Exclusive: Kenyan agritech iProcure files for bankruptcy after investors’ snub
iProcure, the Kenyan agritech startup that raised $17.2 million from investors in ten funding rounds, filed for bankruptcy on April 26 after failing to convince existing and new investors to inject more capital into the business. The company’s co-founder and director Stefano Carcoforo told a Kenyan court the company was struggling to fund operations and bankruptcy protection was necessary because it could not pay its debts. While Carcoforo did not disclose the company’s liabilities, one person with knowledge of the business estimated its debts at over $1.5 million (KES197.25 million). “I, Stefano Francesco Carcoforo sincerely declare that the company is not able to pay its debt as and when they fall due,” Carcoforo said in an affidavit filed in court. Exclusive: After two fundraises in 2023, Alerzo cut its workforce in February due to “digitization” “The company has lately been unable to meet its financial obligations on a day-to-day basis. At that point, the company approached its shareholder and other potential investors to pump in more investments to enable the company to trade normally in the market.” iProcure was founded in 2013 by Carcoforo, Nicole Galletta, Patrick Wanjohi, and Bernard Maingi to help distributors of agricultural inputs like fertilisers source products from manufacturers. The startup’s struggles speak of difficulties facing African tech startups that raised capital from investors in the early days on the promise of rapid growth and have been unable to hit profitability. “That failing to attract more investment, the company sought the protection of the law under the Insolvency Act of 2015, by appointing a qualified administrator under the law, to manage the company’s affairs and property of the company,” Carcoforo told the court. Makenzie Muthusi, a partner at KPMG advisory arm, was named administrator. The startup has had 10 rounds of fundraising, the latest being in 2023, where it received a grant from USAID East Africa Trade and Investment Hub and Spark Accelerator.
Read MoreExclusive: After two fundraises in 2023, Alerzo cut its workforce in February due to “digitization”
Alerzo, the B2B e-commerce company backed by Nosara Capital and FJ Labs, laid off at least 70 employees in early February despite raising funds twice in 2023. Two people familiar with the matter said the layoffs were driven by a need to cut costs and extend runway. However, the company said digitisation and a need to create a sustainable business drove the decisions. The company has laid off employees twice in the past year, reducing its headcount by at least 400 in 2023. Many affected employees were warehouse staff and the company claimed improved technology and efficiency were key factors. The layoffs in February 2024 also affected junior employees at warehouses and front offices, two persons familiar with the matter told TechCabal. Alerzo confirmed the layoffs but declined to share the number of employees affected. “In February we also had a large workforce of almost 1500 employees. While any layoff is regrettable, we’ve done our best to limit the amount affected,” the company said in a statement to TechCabal. “All those who were laid off were still given severance packages and had health benefits extended for an additional three months.” As the startup cut costs, it raised funding twice in 2023 but did not disclose the funding amounts. It is unclear if existing investors participated in both funding rounds. Per Crunchbase, Alerzo raised “undisclosed non-equity assistance” after it was selected as a member of the June 2023 cohort of World Economic Forum’s Technology Pioneers. Three people familiar with the conversations claimed the company also raised funding in April and September 2023. “We did raise some capital in 2023 but are unable to disclose the amount,” a spokesperson for the company said. Founded in 2018 by Adewale Opaleye, Alerzo raised $525,000 in pre-seed funding in 2020 and $5 million in a seed round in 2020. Its $10.5 million Series A round was also well-publicised. It also raised an undisclosed amount in a January 2022 Series B round. Struggles in Africa’s B2B e-commerce Alerzo’s layoffs highlight the difficulty of the B2B e-commerce model in Africa. Many startups in the sector set out to solve the inefficient distribution of goods to millions of small retailers in Africa backed by big VCs and millions of dollars in funding. Instead, many have found themselves in a fix, distributing similar products from FMCGs, with little or no differentiation from their competitors. “Everyone is collecting from the same FMCGs and distributing to the same retailers. And because consumer spending is shrinking, the volumes the retailers are buying is reducing,” one person with knowledge of the industry said. “The other problem is that there’s also a price war in a shrinking space.”Startups also compete with big-time “offline” distributors who move huge volumes from FMCGs without steep technology and marketing costs. “One of the biggest distributors for a particular FMCG buys products worth up to ₦10 billion monthly and their operation is pretty small. Those volumes are more than what most B2B e-commerce startups have,” said one person with knowledge of the sector. The ability to move such huge volumes attracts incentives and the best rates from the FMCG companies. These informal distributors have also built a strong network of customers over the years.
