- September 29 2023
TechCabal Daily – Orange’s new ship
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy Friday! Moonshot is introducing TechCabal Battlefield, a 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 ($3,200) in funding for your business! Experience innovation, connect with investors, and seize global recognition. Get your ticket to Moonshot and register your business for the startup competition now. Register for TC Battlefield. If you haven’t, get your ticket to Moonshot now. In today’s edition Orange’s new vessel for undersea repairs Enza Capital’s new $54 million programme Auto24 expands into four African countries TC Insights: Funding Tracker The World Wide Web3 Job openings Internet Orange SA launches new vessel for undersea internet cable repairs The Sophie Germain. Image source: Orange French telecom giant Orange SA has unveiled its latest vessel to help maintain global internet connectivity. The telecom company launched a €50 million ($53 million) vessel, the Sophie Germain, to repair undersea internet cables across the Mediterranean, Red, and Black Seas. Rapid response capability: The 100-metre-long ship can be dispatched within 24 hours of a cable fault report, and is equipped with an underwater robot that can dive down 3,000 metres to locate damaged cables, and swiftly retrieve, repair, and reposition them, which takes around three days. Furthermore, the ship is slated to conduct approximately one repair mission each month, catering to clients including Meta Platforms Inc., Telecom Italia Spa, and China Telecom Corp. It will help maintain the 70,000 km (43,000 miles) of cable that allows internet traffic to flow between Europe, Africa and Asia. Orange Marine, a subsidiary of Orange SA, with a track record in repairing undersea internet cables, possesses seven of the 50 or so cable ships scattered across the globe. Located in La Seyne-Sur-Mer, South of France, it is positioned between China, the United States, and Africa, while maintaining proximity to crucial internet cable landing points like Marseille, Genoa, and Barcelona. Zoom out: Cable damage is most often caused by fishing activity, although sometimes earthquakes and rockfalls are to blame. In August, two undersea cables that connect South Africa to the global network broke due to a rockfall in the Congo Canyon. 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. Funding Enza Capital’s new $58 million programme Enza Capital Team. Image Source: TechCrunch Kenyan-based venture firm, Enza Capital, has raised $58 million to support startups on the continent. The VC company, which invests from first cheque, at the pre-seed level to Series B started in 2019, with an aim to back “category-defining” tech companies across fintech, logistics, health, human capital, and climate verticals on the continent. Enza Capital has made 48 investments in 31 companies across the continent. The Nairobi-based firm also invested in Guidewheel, a Kenyan climate tech startup from its pilot phase. Enza Capital was also the first cheque investor in Autochek, SeamlessHR, Money 254, and Earthacre. An ownership twist? The VC firm is kickstarting a new shared ownership model that allows startup founders the ability to own part of the firm. Enza capital has allocated 10% of its carry pool to founders. Enza Capital wants to use the shared ownership to foster collaboration and alignment with the startup founders, Mike Mompi, managing partner of the VC firm told TechCrunch in an interview. According to him, the move increases the likelihood of success across all stakeholders in the venture capital structure. Zoom out: Enza Capital’s founder partner programme is the latest of different VC firms that are raising capital and raising the hopes of startups seeking funds in what seems to be a funding winter. Mobility Ivorian startup, Auto24, expands into four African countries Image source: TechCabal Auto24, the Ivorian used car marketplace, has expanded its presence into four new marketplaces. The startup expanded into Morocco, Rwanda, Senegal, and South Africa simultaneously, a year after it launched in Côte d’Ivoire. A strategic expansion: Per the CEO, Axel Peyriere, South Africa and Morocco were chosen due to their status as the two largest car markets on the continent. The expansion into Rwanda, on the other hand, serves as an entry point into East Africa, and a promising market for electric cars, aligning with Rwanda’s eco-friendly policies. Lastly, Senegal was chosen due to its similarities with Ivory Coast, offering a natural fit for Auto24’s expansion plans. The expansion into these new markets was made possible by careful planning and preparation, initiated months before the official launch, Peyriere stated. Additionally, customers in the newly added countries can access the platform in both international and local languages, allowing them to reserve and secure their desired vehicles before test-driving and finalising their purchases. Zoom out: According to Peyriere, Auto24 has had a successful year, assisting “thousands of customers” in purchasing cars without any warranty-related issues. He emphasised that their business model is notably virtuous, as their pre-owned vehicles offer greater affordability compared to new ones, aligning perfectly with the principles of a circular economy. TC Insights Funding Tracker Image source: TC Insights This week, South Africa’s Revio, a payment platform, announced a seed investment round of $5.2 million. The funding round was led by fintech fund QED Investors, joined by Partech, and continued participation from Revio’s existing investors— Speedinvest, RaliCap, and Everywhere VC. Here are other deals for the week: Root Platform, a South African insurtech startup raised $1.5 million in funding in a round led by Invenfin, the venture and growth capital arm of Remgro. That’s it for this week! Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $27,124 + 3.49% + 4.30% Ether $1,657 + 4.03% + 0.67%
Read More
- September 28 2023
Ivorian startup, Auto24, expands into four African countries simultaneously
