- January 30 2025
- BM
Despite streaming boom, Nigerians still prefer watching movies in cinemas
Despite the growing adoption of streaming platforms, cinemas remain the most preferred choice for Nigerians to watch movies, according to the Nigerian Box Office report by Filmone Group. 66% of 500 cinema-goers surveyed in the report prefer cinemas over streaming platforms, suggesting theatrical releases still hold strong appeal and remain a critical part of the Nigerian film industry. Streaming giant Netflix is the second most preferred choice at 27%, while YouTube which has seen a surge in Nollywood movies came third at 4%. Showmax and and Amazon Prime Video got 2% each. In December 2024, Netflix denied it was exiting Nigeria after media speculations. Amazon Prime, another streaming platform, exited Nigeria in January 2024—one year after investing in several Nigerian productions. Despite the strong appeal of cinemas, infrastructural gaps exist. According to the report, Nigeria has 102 cinemas, accounting for 92.9% of Anglophone West Africa box office. Lagos dominates with 36 cinemas, reflecting the consumer spending in Nigeria’s economic capital. 2024 shows growth in the cinema ecosystem with the emergence of 24 new cinemas with Silverbird Cinemas opening the first cinema in Kaduna. The report found that cinema admissions in Nigeria increased by 2% in 2024. “This resurgence underscores the enduring appeal of the big screen experience in Nigeria, even as ticket prices soared by 95% in nominal terms between 2021 and 2023,” the report said. Filmhouse Cinemas maintained the highest market share in West Africa for the seventh consecutive year with 28% grossing ₦3.2 billion in box office revenue. Silverbird Cinemas and Genesis Cinemas earned ₦2.2 billion each, with Silverbird holding a 19% market share and Genesis Cinemas capturing 18%. EbonyLife Cinemas had the highest-grossing cinema location in the country contributing 7% and making over ₦838 million in ticket sales, with more than 138,000 people buying tickets to watch movies at EbonyLife cinema. Filmhouse Group remains hopeful, saying ‘The opportunities for more cinema infrastructure, abound, especially as despite the macroeconomic headwinds hitting disposable income negatively, the subsector has remained resilient.’’
Read More- January 30 2025
- BM
Abuja airport internet outage exposes risks to Nigeria’s telecom infrastructure
On Tuesday, January 21, 2025, hundreds of passengers at Abuja International Airport arriving or leaving the country could not access the internet services they needed to access taxis or their flight schedules. The cause? A severed fiber optic cable disrupted the airport’s connectivity. The cable, owned by MTN Nigeria, was accidentally cut by road construction workers in a nearby community. When engineers arrived to repair the damage, local community members blocked access, demanding payment before allowing work to proceed. Faced with the urgency of restoring services, MTN Nigeria had to comply, escalating the cost of the disruption. Once repairs were completed, normal operations resumed, but for MTN, it was yet another costly incident of infrastructure vandalism. The disruption disruption highlights a growing crisis in Nigeria’s telecom sector. As the country’s largest telecom operator with the largest network of fibre cables (40,000km), MTN Nigeria faces an average of 37 fiber cuts daily—amounting to over 1,000 incidents per month. Airtel Nigeria reports similar problems with around 43 cuts per day and 7,742 incidents in the first half of 2024. cuts. Yahaya Ibrahim, MTN Nigeria’s Chief Technical Officer (CTO), told TechCabal that the rate of the cuts is not slowing down in 2025. The telco recorded over 860 damages to its fibre infrastructure in the first three weeks of January 2025. “Four weeks ago, at Park View estate, we had people throwing fire into the manholes (where fibre cables were laid). We lost traffic,” Ibrahim said. MTN also lost connection in Abuja and Lagos in February 2024 due to cuts affecting thousands of fibre cables from road construction and bush-burning. Road construction is responsible for 60% of the cuts; 20% is caused by vandalism, bush burning, farming activities, and pipe-borne water digging, and the remaining 20% is from theft of the cables. These frequent disruptions affect businesses and essential services and impose significant financial losses on telecom providers, exacerbating Nigeria’s connectivity challenges. According to Yahaya Ibrahim, one fibre cut in a location can impact 500 base stations, or a cut in a location in Ikoyi can impact services to Ikeja. In 2024, the government issued an executive order, designating telecom and other industry infrastructure as national assets and criminalizing intentional damage. However, implementation has not begun. Industry stakeholders are engaging with the government to develop an enforcement strategy. Their approach involves educating Nigerians on the importance of the CNI order; second, fostering inter-ministerial collaboration to align government agencies; and, enforcing the order through a joint effort between the NCC and the Office of the National Security Adviser (ONSA). Implementation is expected to begin in February 2025. In the interim, operators are exploring alternative fiber deployment methods such as using aerial cables along powerlines. While this approach reduces the risk of cuts and enhances security, it presents logistical challenges. Many base stations are located far from powerlines, requiring a transition from aerial to underground cables, and increasing costs. “So yes, aerial cables are less susceptible to cuts and are safer, but they are also more expensive,” Ibrahim told TechCabal.
