- September 12 2023
Exclusive: How $1 million monthly burn rate forced Sendy to consider a firesale
Reduced order volumes and fuel price hikes meant Sendy was making deliveries at a loss, with a reported monthly burn rate of $1 million. Sendy, the end-to-end fulfillment platform, which shut down operations last month and is now seeking a buyer, was reportedly burning up to $1 million monthly at the height of its operations, a source familiar with the matter told TechCabal. Despite raising $20 million in January 2020 in a funding round led by Atlantica Ventures, Sendy began seeking buyers in August as costs continued to climb. One source told TechCabal that costs rose due to factors like iterative fuel price hikes from 2022 and the August 2022 Kenyan elections that had many people apprehensive. “Most manufacturers scaled down production,” the source said, asking not to be named as they’re not approved to speak on the issue. “It meant reduced volume for Sendy as they continued transporting at higher fuel costs.” Because the logistics industry relies on economies of scale, small volumes present challenges, including higher costs and longer delivery times. As Sendy continued making deliveries at a loss, it was banking on a market correction and order volumes to return to normal. “In situations like this, breaking even becomes a challenge, and you need funding to keep going,” the source explained. However, the fundraising environment worsened, forcing the company to lay off staff to extend its runway. One source described a company that was running on fumes. In July 2022, it cut its workforce by 10% and made deeper cuts in October 2022 before exiting its Nigerian business later in February 2023. While sources close to the situation said Sendy has outstanding obligations, TechCabal could not independently verify the amount involved. But those obligations, which may have to be absorbed by the buyer, are a crucial reason why a sale has been complicated. One publication reported that three buyers were in talks to buy Sendy. The startup has two products: Sendy Transport and Sendy Fulfillment. With Sendy Transport, businesses can find motorbikes and vans for transportation. Through Sendy Fulfillment, manufacturers were offered comprehensive services like pick, pack, ship, and warehousing. One source said the acquiring companies are primarily interested in Sendy’s proprietary technology. “Sendy has built great software to hail and track transport vehicles,” a source familiar with the talks told TechCabal. “The acquiring company can use the software to start a similar service that Sendy was running or use the software to run its fleet.” Wasoko, one of the companies reportedly in talks to buy, told TechCabal via email, “We cannot comment specifically regarding Sendy at this time; however, Wasoko continues to explore strategic opportunities to expand its capabilities across Africa.” Sabi, another company linked with the transaction, also declined to comment. Mesh Alloys, Sendy’s CEO, declined to comment on possible buyers in August but told TechCabal he expected a deal to be closed in two weeks. After the two-week period, Alloys did not respond to calls and messages from this publication. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- September 12 2023
Happy mothers in Kenya have LUCY to thank
This story was contributed to TechCabal by Lucy Githugo via bird story agency A pregnancy and newborn health app that was first launched in South America is helping Kenyan women experience positive outcomes for themselves and their babies. Deep in the hills of Kajiado, Kisii, and Migori counties in western Kenya, expectant mothers are rewriting the narratives of their pregnancy experiences. And they have LUCY to thank. On the morning of August 12 2023, in Kenya’s bustling border town of Namanga in Kajiado County, 27-year-old Ann Warenga delivered a newborn baby girl. To her joy, baby Ann, whom she named after herself, was born healthy and weighed 3.7 kilograms. Just a few kilometres away, 31-year-old Rebecca Nduta, three months pregnant, was excited about her pregnancy. The two mothers have markedly different testaments compared to their previous pregnancies. Warenga, a mother of two boys, acknowledged that all three of her pregnancies were unique but hastened to add that the latest was the smoothest and most relaxed—thanks to LUCY. “The knowledge I have gained through this app is something I genuinely never encountered during my pregnancies with my sons. LUCY has been so beneficial that I have not felt the need to visit the clinic even when I had moments of pregnancy anxiety,” Warenga shared. Nduta, who has one child, echoes similar sentiments with an emphasis on her improved pregnancy journey in her second pregnancy despite bad morning sickness. “The biggest challenge in my first trimester