Auto24, an Ivorian used car marketplace, has expanded into Morocco, Rwanda, Senegal, and South Africa, a year after it launched. Auto24, a used car marketplace, has expanded into four new African markets: Morocco, Rwanda, Senegal, and South Africa. This expansion comes exactly a year after the startup launched in Abidjan, Côte d’Ivoire to sell “reconditioned used cars” with several add-on services like a five-day refund policy, a six-month warranty, one-year maintenance, and one-year insurance plans for all vehicles. Axel Peyriere, the CEO and co-founder of Auto24, told TechCabal via text that the startup was expanding to build on a “bullish” year and chose Morroco and South Africa because they are the two biggest car markets on the continent. “In terms of new car sales yearly, South Africa is about 450,000 per year, Morocco about 180,000. Côte d’Ivoire for example is about 20,000 and Nigeria only 5,000. Even if we are in the used car space, it is a good indicator,” he said. He added that the startup chose Rwanda as an “entry gate” into East Africa and a market to sell electric cars because of its green policy. The expansion into Senegal was because of its similarity with Ivory Coast. Cars per 1000 people. Source: International Organisation of Motor Vehicle Manufacturers (OICA) Auto24’s expansion into Senegal comes a month after Chargel, a Senegalese logistics company, expanded into Côte d’Ivoire. As Peyriere mentioned, Moustapha Ndoye, the CEO of Chargel, also told TechCabal that the expansion was because of similar dynamics between the two countries. This further lends credence to the ease of cross-border expansion that similar currencies, languages, and cultures in francophone Africa lend to its tech ecosystem. Although he declined to share numbers, Peyriere told TechCabal that Auto24 has performed well in the past year and has “helped thousands of customers” to buy cars with no warranty return. “Our business model is very virtuous in the sense that first, our cars, as being used, are more affordable than new ones, and it is a real circular economy,” he added. When asked how Auto24 was able to launch in four countries simultaneously, Peyriere told TechCabal that he had started the expansion process months before and that he was already preparing to launch in more countries. “[We expand] to grow faster and accelerate growth,” he said. Customers can access different financing options on Auto24 as a result of the partnerships that the startup currently has with other companies. The websites for the newly added countries will be available in both international and local languages and will allow customers to reserve and secure their desired car before test-driving and finalising the purchase. “Our obsession is to be customer-centric,” Peyriere. “Our goal is not only to be the best in the market but to ensure we deliver unparalleled services for every used car buyer and seller. This expansion is a testament to our dedication.” Stellantis and Africar partner to launch Auto24, a used car marketplace Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- September 28 2023
This Nigerian startup wants to build your dream PC
Workstations is a Nigerian startup building custom PCs for users like gamers, animators and video editors in Nigeria. In 2015, Emmanuel Osho started repairing his friend’s devices in school. Being in a private school that didn’t allow students to leave whenever they wanted, he identified a market and soon, alongside some of his friends, started Tinc. In the beginning, Tinc just focused on providing IT support for students, and eventually other individuals and companies. In the six years since they started, the company has evolved from just providing IT support to building custom PCs for clients and customers. Custom PCs are specially built for users who have specific needs that a general-purpose PC cannot meet. With custom PCs, users can select the different hardware that makes up their PC, optimising for the specifications or parts that matter more to them. For example, a data scientist might invest in more RAM storage, while an animator will focus more on the Graphic processing unit (GPU). Each PC usually costs nothing less than $1300 because of the specific parts. According to a forecast study, The Africa Gaming Market size is estimated at USD 1.92 billion in 2023, and is expected to reach USD 3.33 billion by 2028, growing at a CAGR of 11.62% during the forecast period (2023-2028). There’s clearly a demand for custom PCs, as gamers, animators, video editors, etc., need specific hardware and specially built computers to be able to create properly and in due time. Workstations.co (by Tinc) are keen on being one of the suppliers to meet that demand. Called Workstations.co because the people who use high-end custom computers call them just that; the startup is constantly working to meet this demand. Typically, people who need custom PCs import them from abroad, which often costs more, takes more time and in the case of damaged or defective hardware, have them wait longer for replacements, which sometimes costs them money. Osho told TechCabal, “For these professionals, getting a custom PC is often the difference between being able to undertake a project or not. Delays in getting custom PCs imply that many hours are lost in productivity as a slower system means longer waiting time.” Workstations.co not only build these PCs, but also provide IT support in the form of repairs, updates and replacements. Building custom PCs requires in-depth technological knowledge of specifications, parts and even assemblage of these parts. This is the knowledge that Osho and his team have built over the years of identifying, importing and replacing hardware parts in devices they repaired. In the two years since, Osho and his team have built over 50 workstations for 25 customers across different professions in different locations like Lagos, Abuja, Port Harcourt, Ibadan and Kogi. Emmanuel Osho via LinkedIn According to Osho, there are many opportunities for growth for the startup. “There are a lot of opportunities, from working with more freelancers around the globe to working with global organisations in the core industries that we’re focused on to shipping these same Custom Built Workstations.co PC to other African countries.” Even though the work is capital intensive, Osho says they’re currently bootstrapping as they make PCs that cost nothing less than $1300. “Our goal from the onset with every [one] of our products was to get to product market fit before even involving investors. This is so [that] when funds come in, it’ll be used to accelerate growth. Right now, we are still bootstrapping, but we are open to having investment discussions.” Osho says. The startup is also working on a product that can automate their process, therefore saving time. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- September 28 2023
