YC-backed Prospa is unable to process withdrawals for the second time in 5 months
Prospa, the Y Combinator-backed business banking startup, is the subject of complaints and social media callouts after persistent delays in processing customer withdrawals. Four customers said their withdrawals had not been processed since May 2024 amid the company’s claims of service downtime. It is not the first time customers have experienced such delays. In February 2024, the company also claimed a service downtime impacted transaction speeds, with customers needing to wait weeks to access withdrawals. Prospa did not immediately respond to a request for comments. These delays are worrying for business owners who use Propsa to hold deposits and access other services like company registration, virtual storefronts, invoicing, bookkeeping, sub-accounts, and working loans. “Either their [customer care] phone lines were switched off or they responded saying they have NIP server issues,” one person who had ₦800,000 in his Prospa account told TechCabal in March. “I called my friend who works at NIBSS [the country’s payment aggregator] and they said Prospa had no such issues.” The delays were resolved in mid-March, according to affected users, some of whom visiting the company’s Yaba office. Others formed virtual support groups to share updates. In May, customers began experiencing delays again, with some withdrawals taking up to three weeks to process. “At this point, the customer care reps are just engaging complaints because they have to, and not to actually help,” an affected user told TechCabal. Like the last time, many are visiting Prospa’s office to demand a resolution. “When they come round, we get our account managers to attend to them and resolve their complaints,” an employee told TechCabal. An ex-employee rejected comparisons to Brass, a business banking startup that struggled with working capital before it was acquired by new investors. “Prospa has never had capital issues. They only had technical issues,” a former Prospa employee who worked in Credit told TechCabal. “They are partnering with commercial banks so most times, [the engineering team] say issues are from them.” The bank has previously partnered with Wema Bank, and Parkway ready cash. Per its website, it partners with Good News Microfinance Bank.
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SBI account balance check methods 2024
State Bank of India (SBI) account holders in 2024 have multiple options to check their account balance. This article outlines the various methods available for SBI balance check number 2024. Mobile number registration to enable SBI account balance check For most methods, your mobile number must be registered with SBI to receive SMS alerts and use USSD services. You can verify or register your mobile number at your nearest SBI branch or ATM. USSD service SBI account balance check This method uses USSD and doesn’t require internet access. Here’s how to use the SBI balance check number via USSD: Dial *595# from your registered mobile number. You’ll receive a menu with various options. Select “Balance Enquiry” (the option might vary depending on the displayed menu). Enter your MPIN (Mobile Banking PIN) and submit. Upon successful verification, your current SBI account balance will be displayed on the screen. SMS method for SBI account balance check SMS Banking allows you to check your balance through text messages. Here’s how to use the SBI balance check number via SMS: Move to compose a new SMS on your registered mobile number. In the message body, type “BAL” (case-sensitive). Send the SMS to 09223766666. You’ll receive an SMS reply with your current SBI account balance. Missed call service for SBI account balance check This method involves giving a missed call to a specific number. Here’s how to use the SBI balance check number via missed call: Dial 09223766666 from your registered mobile number. The call will automatically disconnect after one ring. You’ll receive an SMS reply with your current SBI account balance. SBI YONO app and internet banking SBI YONO App and Internet banking offer a comprehensive platform for managing your SBI account, including balance inquiries. Download the YONO App from official app stores or access internet banking through [online.sbi.co.in]. Login using your credentials and navigate to the “Account Summary” section to view your current balance. Final thoughts There are no limitations on the number of inquiries you can make through USSD, SMS, or missed call services. Also, always ensure you correctly enter your MPIN or other credentials to avoid security risks. Attempts more than four times with wrong details may have your account flagged or blocked temporarily. And you may have to visit a branch to lift the ban.