is the morning sickness. However, unlike my first pregnancy, right now I can overcome bad days faster and more effectively because LUCY gives me tips on how to tackle them,” Nduta disclosed. Not only for Warenga but for other expectant mothers in these rural areas, LUCY has emerged as an unexpected and invaluable companion during the most critical times, providing comfort, guidance and a supportive community for women on similar journeys but who often live deep in the countryside and are physically isolated. LUCY was launched in the area in April 2023, through a collaboration between Kenya-based Amref International University, and Health(e) Foundation, a global health e-learning platform which developed the app through a collaboration between the governments of the Netherlands and Suriname. Through a project dubbed “Tekeleza”, LUCY improves access to medical information and care for women in the area through an evidence-based digital solution. The app adheres to international guidelines and the national immunisation schedule, while being culturally sensitive to the needs of Kenyan women, communicating with them in their own language. Warenga and Nduta are just two of the expectant women in these three counties who have benefited from Tekelaza, which sees community health promoters trained by Amref International University conducting door-to-door household visits, organising gatherings, showcasing the app’s capabilities and highlighting its potential to transform the lives of expectant mothers in rural areas of Kenya. Abdiah Salah, a community health promoter in Namanga, said the response from expectant women had been overwhelmingly positive. “The community and women appreciate the reliable resource that guides (them) through pregnancy. The women also connect with a supportive community and as a result, we are seeing a more informed and engaged community of expectant mothers,” Salah said. Kajiado Community Health Assistant Officer Suzanne Marima, who doubles up as the head of health promoters in Kenya, expressed her enthusiasm about the project’s potential to revolutionise maternal and child healthcare. “This is a good project for the growth of the community. In the few months that we have been in the field educating women, we have noted a tremendous uptake of the use of the application. We ensure that when a woman has her first antenatal visit to the clinic, we sign her up on LUCY immediately,” Marima explained. To get started on LUCY, expectant women just tap their details into their smartphones. Thereafter, they interact with the navigation process of the app which includes health information, clinic visits calendar, mood tracker, and profile tabs. The information obtained from the app is based on the gestational age or the age of the newborn. After keying in the first day of her last menstrual period, LUCY automatically calculates a mother’s expected delivery date and provides daily information, through notifications, specific to her pregnancy. Tekeleza Project Manager, Priscilla Ngunju, said that at least 250 women in the area had already signed up and as sensitisation continues, the numbers are expected to go higher. “It was important to integrate the app to ensure that mothers were receiving credible information while at home. Currently, collection of data of user experience is ongoing and this will advise on the development of additional features in the next six months,” Ngunju noted. The Tekeleza project has also incorporated another mobile application known as Mjali. Community Health Promoters use Mjali to enrol mothers in “Linda Mama,” a free health insurance program covered by the Kenyan government to provide ante-natal, childbirth, and postnatal care for ease of monitoring of health outcomes. At the 2023 World Health Assembly in Geneva, Switzerland, Kenya was recognized for its exceptional performance in reproductive, maternal, newborn, child, and adolescent health. According to the 2022 Kenya Demographic Health survey, childhood deaths have been on a steady decline in the past ten years, with under-five deaths also seeing substantial reductions. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- September 12 2023
Next Wave: Africa is years away from adopting eco-friendly transportation
