🚀Entering Tech #48: How Olukunle Aboderin went from DJ-ing to data
Get insights from an assistant vice president at Flutterwave. 15 || November || 2023 View in Browser In partnership with #Issue 48 How Olukunle Aboderin went from DJ-ing to data Share this newsletter Greetings ET readers We are hiring! We’re on the hunt for experienced senior reporters in Nigeria, South Africa and Kenya to help drive our tech coverage. If you’re passionate about the business of tech in Africa, love storytelling, and have significant newsroom experience, then join us. If this sounds like someone you know, please share this opportunity with them. by Timi Odueso Tech trivia questions Some trivia before we begin. Answers are at the bottom of this newsletter. How many emails are sent out daily? How long would it take to download all the data on the internet? Ten years of fintechs and banks What do you do with a physics degree and a love for math? If your answer is, like ours originally was, teaching, then you’re not as imaginative as you need to be. Olukunle Aboderin is though. The physicist and number cruncher describes himself as a data scientist who has spent the past 13 years working with the largest banks and fintechs across Africa. Olukunle Aboderin The physicist and number cruncher describes himself as a data scientist who has spent the past 13 years working with the largest banks and fintechs across Africa. Olukunle might have started with a Bachelor’s Degree in physics from the Osun State University, but the tech bro now has two Master’s degrees—which he mentions he got voluntarily —in risk management and data analytics, and 16 different licences. Now, he’s the assistant vice president (AVP), Financial Operations and Treasury at Flutterwave, one of Africa’s unicorns. Wondering how Olukunle built his love for math and physics into an illustrious tech career? Let’s find out. Simplify with Rowvar Simplify property investment with Rowvar. Start here. How Olukunle built it Akin to many tech enthusiasts, Olukunle’s foray into the tech realm didn’t just happen. Armed with a background in physics, his knack for problem-solving found its niche in the intricate world of tech. “Physics prepared me for the complexities of algebra in the business world,” he explained, underlining the importance of a solid analytical foundation. Transaction Monitoring, eTranzact International PLC 2010 – 2014 Card Operations Manager, First City Monument Bank 2014 – 2016 Lead Settlement & Reconcilliation, First City Monument Bank 2015 – 2018 Internal Control & Audits, First Bank Nigeria 2018 – 2019 Senior Risk, Portfolio Manager, Renmoney 2019 – 2020 AVP, Financial Operations & Treasury, Flutterwave Mar 2020 – Present But before he was even a tech bro, he was a disc jockey—a DJ—who hosted radio shows and was infamous during his undergraduate days at Osun State University. At the time, Olukunle worked with artists like M.I. and Blaqbonez but with great rhythmic power came great responsibilities that could only be settled by a stable means of income. And so, during his service corps year, he entered tech and finance with a role at eTranzact. Olukunle’s technical acumen was honed over the years, blending mathematical prowess with hands-on experience. For him, like any one who entered tech in the early 2010s, learning data wasn’t as streamlined as it today. There were no boot camps or courses, all they had was YouTube and stronghead. “It’s about having that groundwork to understand complex tech solutions,” he said. And because he already loved math, data science was easier to understand. “I have a big flair for problem solving, and because I had a background in math and physics, I would say it made it ten times easier to understand financial systems I was learning about.” Olukunle painted a vivid picture of how the tech scene in Africa has drastically changed over the past decade. He pointed out how nowadays there are way more ways to learn tech stuff, like online platforms and mentorship programmes, making it much easier for new folks to dive into the tech world. When it comes to getting into tech, Olukunle talked about the balance between getting certified and getting hands-on experience. He said certifications are cool and can boost your resume, but real skills come from actually doing the stuff, not just acing exams. “You have to know your stuff, And because Olukunle knows his stuff, the data scientist is helping other people know their own stuff too. He’s the co-founder of the Business Artificial Intelligence (BAI) Incubator. The BAI Incubator is a technology business accelerator and a global talent community that provides a platform for AI-related professionals to converge, get access to mentorship, network and grow.  