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Exclusive: Meta will reduce office space in Lagos after layoffs affected Nigerian team
Meta, the parent company of Facebook, Instagram, and WhatsApp, will reduce its office space in Lagos after global layoffs in mid-2023 affected its Nigerian team. At least 35 people were affected by those layoffs, three people with knowledge of the matter said. The company’s engineering team, which had 24 employees according to a 2022 report, was laid off. “Engineers continue to serve the region from a number of our global engineering hubs outside of Nigeria,” a company spokesperson told TechCabal via email, declining to specify how many Nigerian employees were affected by 2023 layoffs that reduced global headcount by 20,000. The reduction in team size has prompted the social media giant to begin renegotiating its tenancy agreement for its office space in the 15-story Kings Tower building in Ikoyi, Lagos. A key part of that renegotiation will be to reduce its office space. Per one publication, Kings Tower has an asking price of $800/sqm/per annum. “We regularly review our office spaces to ensure they suit the needs of the business, and the office in Nigeria is no different,” Meta said in a statement. “As we shrink our real estate footprint, we’re transitioning to desk sharing for people who already spend most of their time outside the office.” Microsoft, Meta and Flutterwave maintain offices in the 15-story Kings Tower While Meta rejects any characterisation of the decision as scaling back, it is a remarkable about-face for a company that has consistently invested in Nigeria and has spoken about prioritising the West African nation. In March 2024, Nick Clegg, Meta’s President of Global Affairs visited Nigeria and announced the company would begin offering monetisation to creators in Q3 2024. During his visit, he spoke about the recognition Nigerian creators have garnered globally and their use of Meta’s platforms to build communities. Per Statista data, there are an estimated 43 million Facebook users in Nigeria. Yet, it is difficult to measure if these numbers have translated into meaningful revenue growth. The company reports Africa revenue as part of its “Rest of World” cohort. Meta is not the only big tech company to make operational changes in Nigeria. Microsoft closed the African Development Centre and cut at least 100 engineering jobs in May 2024. While the company insists it remains operational in Nigeria, it picked Kenya for a multi-billion dollar investment in data centers.
Read MoreSouth Africa’s Standard Bank to fund $5 billion Uganda-Tanzania oil pipeline despite environmental concerns
South Africa’s Standard Bank, the largest African lender by assets, will fund the controversial Uganda-Tanzania oil pipeline, Bloomberg reported on Thursday. Work on the 1,445km pipeline to connect Uganda’s oil fields on the shores of Lake Albert to the Tanzanian port of Tanga has faced funding hitches as environmentalists lobby to stop the project, arguing that it will displace thousands of people and destroy animals’ habitat. French oil major TotalEnergies owns a majority stake in the project while Uganda, Tanzania, and China National Offshore Oil Corporation hold minority shares. “We have done our governance process internally, the environmental and social due diligence, which took a long time,” Bloomberg quoted Nonkululeko Nyembezi, Standard Bank chair. Potential lenders and insurance firms have opted out of the project, citing environmental concerns raised by activists that have delayed the East African nation’s oil export dream for four years. Chinese lenders who warmed up to the project after Western banks recoiled have held back their commitment, questioning its economic viability. In 2022, the European Parliament passed a resolution opposing the project, complicating TotalEnergies’ efforts to raise capital among European lenders. Early this year, over 20 insurers declined to insure the project after pressure from activists. SA Meacock, SiriusPoint, Enstart Group, Blenheim, and Riverstone International ruled out being part of the project. Nyembezi told Bloomberg that the bank will decide in the coming months. “We have all the lenders. There is a complete commitment on the part of the sponsors of the oil projects to get it done,” Nyembezi said. Landlocked Uganda discovered oil 17 years ago but its commercial production has faced delays due to the lack of an export pipeline through the neighbouring countries to the Indian Ocean. Uganda and Tanzania are targeting to complete the project by December 2025.
