Bento Africa under investigation by LIRS and EFCC; CEO Okubanjo denies allegations
Bento Africa, a Nigerian technology HR startup founded in 2019, is facing allegations of failing to remit tax and pension payments on behalf of clients. The allegations, which are now being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC), triggered a client exodus. High-profile clients like Moniepoint, Paystack, Kobo360, and Bamboo ditched Bento in 2024, according to multiple sources with direct knowledge of the matter. Two former clients who asked not to be named confirmed TechCabal that Bento is under investigation for allegedly forging tax receipts, delaying pension contributions, and other financial discrepancies. A former client also reported the company to the Economic and Financial Crimes Commission (EFCC) raising questions about Bento’s practices and the regulatory gaps in Nigeria’s growing HR-tech sector. Fuelmetrics, a digital inventory management company for petrol stations that used Bento, claims it incurred ₦50 million ($108,000) in unpaid taxes and pension contributions between 2023 and 2024. “[LIRS] made us understand that there is an ongoing investigation on Bento and that we are not the only company affected in this scam, dating from 2023 till date,” read an internal memo seen by TechCabal. On Friday, Akintunde Sultan, co-founder of edtech AltSchool, also publicly accused Bento of forging tax receipts and remitting ₦100 monthly after “collecting millions of naira in payments from startups.” Sultan’s allegation has added further pressure on Bento, suggesting the startup mismanaged pension and tax payments. Bento’s CEO and co-founder, Ebun Okubanjo, acknowledged that the company had received complaints from the LIRS regarding unpaid taxes and confirmed the company is working on a plan to settle outstanding tax obligations for affected clients. However, Okunbanjo insists that these discrepancies affect “a very small percentage of Bento users, who happen to be very vocal in the tech ecosystem.” While he declined to disclose the number of businesses Bento serves, the company reported over 900 enterprise users in 2021. He attributed the payment delays and discrepancies to the inherent limitations of Nigeria’s complex and outdated tax and pension systems. “A zero percent error rate is hard, maybe impossible,” Okubanjo wrote on LinkedIn. [Such discrepancies represent] “less than 1% of the taxes or pensions or remittances or salaries we have processed.” Nigeria’s HR-tech sector is largely unregulated, leaving significant gaps in oversight and accountability. As a result, underpayments or failed remittances can be attributed to systemic inefficiencies rather than deliberate malfeasance, allowing companies to sidestep liability by blaming technical or operational challenges. A former Bento employee, who asked not to be named for fear of retaliation, claimed CEO Okubanjo intentionally delayed pension and tax payments despite client funds being available. Internal documents reviewed by TechCabal showed instances where payments were delayed for up to ten months. Okunbanjo attributed payment delays to the manual nature of the process and insisted that missed payments are made immediately they’re brought to the company’s attention. Despite his rebuttals, there are significant concerns about Bento’s internal processes and its ability to manage client funds in a timely and transparent manner. As part of plans to solve the reconciliation errors, Okubanjo claimed Bento and other HR tech players unsuccessfully lobbied for a direct API integration with Nigeria’s tax and pension systems. Despite Bento and Okubanjo’s stringent denials, industry experts and former clients remain skeptical. “It is uncommon to hear of payment glitches that last a calendar year,” said a HR-SaaS expert, who asked to not be named so they could speak freely. Okubanjo’s past fuels some of the scepticism. In 2023, he was accused of creating a toxic workplace and briefly stepped aside as CEO. In a 2020 viral video, he berated a customer who complained of poor services at his gym. The payment delays and ensuing legal issues have cost Bento some business, with prominent clients like Paystack and Helium Health ditching the company in 2024. Okunbanjo downplayed these departures, suggesting Bento’s strategic shift towards traditional businesses is a deliberate move to reduce reliance on venture-backed startups, which are vulnerable to funding downturns. He also claimed that small and medium enterprises (SMEs) are better clients, as they typically require fewer new features and are less expensive to retain. Despite the challenges, Okunbanjo claims Bento is profitable, processing about ₦4-5 billion ($2.6 million) in monthly salaries with around ₦24 million ($15,871) in monthly revenue. How late payments go undetected Several cultural and systemic factors allow these issues to go undetected for months. The design of payroll applications makes users assume taxes and pensions are remitted digitally. But on the backend, Bento manually initiates these payments through a bank. This process can result in delays of weeks or even months. Because employees receive timely salary payments and corresponding bank alerts, neither they nor their employers typically notice the discrepancies in tax and pension remittances. This can persist as long as salary payments continue uninterrupted. Additionally, employees often show little interest in actively monitoring their pensions, assuming the funds would be eroded by inflation. A lax tax culture and distrust in government institutions also contributed to a lack of scrutiny in the