MTN sees decline in internet subscription over NIN-SIM compliance
MTN Nigeria’s internet subscribers dropped in January due to efforts to comply with the Nigerian Communications Commission’s (NCC) mandate to link all SIM cards with a National Identity Number (NIN). MTN, the largest telecom operator in the country, saw over 2.8 million subscribers drop from its internet business leaving 67.8 million subscribers in January from 70.6 million subscribers in December. The decline was the most MTN Nigeria has seen since May 2023. The drop, however, didn’t affect Airtel and Globacom as both telcos gained subscribers in the same month, according to the latest data from the regulator. Airtel gained the most subscribers in January with 890,935 subscribers joining the network and helping to solidify its position as the second-largest internet service provider with 45.9 million subscribers. Globacom also gained 192,313 subscribers in January. Subscriber gains from Airtel and Globacom helped to reduce the impact of MTN’s subscriber decline on the industry. Airtel grew its subscriber base from 45.0 million subscribers to 45.9 million subscribers. Globacom also grew its subscriber base from 43.9 million subscribers to 44.1 million subscribers. In December 2023, the NCC directed all the telecom operators in the country to deregister all phone lines without a NIN and those with unverified NINs. A spokesperson for MTN Nigeria told TechCabal that the operator started compliance almost immediately after the directive was issued. The company also made several advertorials regarding the directive which led many subscribers to take steps to update or register their NIN. The deadline was supposed to have expired on March 29, 2024, however, the NCC has now extended the deadline for the disconnection of unlinked lines to July 31, 2024, per TheCable. The telecom operator has had a history of fines with the NCC which it is still trying to put behind it. In 2015, the company was fined $5.2 billion for failing to disconnect customers with unregistered SIM cards. MTN Nigeria’s subscription decline dented the overall industry internet figures in January. According to the NCC, the total number of subscribers that dropped off across all networks was 1.84 million leaving operators with 161.5 million subscribers from 163.3 million in December 2023. Aside from MTN Nigeria, 9Mobile continued its nearly nine-year decline with 94,824 subscribers leaving the network in January. 9Mobile now has 3.53 million subscribers.
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👨🏿🚀TechCabal Daily – Mono’s master cards
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’ve identified a bug in your inbox settings that might be affecting how often you read TC Daily. Moving us from your Promotions folder to your Primary/Main folder ensures you won’t miss any critical African tech news (or hilarious puns). In today’s edition Mono partners with Mastercard Triply is YC’s latest bet on the continent Facebook accused of sharing private DMs with Netflix How fintechs can adapt to FX reforms The World Wide Web3 Opportunities Fintech Mono partners with Mastercard Open banking, which permits banks to voluntarily share users’ data with fintechs, has been a long-battled phenomenon between Nigerian banks, regulators, and fintech startups. Poised to be a game changer in Nigeria’s financial space, open banking allows convenience for users as sharing of users’ account data could allow them to manage their finances in one place, let digital lenders make informed decisions for borrowers, and make for a seamless experience for both businesses and users. However, Nigeria’s central bank has delayed releasing guardrails to regulate the industry, thereby slowing the adoption of open banking. Yet, open banking startups like Okra and Mono have forged on in the industry, allowing startups to connect to user bank accounts, verify identities in real time, and initiate payments directly within their applications. Now, Mono is taking things a notch higher. A Mastercard marriage: Yesterday, Mono announced it was tying the knot with global payment giant Mastercard to enable payments directly into bank accounts without cards or USSD codes. The bigger picture: Mono has been on a major drive to increase its revenue and inch toward profitability. Before the partnership with Mastercard, Mono partnered with Flutterwave, Nigeria’s payment behemoth, to allow merchants to receive payments via an account-to-account (A2A) option which it calls DirectPay. Mono claims to have made transactions worth over ₦5 billion ($3.8 million) through this payment since it launched in 2022. The new partnership with Mastercard aims to increase that number. The partnership allows Mono to facilitate more transaction volumes through the Mastercard Payment Gateway System which is available to merchants across countries—Kenya, Ghana, South Africa, and Nigeria—where Mono currently operates. What’s in it for Mastercard? Mastercard has been trying to diversify beyond non-card payment options on the continent in recent times. It has partnered with several payment providers to explore alternatives in mobile money wallets, contactless payments, and QR payments. The new partnership with Mono further aligns with this goal. Experience fast and reliable banking with Moniepoint 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. Startups Triply is YC’s latest bet on the continent Kenya’s tourism industry is one of its biggest cash cows for foreign income, earning about $2.13 billion from it in 2022. The East African country also expects an uptick in the number of tourists by 2026—with 2.4 million visitors up from 2.1 million in 2021. With a growing middle class and increasing disposable income, Kenyans are also increasingly exploring their own country. Travel startups across the country are lining up to benefit from this. One of those startups is Triply, the latest member of the Y Combinator 2024 winter batch. The news: Triply, a Kenyan fintech that helps travel businesses collect payments has been selected for Y Combinator’s winter 2024 batch. Triply is the latest African startup in the cohort after Cleva, the cross-border payment service, and Miden, the API startup. Small businesses account for 90% of Africa’s travel industry. However, due to inadequate payment infrastructures, these businesses are unable to receive payments; as a result, they frequently have to use manual payment methods, which reduces the efficiency of their booking systems. Launched in 2021 by Peter Wachira and Collins Muthinja, Triply helps travel businesses collect payments and automate their operations. The startup also advertises these businesses on its marketplace to help match the needs of Kenya’s local travel market which is projected to grow by $749,000 in 2027. With Y Combinator’s backing and a booming domestic travel market, Triply is well-positioned to empower small travel businesses and become a key player in Kenya’s flourishing tourism industry. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Social Media Facebook allegedly shared private DMs with Netflix for a decade A new lawsuit is accusing Meta of giving Netflix special access to users’ private messages for nearly a decade. This alleged partnership, according to the class action lawsuit, helped Netflix tailor content for its viewers. The lawsuit claims Facebook and Netflix had a close relationship, with Netflix receiving special access to user data through an “Inbox API” agreement. This would have allowed Netflix to see private messages related to what users were watching on its platform. In exchange, Netflix would reportedly provide data on how users interacted with its service. Meta says no: Meta, of course, denied the claims, stating the agreement only allowed users to message their Facebook friends about what they were watching on Netflix within the Netflix app. If you think this might violate privacy agreements, you’re wrong. The second time’s the charm: This isn’t the first time Meta’s been accused of giving other platforms access to users’ DMs. In 2018, a New York Times investigation revealed that Meta—then Facebook—had given several companies including Amazon, Netflix, Spotify and Sony, the ability to read and even delete Facebook users’ DMs. At the time, Meta also denied the claims, stating, “None of these partnerships or features gave companies access to information without people’s permission.” The company was not fined for this as it did in fact, not violate user agreements. It has however faced over $1 billion in fines over the past five years for data
Read MoreMastercard’s direct bank payment with Mono may boost the Nigerian startup in its race to profitability
Mastercard, the second-largest payment network in the world, has partnered with Mono, a Nigerian YC-backed open banking startup, to enable payments directly into bank accounts without cards or USSD codes. For Mono, this partnership is another leap forward in its race to profitability. “In 2023, we moved from negative to positive gross profit, and we want to be profitable by the end of the year,” Abdul Hassan, founder & CEO of Mono, told TechCabal. The startup expects to achieve profitability by scaling the adoption of its open finance tools. “We have more partnerships like this in the pipeline.” The startup, like its competitors, has been expanding its focus from providing lenders with open banking APIs to servicing a wide range of fintechs to increase revenue. Before partnering with Mastercard, it had partnered with Flutterwave, one of Nigeria’s largest payment providers, to enable merchants to receive payment through the account-to-account option. According to Mono, Direct Pay, which powers this A2A payment option, has handled payment transactions exceeding N5 billion since it launched in 2022. Mono can expect to facilitate even more volume as the Mastercard Payment Gateway System services numerous merchants across several African countries, including Kenya, Ghana, South Africa and Nigeria, where Mono currently operates. On the other hand, this partnership is advantageous for Mastercard, as it has been finding new ways to digitalise spending. Through partnerships with payment providers, Mastercard has been exploring non-card payments in Africa for years: mobile money wallets, contactless payments, and QR payments. Around 2020, over 1 million merchant locations across Africa were accepting Mastercard QR payments. ”In three years, cards will mostly be used for offline payments,” said Hassan, who claims that Mono has connected more than 3 million financial accounts across Nigeria, Ghana and Kenya. He predicts that this account-to-account payment method will see even quicker adoption, especially in Nigeria, where QR payments and contactless payments have slower uptake rates. Mastercard to buy a minority stake in MTN’s fintech unit, after investing $100m in Airtel’s fintech This optimistic outlook might be a breath of fresh air for established card networks like Mastercard and Visa, whose deployment of account-to-account payment in developed markets like the US and UK has met reluctance from users. Experts believe the consumer market in those regions favours the familiarity and ease of card payments for everyday spending and argue that users might require more incentives to adopt A2A options. In contrast, in Nigeria, a lot of merchants are enabling the pay with bank option, which is repeatedly used even when there are USSD and card options, according to Hassan. “I think it is because of the ease and perceived security.” Also, the settlement is instant and much faster than cards. Hassan reasons that the success of this payment method for Mastercard spells good tidings for Mono’s dream to become a household name. “We currently have a web-based app that allows users to see how many fintech apps their bank details are linked to.” The four-year-old startup hopes to gain familiarity with the larger consumer market and eventually launch the web app as a mobile app with added features. It looks like the company is playing a long game, but in a precarious market like Africa’s, it can be dangerous. However, Hassan himself has once said, “Most of the time you can win by just not dying.”