Read More- January 30 2025
- BM
Bento CEO’s resignation leaves investors in the dark amid EFCC, LIRS probe
Investors in Nigerian HR-tech startup Bento Africa were shocked at CEO Ebun Okubanjo‘s abrupt resignation, relinquishing his stake in the company without prior notice. His sudden departure comes amid allegations that Bento failed to remit millions of dollars in taxes and pension contributions for its clients, raising concerns about financial mismanagement and poor governance. Three investors who asked not to be named so they could speak freely revealed that investor relations at Bento have long been opaque. Unlike most venture-backed startups, which regularly share structured reports and financial updates, Bento rarely communicated with its investors, that person claimed. “Bento has never been known for transparency,” one early investor told TechCabal. “We weren’t getting quarterly reports, and when we asked for updates, responses were vague at best. Now, the CEO is gone, and we have no real clarity on what happens next.” Okubanjo’s resignation was initially communicated via a brief email to the company’s board of directors and at least two investors said they only learned about his departure when TechCabal reached out for comments. It is unclear how the unresolved financial obligations will be resolved and who will immediately be responsible after allegations that Bento failed to remit statutory deductions such as taxes and pensions on behalf of its clients. Okubanjo insists those incidents affected only a handful of clients and blamed the issues on Nigeria’s manual tax system. Bento raised at least $2.3 million in disclosed funding from Africa-focused venture capital firms including Zrosk, Berrywood Capital, and Kinfolk Venture Capital, according to Crunchbase. The startup positioned itself as a game-changer in payroll and HR management, expanding into Kenya, Ghana, and Rwanda with ambitions to dominate Africa’s employment benefits space. With its CEO gone, Bento now faces the difficult task of rebuilding trust with investors, clients, and regulators. The company’s lack of structured governance has become more apparent, and the absence of a clear successor to Okubanjo raises questions about whether Bento can weather the storm.
Read More- January 30 2025
- BM
Flutterwave, Yellow Card, OmniRetail named finalists for inaugural Africa Tech Summit Awards
Leading African startups Flutterwave, Sabi, Yellowcard, and Omniretail are among the finalists for the inaugural Africa Tech Summit Awards. From over 300 entries, the judges selected 5 finalists in each of the 11 categories, for a total of 55 finalists. The Africa Tech Summit Awards is a platform created to celebrate the most impactful tech innovations driving the continent’s digital future. The award celebrates excellence across multiple sectors, including fintech, healthtech, Web3, and climate tech. Winners will be announced at the awards ceremony as part of the seventh edition of the two-day Africa Tech Summit in Nairobi on February 13. The event is expected to gather over 2,000 industry leaders, corporates, investors, and international delegations. The summit will include fireside chats, panel discussions, keynote speeches, masterclasses, the Africa Tech Summit Awards, and the Investment Showcase providing opportunities for learning and networking. “All the finalists are transforming their sectors and driving growth across the continent, and we look forward to celebrating their achievements in Nairobi next month,” Lauren Adair, Director of Africa Tech Summit said. See the full list of the finalists below: Agritech: AFEX (Nigeria), ChipChip (Ethiopia), Mazao AgClimate Limited (Tanzania), Keep it Cool (Kenya), and Winich Farms (Nigeria). Artificial Intelligence: Cassava Technologies (South Africa), Chpter (Kenya), NextAV (Tunisia), Tawi Fresh (Kenya), and ToumAI Analytics (Morocco). Climate Tech: Afrilogic Solutions (Ghana), Innovex (U) Ltd (Uganda), Instollar Technologies (Nigeria), Sabi (Nigeria), and Takazuri (Kenya). Cross-Border Payments category: Aza Finance (Kenya), Flutterwave (Nigeria), Grey (Nigeria), WeWire (Nigeria), and Yellow Card (South Africa). In Digital Commerce, the finalists are OmniRetail (Nigeria), Sendmercury (Nigeria), SwiftVEE (South Africa), Tawi Fresh (Kenya), and Tola (Ireland). In EdTech, the finalists include Cassava Technologies (South Africa), DirectEd Development (Kenya), Hermplify (Nigeria), Ikusasa Technology Solutions(South