tax remittance process. Okubanjo claimed that only a handful of clients request regular short-term records for reconciliation. Conversely, some companies only requested audits and records when regulatory issues arose, often requiring years of data that were difficult and costly to compile. Okubanjo described these requests as close to impossible for Bento’s lean team to fulfill, citing the extensive manual effort required to gather receipts from Pension Fund Administrators (PFAs) across different states. This lack of long-term documentation triggered Kobo360, one of Bento’s prominent startup clients, to lodge a complaint with the Economic and Financial Crimes Commission (EFCC). A former HR manager at Kobo360 who asked not to be named as they were not authorised to speak on the matter, recounted discovering missing pension payment receipts only after an employee requested pension documents in September 2023. The former HR manager claimed Bento obstructed the EFCC investigation by refusing to provide records of the company’s pension throughout the five
Read MoreSouth African fintech Stitch acquires ExiPay to expand into in-person payments
Stitch, a South African fintech startup that provides online payments infrastructure for large enterprises, has acquired ExiPay, a startup that offers in-person payment solutions for retail businesses. The acquisition, for an undisclosed amount, will allow Stitch to integrate online and in-person payments into one platform, making it easier for businesses to track payments across different channels. This move expands Stitch’s product offerings, allowing it to provide an omnichannel payment solution that combines online and in-person payment capabilities for its enterprise customers. The acquisition is a direct response to the growing demand for integrated payment solutions in South Africa’s retail market, where the gap between online and in-person payment systems remains significant. Stitch has integrated ExiPay’s six-person team into its operations, rebranding the service as “Stitch In-person payments.” Stitch will sell this new service to existing clients, including major corporations like Bash, MTN, Cell C, and MultiChoice. “The in-person payments space has not been disrupted for enterprises,” said Stitch CEO Kiaan Pillay. ”Many players are doing this for smaller businesses in the market, but no one is tackling this for enterprises; it was the big reason we wanted to do this.” Stitch’s decision to acquire ExiPay rather than partner with larger in-person payment providers reflects the company’s desire to retain control over its technology stack. According to Pillay, building a similar solution in-house would have taken 18 to 24 months, delaying the company’s strategy to offer a unified payment platform. Founded in 2022 by Derek Keats and Willem Büchner, ExiPay allows physical stores to accept in-person payments through point-of-sale (POS) terminals. The company claimed it was processing R2 million ($106,000) in daily transactions in 2023. In 2024, it received €5.4 million ($5.6 million) in private cash-to-equity funding from Izwe Africa, a fintech group that provides credit to small businesses in Ghana, Kenya, and Zambia. “This deal is attractive for both ExiPay and Stitch investors. We are sitting under one roof,” Pillay added. Founded in 2019, Stitch has raised $52 million in funding, expanded into Nigeria, and has previously spoken of plans to expand into Kenya, Ghana, and Egypt.
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“On some days, I make ₦70,000;”TikTok Live is the new storefront for Nigerian business owners
Jude Okafor, a menswear trader on TikTok, is no stranger to live selling. At least three times a week, he goes live to showcase a mix of new and thrifted jeans to his audience. Before each live session, Okafor posts reminders to ensure his followers know about the upcoming sale. During the live sale, which may stretch up to four or five hours, Okafor holds up a pair of jeans, showing them off to the camera. He announces the price, features, and quality—details that static images or text descriptions can’t capture. His audience of 200 viewers bid on items in real-time. Once he agrees on the price, buyers send payment to the account details displayed on the screen and follow up with a direct message to confirm receipt. The dynamic mirrors the energy of a bustling Nigerian market, where traders call out to attract buyers and haggle to strike a deal. “I am grateful for social media, I don’t have a shop so I get sales mostly from TikTok, friends and referrals,” Okafor said, highlighting how TikTok has become an important sales channel for small business owners. Okafor’s success is part of a larger trend: live sales on TikTok are becoming a preferred method for small businesses to increase sales and boost brand visibility. The rise of social commerce on TikTok is happening despite the absence of TikTok Shop, a feature that allows users to buy directly on the platform. Vendors selling live on TikTok The rise of social commerce TikTok Shop was launched in 2021 through a collaboration with Shopify, enabling businesses to sell directly from their videos and live streams. Users in the U.S, UK, and other Asian markets can use the Shop feature, but it is unavailable in any African country. Livestreams are filling this gap. Screenshot TikTok shop in the US and Malaysia Social commerce, or shopping on social media platforms, has grown explosively globally. In 2023, social commerce accounted for 18% of online sales, with over 85% of customers shopping online. This growth is largely driven by increased smartphone