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner First published 10 September 2023 Legislators and electric vehicle (EV) manufacturers often do not disclose their motivations for promoting the climate change agenda in a continent that could face additional environmental problems should EVs be adopted at scale. Last week, the Africa Climate Summit was held in Nairobi, Kenya. The conference was attended by key delegates from African countries, international organisations, and the private sector. The summit was a significant event for Africa, as it was the first time African leaders had come together to discuss climate change on a continent-wide scale. It also served as a platform for multiple electric vehicle (EV) companies—including BasiGo, which serves Nairobi with 20 electric buses for public transport—to showcase their products. The argument is that vehicles powered by fossil fuels are bad for the environment, and there is a need to shift focus to EVs as they do not use an internal combustion engine (ICE). This makes EVs a clean and eco-friendly alternative to vehicles powered by petrol or diesel. But is that the case? Chart by TC Insights EVs are often seen as a solution to climate change but are not without problems. They still rely on a consumerist and car-based approach to transportation, which is not sustainable in the long run. Besides, producing electric cars can harm the environment, and EVs do not address the root causes of climate change. Carbon emissions from transport in Africa Africa has about 72 million vehicles, but only seven of its 54 countries are responsible for most of the greenhouse gas emissions from transportation. The emissions are growing at an alarming rate of 7% per year. This is due to poor fuel quality, old vehicles, and the lack of mandatory emission tests. More than half of African countries have quality worse than European fuel quality from 30 years ago. Assuming we don’t effectively tackle climate change and the air pollution generated by ICE vehicles, we’re facing some major issues: a widespread decline in animal and plant species, a surge in natural disasters, severe air pollution, depletion of water resources, and many other challenges. Given the substantial emissions coming from road vehicles, it’s clear that we must cut the dependence on diesel-powered engine vehicles. The solution often debated is the choice between electric vehicles and ICEs, but EVs alone might not provide a solution, given that they lack range. Partner Content: A tech group is empowering deaf kids in northern Nigeria And this is the primary problem… The major issue with electric cars is carbon lock-in. This occurs when notable investments are made in resources such as power plants or EVs, creating incentives to keep using them. Companies and governments are reluctant to switch to better solutions because of the hefty capital investments and associated opportunities. This puzzle extends to EV companies, who may not prioritise the most effective climate crisis solutions. Afterwards, moving away from temporary fixes like mass electric car retrofits is challenging. It is better to think beyond these partial measures to address the climate crisis. Instead of investing in massive electric car investments, Africa could allocate resources more effectively, such as building mass transit and promoting sustainable construction practices that enhance walkability and micro-mobility options. Breaking free from a vehicle-centric system is the real transformative thinking needed. Partner Message Unlock new opportunities for your business with Vesicash! With our secure, all-in-one and cost effective payment insfrastructure, you can seamlessly expand into emerging markets. Reach out to our dedicated team at info@vesicash.com Click here to learn more More problems exist Electric vehicles offer several advantages, such as being safe to operate indoors and having a greener footprint. However, they face three significant challenges. First, battery technology lags due to a historical setback in development. Lithium-ion batteries, common in electric cars, have limited energy density and pose safety risks in case of fires. Their production isn’t environmentally friendly, too, needing recycling to prevent pollution. Second, the African electrical power infrastructure lacks headroom, often relying on outdated and polluting energy sources. Electric vehicles draw substantial power, mostly during non-renewable energy peak periods, compromising their environmental benefits. Third, insufficient neighbourhood electrical capacity discourages the widespread use of electric vehicles, leading to business operational challenges. Consider the situation in South Africa, Africa’s most industrialised economy. This year, the country has experienced frequent power outages lasting 10 hours daily. At the start of the year, even though only half of the population is connected to the electrical grid, many neighbourhoods could only support their power needs for a maximum of six hours per day. Is this the same infrastructure that is set to sustain EVs for transportation? Commuters need to question the real reason for EVs push Legislators often avoid discussing that electric vehicles cannot fully address the environmental issues associated with transportation. On the other hand, EV manufacturers are eager to promote electric cars as a solution, advocating for tax