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Jumia’s share price jumps after Q1 2024 that saw it cut losses by 71%
The stock market reacted positively after Jumia shared its financial results for the first quarter of 2024, with shares of the Africa-focused e-commerce company opening at $6.45 on Wednesday, a 17.92% jump from the $5.47 share price it traded yesterday. Jumia narrowed its operating loss in Q1 2024 by 71% after several cost-cutting measures, including a 30% reduction on advertising expenses compared to Q1 2023. However, challenging macroeconomic conditions across its African markets continue to dampen consumer spending. The ecommerce giant reported growth in key metrics such as Gross Merchandise Value (GMV), order values, and revenue compared to Q1 2023. This growth underscores investor confidence in CEO Francis Dufay’s strategic direction, which prioritizes cost discipline and a shift towards higher-margin products. Jumia increased revenues by 15% driven by a company wide effort to focus solely on the sales of big-ticket items such as electronics and home and living items, reducing spending on customer incentives and promotions. “In the first quarter, we saw tangible results that our strategy is working. We can grow at scale without spending heavily. Our efforts are delivering real tangible results,” said Dufay during the company’s earnings call. CEO Francis Dufay emphasised the need for a leaner, agile and more focused company. “To date, we have reduced overall headcount by 43% since the end of 2022. In Q1, we made further reductions. These actions translate to a leaner organization that can support future profitable growth.” While the company looks to offer a diversified product assortment, it is aware of the macroeconomic headwinds that affect consumer spending. The company shared plans to expand to more cities on the continent while optimizing operations in existing markets based on learnings from its decade long expertise. “We are acquiring high-quality consumers while spending less in growing our business amidst challenging macro environments.”
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Start your JAMB Change of Institution 2024
The 2024 Joint Admissions and Matriculation Board (JAMB) exams recently ended and candidates can now check their UTME results. Many students would be looking to undergo change of institution and course largely due to reasons such as low scores in the last JAMB exercise and falling short of their preferred institution’s JAMB cut-off mark. Unlike previous years, change of institution applications can no longer be submitted online by candidates. This article will guide you through the process, which requires visiting a JAMB CBT centre. Research your new options Before initiating a JAMB change of institution 2024, it’s important to conduct research. Explore the websites of universities and polytechnics you’re interested in. Carefully consider factors like: Admission Requirements: Ensure your UTME score meets the minimum cut-off mark for your desired course at the new institution. Course Availability: Check if your preferred course is offered, as some institutions may have limited spaces or not even offer your course of choice. Program Reputation: Research the program’s reputation, if it’s accredited in that institution, and maybe the career prospects associated with the degree. Initiating the JAMB Change of Institution 2024 process Once you’ve identified suitable institutions, visit a JAMB CBT centre to proceed with the JAMB change of institution 2024 process. Here’s what to expect: 1. Locate a JAMB CBT Centre Find an accredited JAMB CBT centre closest to you—it doesn’t have to be the one you wrote your exam. You can likely search for a centre on the JAMB website (https://efacility.jamb.gov.ng/login). 2. Know the cost The entire process for JAMB change of institution 2024 will cost you ₦2,500 at the centre. This will be charged by the CBT centre. 3. Provide Required Information Present your JAMB registration number and any other necessary documents requested by the CBT centre staff. You may go along with your examination printout just in case you need information on it. 4. Complete the Form With the help of the CBT centre staff, if needed, fill out the form carefully, indicating your preferred new institutions and courses (up to two options). 5. Submit and Verify Submit the completed form and ensure all details are correct before finalising the process. Important considerations on JAMB Change of Institution 2024 Deadline: Be mindful of the deadline for JAMB change of institution 2024 in line with your preferred institution’s admission timelines. So act swiftly and smartly. Multiple changes: You can apply for a JAMB change of institution 2024 up to two times. However, ensure you have a strong reason for each change. JAMB CAPS monitoring: After submitting your application at the CBT centre, monitor the JAMB CAPS portal (https://efacility.jamb.gov.ng/login) regularly. Institutions use CAPS to accept or reject admission if you are eventually granted one. Final thoughts on JAMB Change of Institution 2024 These vital points will help you chart the course of changing your choice of institution with the Joint Admissions and Matriculation Board in 2024 and save you any hassle. It’s important you conduct proper research and make a well-informed decision to increase your chances of securing admission to your desired institution.
Read MoreKenya’s DTB shakes up leadership as it targets 10 million customers by 2026
Kenya’s DTB Group, the country’s fifth-largest bank by assets, has restructured its management team as it eyes a bigger share of the East African market. As part of its reorganisation, DTB Kenya CEO Nasim Devji, who has led the company for over two decades, will become group chief executive as the lender hunts for a new CEO for DTB Kenya. The new structure will see regional units in Kenya, Uganda, Tanzania, and Burundi have separate heads reporting to Devji, one of the longest-serving chief executives in Kenya. The changes are key pieces in DTB’s plans to expand in the East African region and grow its customer base to 10 million by 2026. The strategy mirrors competitors like Equity Group and KCB Group, lenders seeing growth in regional subsidiaries as growth slows in Kenya. “The Country CEO for DTB Kenya, along with the current Country CEOs for DTB Uganda, DTB Tanzania, and DTB Burundi, will report to and work closely with me [Nasim Devji] to ensure the smooth functioning and continued success of DTB in each country,” Devji said in a statement sent to TechCabal. “We believe this decision will bring immense value to our organisation, enabling us to seize new opportunities, develop new relationships, and navigate the ever-evolving banking landscape more effectively.” The renewed push comes just a month after the bank appointed Godfrey Sebaana, former head of commercial banking at Standard Chartered, CEO of its Uganda subsidiary. The depreciation of the shilling, increased taxes, and high interest rates in the local market have seen Kenyan banks increase their investment in the region. Equity Group, KCB Group, NCBA, and I&M have extensive presence in neighbouring countries. In the financial year ending December 2023, Equity’s and KCB’s performance was boosted by regional subsidiaries. For DTB, Kenya generated nearly three-quarters of its 2023 net profits. The lender’s net earnings for the full year increased by 13.4% to $51.4 million on higher income from transactions and interest.