penetration and internet access, making social media platforms like TikTok an integral part of daily life. For small businesses, social media platforms like TikTok are a cheaper alternative to traditional commerce. Unlike physical stores that require extensive overhead, platforms have minimal costs. “Our unstable economy and high unemployment are driving individuals to explore entrepreneurship. Affordable solutions like WhatsApp Shop provide an easy setup to reach target audiences without the hefty overheads of an e-commerce platform,” Majolie Obaje, Marketing Lead at Jiji, said. Impact on Nigerian businesses For businesses like Okafor’s, TikTok offers an engaging way to reach customers. Without TikTok Shop, however, the process can be tedious. Buyers must leave the app to complete their purchases, a layer of friction that can lead to attrition. Yet, business owners are adapting. Maryam Musa, who runs a fashion brand goes live at least twice a week. ”In December, I was very consistent, and I made over ₦500,000 in three nights,” she shared. For Koforowola Adedeji, a thrift vendor in Abule-Egba, the frequency of her live sales depends on how quickly she uses up a bale of clothes. “On some days, I make ₦70,000, and if I haven’t made enough from the bale I got, this means I still have more live sessions to do,” she said. Charles Udeozor, former Head of Logistics at Konga, points out that live selling on platforms like TikTok offers a sense of control that traditional e-commerce platforms can’t match. “When sellers realized they could bypass the risk of unfulfilled logistics and high commissions, they moved away from e-commerce platforms. There’s a real sense of empowerment in controlling the process,” he says. Shifting consumer behaviour and traditional e-commerce While TikTok’s Live sales offer new opportunities and channels for businesses, traditional e-commerce companies like Jumia and Konga still have an edge, with features like delivery tracking, refund policies, and pay-on-delivery. They appeal to users who value reliability and transparency, which may be an issue in the unregulated world of live sales. However, as social commerce grows, even traditional e-commerce players are integrating social elements into their models. “E-commerce platforms will have to continue advertising on social media platforms and I believe a partnership with these platforms will also help,” Konga’s Udeozor told TechCabal. “To stay ahead, e-commerce platforms will integrate social elements, partner with social commerce sellers, and leverage their reach and community trust,” Majolie added. “For instance, Jiji already encourages sellers to engage directly with buyers through integrated chat options,” she adds. Whatever the future brings to e-commerce and social commerce, the present looks good. “Even if TikTok Shop was available in Nigeria, I will still be doing the live sale. I can’t trade the visibility it brings,” Sylvia Ebere, said a fabric vendor. On the strength on what the livestreams offer right now, the present is looking good.
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Starlink becomes Kenya’s 8th largest ISP amid growing regulatory concerns
Starlink has become Kenya’s eighth-largest internet provider, surpassing established players like Liquid Telecommunications. The Elon Musk-owned company has grown its subscriber base to 16,746 subscribers and gained a 1.1% market, according to the latest data from Kenya’s Communications Authority (CA). Starlink’s growth, from the tenth largest ISP in June 2024, suggests that the company has dominated Kenya’s satellite internet market. Other satellite ISPs including Viasat, Indigo Telecom, and NTvsat have less than 300 subscribers and may be forced to exit the market. Starlink’s rapid growth drives demand for high-speed internet in Kenya, especially for homes and businesses that are not served by fixed broadband. However, Starlink’s growth has raised some policy concerns. Kenya’s telecom regulator has proposed a tenfold increase in charges for satellite internet providers. The move comes amid growing concerns from rival ISPs led by Safaricom, Airtel Kenya and Jamii Telecoms, about Starlink’s fast rise. The proposed regulations would increase the cost of a 15-year license from $12,302 to $115,331 and introduce an annual 0.4% levy on gross turnover. The tough rules could favour established ISPs but hurt smaller players. Satellite ISPs like Viasat and NTvsat may struggle with the higher costs and slow expansion in remote areas. They may also be forced out of the market as they currently have less than 300 subscribers. In December 2024, Starlink began routing African users through a dedicated ground facility in Nairobi, Kenya, known as a “point of presence,” where its space-based network connects to terrestrial internet infrastructure. Starlink users say this upgrade has improved performance, with average latency for users in Kenya dropping from 120 milliseconds (ms) to just 26 ms. Since April 2024, Starlink has been offering its customers several perks, including a 30-day promotion between April and May 2024 that cut the installation kit price from $688 (KES 89,000) to about $348 (KES 45,000). The firm has overhauled its pricing model to attract more subscribers. For instance, Starlink launched a 50GB data plan for $10 (KES 1,300), undercutting Airtel’s $23 (KES 3,000) and Safaricom’s $39 (KES 5,000) bundles. In August 2024, the company introduced a hardware rental plan to reduce entry costs. Starlink plans to launch satellites in 2025 that will deliver the internet directly to mobile devices and eliminate the need for hardware kits.