Read MoreNigerians switch to other p2p options after Binance clampdown
It was a routine Thursday for Pascal*. He’d planned to convert some Naira to USDT on his favourite exchange, Binance, a strategy he used to hedge against inflation and build a safety net. He soon found out that he wasn’t able to access the Binance website. Flustered and worried, he hobbled around for new alternatives to carry out his transactions. This sudden disruption wasn’t unique to Pascal. On Wednesday, February 22, news broke that Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), had restricted user access to the websites of Binance, Coinbase, and Kraken, accusing the companies of manipulating prices of the naira/dollar pair in unofficial markets. These crypto exchange platforms became the go-to for direct crypto transactions—through their peer-to-peer trading feature—after Nigeria’s central bank abolished local financial institutions from enabling crypto transactions in 2021. The crypto exchanges have also played a significant role in determining unofficial exchange rates for the naira, with platforms like Binance often serving as benchmarks for local foreign exchange rates. While the websites of Binance, Coinbase, and Kraken have been inaccessible in the country, crypto traders who spoke to TechCabal claim they now use alternatives like Bybit, Bitget, Kucoin, and Coincola and messaging platforms like Telegram, (which comes with an in-app wallet) to make transactions. However, Bybit has emerged as a favourite for these crypto traders who say the exchange’s low transaction fee—0.2%—is a reason for the choice. “Law enforcement in Nigeria notoriously follows a scapegoat approach,” claimed Caleb Nnamani, a technology reporter at Cardano-backed publication, Nodo. “If you’re going to do a thing, do it thoroughly,” Rume Ophi, a crypto analyst, told TechCabal, speaking on the spared exchanges. “It’s like robbing Peter to pay Paul.” As Nigerians turn to foreign alternatives to transact crypto, these traders have ignored local exchanges such as Zap, Furex, and Quidax. “Crypto-savvy Nigerians trust foreign exchanges because of their outsized liquidity,” Nnamani told TechCabal. “A hack to a global exchange behemoth comes with some assurances of payback.” According to him, Nigerian crypto traders don’t trust local exchanges to keep their funds safe in the event of a hack. “I think it comes down to popularity. We are more familiar with Binance, OKX, and the rest.” One crypto user said. “They have proven to be very good. I think that’s what is giving them the edge [over local platforms]” A risky shortcut Users’ options for crypto trade have not been limited to just alternative exchange platforms. Two Crypto traders who spoke to TechCabal said they have been trying out Telegram’s newly launched P2P trading platform as a workaround. Launched in September 2023, Telegram’s crypto wallet—a bot embedded within the messaging platform—allows users to trade cryptocurrencies directly with each other and even purchase crypto using their bank cards. While this method allows for the convenience of trading within Telegram, it is not a perfect fit for crypto traders. One crypto trader who spoke with TechCabal was sceptical about trading safely on the app. “It’s new and untested, and I’m unsure how they handle user complaints,” expressed the cautious trader. These user’s fears are valid. Telegram offers a custodial wallet, which means it holds onto users’ access keys—critical for authorizing crypto transactions—which raises security concerns, as a third party holding the keys increases the risk of a leak if Telegram’s security is compromised. A big concern with Telegram is its custodian wallet. Unlike other platforms, Telegram holds onto users’ private keys, which are essential for crypto transactions, meaning that in the event of a hack on Telegram, a user’s crypto could be stolen. Telegram did not respond to TechCabal’s request for comments.Nnamani also expressed concerns about the limitations of trading on Telegram. “You’d prefer a fintech you can send, save, and probably do multiple money functions on,” he said. “Why would I p2p here then go and look for my other crypto needs elsewhere.” Before the presence of crypto exchanges in Nigeria, crypto traders often clustered in messaging platforms like WhatsApp to source for crypto deals. Unlike regulated