grit and excellence In 2023, we began publishing impact reports to publicly track our coverage of the ecosystem and better understand how it is changing. As we roll out 2024’s first report, our objective remains the same: to furnish stakeholders—operators, innovators, entrepreneurs, investors, and policymakers—with insights that empower them to make informed decisions and effectively contribute to the continent’s technological and socio-economic development. For this edition of the report, we will fuss less about reader numbers, and instead share with you the ways we are rejigging the news for your pleasure. As always, this report and the milestones it describes represent TechCabal’s pledge to uphold the highest journalistic standards and to continuously evolve for the betterment of our publication and the community we serve. The start of the year is often slow, with businesses still planning their year, monitoring the economy closely, and reviewing their budgets. But, in the TechCabal newsroom, we got straight to business in January; the news waits for no one. We knew that this year would be critical for many startups in our space, and we had a responsibility to deliver accurate and balanced narratives as tech businesses navigated the tough year ahead; the world outside Africa was watching. In line with our parent company Big Cabal Media’s resolve this year to chase excellence, TechCabal is chasing the stories of excellence, grit and success at African startups. We insist that it’s not all gloomy news in the ecosystem. We are eager, desperate even, to champion the optimistic shifts coming out of the ecosystem, and there has been a lot of it lately. This past quarter, more than 120 startups in Africa raised a combined $466 million. It is a 45.62% reduction when compared to Q1 2023, but it is hopeful. Equity made up 71% of financing while debt made up 28%. In January, Swvl posted a net profit of $2.1 million; and the following month, Jumia reduced its operating losses in Q4 2023 to $4.5 million, its lowest in four years and a major step towards its profitability drive. South Africa granted licences to 59 crypto companies. Payroll and HR software provider, Payspace, was acquired by American payroll and compliance provider Deel—one of 12 acquisitions that have happened this year. What else does “chasing excellence” mean to us? This quarter was about listening to you about our work. We are always open to feedback from you because it means that you care. The lessons from your suggestions have been strong and will continue to serve as a catalyst for introspection and improvement of our editorial processes. Chasing stories of excellence in the ecosystem means striving to continually improve our editorial processes and committing firmly to only telling stories that are true, accurate, and balanced. Our credibility is our currency. We are not in a hurry to break a story before we have all the facts; we are not afraid to kill a story if its claims are suspect or unverifiable. What then is the scoop? In January, we launched a breaking-news newsletter, TC Scoop, to bring you the latest news as soon as it drops. If you are signed up to TC Scoop, it means you receive our biggest stories of the day before anybody else! This is all part of our agenda to curate a strong community of well informed readers. Over 7,000 of you have subscribed to TC Scoop. If you are not plugged in yet, click here to sign up! A key objective for us at TC is leveraging the news to connect with the businesses whose stories we tell. As a publication, we grew up with Africa’s tech ecosystem, beginning our story at about the same time many of the successful startups of today either started theirs or were nascent and ignored by Silicon Valley media. We are still committed to using our voice to amplify startups. And so, we have revamped the series, Who Calls The Shots?, to spotlight leadership-level tech professionals and the businesses they are building. Who are the names behind your most promising businesses—Bamboo, Sycamore, Get Equity and at Herconomy? How are their companies shaping the future of innovation on the continent? We have also expanded our storytelling formats to include a long-reads column on the weekend, The Algorithm; and video news. Every Saturday, The Algorithm will bring you in-depth analysis and perspective on a wide range of topics, from freelance writers’ earnings under an AI regime to stories of vendors grappling with the high cost of shipping deliveries to customers. On The Algorithm we are taking you to the backend of content creation, its many aspects, its many creators, and the many ways that they work and thrive. How are food creators defining their audience’s palates, you may have wondered? What does success look like for lifestyle creators, you ask? We will answer it all, unfurling the bits and details, one creator at a time. When we launched the video news format, we were thinking of convenience. Whether you are in traffic, doing chores or playing sports, you can receive the news without interrupting your daily life. We publish one video story a day. Subscribe to our YouTube channel to stay up to date with video news. Celebrating businesses by women If you missed our International Women’s Day video podcast with Yanmo Omoregbe (COO, Bamboo), Ifeoma Nwobu (COO, Sendstack) and Omowumi Omidiji (CEO at SHOP F.A.W.L.), click here to watch it. It was an insightful conversation that tackled the current temperature in Africa’s startup environment. With humour and admirable honesty, Omoregbe, Nwobu, and Omidiji discussed funding outlook this year, the challenges they face in building products for Africa, and what changes AI could bring to their businesses. Our East Africa and Southern Africa impact Kenya and South Africa are two of our biggest readership blocs (besides Nigeria). The tech ecosystems in the East and Southern African regions have been, for many years, vibrant and progressing innovation on the continent. Since last year, we have
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👨🏿🚀TechCabal Daily – 3BG!