Africa), and Laboussole (Cameroon). The Enterprise category includes Andela (United States), Beacon Power Services (Nigeria), Froid Energy Ltd (Kenya), Incentro Africa (Kenya) and Smile ID (Nigeria). In FemTech the finalists are Babysteps (Kenya), Hermplify (Nigeria), Mara Scientific (Uganda), My Pregnancy Journey (South Africa), and Sanicle Digital Health (United States). In the Fintech category, the finalists are Flow (Uganda), HUB2 (Mauritius), Peach Payments (South Africa), Valu (Eqypt), and Yellow Card (South Africa). For Health Tech, the finalists are Antara Health (Kenya), ION Kenya (Kenya), OneHealth (Nigeria), Remedial Health (Nigeria), and Zuri Health (Kenya). For Web3 the finalists are ICP Hub (Kenya), Investa Farm (Kenya), MiniPay (Nigeria), Sabi (Nigeria), and Yellow Card (South Africa).
Read More- January 30 2025
- BM
Bento CEO resigns, amid EFCC, LIRS probe; gives up equity
Ebun Okubanjo, CEO of Bento Africa, a Nigerian payroll and human resource management platform, has resigned amidst allegations of failing to remit taxes and pensions on behalf of its clients. Okubanjo announced his resignation in an email to Bento’s board of directors, signaling a clean break by also relinquishing his equity and debt holdings in the company. This move opens the door for a potential fresh start for both Okubanjo and Bento Africa. In his resignation email, Okubanjo hinted at launching a new company, Ada AI, an AI-powered sales assistant. Okubanjo attributed his decision to the difficulty of scaling HR and payroll systems in Africa. “If Africa adopts the Western style of taxation and remittances—these companies are gold mines. I use Gusto in the U.S. not because I want to, but because I have to. Until that happens—scale will be a challenge,” Okubanjo wrote in the mail. His resignation comes at a turbulent time for Bento Africa, with allegations of financial mismanagement, particularly regarding the withholding of employee taxes and pension contributions. These claims were brought to light on Friday by Akintunde Sultan, co-founder of edtech company AltSchool. Additionally, Fuelmetrics, a digital inventory management firm for petrol stations, alleged that Bento Africa had failed to remit up to ₦50 million ($108,000) in taxes and pension contributions for 2023 and 2024. Okubanjo earlier sent a resignation letter to the company’s board of directors onJanuary 11, 2025. His resignation follows a controversial leadership journey, which included a brief outsing and subsequent return as CEO in 2022. Okubanjo stepped down in March 2022 after allegations of verbal abuse and creating a toxic work environment. Bento’s board appointed cofounder Chidozie Okonkwo as CEO but in a surprising turn, Okubanjo returned as CEO in September 2022 after Okonkwo resigned, citing personal reasons. Okubanjo’s resignation in January 2025 may not have been a complete shock to insiders. In 2024, he had signaled his intent to step down, with one employee claiming that Okubanjo had offered his position to Lede Adeniyi, the company’s CTO. Adeniyi declined the offer and left Bento in October 2024 to pursue entrepreneurial entrepreneurial ambitions of his own. In Okubanjo’s first email to investors on January 11, Okubanjo asked the board to begin searching for his replacement, stating that he would vacate the position in six weeks. He also reflected on his leadership journey in the same email: “This was an education; it will probably take a lifetime to parse through all the lessons of this great failure but as a forever learning type. I am okay with that.” Yet, three days after Okubanjo’s first resignation announcement, TechCabal learned Bento had not told contacted investors, with a handful unaware of the CEO’s resignation. One investor who asked not to be named claimed the company rarely sent investor updates, while another claimed to know next to nothing about the company. Both investors suggested the company’s operational transparency could have been improved. Bento was founded in 2019 and raised funding from investors like Berrywood Capital, Flexcap Ventures, and angel investors. Despite the roster of investors, allegations of a toxic workplace surfaced in 2022, a time during which Okubanjo claims the company was raising funding. One former employee claimed the incident derailed those talks. Bento is a member of a class of relatively new startups offering salary automation, statutory remittances like taxes pensions, and access to loans. It counts Moniepoint, Lori Systems, Paystack and Kobo360 among its client list and claims to have processed over $40 million in payroll since 2019. Despite these claims of success, some investors are skeptical about Bento’s future. While one investor claimed that it didn’t feel like a growing company, Okubanjo has repeatedly claimed the company is profitable, processing about ₦4-5 billion ($2.6 million) in monthly salaries with around ₦24 million ($15,871) in monthly revenue.