South Africans can shop for contraceptives online with this femtech
Anosele Kotu is the founder of Femconnect, a South African femtech that provides access to reproductive healthcare for women. After leaving her job at a software development company, she was determined to not look for employment elsewhere but to focus on working on a vision she’s nursed for a long time, Femconnect. The company launched in 2020, and she was determined to make Femconnect a localised product that was tailored for South African girls like her. Kotu believes that girls and women deserve to navigate their sexual and reproductive health with dignity, which includes having proper information and materials. Kotu’s work with Femconnect has earned her multiple recognitions, including the Digital Woman category at the previously concluded GovTech SITA awards. TechCabal had a chat with Kotu about what challenged her to begin her startup and where Femconnect is headed. What experience(s) shaped your decision to start Femconnect? Anosele Kotu: I was raised in a small community with a small hospital where I saw that having access to sanitary products or contraceptives was limited. People had to queue for hours to access these products, and sometimes, when it finally gets to your turn, they’re out of stock. Other times, young girls couldn’t even go to the clinics for contraceptive needs because they were scared that they would run into someone they knew. As I grew older, I realised that there’s a lack of access to quality services when it comes to reproductive health in South Africa, especially within black communities. Image credit: Femconnect Tell me about Femconnect and what your operations are focused on AK: We’ve got three major areas that we’re currently focusing on. The first one is menstrual health management which is linked to reducing period poverty. We have a period tracking feature and we also link young people who are in need of sanitary products with people who want to donate. We collect all the data through our website. At first, our period campaigns were mainly supported by NGOs running projects in communities or schools, but that was inconsistent because the NGOs typically donate once and then the pupils would have to wait until the next batch of donations came in. So, we came up with a more sustainable means of providing underprivileged girls with pads: we connect girls with donors who are willing to pay for their pads for a longer period. Secondly, we provide family planning services to individuals. People can access virtual consultations with health practitioners who can help with family planning-related issues via our app. After the talk, we get the family planning recommendations delivered to you. The third area we’re focused on is digital advocacy where our aim is to eliminate period poverty for South African girls. What has the reception been like? AK: The reception has been quite good. In 2019 when we planning to launch, a lot of people were skeptical as to whether or not it was a good idea. Thankfully, that has somewhat changed and people now love the idea and are even impressed that something like this exists in South Africa. People are now more open to using the platform for various things —whether it’s to explore the family planning bit, or just donating. Femconnect brings all the roleplayers onto one platform and ensures that there’s something for everyone. We’re currently working to get it rolled out into public health facilities and get more health practitioners to sign up to offer virtual consultations and to reach more people. Image credit: Femconnect What are some of the challenges that you’ve experienced or that you faced in running a femtech? AK: The number one challenge we face is financing. Growth has been slower due to this major drawback. There’s so much that you can plan to execute, but there are a lot of limitations when you don’t have the financials to back the plans. At the time that I started, a lot of investors weren’t keen on entering the reproductive health and femtech space, because they were unsure about the market. We’ve done a lot of training and accelerator programmes and while they have been instrumental to our learning, they’re often overwhelming. As a woman in the African tech space, we sometimes get overtrained and underfunded, which is a huge challenge for us because you can only do as much training. What is key for all of us to thrive in our respective spaces is to have financial backing. What are the next steps for Femconnect? AK: The next step is to expand and collaborate with healthcare providers as a telehealth platform for them. We already work with direct consumers but we want to collaborate with family planning clinics, hospitals and private practitioners. We’d like to bring Femconnect as a telehealth platform that can help them shorten service times, do consultations virtually, and also have them be part of this community. We’re also working to expand beyond South Africa. These issues are not unique to South Africa, but to African communities as a whole. We’d like to have a footprint in different African countries. This means having our product available in the different languages or vernaculars of the countries.