exchanges, trading on these messaging platforms lacks the security of escrow services offered by crypto exchanges, leaving users vulnerable to scams. However, the administrators of these groups often take the place of an escrow. Nigerians are fast returning to this mode of sourcing for deals since the closure of Binance. “I used to trade on a supposedly ‘trusted escrow’ group on WhatsApp,” shared a crypto trader who wished to remain anonymous. “Unfortunately, some members who didn’t use escrow got scammed.” Binance, the embattled exchange While crypto traders in the country continue to explore workarounds to trading since the ban of their darling exchange, Binance continues to slug it out with the Nigerian government. One of the company’s two executives, who flew into the country to resolve its blocked website, remains in detention, while the other, has reportedly absconded. As a result of the squabble, the exchange discontinued all naira services on its platform. The Nigerian government has repeatedly suspected Binance of manipulation of forex prices on its platform. The suspicion was confirmed after the government analysed peer-to-peer trading transactions on the platform and found huge buy orders—as much as $1.9 million—for USDT by Nigerian retail traders who never followed through, raising suspicion about an attempt to manipulate prices for personal gain. The report also reviewed that artificial demand for USDT resulted in the naira’s quick drop from $1/₦1,500 to $1/₦1,950. Before the restriction of its website, Binance placed limits on how much naira could be traded for the USDT, to help salvage the naira after the currency sank to new lows. The exchange also disabled selling USDT altogether and limited buying it to a fixed price of ₦1802. However, the recent report by the CBN claimed that more than 40% of the buy offers came from the same accounts. TechCabal reported earlier this week that the Nigerian government had filed tax evasion charges against the company, and its detained executives, Nadeem Anjarwalla and Tigran Gambary. The government accused Binance of three tax offences:
Read MoreBaobab Network acquires Reflector to support portfolio companies’ marketing efforts
Baobab Network, the Nairobi-based early-stage investment firm that has pledged to invest in over 1,000 African startups by 2033, has acquired South Africa strategy and branding agency Reflector Marketing. The financial details of the transaction were not disclosed. The acquisition of Reflector Marketing comes at a time when early-stage investors are under pressure to have portfolio companies with solid business cases beyond just venture capital cheques. In Reflector Marketing, Baobab states that it will help its portfolio companies with specialised in-house marketing, branding, and digital services, amplifying their potential for success and further funding. Through the acquisition, the Reflector Marketing team will join Baobab to provide portfolio companies with in-house digital marketing support. Klyne Maharaj, founder of Reflector Marketing, will assume the role of director of Baobab Network’s accelerator. Founded in 2016, Baobab Network is a sector and geographically agnostic investor who issues a ticket size of $100,00 to its portfolio companies. The company claims that its portfolio’s cumulative valuation is more than $225 million from 50 companies. According to Toby Hanington, co-founder of Baobab, the move is evidence of Baobab’s ambitious plans and long-term commitment to investing across Africa. “We’ve worked with the Reflector team since early 2023, and the move to acquire them is a testament to the work they’ve already done with our portfolio,” he said. In the past, digital marketing, which comprises elements such as Search Engine Optimisation (SEO), social media marketing, product strategy, pitch deck preparation and branding, has been the go-to marketing medium for startups. This is because of its affordability compared to traditional marketing, relevance to target customers of startups, and its ability to adapt to the changing interests of the target market. According to Maharaj, the acquisition is in line with its mission to enable the growth of startups via digital marketing. “Our goal has always been to help the world’s best startups nail their positioning, win their markets, and raise capital to fuel their growth.”