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- January 30 2025
- BM
TechCabal Daily – M-KOPA wins trademark case
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Let’s dive right in. M-KOPA wins trademark case against former agent Lemfi acquires Irish company Bureau Buttercrane Kenyan banks lower lending rates World Wide Web 3 Events Companies M-KOPA wins trademark case against former agent GIF Source: Netflix M-KOPA, a Kenyan asset financing company, has won a trademark case against a former agent who copied its brand identity. The High Court ruled on January 23 that John Waweru Njenga’s business, “MKopo Kastomer Care and Accessories,” had violated M-KOPA’s trademark rights. The case, initially filed in August 2023, centred on Njenga’s deliberate use of a nearly identical name and logo to M-KOPA’s, which the court determined could easily mislead consumers into believing the two businesses were affiliated, thus helping “MKopo” to siphon off customers and revenue pipeline from M-KOPA. Here’s Adonijah Ndege reporting for TechCabal: “In M-KOPA’s case, the company’s legal battle was costly but necessary to protect its reputation. Court filings showed that Njenga’s business was riding on M-KOPA’s success, leveraging its established brand to drive sales of phones and accessories.” This case exposes a common problem in Kenya’s informal markets, where businesses often copy established brands to attract customers. Poor enforcement of intellectual property (IP) laws has allowed this practice to continue. However, the M-KOPA case will set a precedent for big brands to follow to protect their business IP. It teaches smaller brands the lesson of both protecting their intellectual property and conducting thorough trademark searches before launching new businesses to avoid costly legal battles like this one. Afincran Connect: A Fintech Mixer by Fincra Fincra is hosting an exclusive fintech mixer on 12th February 2025 in Nairobi, bringing together industry leaders for networking, conversations, and connections. Nairobi | 18:00 – 21:00 EAT Limited spots—RSVP now. Fintech Lemfi acquires Irish company Bureau Buttercrane for an undisclosed amount Ridwan Olalere and Rian Cochran, co-founders of LemFi. Image Source: LemFi After announcing a $53 million Series B funding round two weeks ago, LemFi, the migrant-focused remittance startup, has acquired Bureau Buttercrane, an Irish remittance company, as it begins its European expansion independently. The acquisition will allow Lemfi to operate across the European Economic Area (EEA) using its Irish licence through a system called passporting, which allows companies to operate across the EEA using a single licence. The acquisition was purely for regulatory cover and is similar to when fintechs in Nigeria buy MFB (Microfinance Bank) licences—they’re not looking for profitability or the technology in the acquired company but for regulatory cover. Lemfi told its customers it could operate in Europe 22 days ago after partnering with Modulr Finance, a Dutch company. But, CEO Ridwan Olalere told TechCabal that his startup partnered with Modulr while pushing for approval from the Central Bank of Ireland. That approval came quickly because Lemfi had “the right team and followed the correct processes.” Its previous acquisition of RightCard in 2021 made the Change in Control (CIC) process with Ireland’s Central Bank “straightforward.” Operating in multiple markets is necessary for remittance startups to grow as they serve more corridors (US to India, Europe to Africa) and increase their revenue base. More corridors mean a broader and stickier user base, as customers will likely remain loyal if they see the company as a one-stop solution for sending money to different places. Lemfi’s growth in the past year when it grew from $2 billion processed in 2023 to over $10 billion in 2024 was attributed to its expansion into Asia in 2024. The company also doubled users, revenue, and transactions over the past two years. Now, it will look at Europe’s $64 billion remittance market as the next market to drive its growth. With the deal completed, Lemfi plans to make Dublin its European headquarters, hire local staff, and deepen its relationship with regulators as part of its long-term strategy. Banking 23 Kenyan banks lower their lending rates GIF source: Tenor Twenty-three Kenyan banks have lowered their interest rates for the first time in six months since the Central Bank of Kenya (CBK) started easing benchmark rates. While lending rates have declined slightly, the shift has been uneven, with some banks reducing rates while others remain cautious. Fourteen banks opted to hike their lending rates despite CBK’s plea for a downward adjustment. Only Equity Bank, Kenya’s second-largest commercial bank, retained its November 2024 rates. Banks have been wary of the persistently high rate of non-performing loans (NPLs) which remained at 16.5% in October 2024, accelerating from 14.8% on a year-on-year basis. The surging NPL ratio points to the ongoing challenges in loan repayment among borrowers. This has made lenders hesitant to lower rates too aggressively, as they must balance CBK’s policy direction with staying solvent. By June 2024, customer deposits at commercial banks were down 7.4%—likely due to economic challenges—forcing banks to charge higher interest rates to cover the risk of bad loans and lower profits. However, following the CBK’s plea for a downward adjustment of their lending rates, Kenyan banks, through the Kenya Bankers Association (KBA) in December, said lending rates would drop “progressively” because banks depend on customer deposits to issue loans. With 23 of its 43 member banks now on board, the adjustment could ease borrowing costs. But only one bank—Access Bank Kenya—offers a rate below 15% (11.46%), while the average remains high at an average of 16.89% even after the adjustment. During the last Monetary Policy Committee (MPC) committee, the CBK eased the benchmark rate by 75 basis points from 12% to 11.25% in December 2024. With another CBK policy meeting set for February 8, 2025, banks will likely continue adjusting their rates cautiously, keeping a close eye on economic stability and loan performance in the coming months. Never miss an update from Paystack Subscribe to Paystack for a curated dose of product updates, insights, event invites and more. Subscribe here → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $105,345 + 3.16% + 13.89%
Read More- January 29 2025
- BM
Uber-backed Moove acquires Brazil’s Kovi to continue global expansion
Moove, the Uber-backed Nigerian mobility fintech startup, has acquired Kovi, a car rental startup in Brazil, Latin America’s largest ride-hailing market. The acquisition continues the global expansion of the startup which currently operates in 19 cities across 5 continents. The acquisition is an all-stock transaction that makes Kovi’s investors shareholders in Moove. Kovi has raised over $145 million from investors including Accel, Spectra Investments, Valor Capital, Prosus Ventures, and Quona Capital. Kovi’s investors will now own shares in Moove which has raised about $500 million in debt and equity from investors like Uber, Mubadala, BlackRock, Franklin Templeton, Janus Henderson, and the International Finance Corporation (IFC). An Uber-led Series B where it raised $100 million, valued Moove at $750 million. The acquisition is also important for Moove’s AI mobility strategy which will span the entire business, from optimizing its ride-hailing services to improving fleet management Kovi’s proprietary technology and algorithms will “complement and strengthen our existing move AI mobility strategy and ensure that we can start to deliver an improved service and product to our customers around the world,” Moove’s co-founder and co-CEO Ladi Delano said. This deal increases Moove’s annual revenue to $275 million. It also continues Moove’s expansion outside Africa. The company already operates in Colombia and Mexico, and the acquisition of Kovi will further solidify its presence in Latin America. Moove’s fleet has grown to 36,000 cars operating in 19 cities across six continents, and the company aims to build the world’s largest ride-share fleet outside of Africa. “Their purpose-driven approach is a perfect match to our culture. Together, I believe we will become a truly global category-defining business and will leverage scale and deep expertise never seen in our market,” said Kovi CEO Adhemar Milani Neto.