Read More- September 28 2023
South African payments startup Revio raises $5.2 million seed round
Revio, a South African payment API startup, has raised a $5.2 million seed round to deepen its market across the continent. Revio, a South African payment API startup helping merchants optimize their order to cash lifecycle, has announced a $5.2 million seed investment. This is the startup’s latest round of funding after raising a $1.1 million seed round in 2022. Revio will use the capital to deepen its growth across the continent and acquire new customers. The company will also be hiring talents to support its growth. The funding round was led by QED Investors and Partech. Speedinvest, RaliCap, and Everywhere VC, Revio’s previous investors also participated in the round. Revio is taking its place in the African digital payment market—projected to reach $146 billion in 2023—by providing businesses with an API for payments collection. Revio’s API allows businesses to accept and reconcile more than 70 payment methods. These include: the major mobile money products, card schemes, direct bank payments and wallets in 25 countries in African markets. The company also helps global and local merchants optimize their end-to-end payment processes, through features such as intelligent transaction routing, automated failover and retries, and real-time customer engagement workflows. Ruaan Botha, Co-founder and CEO of Revio while speaking on the raise, said “We are grateful for the support of leading global and local investors, especially those as well-regarded as QED and Partech. With this funding, we are excited to double down and unlock new adjacent opportunities for value creation for our growing base of clients,” The company now counts four of Africa’s largest insurers and two largest telcos as clients, and has secured a strategic partnership with a tier 1 African bank to offer distribution to its base of enterprise and mid-size clients.
Read More- September 28 2023
Enza Capital launches $58 million Founder partner program in Africa
Enza Capital, a Kenyan-based Venture firm has raised $58 million to support startups on the continent alongside a new shared ownership model that affords founders ownership of the VC firm. Enza Capital, a pan-African venture firm has closed $58 million across two funds to back African startups. With the new funds, the VC firm has launched its Founder Partner program that would see founders of portfolio companies become co-owners of Enza Capital and share in the success of the firm. Launched in 2019, Enza Capital started with an aim to back “category-defining” tech companies across fintech, logistics, health, human capital, and climate verticals on the continent. The VC company invests from first cheque at the pre-seed level to Series B. Enza Capital has made 48 investments in 31 companies across the continent. The Nairobi-based firm also invested in Guidewheel, a Kenyan climate tech startup from its pilot phase. Enza Capital was also first cheque investors in Autochek, SeamlessHR, Money 254, and Earthacre. “With this new capital, we reinforce our conviction in and commitment to these often underestimated markets, where exceptional talent continues to build category-defining businesses that will help drive growth and prosperity across Africa over the next two to three decades and beyond,” said Enza Capital coFounder and General Partner John Lazar. Enza is pioneering a new type of shared ownership model where founders and leadership teams of portfolio companies will become co-owners of Enza Capital. The VC firm has allocated 10% of its carry pool to founders. Mike Mompi, managing partner of Enza Capital, told TechCrunch in an interview that the move was a way to foster collaboration and alignment and that it increases the likelihood of success across all stakeholders in the venture capital structure.