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Bolt enters grocery delivery while others run for the door
Grocery delivery in Nairobi is a smaller market compared to food delivery. Few players, including supermarket chains like Naivas and Carrefour, have ventured into it with varying levels of success. The high cost of delivery — which can cost over KES 100 ($0.77) per delivery — makes it less appealing to most residents, who prefer buying affordable groceries from roadside stalls, popularly known as “vibandas.” However, residents in upscale neighbourhoods, where such stalls are scarce or unavailable, are the primary target customers for online grocery shopping. Bolt Kenya wants to tap into this business with Bolt Market. The product is integrated into its Bolt Food app. “The move is part of Bolt’s strategy to expand its services, grow its market share, and establish itself as a trusted platform for convenient, on-demand grocery delivery,” Bolt said in a statement in December 2024. Before COVID-19, in-person dining and in-store shopping were commonplace in Kenya, with online food and grocery purchases limited to early adopters in urban areas. The pandemic spurred a shift that forced retailers to adopt delivery models, partner with platforms, and innovate with options like same-day delivery, driven by consumer demand for convenience and safety. As of 2023, 9.3% of Kenyans shop for food and groceries online, projected to reach 16.7% or 10.5 million consumers by 2027 due to the demand for convenience and efficient delivery services. Bolt Market is a push to diversify Bolt’s services beyond ride-hailing and challenge established players in a market where speed and convenience are key. This tough market has forced out players such as Jumia Food, which ceased its food delivery business in Kenya and other African market due to unprofitability and stiff competition. Bolt Market believes it can do things differently but has adopted a cautious approach. Grocery delivery is a tough business with pain points such as high delivery costs that discourage price-sensitive customers and competition from rivals like supermarket chains (Naivas and Carrefour), Glovo, and Uber Eats. Bolt is currently offering Bolt Market in Nairobi’s upscale Kilimani area and targeting customers within a 10-kilometre radius of its store, including Upper Hill, South C and Riverside. Customers using the Bolt Food app can order groceries from 8:00 AM to 11:00 PM or schedule deliveries 24 hours in advance. Bolt is also offering free delivery within a 3-kilometre radius and discounts of up to 80% to attract customers. “The high demand for fast and convenient delivery services makes it an ideal location for a central delivery hub,” Edgar Kitur, Bolt Food’s General Manager told TechCabal. As part of the test, Bolt is offering free delivery within a 3-kilometre radius and discounts of up to 80% to navigate aggressive pricing and more affluent rivals. Bolt Market’s circumspect launch reflects the harsh realities of the logistics business in Kenya, where similar businesses have failed. With many consumers preferring affordable “vibandas,” the market is niche and relies on upscale areas where convenience and reliable service outweigh cost concerns. “Our average order value is between KES 300 ($2.32) and KES 38,000 ($293.78), varying by user to local pricing differences,” Kitur added, signifying an affinity for high-end customers. Thus, Bolt’s cautious launch in Kilimani is designed to gather data on service efficiency, customer satisfaction, and market viability before it can take the next step. “The Kilimani store will provide sufficient data to evaluate service efficiency, customer satisfaction, and market viability,” Kitur added. High delivery fees in Nairobi discourage many potential customers, especially outside high-end neighbourhoods, where a KES 100 ($0.77) delivery fee could buy a kilo of tomatoes. Joseph Makau, a frequent delivery app user, told TechCabal that customers who might consider grocery deliveries often prefer bundling groceries with other items from supermarkets. “I would rather do my monthly shopping with groceries on top from the supermarket instead of ordering groceries alone,” the same user said. “Carrefour doesn’t charge for deliveries for large orders. For small orders (capped at anything more than KES 1,000 ($7.73)), they charge KES 129 ($1) only,” Kariuki, another customer who uses rivals like Naivas and Carrefour interchangeably, told TechCabal. At least five customers who have used grocery delivery services once or twice told TechCabal that they liked ordering from home, comparing prices, and accessing personalised offers. However, some find delivery charges high, especially if they are far from stores. To address this, restaurants and retailers have since introduced same-day delivery, timed purchases, and buy-and-collect to expand choices and convenience. Bolt Market claims it has access to over 2,000 products, including fresh produce from local suppliers, household essentials, and beverages. While it did not specify partners, it sources groceries locally to ensure supply consistency, employs AI logistics for delivery optimisation, and enforces quality checks throughout. Bolt Market is also exploring new pricing strategies, such as discounts based on order size and distance, and hinted at future subscription plans to offer regular customers predictable pricing and cost savings. Subscription models benefit logistics firms by providing steady revenue and improving demand forecasting. “Indeed, while delivery costs are a major concern for customers, our platform addresses a wider array of operational challenges vital to the overall experience,” Kitur said. Expansion beyond Kilimani to estates like Parklands, Eastleigh, and Lavington is planned, with a later rollout outside Nairobi in the pipeline. However, there are no set timelines. For now, Bolt Market will use data from Kilimani to refine its service and determine customer response to pricing in a competitive and price-sensitive market. “As the service expands, we may also explore subscription plans for regular users,” Kitur hinted. Subscription models save customers money through discounts and predictable pricing. Logistics firms benefit from steady revenue and better demand forecasting. .