credits and incentives to encourage their adoption, which translates to more sales. But the reality is that electric vehicles can functionally not resolve carbon emission problems quickly and gainfully. Besides, focusing on electric buses and cars as a primary mode of transportation is highly inefficient in terms of urban space, which is another vital aspect of the climate change problem. Partner Message In an increasingly interconnected world, the significance of identity cannot be overstated; it is a fundamental aspect for both developed and developing economies. To understand the intersection between digital identity and economic development, join us on Friday, September 15th, at 11 AM (WAT) for the 8th edition of Inside Identity. Register here to join the event To make electric vehicles truly eco-friendly, Africa needs advancements in solid-state batteries, increased green energy sources like nuclear or geothermal, and the expansion of micro-grid technologies. These features and technologies are crucial for alleviating the issues associated with climate change, but full implementation may take time. That’s not all: Africa needs a robust grid capable
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- September 12 2023
Vodacom to compete with Elon Musk’s Starlink
This article was contributed to TechCabal by Conrad Onyango via bird story agency. Vodacom Group is readying to introduce mobile satellite internet terminals—a service that would put the telco in direct competition with Starlink in a race to connect tens of millions of unserved and underserved mobile customers across Africa. The hope of getting hundreds of millions of users connected to high-speed mobile broadband in Africa’s remote and rural locations is inching closer, as competition in the satellite internet market intensifies. Vodacom recently entered into a space previously reserved for Elon Musk’s SpaceX-owned satellite internet provider, Starlink, through a partnership with tech giant, Amazon, according to South African online tech platform, Ventureburn. The move would allow Vodacom to extend 4G and 5G services in Africa via satellite. According to the tech platform, the partnership expands the South Africa-based telco portfolio to include serving individuals, residential places and businesses via customer terminals. This puts it in direct competition with Starlink, across a major section of its African footprint. Vodacom will leverage on Amazon’s constellation of 3,236 satellites in low earth orbit (LEO) to connect cellular antennas in “geographically dispersed locations” to its core telecom networks, under Amazon’s initiative, Project Kuiper. The South African-based telco said the partnership gives it the ability to offer 4G/5G services in more locations without the time and expense of building out fibre-based or fixed wireless links back to the core networks—shifting the war into a race for customer numbers. “Collaborating with Project Kuiper gives us an exciting new path to scale our efforts, using Amazon’s satellite constellation to quickly reach more customers across the African continent,” said Vodacom Group Chief Executive Officer, Shameel Joosub in a joint statement. Barely three months ago, Vodacom through its parent company Vodafone, disclosed plans for a direct-to-smartphone satellite service that connects mobile phones to a data service without a modem, in a partnership with Texas-based AST SpaceMobile. Starlink is also planning to venture into this space, having planned tests with T-Mobile in the US, and it is still unclear when or if the service will be expanded to Africa. GSMA’s State of Mobile Internet Connectivity 2022 shows the mobile coverage gap (areas not covered or connected) has reduced by more than 50% to 190 million people and usage (covered but not connected) by 14% to 680 million people over the last five years. Mobile broadband investments have helped the region improve its network quality, with the biggest improvement seen in narrowing of the gap between 3G and 4G coverage from 45% in 2017 to 25% in 2021. Despite these developments, Africa’s coverage gaps remain the largest in the world according to GSMA, due to slow growth in internet speeds and high cost of data, especially in the Sahara region. “Network quality continues to improve, but download speeds are yet to exceed 10Mbps … Sub-Saharan Africa is the only region where the cost of 1GB of data as a percentage of monthly GDP per capita exceeds 2%,” said GSMA in the report. The widest coverage gaps are in Central Africa, where 39% of the region’s population lives outside a mobile broadband coverage area, followed by West Africa (16%), East Africa (13%) and Southern Africa (12%). In March 2023, Amazon unveiled a set of satellite receivers under Project Kuiper, targeting tens of millions of customers with customer