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Who calls the shots at the Tiger Global-backed Bamboo?
Bamboo is a Tiger Global-backed Nigerian investment startup that enables users to buy and trade US stocks in real-time from their mobile phones or computers. The startup also facilitates investments in ETFs, mutual funds, or fixed-income products. Since its launch in 2020, Bamboo has announced $19.4 million in VC investment from investors like Greycroft, Tiger Global, Motley Fool Ventures, Saison Capital, Chrysalis Capital, and Y-Combinator’s Michael Seibel. Who calls the shots at TechStars-backed GetEquity? The co-founders are Richmond Bassey and Yanmo Omorogbe. Bassey steers the ship as CEO, focusing on the long-term vision and strategic direction of the company. Richmond Bassey CEO. His direct reports aside from Omorogbe, chief operating officer (COO), include George Imoedemhe, head of product & engineering, and Dubai-based Oleg Medvedev who is head of design. Meanwhile, Omorogbe, chief operating officer (COO), is in charge of the company’s day-to-day operations. All team leads: Damilola Akinyemi (head of finance), Ebi Wanapere (head of platform), Jennnifer Abah (head of customer experience), Misan Omagbitse (head of people), and Oluwakemi Idowu (head of legal) report directly to her. This TechCabal Org Chart details Bamboo’s leadership. If you would like to showcase the leadership structure of your startup in this way, contact the author of this article: ngozi@bigcabal.com.
Read MoreBreaking: YC selects Kenyan fintech startup, Triply as its latest African pick
Triply, a Kenyan fintech that helps travel businesses collect payments has been selected for Y Combinator’s winter 2024 batch. Triply is the latest African startup in the cohort after Cleva, the cross-border payment service, and Miden, the API startup. Small businesses account for 90% of Africa’s travel industry. However, due to inadequate payment infrastructures, these businesses are unable to receive payments; as a result, they frequently have to use manual payment methods, which reduces the efficiency of their booking systems. Launched in 2021 by Peter Wachira and Collins Muthinja, Triply helps these travel businesses collect payments and automate their operations. The startup also advertises these businesses on its marketplace to help match the needs of Kenya’s local travel market which is projected to grow by $749,000 in 2027. Kenya’s tourism industry is one of its biggest cash cows for foreign income, earning about $2.13 billion from it in 2022. The East African country also expects an uptick in the number of tourists by 2026—with 2.4 million visitors up from 2.1 million in 2021. With a growing middle class and increasing disposable income, Kenyans are also increasingly exploring their own country. This represents a huge opportunity for Triply. *This is a developing story
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👨🏿🚀TechCabal Daily – Thepeer shuts down
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning You can now use ChatGPT without signing up or signing in. Yesterday, OpenAI opened up its generative chatbot service to users across the world who can now access the service without having an account. There’s a catch though: OpenAI says users who dont sign in will experience “slightly more restrictive content policies” which could mean anything from being stopped from asking ChatGPT how to make $100 million in 24 hours, to getting a version of the service that’s as reliable as telecoms on a rainy day. Cheers! In today’s edition Thepeer shuts down Access Bank lost $4.6 million to fraud in 2023 Deloitte secures Ethiopia’s first securities investment advisor licence Google is shuttering its Podcast app The World Wide Web3 Opportunities Shutdowns Thepeer closes shop Thepeer, a Nigerian API startup that aimed to connect wallets across African fintechs, has shut down after failing to gain traction. In a blog post published yesterday, the company announced its shutdown citing compliance issues and an overall unacceptance of wallets as a viable payment option as key hurdles they faced. The company, which raised $2.1 million in its first formal venture capital financing, shared it needed to make a key decision either to do a hard pivot, an M&A or return capital to investors. “After carefully weighing our options, we decided that returning the remaining capital to investors was the best decision,” co-founders Chika Ononye and Trojan Okoh wrote. What does this mean for customers? In the statement, the company hopes to explore future possibilities for Thepeer and the platform will be in maintenance mode in the interim. The company stated it will prioritise keeping it functional for as long as possible while they identify a new and exciting home for Thepeer. Experience fast and reliable personal banking with Moniepoint Give it a shot like she did . Click here to experience fast and reliable personal banking with Moniepoint. Cybercrime Access Bank lost $4.6 million to fraud in 2023 Nigeria’s financial system has experienced an uptick in fraud since 2020. Financial institutions in Nigeria have revealed that since 2020, fraud has cost them ₦159 billion ($201.5 million). BusinessDay revealed in September of last year that Fidelity Bank suffered three attacks that cost them ₦2 billion ($2.5 million). Access Bank, Nigeria’s biggest bank based on customer deposits, filed a lawsuit in June to collect ₦3 billion ($3.8 million) that had been fraudulently withdrawn, according to court documents that were posted on social media and independently verified by TechCabal. The bank filed a second lawsuit in July to recoup an additional ₦5 billion ($6.3 