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Before we get to today’s edition, here’s a reminder that we launched The Big Daily last week, it’s TC Daily but for Nigerian news. If you’re looking for a daily newsletter that breaks down the most critical Nigerian news, sign up for The Big Daily and get updates by 7 AM every weekday. In today’s edition OPay’s nears $3 billion valuation Nigeria blocks four fintechs from opening new accounts Uganda requires verification for digital transactions exceeding $260 OpenAI licensed to use FT content in ChatGPT How much funding did African startups raise in Q1 2024? The World Wide Web3 Opportunities Fintech OPay nears $3 billion valuation Nigerian fintech behemoth, OPay, has scored big wins in Nigeria’s fintech space. The startup was one of the beneficiaries of Nigeria’s ill-timed currency redesign which led to cash scarcity for multiple weeks. In that time, the fintech witnessed increased cash transactions. According to its financials, the company “quadrupled its user base through 2023 and grew revenue by over 60% on a constant currency”. While OPay currently boasts over 30 million users and 500,000 agents, it had humble beginnings. The fintech—formerly Paycom, a mobile money operator—was acquired by Opera, an asset management company in 2018. Since the acquisition, the fintech has raised more than half a billion dollars. In its last $400 million fundraise in 2021 led by SoftBank, the company was valued at about $2 billion. But recent filing from Opera’s financial result shows that OPay’s valuation inches close to $3 billion. Want to find out more? Dig deeper. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Fintech Nigeria blocks four fintechs from frontloading fresh faces If you’ve tried opening a new account with Kuda Bank, Moniepoint, Opay, or Palmpay, you likely received a message stating “Thank you for downloading this app. Sign-up is currently unavailable. Please check back later.” This isn’ta network issue though. At least four banks, including those mentioned above, are following a directive by the Central Bank of Nigeria (CBN) to temporarily halt opening new accounts. This won’t affect other deposits or existing banking activities. Why: Per reports by TechCabal, an unnamed fintech executive claims the pause is linked to an ongoing audit of the fintechs’ Know Your Customer (KYC) processes; the sources also describe the situation as temporary. This isn’t the first time fintechs have faced regulatory scrutiny in Nigeria. Concerns about Know Your Customer (KYC) processes led to Fidelity Bank and Standard Chartered Bank restricting transfers to Opay, Kuda, Moniepoint and Palmpay in October 2023. “The issues are due diligence and KYC, until they get their house in order, they will continue to experience issues like being blocked by banks,” a source said to TechCabal at the time. This shift is driven by a rise in fraud, prompting traditional banks to request verification of KYC procedures performed by neobanks. In some cases, traditional banks may even want to conduct their own KYC checks on neobank customers. This directive also comes days after the Nigerian Federal High Court granted the Economic and Financial Crimes Commission (EFCC), the authority to freeze over 1,146 bank accounts linked to illegal foreign exchange dealings, money laundering and terrorism financing. However, the National Security Agency (NSA) has denied a link between the restriction to opening new accounts and the bank accounts that were frozen. Enjoy hassle-free transactions with Fincra Collect payments without stress from your customers via bank transfer, cards, virtual accounts & mobile money. What’s more? You get to save money on fees when you use Fincra. Start now. Regulation Uganda requires verification for digital transactions exceeding $260 The Bank of Uganda has implemented a new directive requiring ID verification for digital transactions exceeding UGX 1 million ($260). Why? The directive was made to address the increase in fraudulent activities linked to mobile money systems, which have been susceptible to deceptive agents and criminals “Mobile money systems have occasionally been the target of cybercrime carried out by agents working with criminals,” the X post reads. The BoU stressed that these measures align with Section 55 (1)(b) of the National Payments Systems Act, 2020, and Regulation 7 (h) of the National Payment Systems (Agents) Regulations, 2021 which prohibit over-the-counter transactions without full identification of the consumer, and mandate compliance with all financial regulations. Ugandan citizens must use a valid national ID card or passport for this process, while foreign residents, including refugees and other aliens in Uganda, will need a refugee ID/attestation letter or an alien ID. Ugandans cry out: The implementation of this directive has not been without criticism. Stakeholders have particularly noted that this measure will slow down transactions for Ugandans who don’t have ID cards. Of its 19 million adult citizens, just 78%—about 15 million Ugandans—are estimated to have a valid means of ID per a 2021 report. Additionally, there were concerns over a possible rise in ID card forgeries spurred by the new requirements. This is a concern that aligns with the findings of a 2024Smile ID report, which indicates that fraudsters seeking access to financial services usually try to bypass onboarding protocols using compromised government-issued IDs which are the cornerstone of ID verification in most digital transactions. Uganda is planning to begin mass citizen enrollment for new-generation biometric national ID cards starting in June. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → AI OpenAI licensed to use FT content in ChatGPT OpenAI is finding love (and data) in the media. Since the inception of ChatGPT, OpenAI has explored different partnerships to source data to train its models. The company has recently been on a media
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