Read More- January 29 2025
- BM
Nigeria telecom operators lost $11.3 billion over 11-year tariff delay
The Nigerian telecom operators are reeling from significant financial losses, with projections estimating a staggering $11.3 billion in revenue erosion between 2022 and 2026. This follows an 11-year delay in approving a much-needed tariff increase, according to an in-house report conducted by MTN Nigeria and obtained by TechCabal. The primary cause of this financial hemorrhage is the devaluation of the naira, which, coupled with prolonged regulatory inaction by the Nigerian Communications Commission (NCC), placed immense pressure on telecom operators’ ability to sustain operations. Industry executives, including MTN Nigeria’s CEO Karl Toriola and Airtel Nigeria’s CEO Dinesh Balsingh, claimed the delay pushed the telecom sector to the brink of collapse. With soaring operational costs, the telcos claimed their financial positions were unsustainable. “The price increase which was highly needed for the survival and continued growth of the industry, will enable us to continue investing in network infrastructure, expanding coverage, and delivering improved products and services that meet the evolving needs of our customers,” Balsingh said. A tariff adjustment became inevitable following naira devaluation in 2022 and liquidity problems which often forced players to resort to the parallel market. By 2023, the exchange rate had slipped to $1 to ₦900, further driving costs and cutting into profit margins. Telecom operators, who rely on imported equipment, were caught in a vicious cycle of rising costs and plummeting revenues. In 2023, MTN Nigeria reported its first loss since its 2019 IPO, recording a ₦137 billion deficit largely driven by forex losses. Airtel Africa also faced its first-ever loss in Nigeria, with a post-tax loss of $89 million for the financial year ending March 31, 2024. “We were borrowing at 120% to fund our operations, which was unsustainable,” Toriola said during a media conference MTN Nigeria in Lagos on Tuesday. MTN Nigeria had consistently paid dividends to shareholders from 2007 to 2022, but the pressure from the foreign exchange decline made regular payments impossible. Dividends declined from ₦530 billion in 2022 to ₦196.67 billion in 2023. One of the most alarming side effects of the delay was the drop in taxes paid by telecom operators to the government. While taxes grew from ₦329 billion in 2023 to ₦428 billion in 2024, they are set to plummet to just ₦29 billion in 2025, a 92% decline. This will significantly impact government revenue. Toriola emphasized that MTN Nigeria had explored alternatives, such as import waivers, to alleviate the financial burden. However, these efforts would not have been sufficient to offset the enormous costs imposed by rising power charges, taxes, and right-of-way fees. “Any relief from waivers would have come at a cost to the government, which would have been irresponsible,” he said. In response to these escalating challenges, telecom operators had initially called for a 40% tariff increase in 2022. However, as the naira continued its downward spiral, the situation worsened, and demands for a 100% hike became urgent. According to the MTN report, the industry’s total revenue plummeted from $7.62 billion in 2022 to $6.87 billion in 2023, and further sank to $3.55 billion in 2024. The long-awaited approval for a tariff increase finally came on January 20, 2025, offering hope for an industry in crisis. With the new tariffs in place, the telecom sector is projected to rebound, with revenues expected to rise to $6.67 billion in 2025 and $8.33 billion in 2026. However, experts warn that the 11-year delay has already caused irreversible damage, with long-term economic consequences for both the telecom industry and the Nigerian economy.