million) that scammers had taken illicitly from its coffers. Now, Nigeria’s largest commercial bank is counting its losses in full. A ₦6.15 billion fraud: Per TechpointAfrica, Access Bank, Nigeria’s largest commercial bank by assets lost about ₦6.15 billion ($4.6 million) to fraud and forgery in 2023. This accounts for a 327% uptick of monies lost—₦1.44 billion—in the previous year. Per the bank’s financial report, fraudulent transfers and withdrawals were the biggest driver of losses, accounting for 70%. Embezzlement—cash theft, suppression, pilferage, dry posting, electronic fraud, and USSD—contributed to the remaining portion of losses. Access Bank’s findings reveal that 6,771 electronic fraud attempts were made worth ₦2.69 billion. The bank only lost about ₦92.2 million in those attempts. Last year, TechCabal reported on how several Nigerian banks were having internal conversations to rein in fraud. These banks often struggle with information sharing and lack of coordination on financial fraud investigations by local law enforcement agencies. Economy Deloitte secures Ethiopia’s first securities investment advisor licence Global audit and consultancy firm Deloitte has become the first company to secure a securities investment advisor licence in Ethiopia. This new development is a result of Ethiopia launching its own Securities Exchange slated for the third quarter of this year Side-bar: A well-regulated stock exchange acts like a growth engine. It fuels savings by offering a secure and potentially profitable avenue for investment. This pool of savings then flows towards the most productive companies, propelling their growth and job creation. Why Ethiopia? The Securities Exchange boosts transparency by requiring companies like Deloitte to provide audit and consulting services. These companies will regularly publish audited financial information that will be made accessible to all. This empowers even smaller investors with the same level of insight previously enjoyed only by large players. Additionally, a thriving stock market attracts professional analysts who dissect and interpret this information, providing even more informed decision-making for investors. Brook Taye, the director-general of the Ethiopian Capital Markets Authority, believes that having Deloitte licensed as an investment adviser will help speed up the process of growing Ethiopia’s stock exchange market and that with the company’s expertise, they can make things happen faster and better. Deloitte will be able to help businesses get ready to sell shares on the exchange. The first company to sell shares will likely be Ethio Telecom, a state-owned phone company. Ethiopia expects more Kenyan companies to get involved in their stock exchange as well. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Big Tech Google Podcast to shut down soon Last September, Google sent out an email to users announcing plans to shutter its podcasting service, Google Podcast. The news particularly came as a shock to many users and to this writer who found the app very easy to use. Google accompanied the email with tools on how users can migrate their current subscriptions on the app to YouTube Music or export a file that can be uploaded to other apps. Google announced yesterday that users in the US would not be able to use the Google Podcast app after today, April 2nd, 2024, per TechCrunch. Additionally, Google announced that after June, users of the
Read MoreNigerian fintech, Thepeer shuts down
Thepeer, a Nigeria-based API startup that raised a $2.1 million seed round in June 2022, has shuttered its business and will return its remaining capital to investors after failing to scale, the company said in a statement on Monday. The three-year-old startup said it closed shop after realising its exceptional technology alone wasn’t sufficient. “Our unique service had its challenges, the first being compliance issues. Additionally, the overall acceptance of wallets as a viable payment option didn’t grow as rapidly as we had hoped,” it said. Thepeer used its APIs to provide an alternative network where fintechs and businesses can embed different sets of products into their applications and websites for easy money movement by their customers. It hoped to connect wallets across over 400 fintechs across the continent to enable payments. Thepeer is the second startup to return remaining capital to investors in 2024 after Cova, a wealthtech startup, closed down in like manner, demonstrating the challenges in building fintech businesses on the continent. Launched in April 2021 by co-founders Kosisochukwu Chike Ononye and Michael “Trojan” Okoh, the business hoped to power infrastructure for mainly fintech businesses, from small to medium-sized. According to Crunchbase, it raised a pre-seed round of $220,000 from investors including Ezra Olubi, Paystack Co-founder, and Prosper Otemuyiwa, Edenlife CTO. A year later, it raised a $2.1 million seed round led by the Raba Partnership. Other investors included RaliCap, Timon Capital, BYLD Ventures, Musha Ventures, Sunu, and Uncovered Fund. In 2022, the startup claimed its monthly transaction volume had reached millions in dollars, with an average Month on Month (MoM) transaction growth of 161%. The company also had plans to expand to other African countries, including Kenya, South Africa, and Egypt. Thepeer has now admitted that despite all that growth; it failed to align its product with the market’s needs. To realign and focus on what matters, both founders have decided to place the product in maintenance mode for the interim. “We’ll work to maintain the platform for as long as possible until we discover a new home for it,” the statement added.