Read More- September 28 2023
Madica plans to invest $6 million in African pre-seed startups. Here is how
Brenda Wangari, head of portfolio success at Madica, shares more insights on the program which aims to invest $6 million in 30 African pre-seed startups over the next three years. Madica, which stands for Made In Africa, is an investment program launched in December 2022 by global venture capital firm Flourish Ventures. Focused on backing pre-seed-stage startups, the program offers funding, technology support and mentorship to underrepresented founders across the continent. To achieve this mandate, the program is looking to invest $6 million in up to 30 African startups, each receiving up to $200,000 in exchange for equity, availing the much-needed funding. The initial investment phase is scheduled to run for three years. Some of Madica’s requirements for interested founders include having to be working on their idea full-time, having a minimum viable product, and having received little or no institutional funding. To understand more about the program’s investment philosophy, on this episode of Ask An Investor, TechCabal caught up with the program’s head of portfolio success to get more insights into the workings of Madica. TechCabal: Please share more background on how you ended up in the VC industry. Brenda Wangari: My journey started around ten years ago at Co-Creation Hub while I was part of the AIESEC Nigeria team. I was immersed in the vibrant ecosystem and had the opportunity to work on many exciting projects, including an idea challenge in partnership with Sussex University, targeting university students with ideas on solving education and unemployment challenges in Nigeria. Once back in Kenya, I dabbled in tech reporting. I was an operator at two startups and pivoted to being a supporter for five years at Village Capital and now a venture capitalist. I have always been curious about how investors make investment decisions, so to answer this question, my career journey is a natural progression. What does your role at Madica encompass? BW: Madica offers a 12-18 months structured support program for all companies we invest in. I take care of the day-to-day running of this. My role involves keeping a pulse on what our portfolio companies are up to and providing them access to resources they need as they build their businesses. Being a founder can be a lonely journey, so I am always keen to maintain an active community of support that our portfolio can tap into. As an early-stage investor, what is Madica’s investment strategy? BW: We care about supporting African founders who have traditionally been overlooked and under-represented in the venture capital funding space. They would typically be considered risky investments based on their sector choice, gender, geographical location, and education status. Has the current VC downturn in any way altered this investment strategy? BW: We recognise that the market downturn hasn’t been easy, especially for founders looking for investment capital to keep their lights on. While our strategy has not changed, we are keen to back founders who can efficiently use investment capital to build resilient businesses. From the early stage pitch decks you receive, what would you say are the constant lacking elements? BW: I will distil this into three things. At the stage at which Madica invests, the team composition is most important to us. While we have seen some very good decks, we’ve also come across some with little to no information on the team to convince us that they have the expertise and understand the problem they are trying to solve. Secondly, it’s supply and demand. What is the real problem the company is trying to solve, and is it important enough that customers are willing to pay for it? At the very early stage, showing some traction is essential evidence, especially if entrepreneurs believe the market is big enough to provide an investor with good returns. Thirdly, the unique selling proposition (USP) is essential. What makes the company exciting? Is there enough in the product to make people interested and willing to pay for it? The harsh reality is that some ventures are simply not venture-backable. They might be too similar to what already exists or even require a different type of funding that’s not venture capital. How can startups address those to position themselves to be attractive for VC investment? BW: We see many founders treat talent as an administrative function instead of a strategic one. How a founder positions their team is critical to how an investor evaluates them. What makes the team the best at solving the problem? Do they have lived experience of the problem? Do they have differentiated skill sets? Do they have a deep understanding of your product and the value chain? A strong team from the onset will help build investor confidence, especially if their skills align with your business milestones. What would say are the things that early-stage startups get right in Africa? BW: Startups on the continent are very clear about the challenges in their communities and regions. They are in touch with the gaps and are aware of the transformative power of technology to provide leapfrog solutions. Whether it is access to medical care and professionals, solving supply chain gaps for SMEs, or providing educational materials to youngsters in distant places using low-tech solutions, there is a thirst and an eagerness that startup founders on the continent possess. That willingness to learn means that when provided with information and the right resources, these founders can grow their solutions exponentially. What is the future of early-stage investing in Africa? BW: There is still a bright future ahead for early-stage investment in Africa. With venture capital and private equity still relatively new on the continent and backing some fascinating tech innovations, it proves there is promise. With Madica playing its part, we will unearth gems across sectors on the continent with solid and viable solutions that more investors will find worth investing in. What role does Madica hope to play in that future? BW: Madica sees itself as a catalyst in the African ecosystem. We see ourselves not solely as