It’s like a supportive hub where budding entrepreneurs get guidance, support, and connections to transform their early-stage projects into viable businesses. Olukunle says there are no application forms for BAI just yet, but if you’re interested in learning from him and other experts, reach out to him on LinkedIn and tell him #EnteringTech sent you . How you can do it too We learnt a lot from Olukunle in our conversation—especially the fact that math can mean the difference between understanding data science and being stuck on SQL or Python. Here are the top five things he highlighted that we’d like to take away: Image source: Zikoko Memes The importance of soft skills: Olukunle emphasises the significance of soft skills like communication, teamwork, and problem-solving. These are crucial alongside technical abilities to succeed in the tech industry. It’s like they say: hard skills might get you in the door, but soft skills get you promoted. Mentorship value: Mentorship plays a pivotal role in guiding and supporting aspiring individuals, providing them with exposure and opportunities they might not otherwise encounter. Focus on quality over quantity: Olukunle stresses the importance of prioritising accuracy and quality over speed or quantity in project delivery. Over-delivering quality work stands out in the long run. Individualised Success Metrics: Defining personal success metrics is crucial. Comparing yourself to others on social media platforms can create unnecessary pressure—especially when you realise many
Read MoreShowmax 2.0 to launch in 2024 but will inherit most of its current limitations
Showmax 2.0 will not do much about stream quality or the number of concurrent screens. Multichoice’s newly minted platform, Showmax 2.0, will not be launched this November but in February 2024. Showmax 2.0 promised new shows and films from global production companies such as NBC and Paramount and a robust streaming engine powered by Peacock. The revamp was announced following a partnership between the video-on-demand service and Comcast’s NBCUniversal and Sky. However, the delay comes with additional information about how the platform will reorganise its subscription tiers, addressing complaints from customers accustomed to Showmax Pro, which has since been discontinued. Other than a new logo, Showmax 2.0 will offer three plans: Showmax Entertainment, Showmax Entertainment Mobile, and Showmax Premier League. Showmax Entertainment will be accessible on multiple devices, including TVs, smartphone apps, and PCs. Thanks to the partnership with Comcast, subscribers will have access to shows, films, and content from international platforms such as Universal Pictures and NBC. Showmax Entertainment Mobile offers the same content as Showmax Entertainment but is exclusively available on mobile devices. Showmax Premier League will exclusively broadcast matches, but only on mobile devices. As the name suggests, it will focus solely on Premier League games, unlike the now-discontinued Showmax Pro, which aired games from major football leagues in Europe. A plan for premier league matches appears to appeal to ex-Showmax Pro customers who may want to migrate to DStv Stream as Showmax had suggested before ending support for Pro. DStv Stream, previously known as DStv Now, is currently accessible in ten African markets: South Africa, Kenya, Nigeria, Botswana, Namibia, Ghana, Uganda, Tanzania, Zambia, and Zimbabwe. Existing Showmax limitations will be carried forward Based on new information from Showmax, the platform has not improved the quality of its streams. For example, Showmax Entertainment will be capped at HD quality, which is relatively low in a market where competitors like Netflix offer content in 4K and in high dynamic range (HDR). The mobile plans will be limited to standard quality, which is lower than HD in picture quality. That’s not all: Showmax 2.0 has not increased the number of screens on which people can view content. The existing platform limits concurrent streams to two screens, which remains unchanged for Showmax Entertainment. The other two mobile plans will be limited to one screen. Showmax has never explained this limitation, especially when its rival Netflix allows customers to stream on up to four devices simultaneously. Showmax’s numbers in Africa indicate it is quite popular, with 1.8 million subscribers as of 2022. Netflix launched in the continent in 2016 and is second with 1.2 million subscribers. The majority of customers, 73.3%, are based in South Africa, which is Showmax’s home market. Both platforms continue to invest heavily in Africa; while Netflix’s subscription numbers are plateauing in Western markets and want to recoup them in emerging markets, Showmax aims to strengthen its position in Africa with an investment of up to $1 billion dedicated to original shows and market expansion.