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African innovation thriving despite scarce representation at London Tech Week
At the London Tech Week this year, attendees were dressed in smart-casual clothes, hundreds of them moving from booth to booth in the exhibition area and hundreds more settled in at panels, showcases, and fireside chats going on on six different stages spread throughout the large dome of the Olympia Events centre in London, UK. Delegations from different countries had booths in the exhibition area—Japan, Switzerland, Nepal, Palestine, Pakistan, and many others. The area held 268 booths of various businesses, but only one of these booths belonged to an African country. The South African Pavilion came to the conference with a packet of 11 startups huddled in its booth. Although many African founders and operators in tech could be seen moving with the crowd, the London Tech Week’s agenda did not have a strong focus on the continent; there was just one event focused on discussing African innovation—“Africa: The Next Frontier for the Global Emerging Tech Sector”. One would think innovation in the continent is far from exciting. And they would be wrong. The aforementioned panel was moderated by Justina Oha, partnership consultant at Big Cabal Media; with participation from Yewande Odumosu, managing partner, HoaQ Ventures Fund, an angel investment fund; Tomi Davies, CEO of TVC Labs, a VC providing strategic and operational support to early-stage African tech-enabled ventures; and Deepankar Rustagi, founder and CEO of OmniRetail, a unified consumer goods distribution startup. The panel discussed the reasons behind unrelenting innovation in Africa, despite the current harsh business climate. Rustagi, whose OmniRetail was listed by the Financial Times as a fastest-growing company for 2024, said that building for the African market presents opportunities to build for global markets. “In the process of solving one problem, there are various different problems you’ll have to build. When an American startup is building solutions, they follow the trend of a sequoia tree—one single laser focus on the problem—but when a Nigerian is solving a problem, he has to follow the trend of a banyan tree; if you want to solve the problem in Africa, you have to actually build various different startups. And if you, in those scenarios, can build a solution, that’s a very robust, scalable solution that can work anywhere in the world.” Odumosu believes that innovation continues to happen in Africa because there is an ongoing interaction, through cross-border payments, talent export, and business expansions of startups, between Africans living locally and those living elsewhere in the world. “In the past, you hardly saw a Nigerian company expanding into India or China,” she said. “Now you have LemFi doing that. Also, with a lot of migration happening, we’re also exporting talent. A lot of Africans are now building hubs and businesses locally and in their home countries.” With generative artificial intelligence (AI) expected to add $4.4 trillion to the global economy annually, according to this McKinsey report, there was an impossible-to-miss enthusiasm about the subject at the London Tech Week; there were 25 panels and fireside chats dedicated to discussing various aspects of the emergence of and innovation around AI. A presentation delivered before the panel by Olanrewaju Odunowo, head at TechCabal Insights, a data and insights company, revealed a list of African startups across 11 countries deploying AI to solve various problems. Davies admitted that AI is taking off “aggressively” on the continent and believes that the continent is ready to exploit the technology to solve problems. “AI is being used in diagnostics and telemedicine,” he said. “If you look at agriculture, we’re starting to see AI used in crop maintenance and weather prediction. Now we’re starting to see [electrical] power aggregators who have the capability to use AI to distribute within regions and within locales.” Davies addressed the current funding downturn—“It’s a blip.” He said that future economic growth will come from Africa, given its teeming youth population. “We’re now waking up and starting to properly educate Africans so that they have the capability to deploy and develop technology,” he said.
Read MoreBlackRock’s $400 million iShares ETF to exit Nigeria, Kenya
BlackRock, the world’s largest asset manager, will close iShares Frontier, a $400 million ETF that invests in frontier and select emerging markets equities, including Nigeria and Kenya. The exit marks the continued flight of foreign investors from local bourses, blamed on a tough macroeconomic environment that has seen firms downsize, and the weakening of local currencies like the naira. “The Board of Directors of the Company approved a proposal to liquidate the fund. In light of persistent liquidity challenges in certain frontier markets, including among other things, delays or limits on repatriation of local currency, the board determined that it is in the best interest of the fund and its shareholder for the fund to liquidate,” iShares said in a statement. The fund will enter an extended liquidation period and expects the last day of trading to be March 31, 2025. During the period, iShares will sell its assets in all markets and hold the proceeds in cash and cash equivalents. “Currency conversions, including conversion of Nigeria’s currency, the naira, will impact the timing of the fund’s liquidation. As a result, the fund will enter into an extended liquidation period,” iShare said. “After market close no earlier than August 12, 2024, but on a date as soon as practicable, the fund will cease trading and the creation and redemption of creation units.” African equities have lost their allure to foreign investors, dampened by low returns compared to other asset classes and currency scarcity in key markets like Egypt, Nigeria, and Kenya. BlackRock’s iShares has already liquidated its holdings in companies listed on the Nairobi Securities Exchange (NSE). The fund had a $5.2 million investment in Kenya, including Safaricom ($2.8 million), Equity Group ($1.5 million) and KCB Group ($885,000). The fund has been providing exposure to equities in select African bourses, such as Egypt, Kenya, Morocco, and Nigeria. Other markets are Bahrain, Bangladesh, Colombia, Estonia, Jordan, Kazakhstan, Pakistan, Philippines, Romania, Sri Lanka, and Vietnam.