terminals that will cost less than US$500. Amazon’s smallest portable satellite terminal, offering speeds of up to 100Mbps, will be sold for US $100, while its standard customer terminal will go for less than US$400. Vodafone, Vodacom, and Project Kuiper have also announced exploring a provision for backup services in case of unexpected events as well as connectivity expansion for remote infrastructure, as they prepare to test two prototype satellites with select customers by the end of 2024. Vodacom operates in South Africa, Egypt, the Democratic Republic of Congo, Tanzania, Mozambique, Ethiopia and Sierra Leone, with more than 185 million customers. Starlink, with 1.5 million subscribers, offers—through its Roam and Residential subscriptions—a more expensive service, starting at US$600. The company’s satellite internet is available in Kenya, Nigeria, Rwanda and Mozambique. By year-end, the company is eyeing Chad, Mauritania, Angola, Namibia and Somalia. It is yet to get a licence to operate in South Africa. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More- September 12 2023
After completing a $5m debt raise, Lipa Later plans to raise $20m more
Kenyan fintech Lipa Later has secured $5 million in private debt issuance, but the company still wants to raise $20 million for expansion plans. Kenyan fintech firm Lipa Later Group has raised KES 500 million ($5 million) in a privately placed debt issuance. The startup will raise an additional KES 2 billion ($20 million) in equity and debt to fund its expansion plans in Kenya. It is currently crowdfunding $1.2 million in exchange for equity at a valuation of $30,000,000. The five-year-old company is trying to raise $25 million, the same figure it previously raised in equity and debt from investors like Founders Factory Africa Platform Capital and others. But it is doing so at a time when VC appetite for growth and late-stage startups is lower than it has ever been. Lipa Later declined to share specific information on its $5 million debt issuance. The details of the individuals who have contributed to its ongoing $1.34 million crowdfund are easily found on the crowdfunding platform Republic. In a press release seen by TechCabal, Eric Muli, the CEO and founder, said the funding, obtained from a diverse group of investors, will “enable us to enhance the infrastructure, making our financing solutions even more accessible and convenient for our customers”. Despite the discouraging VC funding scene, the five-year-old company is very optimistic about its future. “With the support of our stakeholders and investors, we are confident that we can achieve our goal of making financing more accessible and inclusive for all,” Muli said.
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- September 12 2023
TechCabal Daily-FTSE downgrades Nigeria
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning So many people are worried that AI is creating more problems than it can solve. Yesterday, Google, an investor in Open AI competitor—Anthropic—pledged $20 million for researchers and academic institutions to work together and ensure that AI is used for more good things than bad. In today’s edition FTSE downgrades Nigeria to unclassified market Flutterwave to digitise foreign exchange in Nigeria Mtn Momo downtime frustrates subscribers. Africa’s cybersecurity crisis The World Wide Web3 Event: Moonshot Conference Opportunities Economy Nigeria demoted to unclassified market status Down down the Naira. The Financial Times Stock Exchange (FTSE) has reclassified Nigeria from frontier market status to unclassified market status. The FTSE classifies countries based on different criteria including the size and liquidity of the stock market, the stability of the country’s political and economic environment, and the accessibility of the market to foreign investors. Gif source: Tenor What it means for Nigeria: Nigeria’s demotion to unclassified market status was due to persistent foreign exchange shortages in the country. The loss of frontier market status could stir more despair for investors. Nigeria relies on the export of crude oil for its foreign exchange earnings, however, this is not enough. Nigeria currently has a backlog of $10 billion unmet dollar demand from investors. In August the Naira plunged against the dollar to an all-time low trading at N950.00 per $1. The Nigeria government made several plans to get the Naira back on track including floating the naira and a publicised $3 billion AFREXIM loan to clear the FX backlog, all without yielding tangible results. Zoom out: Nigeria’s demotion could be upturned in the coming days as the FTSE says it will continue to monitor the country’s market and that once the FX backlog is cleared it will reexamine the country’s status. Last week, the country’s apex bank declared a plan to clear the country’s FX backlog in two weeks. The CBN also launched Swap, poised to be the silver bullet to Nigeria’s foreign exchange market market problems. By digitising the foreign exchange market both the shortage of FX cash and the lack of collaboration between participating institutions is resolved. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. Fintech Flutterwave to digitise foreign exchange in Nigeria Image source: Flutterwave Flutterwave wants to make currency swapping a breeze in Nigeria. The Nigerian fintech company has launched Swap, a new product that aims to make the process of buying and selling foreign currency more seamless. The traditional way of buying and selling foreign currency in Nigeria is through Bureau de Changes (BDCs), but that has been very inefficient due to the scarcity of forex and skyrocketing exchange fees. It takes a village: Flutterwave is doing thiscollaboration with Wema Bank (a commercial bank), and Kadavra BDC (a bureau de change), with support from the Central Bank of Nigeria (CBN). How will it work? Nigerians will be able to buy and sell foreign currency online through Flutterwave’s web app. Currently, the product is only available to registered Nigerian users and only supports dollars, euros, and pounds. To use Swap, users must verify their identity and submit documentation online. This includes their bank verification number, a selfie, the reason they need FX, and supporting documentation. Once approved, users can input their account numbers and receive the money instantly. Swap will also be available for other banks via an Application Programming Interface (API). That is not all: Starting in October, Flutterwave will provide cards for Nigerians who need quick access to their Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Zoom out: The launch of Swap comes a week after the CBN acting governor mentioned that the central bank would resolve all foreign exchange (FX) backlog issues within two weeks. Boost your startup growth Boost Your Startup Growth with Verified.Africa x GDG Lagos! Get up to $5,000 in free credits for real-time ID verification and seamless customer onboarding. Join our accelerator program, powered by Africa’s leading KYC provider, Verified.africa. Gain access to top-notch mentorship and a vibrant tech community at GDG Lagos, where developers, designers, and tech enthusiasts connect. Don’t miss out – Learn more now!” Fintech MTN MoMo Rwanda experiences downtime Gif Source:Tenor MoMo users in Rwanda experience hassles. On Sunday, September 10, MTN Rwanda sent out SMS to MoMo users in Rwanda indicating that its mobile money service would be off from 1am to 5am on Monday morning. Why? The disruption in service was due to a routine maintenance carried out by the telco. However, MTN MoMo service was yet to be restored several hours after the scheduled maintenance time. Who were affected? This affected several of its nearly 7 million subscribers who rely on MTN MoMo for day-to-day business transactions and payment of bills. A way out? MTN in an early tweet said its team of technicians are working hard to fully restore the service. By 3:37pm CAT, MTN tweeted that it had fully restored MoMo service in the country. Zoom out: The recent service disruption by MTN MoMo highlights the growing reliance of businesses and individuals on mobile money services like MTN MoMo for their daily transactions. It also sheds light on the challenges telecom companies face in maintaining seamless services for millions of subscribers in today’s digital economy. Cybersecurity Africa’s cybersecurity crisis Africa’s growing digital economy depends on digital tools like bank apps, e-commerce apps, and streaming platforms. However, this shift from physical to virtual comes with significant risks, including a rise in cybercrime. In 2022, internet users in Africa grew by 8.4%, reaching 570 million, yet cyber attacks have also increased. According to the African Union, cybercrime has been on the rise in Africa, particularly in financial fraud and identity theft. A recent report by Checkpoint revealed that organisations
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- September 11 2023
Your next keke might be electric; here’s the company making it happen