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- January 29 2025
- BM
MTN 5G, and ipNX are Nigeria’s internet speed kings – Ookla’s H2 2024 report
Who offers the fastest mobile internet and fixed broadband in Nigeria? MTN and ipNX lead in Ookla’s report MTN Nigeria delivered the fastest mobile internet speeds while being the top choice for gaming, according to Ookla’s H2 connectivity report, which uses Speedtest intelligence data. Ookla evaluated performance across all mobile and fixed internet service providers (ISP) to determine the best performers using a connectivity score which combines speed, web browsing performance, and video streaming quality. In the second half of 2024, MTN recorded a median 5G download speed of 231.39 Mbps and an upload speed of 17.35 Mbps, making it the go-to network for gamers and video streamers. Airtel was a distant second for mobile internet speed, while Grandmasters of Data Globacom had the lowest speed score to round up the top three. MTN share price jumps 9.87% on news of tariff hike approval On the fixed broadband front, ipNX was the fastest provider, with a median download speed of 37.78 Mbps and an upload speed of 38.50 Mbps, solidifying its reputation as the leader in fixed broadband performance in Nigeria for the second half of 2024. Geographically, Lagos recorded the highest median mobile download speed at 40.26 Mbps, followed by Benin City (23.54 Mbps) and Ibadan (23.03 Mbps). In terms of fixed broadband, Port Harcourt led with a median download speed of 24.04 Mbps, followed closely by Lagos at 23.44 Mbps and Kano at 23.4 Mbps.
Read More- January 29 2025
- BM
Lemfi completes acquisition of Irish currency exchange Bureau Buttercrane; begins European march
Lemfi, a financial services platform for immigrants operating in 22 countries, has acquired the Irish currency exchange platform Bureau Buttercrane, marking a key step in its European expansion. The deal, which received regulatory approval from the Central Bank of Ireland, enables Lemfi to use its Irish licence to operate across the European Economic Area (EEA), unlocking new growth opportunities. The acquisition is a strategic move to ensure regulatory compliance in Europe post-Brexit. While Lemfi already holds a British license from its 2021 acquisition of RightCard, it couldn’t process European transactions directly. The Irish license allows it to operate in all EEA countries using a system called passporting. ‘Rather than focusing on [Buttercane’s] tech stack or profitability, the acquisition was driven by our need to secure the right regulatory framework for our expansion,” said Ridwan Olalere, Lemfi’s CEO. “We already have the technology; this was a strategic acquisition to ensure smooth and compliant operations across Europe.” The deal comes 21 days after Lemfi told customers it could operate in Europe using a partnership with Dutch company Modulr Finance. “We established that partnership because we wanted to start operating in Europe while pushing for an approval from the Central Bank of Ireland,” Olalere said. That approval came quickly because Lemfi had “the right team and followed the correct processes.” “If another European regulator has already approved you in the past, it works in your favor because it shows credibility,” Olalere said. With the deal completed, Lemfi plans to make Dublin its European headquarters, hire local staff, and deepen its relationship with regulators as part of its long-term strategy. Given its track record in Asia and Africa—Lemfi processes $1 billion in monthly payment volume— the company is positioned to tap into the $64 billion European remittance market. Operating in multiple markets is necessary for growth for remittance startups, yet expansion comes with unique challenges. “Europe is a big, complicated market with different payment methods, rules, and preferences across countries. We’re optimistic about growth, but it’s a challenging landscape.” As Lemfi builds its European base, integrating local payment methods will be crucial. “In France, a common payment method is called “Carte Bancaire,” which isn’t Visa or Mastercard. If you enter the French market without supporting this method, you’re missing out on a significant user base,” Olalere said. Nevertheless, Lemfi remains optimistic, drawing on the lessons from its successful Asian expansion. Buoyed by a recent $53 million Series B raise and strong investor confidence, Lemfi is carving out space in the competitive remittance market and positioning itself to challenge competitors head-on. For remittance startups, operating in multiple markets is necessary for growth, as serving more corridors (US to India, Europe to Africa), increases its revenue base. More corridors mean a broader and stickier user base as customers are likely to remain loyal if they see the company as a one-stop solution for sending money to different places. Lemfi raises $53 million Series B round, acquires European firm
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