Read More
- September 28 2023
TechCabal Daily – 54gene shuts down
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning ChatGPT now has access to the internet. Since its November 2022 launch, OpenAI’s ChatGPT has been limited to events that occurred before or by September 2021. Yesterday, OpenAI announced that the chatbot had finally been unleashed and it can now browse the internet to provide real-life information. ChatGPT will now move faster than Internet Explorer and provide up-to-date information. The feature is only available for paid users for now. In today’s edition 54Gene shuts down Sendy appoints Peter Kahi as administrator MTN in court battle with ex-CEO The World Wide Web3 Opportunities Acquisitions 54gene shuts down its operations Image Source: TechCrunch 54gene, a Nigerian genomics startup that raised $45 million in three funding rounds, is shutting down. Founded in 2019 by Dr. Abasi Ene-Obong, 54Gene aimed to enhance global pharmaceutical research by providing crucial genetic data on Africans. By July 2023, however, the company started its shutdown process. By September, its website was inaccessible, and its long-standing public relations agency confirmed that it had severed ties with 54gene. Here’s what went wrong: In 2021, 54gene ventured into diagnostics, creating Seven River Labs. The project initially enjoyed success through COVID-19 testing, generating over $20 million in revenue. However, lavish spending, without considering the realities of the diagnostics space, led to dire consequences. Genomics, as a field, demands substantial capital and 54gene faced financial challenges that strained its operations. Notably, the company still owes money to suppliers of some of its medical equipment, according to sources familiar with 54Gene’s business. The startup further plunged into disarray with several leadership transitions which started when Ene-Obong stepped down as CEO in October 2022. Ene-Obong was succeded by Teresia Bost who was also a former legal counsel for the company. By mid-2022, it had run out of money, slashed salaries, and instituted layoffs. From 2022 to July 2023, the company underwent three CEO transitions, including Ron Chiarello, who assumed the role in March 2023 but departed in July. Chiarello also confirmed that financial instability played a crucial role in the company’s downfall. This crisis also revealed questionable spending practices by former executives. Bost’s salary, for example, was slashed from $330,000 to $175,999 upon review, while other claims of financial insolvency emerged. What now? The company is now looking for buyers to take over its assets, including its biobank—a collection of biological samples that could be especially useful for research. However, legal issues will complicate the company’s closure amid claims that several creditors remain unpaid. Furthermore, Bost has filed a lawsuit against the company, alleging discriminatory behaviour and a hostile work environment with Chiarello as a defendant in the suit. 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. Logistics Sendy appoints Peter Kahi as administrator Peter Kahi. Image Source: The Standard Peter Kahi is the man wearing the cape for financially embattled Sendy. Earlier this week, Sendy, a Kenyan logistics startup entered into administration. For the uninitiated, this means that an individual will take over the startup and provide financial recommendations as the company tries to untie itself from the financial web. Peter Kahi of PKF Consulting has now been tasked with the job of helping the company figure out their current financial situation. Kahi is no stranger to this role. He was an administrator in the now-defunctNakumatt supermarket in 2018, andBritania Foods Limited in 2021. Kahi, with over 25 years of experience in conducting forensic and consultancy assignments, has previously worked for Ernst & Young as a partner and for KPMG as a director. An arduous task? Sendy’s directors have now relinquished power to Kahi as he now controls the company’s business and properties. Kahi has asked all parties owed by the company to submit such a claim in writing alongside necessary evidence to Kahi for review by October 19, 2023. Events Get early-bird tickets for the Moonshot Conference! Tickets are still selling out fast for the gathering of the most audacious players in Africa’s tech ecosystem. You and your friends can get an exclusive discount to secure your seats if you haven’t yet. Get your tickets today. Telecoms Former CEO in battle with MTN GIF Source: Zikoko Memes MTN is battling its past. Ahmad Farroukh, former CEO of MTN South Africa, has taken MTN to court over the non-payment of his R18.8 million ($1 million) severance pay. Zoom in: Farroukh, who left the company in 2015, alleged after he wrote to MTN to demand his severance pay in 2021—which he had been owed for six years. He then received a letter from MTN’s executive chairman Phuthuma Nhleko that he did not qualify for his severance due to the company’s change of policy. According to the telco, severance would only be paid if the contract is not renewed or if mutual separation occurs. Farroukh however alleges that he left the company on a peaceful note, and that MTN did not communicate the change in policy to him. The end-of-service agreement originated from Investicom, a company where Farroukh previously worked before its acquisition by MTN in 2006. Instead of a pension plan, Investicom provided an end-of-service payment to employees who left the company. According to local media, the dispute has been going on since Farroukh left the company. Farroukh had tried to resolve the issue amicably before turning to the court. Zoom out: Farroukh’s case raises bigger questions about corporate accountability and employee treatment. The date for the first hearing is set for October 16, 2023. Apply for the Female Founders Growth Programme FSDH Merchant Bank has partnered with the IFC (of the World Bank) and WEAV Capital for a female accelerator and investment readiness programme for female founders. Selected startups will partake in a world-class Investment Readiness Programme designed to support high-potential female-led tech companies to raise capital.