Qore, a company backed by Sterling bank, promotes eco-friendly transportation in Nigeria by converting gas-powered vehicles to electric vehicles. Nigeria’s transport sector is the biggest contributor to greenhouse gas emissions. But Qore, a renewable energy mobility company backed by Sterling Bank, wants to reduce emissions by converting light electric vehicles—motorcycles, tricycles and minibusses—to electric vehicles. These light EVs can go up to 60 km on a single charge. “It just requires us to remove existing oil guts and then basically replace them with the batteries and electric motors,” said Akin Akingbogun, head of the Mobility team at Qore. In Nigeria, motorcycles, tricycles and mini-buses are mainly used for passenger transport and deliveries. Qore recently launched a self-serve public charging station in Lagos. It provides battery swaps for its light EVs; users can exchange their depleted batteries for pre-charged ones at Qore stations and pay for recharging and using the battery. Light EVs can go up to 60 km on a single charge. Image source: Qore Mobility Qore is testing prototypes and will deploy 100 tricycles in Kano next month. “We’ve been trying to look at all the basic physical indices, like the range, the temperature and other relevant information,” Akingbogun told TechCabal. While electric vehicles are cheaper to maintain than gas-powered cars, conversion is expensive. Olabanjo Alimi, Group Head for Renewable Energy and Transportation at Sterling Bank, couldn’t share cost estimates for these conversions. “Giving a number for the price of converting each vehicle will be misleading.” Qore’s approach is to focus on a group of clients rather than individual clients. “The more of those numbers we have, the better it is for us to blend the numbers and have more reasonable costs. ” Alimi said. Tricycles and minibuses are easily converted to electric vehicles, according to Qore’s head of mobility. Image source: Qore Mobility Charging stations need electricity, and in a country where the electricity supply is unreliable, Qore’s workaround involves using a mix of renewable energy and grid electricity supply. “We have conversations with the [electricity] distribution companies that allow us to buy a volume of electricity as a primary source, and then we use renewable energy as a backup as much as possible,” he said. Qore recently launched a new electric vehicle (EV) charging station in Lagos. The facility can refuel two electric vehicles at a time. Image source: Qore Mobility Qore’s Financing Model While the electric vehicle market on the continent is estimated to reach $21.4 billion in value by 2027, short-term progress is slow. For companies like Qore, it’s all about playing the long game. “Anyone coming into the EV market right now knows it’s not something that you begin to make money off in the very early days.” Qore currently makes money from converting Internal Combustion Engines to EVs alongside revenue from users paying to recharge their batteries. Qore currently finances two-wheelers and three-wheelers for public transport has plans to add cars and public buses into its operations. “We can finance across the entire market segments. Going up all the way to the private users or the mass transit buses is a bit tricky because the amount of energy required to apply those buses is massive”.
Read More- September 11 2023
Interswitch announces support for Google Pay on its payment gateway
Interswitch introduces Google Pay support via its Interswitch Payment Gateway (IPG), allowing users to add cards and access global transactions. Payments company Interswitch has launched support for Google Pay on its payment gateway—the Interswitch Payment Gateway (IPG). Merchants and users in Nigeria can now add their debit and credit card details to the Google Wallet app to make online payments. Users can also pay with international cards or create virtual cards for payment at the checkout. In a press release published by the company, Muyiwa Asagba, Managing Director, Digital Commerce & Merchant Acquiring at Interswitch, said, “We are proud to align with Google Pay, as it exemplifies our commitment to delivering cutting-edge payment solutions that facilitate seamless transactions for businesses and their customers. By integrating Google Pay into our Payment Gateway, we are empowering businesses to harness the potential of a global customer base while ensuring secure and reliable payments.” The company also says that aside from the tokenisation which guards against fraud, the Google Wallet integration also has a “Find my device” function with which users can secure their financial information in the event of a lost or misplaced device. According to Jenny Cheng, Vice President and General Manager of Google Wallet, this service is available to users in over 70 countries and territories, enabling payments through their Android phones or Wear OS devices. “Users can simply add their debit and credit cards to the Google Wallet app and feel confident that their financial information is safe and secure when they’re making a purchase or catching a train,” she said. This comes nearly a year after Nigeria-based fintech Flutterwave integrated the digital wallet for both merchants and businesses to make payments across Africa. Tanzanian fintech startup Nala also integrated it into its suite of payment options in the same year, enabling payments from the US and UK into Africa.