Read MoreHow Estonia wants to catalyse startup success in Africa
Estonia delegates at the African Tech Festival have shared ways the continent can replicate the country’s tech startup success. Estonia has produced ten global unicorns from its tech ecosystem. Estonia’s startup ecosystem success can be replicated in Africa. This was said by Sandra Sarav, deputy secretary general for business at the Estonia ministry of economic affairs and communications, at the ongoing Africa Tech Festival in Cape Town, South Africa. With a population of 1.3 million inhabitants, the country has produced ten global unicorns—companies valued at more than $1 billion. These include include Skype, Bolt, and Wise. Sarav stated that a determined effort towards creating an enabling environment for digitalisation was key to the country’s ecosystem success. “Over 90% of social services are online,” said Sarav. “This has been through both government determination and private sector innovation and I believe that is possible in Africa.” Sarav also added that an active diaspora, a compact ecosystem where stakeholders have easy access to each other, and a regulatory framework which facilitates innovation were also key. Estonia, for example, has a startup visa which makes it easier for startups to source global talent. On what Africa can learn from the Estonia ecosystem, Liisi Org, founder of Latitude59, an Estonian startup and tech event, stated that startups on the continent should aim for a global audience from day one. “Companies like Bolt wouldn’t be global if they had just focused on Estonia’s 1.3 million people market.” Responding to a question from TechCabal on how Latitude59 is exploiting synergies with the African ecosystem, Org stated that in December, they will be hosting a version of the event in Nairobi, Kenya. The event, to be hosted in collaboration with Tech Safari, will include founders, investors and other ecosystem players from Estonia and numerous African markets. “There is a lot of interest in Africa from Estonian companies and through these kinds of engagements, a lot of opportunities and partnerships can be identified on both sides.” The event will also feature a pitch competition with winners having the opportunity to win an investment of 100,000 euros and a spot in the Startup Wise Guys accelerator program. Winners will also get to compete in the main event pitching competition in Estonia in May 2024.
Read MoreHow the metaverse is staying relevant in South Africa
Mic Mann, the founder of the metaverse platform Africarare, has stated that there is still a lot of interest in the technology in South Africa. Companies and individuals in South Africa are still embracing the metaverse in South Africa. This was said by Mic Mann, founder of Africarare which created the Ubuntuland metaverse, at the ongoing Africa Tech Festival in Cape Town, South Africa. The metaverse is defined as a three-dimensional and immersive virtual world that is facilitated by the use of virtual reality and augmented reality headsets. In 2022, the Ubuntuland metaverse onboarded some of South Africa’s leading companies including MTN and Nedbank as they scrambled to join the then-hyped virtual reality technology. According to Mann, although the noise on the metaverse has quieted down, the Ubuntuland platform is still attracting interest. “We have companies like Primedia, one of South Africa’s leading media companies, building out their villages on the platform“, Mann told the panel. “This shows that companies are still cognisant of the attractive use cases of the platform.” MTN stated they had bought land on the platform to “amplify consumer’s digital experiences and engagement.” Nedbank on the other hand said they joined the Ubuntuland metaverse to “enable Nedbank to engage in the future digital marketplaces, where we believe, we will need to meet and serve our clients.” Both companies bought 144 plots of size 12x12m land on the Ubuntuland metaverse for 0.1499 Ethereum (~$2,045) per plot. The future of the metaverse of South Africa According to Mann, the adoption of devices such as Apple’s Vision Pro is going to drive platforms like the metaverse as virtual reality becomes mainstream. “We are currently focusing more on building out our immersive mobile experience, Mann said. “But the excitement towards devices like Vision Pro and AI shows a promising future for the adoption of virtual reality technologies like the metaverse.” Responding to a question from TechCabal on how Africarare is driving the adoption of the metaverse, which is still a foreign concept to most non-technical people Mann stated several initiatives. These include a free course on building products on Ubuntuland, open-source software which gives more developers opportunities to build on the platform, and putting out content which simplifies concepts of the metaverse.