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👨🏿🚀TechCabal Daily – Visa makes a point
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF Help us shape the future of African venture capital. If you’re a venture capitalist investing in Africa, take our short survey to share your insights on investment priorities, challenges, and predictions for 2025. Your input will contribute to a comprehensive analysis of the trends shaping Africa’s venture capital landscape. Take the survey now. How Marasoft’s CEO paid employees with suspected fraudulent funds Visa invests in Moniepoint Funding tracker World Wide Web 3 Events Startups How Marasoft’s CEO paid employees with suspected fraudulent funds Image Source: Wunmi Eunice/TechCabal Imagine working tirelessly for two months without pay, only to watch your colleagues lose patience and halt work due to delayed salaries. Then, just as you think the ordeal might end, your boss finally sends the owed salaries—but the funds appear to come from suspected fraudulent transactions. This chaotic scenario became a reality for over 40 employees of Marasoft Pay, a Nigerian fintech startup founded by Emmanuel Marakwe-Ogu. The company, which operated without institutional funding, processed payments online for businesses and individuals in Kenya and Nigeria. Since Marasoft does not hold local licenses in Kenya, it relied on a Flutterwave wallet to process transactions—a common workaround for smaller startups seeking access to new markets and regulatory protection. However, on October 16, a glitch allowed a Marasoft account linked to Marakwe-Ogu’s phone and bank verification numbers (BVN) to withdraw funds exceeding the wallet’s balance. In a WhatsApp group, Marakwe-Ogu acknowledged controlling the account after employees questioned why their salaries were paid from an unfamiliar source rather than the company’s human resources account. That payment became the catalyst for what several employees describe as one of the most turbulent periods of their lives. Within weeks, resignations poured in as staff abandoned their posts. Efforts to maintain a unified stance crumbled when Marakwe-Ogu removed them from the company’s WhatsApp group. Many former employees remain locked out of their accounts and continue to grapple with the fallout. Despite everything, some affected Marasoft employees have returned to work for the startup. Muktar Oladunmade dives deeper here. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Funding Visa invests in Moniepoint Image Source: Moniepoint What is better than funding? More funding. Three months after Moniepoint raised its $110 million Series C funding to become Africa’s latest unicorn, the Nigerian fintech has a new investor: Visa. The global payments giant made a “strategic investment” in Moniepoint, which has built a successful business offering banking services to SMEs and individuals. That investment is around $10 million, according to TechCrunch. For Visa, this investment continues its signature move of strategically investing in promising African startups to expand its payment footprint. It made similar bets on other home-grown fintechs including Interswitch, Flutterwave, and Paystack. With the new funding, Moniepoint plans to focus on advancing contactless payments, widely seen as the next golden egg in the payments ecosystem. Moniepoint’s entry would mean more competition in the contactless payments space. Offering solutions from smartphone-based systems to software POS offerings, startups like CashAfrica, Nearpays, and Touch and Pay have entered the market. However, infrastructural challenges and other factors are slowing adoption rates. Moniepoint’s advantage lies in owning its proprietary technology for both cards and POS machines. This vertically integrated approach, combined with Visa’s expertise, could enable the company to scale quickly in the contactless payments market. With its position as one of the top three POS providers in Nigeria, Moniepoint also has a strong customer base to drive adoption. Beyond Nigeria, Moniepoint may be preparing to build its own contactless payments infrastructure to fuel expansion into other markets. The company has been in discussions to acquire Kenyan fintech Kopo Kopo. Entering Kenya with a robust contactless payments infrastructure could position Moniepoint as a formidable competitor in the region, where the demand for advanced payment systems is growing faster than in Nigeria. As Moniepoint aggressively builds out its payments infrastructure, the fintech seems poised to establish itself as a leader in the contactless payments space. Still, it will face stiff competition from rival PalmPay, the fintech arm of popular OEM company Transsion, which also has ambitions in this fast-evolving market. What’s it like to work as an engineer at Paystack? Paystack’s engineering team builds simple, powerful tools to connect African businesses to customers. Learn more → TC Insights Funding Tracker Image source: Stephen Agwaibor/TechCabal This week, South African insurtech startup Naked secured $38 million in a Series B extension funding round, marking the largest investment in Africa’s insurtech sector. The round was led by global impact investor BlueOrchard, with participation from existing backers Hollard, Yellowwoods, the IFC, and DEG. (January 22) Here are other deals for the week: Nigerian fintech company Moniepoint secured $10 million from Visa, bringing its Series C raise to more than $120 million. (January 23) Egyptian fintech MoneyHash raised $5.2 million in a pre-Series A funding round. Flourish Ventures led the round, with participation fromSaudi Vision Ventures, Arab Bank’s Xelerate Fund, and Emurgo Kepple Ventures. Angel investor Jason Gardner, founder and former CEO of Marqeta, also joined the round alongside existing investors such as COTU, RZM Investment, and Tom Preston-Werner. (January 21) MazaoHub Agclimate Ltd, a Tanzanian agri-tech startup, secured undisclosed funding from the Livelihood Impact Fund. (January 21) CommunityWolf, a South African AI startup, received undisclosed early-stage funding from The Baobab Network. (January 22) Ugandan fintech Flow Global secured an undisclosed equity investment from Inua Capital (January 22) Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, read our predictions on what to expect in African tech in 2025. Click this link to read it. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $103,920 + 2.20% + 5.91% Ether $3,301 + 2.83% – 5.30% XRP $3.12 – 0.12%