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- September 11 2023
Unity Bank bucks banking trend, reports ₦38bn in losses for H1 2023
Unlike its banking peers, Unity Bank’s profits declined by N38 billion in H1 2023. Unity Bank recorded losses of ₦38.8 billion during the first half of 2023, down from a profit of ₦1.6 billion in H1 2022. A large part of those losses— ₦35.4 billion–were due to foreign exchange revaluation, according to its H1 2023 financials. Unity Bank’s financial performance contrasts its counterparts, Guaranty Trust Holding Company (GTCO), First Bank, Fidelity Bank and Stanbic IBTC, whose profits doubled in the same period. “We have a high foreign currency exposure. While other banks have foreign assets, we have foreign loans that would now require more naira to pay back given the Naira devaluation,” a source at the bank told TechCabal. CEO of Unity Bank Plc, Mrs. Tomi Somefun, blamed the bank’s poor financial position on the operating environment, which impacted the bank’s growth. “What we have is a market-driven impact which is adjustable envisaged from the positive economic outcomes of the government policies in the near term,” Somefun said in a statement the bank shared with TechCabal via email. Unity Bank’s financial position has been precarious since analysts from KPMG queried its full-year ended December 31, 2022. The lender’s total liabilities exceeded its total assets by ₦274.9 billion last year, and KPMG wrote a note regarding this situation in its books, highlighting it as a “growing concern.” While the bank managed to record ₦1.04 billion profit in the first quarter of 2023, its total liabilities continued to surpass its total assets in Q1 2023, sustaining the questions over its financial health. Plans to reach profitability Somefun said the bank plans to complete its recapitalization. Presently, the lender has shifted its focus to retail growth as it eyes profitability in the near term. The bank hopes to achieve that by expanding strategic partnerships and growing commercial banking business to develop new and sustainable income lines. For 2023, Unity Bank is projecting ₦135 million in profit and gross earnings of ₦20 billion. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- September 11 2023
Breaking: Backed by CBN, Flutterwave’s new product Swap wants to solve Nigeria’s FX problems
Backed by the Central Bank of Nigeria (CBN), Flutterwave has launched Swap, an attempt to digitise the Nigerian foreign exchange (FX) market, in partnership with Wema Bank, the 10th biggest Nigerian bank by assets, and Kadavra BDC. Flutterwave has launched Swap, a new product that will digitise the process of getting foreign exchange for Nigerians with the backing of the CBN. The fintech is leveraging a partnership with Wema Bank, a commercial bank, and Kadavra BDC, a bureau de change (BDC), to provide liquidity and foreign exchange for the product. Mr Folashodun Shonubi, the acting governor of the CBN, told reporters at a press conference last week that Swap could solve two major problems facing Nigeria’s foreign exchange market: the lack of collaboration between institutions and the dependence on cash. “No new licenses were issued, and we believe (Swap) will help moderate the rates for the BDCs and at the same time differentiate BDCs from black market transactions,” Shonubi said. Flutterwave will leverage its International Money Transfer Operator license from the CBN to bring in the foreign currency, Kadavra will use its BDC license to sell it, and Wema Bank will support the entire process. Shonubi added that BDCs that refuse to go digital would be phased out of the system as the CBN tries to make the FX market cashless. “This helps us to differentiate between what is a regulated market, which is a BDC, as opposed to the ones which the central bank does not regulate.” He shared that the apex bank would monitor all transactions on Swap and unregulated foreign transactions would stop “because of what we’re doing here today.” The launch of Swap comes a week after the CBN acting governor said the apex bank would clear all FX backlogs within two weeks. While previous attempts to clear the backlog, such as a publicised $3billion AFREXIM loan, have not yielded any results, CBN is keeping its new plans to clear years’ worth of FX backlog close to its chest. A failure to clear these backlogs will keep significant demand flowing to the parallel market and limit the CBN’s ability to offer price stability. Flutterwave partners with IndusInd Bank to expand its remittance product into India “We understand the FX access challenges individuals and businesses face. Swap is our answer to those pain points, providing a seamless and efficient platform for currency exchange,” said Olugbenga Agboola, the CEO and co-founder of Flutterwave. Swap is only available on Flutterwave’s web app and for registered Nigerian users. Users can only access dollars, euros, and pounds with the product. Flutterwave will also issue cards from October for Nigerians who require swift access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Users must pass multiple identity verification phases and submit documentation online before accessing Swap. They would have to submit their bank verification number, a selfie, the reason they want to get FX, and documentation to support their reason. After submitting all the required information, users can input the account numbers they want the money deposited into and get it instantly. Swap will also be available via API for banks. Despite legal issues, Flutterwave moves closer to securing Kenyan operating licence Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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