Read MorePineapple raises $22 million Series B round
Pineapple, a South African insurtech startup, has raised $22 million in a Series B round, making it the most capitalised insurtech startup in Africa. Pineapple, a South African insurtech startup underwritten by Old Mutual Insure, Africa’s largest insurer, has raised $22 million in a Series B round to become Africa’s most-funded insurtech startup, surpassing Kenya’s Turaco. Having raised $5.4 million in a Series A round in 2021 and $1.9 million from a competition and seed round, Pineapple has now raised a total of $29.3 million. Pineapple’s funding round was led by new investors Futuregrowth, Talent10, and MIC, and existing investors Old Mutual ESD, Lireas Holdings, and ASISA ESD Fund. E4E Africa also participated in the round. “This funding round stands as a testament to our tech and AI-powered operating model, enabling our mission to offer affordable and comprehensive insurance to all South Africans,” said Marnus van Heerden, Pineapple’s CEO. Pineapple, which was founded by Matthew Elan Smith, Marnus van Heerden, Ndabenhle Junior Nglube, and Sizwe Ndlovu in 2017, offers its users cheap online insurance and returns unused premiums to its customers annually. User’s premiums go into their Pineapple wallets and these wallets in turn form a network of wallets and claims are paid from this wallet network. Pineapple’s services can be accessed entirely online and users only have to upload a picture of the item they want insured and can get a quote in less than 10 minutes. Although Africa is the second fastest-growing region for insurance in the world, the penetration rate for insurance hovers around 3%. The low demand for insurance across the continent can be tied to a lack of customer awareness and trust in traditional insurance companies. Pineapple says it appeals to its customers by offering an entirely digital experience and returning unused premiums to its customers yearly. The six-year-old shared in a statement that it provides insurance to thousands of customers, and almost half are first-time insurance buyers. “Pineapple’s innovative approach to insurance aligns seamlessly with our investment philosophy. Their exceptional growth and customer-centric model exemplify a potent combination of technology and market understanding,” said Amrish Narrandes, the Head of Futuregrowth Asset Management’s Private Equity/Venture Capital. Disrupting Insurance In South Africa: A Pineapple Story
Read MoreExclusive: Neighbourgood acquires traveltech startup Local Knowledge for $1.5 million
Neighbourgood, the South African real estate investment company with over 1,000 work and co-living spaces across Cape Town and San Francisco, has acquired traveltech startup Local Knowledge in a deal worth $1.5 million in cash and equity. The acquisition is crucial to Neighbourgood’s launch of a mobile app that recommends activities and tours to users.  “We have been focused on building physical locations, but there was always a strategy to build technology that made the experience of living and working spaces better,” said Murray Clark, Neighbourgood’s founder. “The acquisition of Local Knowledge will help us accelerate that strategy.” Founded in 2020 and with a business presence in Cape Town and San Francisco, Neighbourgood provides co-living and co-working spaces for digital nomads and tourists. It has over 1,000 spaces and plans to build 650 more in 2024. Local Knowledge, on the other hand is a digital platform that provides users with curated recommendations for activities and tours in Cape Town. Key Takeaways Neighbourgood has acquired traveltech startup Local Knowledge for $1.5 million in cash and equity The company plans to incorporate Local Knowledge’s tech stack into its accommodation offering It also plans to accelerate expansion in the US Neighbourgood 2.0 launching in December Neighbourgood plans to also launch a co-working space offering called “Workclubs” which would cost from R990 a month in rental for a space accommodating 35 team members. This product and existing accommodation and experiences offerings will be launched as part of the Neighbourgood app experience on December 1. “Traditional workplaces are usually too big and expensive for the kind of clients we are targeting with this product,” Clark told TechCabal. “Ours will seek to be more affordable and also foster collaboration for tenant teams.” With Cape Town being one of the biggest startup hubs on the continent, Neighbourgood will be looking to service such teams looking for alternatives to other co-working space platforms like WeWork South Africa. In January, the company also plans to raise funding to finance its expansion in the US, where it currently has three locations.