Read More
- September 27 2023
Entering Tech #41 – There’s work in stock for marketing talents
Some founders believe that marketing talents should wear many hats. 27 || September || 2023 View in Browser Brought to you by Issue #41 Founders say marketers should wear many hats Share this newsletter Greetings ET people Before we get into this week’s edition, which is the second part of a series, I need to ask a favour. We’re always telling you what to do. It’s time to return the favour and teach us instead. Could you take a few minutes to fill our survey? We’d like to know what you think and how we can improve. Now, onto to today’s edition where founders tell us why marketing talents should do more than they’re paid for at work. by Timi Odueso & Faith Omoniyi. Tech trivia Some tech trivia to get the brain juices flowing. What does “AIDA” , which represents the stages of consumer engagement in marketing, mean? In email marketing, what is the average open rate percentage for a well-performing email campaign? A quick recap In the last edition of #EnteringTech, we spoke to different marketers and got their perspectives about how marketing talents take on multiple roles in tech startups, and are often under-compensated. While the marketers suggested workarounds to budgetary constraints in hiring marketing talents, several others advocated that marketers should be compensated duly for their efforts. In today’s edition, startup founders are pitching in. All of the CEOs we spoke to all agree that marketing talents are an integral part of their startup’s growth, however, several limitations remain. What founders think Olamide Olayinka, CEO of Kashbase, believes that it is nearly unavoidable for a marketing talent to take up multiple roles in a startup setting. Olayinka cited a startup’s lean structure and tight budget as a cause. Babatunde Akin-Moses, CEO of Sycamore sides with Olayinka on this view. “For most growing companies and startups, it will be hard to have one person simply dedicated to content building. Usually, the person will handle social media, and a bit of digital marketing too.” Anthony Itaigbe of Izesan believes that it is important for content marketers to wear multiple hats due to the importance of their job in painting a picture of what a startup represents to the public. Itaigbe is of the opinion that content marketers should take on whatever form that helps drive home a startup’s message to the public. Olamide Olayinka, Babatunde Akin-Moses, and Anthony Itaigbe Several founders agreed that budget is indeed a limiting factor when hiring marketing talents. However, according to the founders, having a workaround is important. For Akin-Moses of Sycamore, his workaround involves taking a chance on someone with less experience, or employing a marketing talent that fits within his budget. For Olamide, it’s freelancers to the rescue. According to him, while budget might be a restriction, Kashbase does not compromise on marketing strengths. To navigate work that requires a marketing expert, the startup hires freelancers or marketing experts on a part-time basis. The pros and cons of many hats Having a marketing talent handle multiple operations has both advantages and disadvantages. According to Akin-Moses, some of the advantages include cost savings, better alignment and speed. Olayinka believes that one benefit this offers is that if a startup hires a great marketing talent they could help establish a framework. “If your initial hire is a great fit, they can help establish a solid foundation for the team. For instance, when we had to define our brand’s personality, tone of voice, go-to-market strategy, and overall brand essence, it was more manageable because we were a small team; one person led the conversation and everyone had something to contribute and the alignment was quick. When new intakes come on board, they could seamlessly fit in, into the existing framework.” On the flip side, marketers who spoke to us in the previous edition attest to the fact that having one marketing talent take on multiple roles could easily wear out the person and affect their level of output.” Akin-Moses agrees, “The challenges are the possibility of burnout and not having specialised output since one person is doing many things.” All of the founders we spoke to all agree that having marketing talents wear multiple hats in startups is inevitable. While this may wear out the marketing talent, some founders suggested some workarounds to help alleviate the stress off the marketing talents while helping them manage their tasks effectively. Olayinka believes to curb the fatigue that arises from one person handling multiple tasks is to have a clear plan for expanding the team. “If you start with one person handling everything, it’s important to plan for expanding the team to enhance the effectiveness of your marketing efforts and ease the workload.” For Otaigbe, the workaround involves striking a delicate balance. “There should be some dynamism, you don’t have to wear multiple hats all the time, it could be a temporary thing. But there is value and dedication, so it’s important for marketing talents to find a delicate balance,” he said. From the various conversations we’ve had with both founders and marketers, having marketing talents take on multiple roles in startups is inevitable. Due to a startup lean structure, founders have resulted in hiring generalists within their budget who have a grasp of multiple marketing skills. However, a careful line needs to be drawn between burdening marketers with too many tasks and undercompensating them. Attend the Moonshot Conference Tickets are still selling out fast for the gathering of the most audacious players in Africa’s tech ecosystem. You and your friends can get an exclusive discount to secure your seats if you haven’t yet. Get your tickets today Ask a techie Q. As an accountant, how can I stay relevant in the tech space? Are there courses I should take? What specialization do you think I should go for? Great question. To stay relevant in the tech space as an accountant, you can take several steps, including pursuing specific courses and considering relevant specializations. Here are some recommendations:
Read More- September 27 2023
Exclusive: After raising $45m in two years, 54gene is shutting down