Read MoreHow Nigerian fintech Marasoft paid salaries with suspected fraudulent funds, trigerring account freezes and employee anguish
In October 2024, employees at Marasoft Pay, a Nigerian fintech founded by Emmanuel Marakwe-Ogu, experienced what seemed like a long-awaited resolution: payment of two months of overdue salaries. But their relief was short-lived. Within days of receiving their payments, employees were stunned to discover that their accounts—along with the accounts of those they had sent money to—were frozen. The funds, they learned, had been traced to a suspected fraudulent source, according to six former employees who spoke with TechCabal on condition of anonymity for fear of retaliation. Marasoft Pay, which operates in Kenya and Nigeria, allows businesses and individuals to collect payments via its platform. However, because it does not hold local licenses in Kenya, it processes transactions through a Flutterwave wallet which it has used since 2022. Kenyan court documents showed that Marasoft was one of the fintechs that deposited over $55 million into Flutterwave in 2022. “Marasoft Pay is not a partner of Flutterwave but a customer. It was a business that processed payments through Flutterwave,” Flutterwave told TechCabal. Smaller fintechs typically process payments through licensed fintechs, as banks do not onboard unlicensed fintechs. The series of unfortunate events began on October 16, 2024, when a glitch allowed Marasoft access to more funds than it had in the wallet, enabling the company to withdraw over ₦84 million ($54,000). According to transaction records seen by TechCabal, CEO Marakwe-Ogu initiated 102 withdrawals from the account within 12 hours, each linked to his phone number and bank verification number (BVN). The timing of the glitch could not have been more fortuitous: it came a week after employees stopped working due to growing frustration over unpaid salaries. While the company paused operations on October 10, it continued to process transactions. Between October 16 and 17, Marakwe-Ogu paid ₦35 million in overdue salaries directly from the Flutterwave wallet. In a WhatsApp chat with employees seen by TechCabal, Marakwe-Ogu admitted to using his company account to pay salaries after employees noticed that the payments did not come from the human resources account. Employees were right to be worried. Days after receiving salary payments, their accounts were frozen, and over 40 workers began a legal battle to unfreeze their funds. “Unfortunately, we are unable to lift the PND (post no debit) on the account at this time. The funds deposited into your account have been traced to a fraudulent merchant, and investigations are currently ongoing,” read an email from a senior customer experience associate at Flutterwave to a former Marasoft employee. After paying employees from the Flutterwave wallet, Marakwe-Ogu transferred ₦49 million to various accounts through payment processors like Transact Pay, a European fintech that generates virtual accounts, to a VFD Bank account he controlled, complicating retrieval efforts, according to account statements seen by TechCabal. A week later, on October 24, TransactPay sent a recall request for ten transactions worth ₦19.3 million, copying former Marasoft employees. By then, several Marasoft employees’ accounts were frozen, and many were left scrambling for answers. While Marakwe-Ogu continued to tell employees that the restrictions were a mistake and would be lifted, he agreed to a five-month repayment plan with Flutterwave expiring in February 2025, a former employee with direct knowledge of the matter said. Flutterwave declined to comment on the repayment plan, citing confidentiality. “It went from a situation where we thought the salary payment was a temporary issue to one where it was clear this was deliberate,” said one former senior employee who asked not to be named discussing an ongoing issue. Marakwe-Ogu also requested a recall of the salaries through the Nigerian Inter-Bank Settlement Scheme (NIBSS) using Marasoft, an email seen by TechCabal showed. By November, it became clear that the situation was worsening, and employees began resigning. As the employees pushed for answers, he removed them from the company’s WhatsApp group and stopped taking their calls, complicating their efforts to get the restrictions lifted. “People believed in the company’s mission and endured two months of delayed payments. But this time, it became clear that it wasn’t just a minor issue—it was deliberate,” a former senior employee who asked not to be named for fear of reprisals told TechCabal. The fallout from the incident has been painful. One employee, whose account was blocked, was forced to borrow money from her father to refund her co-contributors in an esusu after her funds were frozen. “I was left in a very difficult situation. It was stressful for both my father and me,” she told TechCabal, asking not to be named so she could speak freely. Marasoft resumed operations in January and at least eight employees have returned to the fintech despite the frozen accounts and owed salaries. Marakwe-Ogu did not respond to requests for comments.