Read MoreJumia’s $19m loss is a bright spot as active customers decline in Q3
Jumia, one of Africa’s most prominent e-commerce businesses, cut its operating losses by more than half to $19m in the third quarter of 2023. It was a bright spot in a quarter that saw the company lose 800,000 active customers compared to the same period last year. The reduction in losses was thanks to increased cost discipline. A cash balance of $54 million–the company’s liquidity position is $147 million–has forced a significant reduction in expenditure. Under the leadership of Francis Dufay, the company cut expensive overhead by moving senior executives based in Dubai to Africa, reduced its workforce and moved away from a focus on delivering low-ticket items. Key takeaways: Jumia’s reported revenue of $44.9 million for the quarter It cut its operational losses to $19 million Quarterly active users declined to 2.3 million As part of cost-cutting initiatives, the company reduced its sales and advertising spend to $4.3 million, reducing advertising on “costly marketing channels and cutting consumer incentives.” The drop in advertising spending is steep (73%) compared to Q3 2022. Its general and administrative spending was also down to $17 million. Exclusive: Inside Francis Dufay’s urgent plans to rescue Jumia, the struggling Amazon of Africa Macroeconomic factors remain a challenge despite improved fundamentals Jumia’s Gross Merchandise Value, a measure of the value of all goods bought on its platform, declined to $181 million. The company blamed the reduction on currency devaluation across markets. “Eight out of ten local currencies in our countries of operation depreciated against the US Dollar,” Jumia said in its financial report.  Spending power, impacted by rising inflation in key markets like Nigeria, Ghana and Egypt also contributed to a reduction in order volume and value. As a result, the company’s reported revenues of $44.9 million and gross profit of $25.1 million. Based on its goal to cut losses and move towards profitability, Jumia’s Q3 shows great progress. Yet it’s clear that there’s still work to be done; to deliver profits, it will need to grow revenues while keeping these costs low. The macroeconomic environment in all its markets will play a big role in reaching those goals.Â
Read MoreNigeria’s headline inflation rises again as rate hike meeting stalls
Nigeria’s headline inflation has jumped for the tenth consecutive month and hit an eighteen-year high, increasing the likelihood that the central bank will raise borrowing costs. Official data from Nigeria’s Bureau of Statistics (NBS) showed that October’s headline inflation number was 27.33%. The prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables and milk, cheese and eggs soared. NBS data showed food inflation hit 31.5% in October. “Normally, I get orders and inquiries daily, but now, no one is even willing to make inquiries or even order food,” Mariam Amoda, a food vendor told TechCabal. The Central Bank is expected to raise rates in its next Monetary Policy Meeting. The CBN failed to convene a scheduled (MPC) meeting in September to decide the nation’s interest rates for the first time in eight years. KPMG, a financial and business advisory firm, has predicted that Nigeria’s headline inflation will hit 30% by December 2023.
Read MoreFlutterwave surmounts legal obstruction to boost its offering in Kenya
This article was contributed to TechCabal by Seth Onyango via bird story agency. Fintech giant, Flutterwave has overcome legal challenges that threatened to cripple an ambitious growth strategy that made it the darling of venture capitalists internationally. “After considering all the facts presented to this court, as well as my earlier ruling on the agency’s request for withdrawal of this suit, the withdrawal is hereby allowed and this suit is marked as withdrawn,” High Court Judge Nixon Sifuna said in a ruling handed down in Nairobi. The judge criticised Kenya’s Assets Recovery Agency (ARA) for initiating the case without completing investigations, deeming the action “inappropriate, negligent, reckless, and absurd”. Flutterwave had grown to become an investor’s darling on the continent and the removal of legal challenges in the key East African markets sets the stage for a face-off with M-Pesa, the region’s mobile money behemoth. The Nigerian-based company, which offers a range of payment solutions for individuals and businesses across Africa, faced a series of legal challenges in Kenya after the ARA accused it of money laundering in 2020 and froze its accounts. Founded in 2016 by Iyinoluwa Aboyeji, Olugbenga Agboola, and Adeleke Adekoya, Flutterwave is headquartered in San Francisco and Lagos and is currently valued at some US$3 billion. That makes it the most highly valued startup in Africa, overtaking previous records set by OPay, a fintech firm backed by SoftBank, and Chipper Cash, a cross-border payments platform supported by FTX, (both were valued at US$ 2 billion, in 2022). Flutterwave always denied the allegations brought by the ARA and challenged the court order, arguing