54gene raised $45 in three funding rounds to achieve the extraordinary for African genomics. But four years on, the company is shutting down in a cloud of controversy. Genomics startup 54gene has initiated the winding down of its operations, sources connected to the company confirmed to TechCabal. The company started the process in July 2023. By September, its website was no longer available, and the PR agency that represented it for much of its existence told TechCabal they no longer work for 54gene. This disclosure comes after unconfirmed reports about the collapse of the company. Founded in 2019, 54gene was co-founded by Dr. Abasi Ene-Obong, who helped the company raise $45 million across three funding rounds. The company set out to provide crucial genome information on Africans to help improve the drug discovery processes of global pharmaceutical companies. Per TechCrunch, “Less than 3% of genetic material used in global pharmaceutical research is from Africa…54gene has been at the forefront of bridging this divide in the global genomics market.” But less than four years into its creation, the company fell into disarray, and Ene-Obong, the CEO, was replaced. Over the past year, 54gene has had three CEO changes, including Ron Chiarello, who became CEO in March 2023. Chiarello left the role in July. “Unfortunately, the company could not continue to operate financially, and it began to wind down in July,” Chiarello told TechCabal. It is the first official confirmation from anyone connected to 54gene of the company’s closure. Three people familiar with the company’s shutdown process told TechCabal that 54gene is looking for buyers to take over its assets, including the company’s biobank—a collection of biological samples that could be especially useful for research. While company sources believe these assets are valuable, it is unclear how far along they are with the sale process. However, legal issues will complicate the company’s closure amid claims that several creditors remain unpaid. Teresia Bost, the company’s former legal counsel and one-time interim CEO, sued 54gene for “discriminatory behaviour and creating a hostile work environment.” Bost was named CEO after the dramatic exit of Dr. Abasi Ene-Obong in October 2022. While there are several versions of his resignation, his departure came on the heels of fundraising as 54gene returned to investors for more financing despite earning significant revenue from its Covid-19 testing facilities and raising $25 million a year earlier. Dr Abasi declined to answer questions regarding his exit but told TechCabal via email, “I would like to begin by stating that my resignation as CEO of 54gene was a difficult and emotional decision for me.” Despite initial excitement at Teresia Bost’s appointment in 2021, things changed quickly. “Teresia is a well-rounded executive with a depth of experience in the global pharmaceutical and biotech industry,” 54gene said in a statement at the time of her appointment. But Bost left the position five months later. According to Law360, a legal trade publication, Bost alleges that Tobi Oke, one of the company’s investors, “would scream at her on video and phone meetings, degrading and humiliating her, and falsely criticized both her work product and legal work.” Tobi Oke declined to comment. She is suing five company associates at a New Jersey court in the U.S. Chiarello, who took over from Bost, is also a defendant in the suit. “When companies fail, no matter how altruistic their purpose, disagreements arise,” Chiarello told TechCabal. “It’s my hope that when the dust settles, the idea behind 54gene continues in some way for the health benefit of Nigerians, all Africans, and people globally.” ‘Questionable spending by former executives’ In her complaint, Bost said her salary was slashed from $330,000 to $175,999, which she alleged violates “her written agreement and represents a breach of contract because she was still performing all her duties.” She also claimed she was told the company could be insolvent by September 2022 because of questionable spending by the company’s former executives. Several sources with extensive knowledge of the genome medical research industry and 54gene’s business model admitted that genomics is capital-intensive. “Sequencing equipment for genomics is expensive, and there are other costs like storing data in the cloud. The costs add up quickly,” said one of the people. Two sources with first-hand knowledge of 54Gene’s business said that it still owes money to companies that supplied some of its medical equipment. “Neither I nor Syndicate Bio can comment on any speculation surrounding the monies owed to 54gene vendors,” Dr Abasi told TechCabal via email. In 2021, 54gene branched into diagnostics and set up Seven River Labs because of its success with COVID testing. Two sources said the company brought in at least $20 million in revenue from covid testing. “The kind of spending they did to launch Seven River Labs was unreal,” one person with knowledge of the business said. “They spent money without considering the dynamics of the diagnostics space.” According to a 2021 report by Technext, “7RiverLabs sample collection centres are already open in Lagos, Abuja, Kano and Port Harcourt. These collection centres boast over 100 employees.” Another report said Seven River Labs poached stars from global companies and invested in expensive equipment. “Despite all of the investment in diagnostics, the expected returns did not materialize.” By mid-2022, the company ran out of money, slashed salaries and instituted layoffs; plans to raise new external funding initially collapsed. While there are varying versions of events, it is clear that the company struggled to stay on track with its mission and that internal friction could not be resolved. Nevertheless, industry followers believe 54Gene’s failure will have consequences. “When one of the biggest flagship companies that have raised the most money in a sector has its value collapse overnight, global investors will hesitate about funding the sector,” said one health tech founder who asked to remain anonymous so they could speak freely. “That’s the reality. One of the flagship companies in our sectors went under rapidly and unceremoniously.”
Read More