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GITEX Global to hold 2025 Ai Everything event in February
GITEX Global, one of the world’s largest tech expo, will hold Ai Everything GLOBAL, its flagship event dedicated to discussing artificial intelligence and other emerging technologies, for the first time in two cities. The event will run from February 4–6, 2025 in Abu Dhabi and Dubai, attracting founders, investors, corporate innovators, and thought leaders. Over the past three years, AI has cemented itself as one of the most important emerging technologies globally, with nations and industries racing to lead the revolution. Now valued at $184 billion, the sector is experiencing explosive growth, driven by its applicability in finance, mobility, and e-commerce industries. Themed “Powering Global Collaborations in the New AI Economy,” the Ai Everything GLOBAL event will be a key platform for advancing conversations around AI’s growth and challenges. “The event promises the perfect setting to shape the future, hosting the most thought-provoking discussions around elite AI case studies, applied research use cases, policy debate, partnership creation, and acceleration of commercial application,” the organisers said in a statement. Participants at GITEX Global 2024. Image Source: GITEX Global. The Ai Everything GLOBAL event comes at a pivotal moment for AI as the sector is projected to nearly quintuple its market value by 2030, according to Statista. AI’s rapid growth is transforming industries worldwide, but it also brings critical challenges, including ethical use, fairness, and societal impact. This event serves as a platform for experts to address these pressing issues, share insights, and collaborate on innovative solutions. The event will also showcase real-world examples of AI at work. Ai Everything GLOBAL will highlight projects shaping the future. These examples will show how AI is helping industries solve problems and work more efficiently.
Read MoreVisa makes strategic investment in Nigerian unicorn Moniepoint
Moniepoint, the Nigerian fintech unicorn, has secured a strategic investment from the global payments giant Visa. This comes three months after Moniepoint raised $110 million in a Series C funding round that tripled the company’s valuation to hit the billion-dollar mark. This signals increasing interest in Moniepoint which many investors consider a solid company with bright prospects. Visa’s investment will help Moniepoint expand its services for African businesses. Founded in 2015, Moniepoint provides banking and payment services to small and medium businesses and retail banking. It is one of the market leaders in Nigeria’s agent banking space, with over 300,000 POS agents. The company processed 5.2 billion transactions in 2023. This partnership combines Moniepoint’s local expertise and innovative business model with Visa’s global resources and capabilities. “Visa’s backing is a strong endorsement of our vision to digitize and support African businesses at scale,” said Tosin Eniolorunda, Founder and Group CEO of Moniepoint. “We aim to deepen financial inclusion, enabling SMEs to access the tools and resources they need to thrive in an increasingly digital economy.” Visa joins other Moniepoint’s investors including Development Partners International, Google’s Africa Investment Fund, Verod Capital, Lightrock, QED Investors, Novastar Ventures, British International Investment (BII), FMO (the Dutch entrepreneurial development bank), Global Ventures and Endeavor Catalyst. “Moniepoint has built an impressive platform that directly addresses the needs of Africa’s SMEs, a critical segment in enabling economic development,” Andrew Torre, Regional President, Central and Eastern Europe, Middle East and Africa at Visa, added.”By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation.”