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👨🏿🚀TechCabal Daily – Aluminium recycling gets $10 million funding
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning In another startling change, your Likes are now private on X (Twitter). While this means people can’t check your profile to see if you’ve been naughty or nice, it also means you can no longer check who has liked someone else’s post! The people at X say the move will help protect users’ privacy some more, but some critics say this move benefits the company more as it’ll now be impossible to tell if posts with massive likes are genuine or boosted by bots. On a personal note, I think privatising likes might be a bit of a stumbling block to how people build communities on Twitter. Public likes help users discover like-minded people and encourage engagement. Without it, finding connections and sparking discussions might be tougher. True, public likes can be inauthentic, but private likes might lead to users hiding genuine interest, creating a less real experience. Whatever the case, Chief Twit Elon Musk says likes are up by a whole lot since the change was made. In today’s edition Multichoice records $223 million in losses TLG Capital, Wema Bank invest $10 million to boost aluminium recycling in Nigeria Directline Assurance closure linked to controversial $3 million transfer New court order says laid-off Wasoko staff are undeserving The World Wide Web3 Job openings Companies Multichoice records $223 million in losses Multichoice is in the news again, this time not for Canal+ acquisition. While the French TV giant is wrapping up the acquisition of the South African broadcaster, Multichoice recorded staggering losses in its latest financials, an R4.1 billion ($223 million) loss that’s the company’s worst record loss since inception. The South African pay-TV group also experienced drops in user count and revenue. Per its financial results, it had about 15.7 million subscribers, down from 17.3 million in 2023. Multichoice also recorded a drop in revenue from $3.22 million in 2023 to about 3.05 million. The latest results reflects the reality of Multichoice users in key markets like Nigeria and Ghana who have dropped off the platform due to reduced spending power as a result of currency devaluation and inflation. It’s not all gloom for Multichoice. Despite currency depreciation across its key markets, it recorded trading profits of R1.5 billion ($80 million). It also recorded its highest cost savings—R1.9 billion ($103 million)—since listing on the South Africa bourse. Its newly launched fintech, Moment, also recorded a total payment volume of $85,000,000. The fintech was also instrumental in Showmax’s relaunch, enabling payment across 44 markets. Moniepoint is Africa’s fastest-growing fintech The Financial Times has ranked Moniepoint as Africa’s fastest-growing fintech based on its absolute and compound growth rate. Read more about it here. Investments TLG Capital, Wema Bank invest $10 million to boost aluminium recycling in Nigeria Aluminium Codemn! An industry filled with young scavengers who search dumps and streets for scraps to gain quick profit. Waste scavenging—or gathering—as a profession is said to be one of the oldest in the world employs over 15 million people worldwide and 1% of the urban population. In Nigeria, after scavenging, this waste is recycled or exported to other countries like Brazil and South Korea for recycling. Nigerian scavengers also export about 5 billion worth of scraps annually per a TVC news report. Recycling aluminium cuts greenhouse gas emissions by 97% compared to creating it from scratch. Unlike many materials, aluminium can be recycled infinitely without losing quality. Each recycling cycle adds to the environmental savings. Did you also know that making aluminium cans from recycled metal is 20 times more energy-efficient than using primary materials? Aluminium recycling in Nigeria is a common practice that has begged for investors’ attention. Little wonder, TLG Capital, an investment firm partnered with Wema Bank to fund a Nigerian aluminium recycler with $10 million, per Benjamindada.com. Details regarding the specific aluminium recycler receiving the $10 million