that it had complied with all the regulatory requirements and obtained a license from the Central Bank of Kenya (CBK) in 2019. After months of litigation by the ARA, the judgement cleared the way for the fintech firm to resume operations in Kenya. The company may also chase a much-anticipated initial public offering (IPO) which could see it listing its shares in the territories where it operates. The end of Flutterwave’s legal woes could be a game changer in Kenya and East Africa, as the company seeks to expand its presence and compete with the dominant player, M-Pesa. M-PESA, which is owned by Safaricom, the largest mobile network operator in Kenya, has more than 55 million users and processes over 80% of the country’s digital payments. It has extended its services to other countries in the region. Kenya’s digital payments sector is often criticised for its complacency due to a lack of robust challenges to M-Pesa’s dominance. Flutterwave operates in more than 30 African countries and supports over 30 currencies, making cross-border transactions and remittances easy. The service has partnered with global payment platforms such as PayPal, Stripe, and Visa, enabling its customers to access a wider range of payment options and markets.  The fintech startup also offers online checkout, e-commerce, invoicing, payment links, and virtual cards. According to a report by the World Bank, Kenya has one of the highest fees for mobile money transactions in Africa, averaging 11% of the transaction value. Flutterwave’s entry could significantly lower those fees as it chases its ambition to become the leading payment platform in Africa and beyond.
Read MoreCopia, Kenya’s offline e-commerce king, wants more customers to order from its mobile app
Copia Global, the Kenyan e-commerce startup that has raised $107m in venture funding across seven funding rounds, is launching a campaign to drive more sales through its mobile app. The company, which currently collects and delivers customer orders through 50,000 agents, is taking advantage of the fact that most low- and medium-income Kenyans now have smartphones. “We started with an offline experience because our customers were offline, but now we can fully focus on transitioning all to our app,” said Tim Steel, CEO of Copia, in a statement seen by TechCabal. Currently, most of Copia’s two million customers place orders for household items, electronics, or packaged foodstuff in person at neighbourhood shops, via USSD, or even call in orders (via phone) to their local shopkeepers. Copia’s new campaign will focus on helping these users transition to placing orders on its mobile app. “The goal is increased direct engagement with our customers so that they can see all our products and the pricing which is difficult when you are in an offline environment,” Steel told TechCabal on a call. The company launched a similar campaign last year to help agents use smartphones more, leading to an increase in the use of its agent marketplace app from 5% to 80%. A key driver of success was that Copia offered smartphone financing to its agent network. It will offer the same smartphone financing facility to allow current offline and new customers to purchase smartphones (and higher ticket items) and pay in bits. Founded in 2013 by Tracey Turner and Jonathan Lewis, Copia relies on a network of 50,000 street shops in small towns and semi-rural areas in Kenya to collect and deliver orders. Increasing app usage will change this model as customers rely less on nearby shops, which double as Copia agents to place orders. These shops will still serve as pickup locations, and shopkeepers will still earn commissions from app orders. Copia says it can better control the shopping experience, have complete visibility over how customers place orders, and even begin to customise offerings based on a customer’s historical preferences. Kenya’s smartphone usage has increased More Kenyans now own and use smartphones than ever, and mobile internet packages’ costs have fallen steadily since the early 2010s. A Kantar East Africa study commissioned by Copia said 73% of middle and low-income consumers in Kenya now own smartphones. Per the report, half of Copia customers who currently own smartphones use the internet at least once weekly. Given current trends, more Kenyans will transition to smartphones as prices fall and smartphone financing becomes more accessible. “Copia is usually the first commerce app our consumers experience, so we have a real responsibility to bring the world to their fingertips,” said Tim Steel. It’s an admission that Copia’s target demographic (rural and peri-urban) are not digital natives and may have difficulty weaning themselves off agents. In January 2022, Copia announced a $50 million series C round. This year, the company has cut at least 700 internal roles, in addition to shuttering a recently launched Ugandan business. In addition to its e-commerce business, Copia runs several brand product lines and operates two facilities that produce and package sugar and rice.
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