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👨🏿🚀TechCabal Daily – Kenya newest Act
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning If you know a first-class or exceptional 2:1 graduate in Lagos, Nigeria looking to kickstart their journalism career, you should point them to The TechCabal Journalism Fellowship. Our promise to our fellows includes hands-on newsroom experience, mentorship from top journalists, a competitive stipend and full-time job opportunities. Sounds like you or someone you know? Then get started now. NCC’s 50% tariff increase sparks mixed reactions SeamlessHR explored a PaidHR acquisition Is Kenya’s Startup Bill fit to regulate the nascent startup ecosystem? World Wide Web 3 Events Telecoms NCC’s 50% tariff increase sparks mixed reactions Image Source: TechCabal After 11 years of back-and-forth debates, Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), finally gave telecom operators a 50% tariff hike—about half of what they’d been dreaming of. It’s like asking for a full buffet and being handed a sandwich. Calls, SMS, and internet bundles are about to get pricier, but not so much that you’ll need a loan to stay connected (yet). Operators can tweak prices within the ₦6.40 ($0.0041) to ₦50 ($0.032) range set way back in 2013 when the naira still had some dignity. The new rates roll out next week, so if you’re due for a recharge, now’s your chance to save a bit. Industry bigwigs like Tony Izuagbe Emoekpere (ATCON) and Gbenga Adebayo (ALTON) welcomed the move but politely reminded everyone that higher tariffs won’t magically fix multiple taxation, neglected infrastructure, or the maze that is right-of-way approvals. With inflation zooming past 33% and operational costs up 120%, operators like MTN and Airtel are just trying to keep their heads above water. The NCC hopes this hike will help them invest in better services, but industry players are already eyeing full deregulation. “Let the market decide!” they cry, likely while clutching their spreadsheets. Meanwhile, the NCC promises to keep an eye on service quality because nothing says “progress” like paying more for a slightly improved internet speed. Welcome to the future of telecom—where survival meets comedy. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. M&As SeamlessHR explored a PaidHR acquisition Image Source: SeamlessHR Mergers and acquisitions are as old as commerce itself and have been used in business to consolidate market positions, drive growth, and eliminate competition. A case in point is Nigeria’s HR tech space, which has become ultra-competitive with new players entering the market. In 2022, SeamlessHR, a Nigerian leading HR tech software company, tried to acquire PaidHR, a competitor in the space. At the time PaidHR barely made the news and was only processing ₦2.7 billion ($18.5 million) in salaries. The acquisitions talk stalled at the time. Fast forward to late 2024 after SeamlessHR had raised a $9 million Series A extension, the startup again explored acquiring PaidHR. This time PaidHR had grown rapidly and had processed ₦11 billion ($77 million) in the past year. PaidHR was also heavily investing in its cross border technology, which allowed its clients to pay their staff in several countries. The cross-border payroll feature was seen as a key reason why SeamlessHR wanted to acquire PaidHR. However, the talks didn’t progress into a formal acquisition. Typically, a formal acquisition offer involves sendingan indication of interest (IOI), while informal talks often occur without paperwork. No formal IOI was ever presented in this case. While SeamlessHR acquisition talks may not have progressed into an acquisition, industry stakeholders claim that Nigeria’s HR tech space is ripe for consolidation. According to one HR tech salesman, only about 2000 Nigerian businesses can afford HR tech software. Investors argue that the HR tech opportunities in sub-Saharan Africa are not as significant compared to sectors like fintech or e-commerce. They believe the ecosystem would benefit more from a few larger companies capable of delivering high-quality services, rather than numerous smaller ones that might struggle to scale. What’s it like to work as an engineer at Paystack? Paystack’s engineering team builds simple, powerful tools to connect African businesses to customers. Learn more → Regulation Is Kenya’s Startup Bill fit to regulate the nascent startup ecosystem? A general view shows the Senate chambers. IMAGE | REUTERS/Monicah Mwangi Kenya has passed its Startup Bill, which mandates startups to allocate 15% of their expenses to research and development (R&D), and maintain 100% Kenyan ownership to qualify for government support. The bill could become law if President Ruto signs it. While the intent to promote local ownership and innovation is clear, critics argue the execution may stifle the very growth it seeks to achieve. Though Kenya is a leading African tech hub, its ecosystem is still maturing, with fewer big names and a majority of growth-stage startups struggling to scale. Globally, startups typically allocate 10–15% of their budgets to R&D, but early-stage firms often spend less, prioritising survival over research. For many Kenyan startups operating on limited resources, the mandated 15% could stretch budgets too thin, forcing cutbacks in other crucial areas like hiring or marketing. The 100% Kenyan ownership requirement is even more contentious. Kenya’s tech ecosystem owes much of its success to the blend of local expertise and foreign partnerships. Most of Kenya’s thriving startups have flourished by combining local insights with international capital and networks. Restricting foreign ownership could deter investment, limit collaboration, and slow the cross-pollination of ideas that have driven Kenya’s reputation as an innovation hub. Kenya could consider a flexible approach that offers tiered R&D investment targets based on companies’ sizes or stages, and allow for partial foreign ownership. Regulating an evolving sector is a tough balancing act. It requires care; otherwise, you could risk losing long years’ worth of work in a moment. CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $101,945 – 3.52% + 7.95% Ether $3,204 – 3.85% – 6.20%
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