structured private credit facility remain undisclosed. The investment promises a major transformation for Nigeria’s aluminium recycling sector as the project seeks to establish the nation’s biggest and first industrial-scale facility. This project is estimated to slash carbon emissions equivalent to taking 100,000 cars off the road over five years. The plant will also create 200 new jobs in Nigeria. Issue Euro (EUR) accounts for easy EUR payments Create and manage EUR bank accounts from anywhere. Fincra allows you to issue EUR accounts to your users, partners and customers to collect payments without the stress of setting up and operating a local bank account. Get started today. Companies Directline Assurance closure linked to controversial $3 million transfer In November 2005, Directline Assurance, a Kenyan insurance company launched to provide insurance coverage for Public Service Vehicles (PSV). The insurance company went on to become the largest, capturing 60.79% market share, according to data from Kenya’s Insurance Regulatory Authority. Business went as usual with the company until a misappropriation of $3 million forced its closure. A $3 million misappropriation? One afternoon in May, media mogul Samuel Kamau (SK) wrote to Diamond Trust Bank (DTB) to wire to Toy and Suna Holdings to “to finance the development of stalls and low-cost housing at the Toy Market”. This transaction contravened the regulations of the IRA as Section 191(2) of the IRA Act prohibits insurers from engaging in any business other than the business for which they are registered. In fact, the regulator tagged the transaction as “a scheme to defraud policyholders and beneficiaries of the company.” These contraventions led to the hurried closure of the insurance company, the dissolution of its board and the termination of staff contracts. Adonijah put it this way: One person with direct knowledge of the matter claimed Macharia, fondly referred to as SK, hurriedly closed the insurer after the regulator flagged the transaction and moved to court. However, the IRA stepped in, revoking the closure and declaring the transfer null and void. This move protected policyholders from losing $15.4 million in unpaid claims and ensured the
Read MoreNigerian subscribers decline to 8.1 million as MultiChoice Group records $217m annual loss
South African pay-TV group, MultiChoice reported total annual losses of R4 billion ($217 million) on revenues of R56 billion on the back of macroeconomic challenges that may make its shareholders seriously consider if a Canal+ ownership may provide some respite. Devaluation and inflation in markets like Nigeria and Ghana reduced consumer spending power, leading to a decline in active subscribers. Its number of active subscribers in Nigeria was 8.1 million (a 1.2 million decline), reducing the country’s revenue contribution to the Rest of Africa segment from 44% to 35%. “Mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment,” MultiChoice said in its executive summary announcing the results. FY24 presented the toughest set of macro-economic conditions for the Rest of Africa (defined as all its markets outside South Africa) business since 2016, the company said. Its South African business, which showed more resilience with only a 5% decline in active customers (7.6 million active subscribers at year-end), also came under pressure. “Consistent loadshedding through FY24 created an environment where customers without backup power were reluctant to subscribe to our service due to the uncertainty of whether they would be able to watch.” Across all its markets, the number of premium customers (which includes the Premium and Compact Plus bouquets) declined by 8%, and the mass market tier by 2%. These annual results, which investors are unlikely to be impressed by, were delivered against a background of cost-cutting measures by the pay-TV group. It reduced subsidies on decoders and delivered cost savings of R1.9 billion. Yet, it was unable to escape the realities of the markets in which it operates. For instance, the group incurred remittance losses of $59 million during the year from Nigeria as FX market volatility saw prices swing sharply. In FY 2023, that figure stood at $132 million.