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Next Wave: Data overtaking calls isn’t a bad thing
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner 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 31 March, 2024 For nearly a decade, mobile data has been in a race to dominate traditional voice calls. It began demonstrating this potential in 2013 when Nigerian telcos saw a 30% decline in revenue from international calls between October 2013 and December 2013, thanks to Skype. In the coming years, MTN Nigeria, with nearly 80 million subscribers, would admit that it was witnessing a drop in voice-call traffic in the mass market. By the end of 2023, data would become a significant revenue earner for MTN Nigeria and other telco providers on the continent, like Airtel Africa and Kenya-based Safaricom. MTN Nigeria admitted in its full year 2023 report that data services grew its revenue by 39.8% and voice calls by only 9.7%. Airtel Africa was no different: 11.2% of its revenue came from voice calls and 28.5% from data. In Safaricom’s half-year results ending September 2023, it was observed that more customers were opting for data over voice; voice revenue declined by 3% while mobile data revenue grew by 12.5%. 43% of MTN Nigeria’s revenues were driven by data in 2023. Chart by Stephen Agwaibor, TC Insights All that said, the success of data over voice doesn’t mean telecom firms will lose. Rather, it means that they would have to shift revenue sources from voice to data and invest more infrastructure in enhancing data and internet access. Next Wave continues after this ad. The Algorithm is a TechCabal vertical that focuses on the backend of the creator economy. We’ll bring you stories that delve into the creation process, the business of being a content creator, interviews with creators, and everything else about online creators! Read our latest story here. To gain the upper hand in this new drive to provide more data services, some telcos are selling off or outsourcing their tower infrastructure to independent management firms so operators can focus on improving their services rather than managing the infrastructure. African operators are dealing with an increased need for data, inspired by low-cost smartphones. Therefore, in order to serve customers and roll out new technologies, outsourcing towers are becoming very attractive. Next Wave continues after this ad. Talent PEO Africa launches in Kenya, offering comprehensive HR solutions for businesses. From EOR services to recruitment and HR consulting, we simplify operations for seamless growth. Partner with us to tap into Kenya’s talent, navigate regulations, and achieve success. Contact us at www.talentpeo.com or kenya@talentpeo.com. Data has its huge benefits, especially as it pertains to cost. Knowing that one can call anyone via instant messaging apps across the world is a very valuable feature. In the past, people needed to roam with their network providers, or change devices when they travelled abroad, to keep in touch with family, friends and business colleagues across continents. In a world of data, everyone can win, as it enables people to perform more functions on the networks, beyond just phone calls. It is a major use case for streaming services. Partner Content: Read: Benjamin Oyemonlan is creating a protean payment platform at Platnova here. Still, while data has enough advantages to make it scale, phones and internet access are not cheap. Even with a 51% smartphone penetration, most people in Africa still use 2G and 3G networks. In Nigeria, smartphones have become a luxury lately, with prices surging by as much as 86% between 2022 and 2023. It is imperative, then, that smartphone companies think about cheaper phones that can carry 4G capacities. This is key to sustaining the growth of data. Also, telcos need to iterate on data tariffs that average Africans can afford. Data is here to stay. Joseph Olaoluwa Senior Reporter, TechCabal Thank you for reading this far. Feel free to email joseph.olaoluwa[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). 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