Read MoreExclusive: As merger stalls, court sets aside order forcing Wasoko to keep nine ex-employees on payroll
A Kenyan court has set aside a February 2024 interim order that forced B2B e-commerce startup Wasoko to keep nine employees on its payroll despite laying them off in December 2023. The court said the employees were “undeserving” of the order after they withheld crucial information. Despite reinstating the employees, they failed to show up for work, Wasoko’s lawyers argued. One of the claimants was still employed by Wasoko at the time of the order and participated in redundancy negotiations. The court agreed with Wasoko’s argument that keeping them on payroll would amount to “unjust enrichment.” Exclusive: Unauthorised $3 million transfer led to Directline Assurance shutdown “Before me are claimants who have since obtaining the orders declined to present themselves to work and in the case of one, taken steps to accede to the issue that brought them to court,” the court held in its June 11, 2024 decision. The employees disagreed with the ruling, and one person with direct knowledge of the matter claimed Wasoko allowed them to work from home occasionally. The same person added that they had limited access to work tools, and claimed a hostile work environment after they sued made working from the office untenable. As a result of the ruling, the parties to the lawsuit will now prepare for a pre-trial hearing on the wrongful termination suit brought by the nine ex-employees. Wasoko maintains it followed due process in the layoffs, and that the initial redundancy notices from December 2023 were valid. It also issued a new notice after the February interim order. In April 2024, the ex-employees received and kept their redundancy payments. However, the ex-employees claimed that Wasoko erroneously released the payments while the case was ongoing. While the case continues, Wasoko’s celebrated merger with Egypt’s MaxAB, expected to be concluded by April 2024 remains uncompleted, with TechCrunch citing “extended due diligence” as the cause of delay.
Read MoreExclusive: Unauthorised $3 million transfer led to Directline Assurance shutdown
The shutdown of Kenya’s Directline Assurance was connected to an alleged attempt by media mogul Samuel Kamau (SK) Macharia to avoid a probe into an unauthorised $3 million (KES400m) transfer to a company he controls, according to court filings by the Insurance Regulatory Authority (IRA) seen by TechCabal. $3 million was wired to Toy and Suna Holdings Ltd from Directline’s Diamond Trust Bank account on May 16, court documents 4 showed. The regulator alleged the transaction was a scheme to defraud policyholders and beneficiaries of the company. Samuel Macharia’s office did not immediately respond to a request for comments. The IRA alleged Macharia moved the millions “purportedly to finance the development of stalls and low-cost housing at the Toy Market” in contravention of existing regulations. “Section 191(2) of the Act prohibits insurers from engaging in any business other than the business for which they are registered. It is apparent on the face of the record that the subject transaction is not insurance business and is, therefore, a breach of the insurer’s license terms,” IRA said in its application. One person with direct knowledge of the matter claimed Macharia, fondly referred to as SK, hurriedly closed the insurer after the regulator flagged the transaction and moved to court. “The board of Directline has been dissolved and all the assets taken over by Royal Credit Ltd. All employees have been dismissed, and Directline will no longer issue insurance services,” Macharia announced on Citizen TV, a leading Kenyan news outlet he owns through Royal Media Service (RMS). The unexpected closure caused panic among policyholders who stood to lose $15.4 million (KES2 billion) in unpaid claims and threw staff and agents into limbo. The Insurance Regulatory Authority (IRA) stepped in and revoked the decision. “The purported actions are null and devoid of any legal effect and as such the insurer continues in full operation as licensed and approved by the Authority. The purported transfer of the assets of the insurer to any third party is therefore null and void ab initio,” said Godrey Kiptum, IRA chief executive. This latest standoff adds to the list of feuds Macharia has had with the regulator and other directors in the company. Since 2018, IRA has maintained that the billionaire and his associates do not own a controlling stake, a position he disputes. IRA shareholder register shows that Macharia through RMS owns 10% in the underwriter, while four other investment vehicles hold a 20% stake each. In 2019, Macharia challenged this position in court, claiming that his family owns 20% while AKM Investments, a company owned by his son who died in 2018, holds a 48% share. But Macharia’s claim was in breach of the regulator’s shareholding limit that caps individual stake in insurers at 25%. The matter is still pending in court.
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