Read MoreBreaking: Lesaka to acquire fintech platform Adumo for $85 million
Lesaka Technologies, the NASDAQ-listed fintech company with a market capitalisation of R4.5 billion ($242 million), is acquiring payment platform Adumo for R1.59 billion ($85 million) in cash and equity. The deal is scheduled to be completed in the third quarter of 2024 and will extend Lesaka’s payment footprint in the southern African region to five countries. Founded in 2019, Cape Town-based Adumo provides card-acquiring POS devices, integrated payments and reconciliations services to merchants and consumers. The company claims to process over R24 billion ($1.3 billion) annually and has 23,000 merchants and 240,000 consumers using its services respectively. Lesaka currently owns EasyPay, South Africa’s largest payment switch not owned by a bank and Kazang, a widely popular card-acquiring POS device company. A combination of the services will enable the company to grab a significant market share in the southern African region, where competing startups like YOCO are still only based in South Africa. The land of mergers and acquisitions: how South Africa continues to strike gold with tech exits In February, Lesaka acquired Touchsides, a data analytics and merchant services company with over 10,000 point-of-sale terminals across South Africa, for an undisclosed amount. Touchsides was previously owned by international beverage giant Heineken. According to Lesaka, the acquisition will give the company a footprint of 1.7 million active consumers and 119, 000 merchants across South Africa, Namibia, Botswana, Zambia, and Kenya. “The acquisition reinforces Lesaka’s position as a natural consolidator of Southern African Fintech and will enhance our strengths in both the consumer and merchant markets,” the company said in a statement.
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👨🏿🚀TechCabal Daily – Nigeria rounds up forex traders again
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning You may have heard rumours on social media that Ghana, like Nigeria, is planning to implement a 1% cybersecurity levy on digital transactions in the country. It’s fake news. The Bank of Ghana (BoG), Ghana’s apex bank, yesterday, dismissed the news as false stating that it has not enacted any such levy. Nigeria’s 0.5% cybersecurity levy still stands though, and Nigerians can expect to see changes from May 20. In today’s edition Amazon finally launches in South Africa Nigeria’s forex traders are in hiding again Nigerian officials ask for $150 million bribe from Binance executives SEC meet fails to quell Nigeria’s crypto ban fears The World Wide Web3 Opportunities E-commerce Amazon finally launches in South Africa Amazon is finally open for business in South Africa! Yesterday, after two years of waiting and wading, the American e-commerce finally opened up its second African marketplace with 3,000 pickup points and free deliveries for South Africans who are making their first purchase. The long haul: News of Amazon’s launch in South Africa started spreading in 2022 after the company started constructing a headquarters in the country. Amazon, however, didn’t make it official until October 2023 when it revealed the amazon.co.za URL. The launch should have happened earlier, but the e-commerce behemoth, since January 2022, was landlocked in a court battle with South Africa’s First Nations group which argued that the site where Amazon’s HQ now sits belongs to indigenous people and should be protected. The case went all the way to the Court of Appeal which ruled in favour of Amazon. The platform’s launch in South Africa was also stalled because it needed to comply with local regulations. Amazon’s big deal in South Africa: The US e-commerce giant is entering a market where it will face stiff competition from Naspers-owned Takealot, which accounts for 48% of South African online sales. The retail giant will also face South Africa’s strict competition regulations, which have already forced established players to make significant changes to their business models. Reactions to the launch: For some South Africans, the launch is a bit of a letdown. While there’s a marketplace with competitive prices and delivery options, none of the popular Amazon products Kindle, Fire devices, Ring doorbell or services Prime Music are available. This stands in contrast to their biggest competitor, Takealot, which already sells these Amazon products. Amazon now has two African locations: Contrary to popular belief, this isn’t Amazon’s first rodeo in Africa. In 2021, four years after Amazon acquired Souq.com—the largest e-commerce company in MENA—the platform launched in Egypt using Souq’s platform and existing subscribers. Since then, the platform has employed over 2,500 staff and has reportedly helped local Egyptian businesses grow their businesses by 40% Y-o-Y. Last year, it also announced expansion plans in Egypt which include tripling its fulfillment capacity. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Economy Forex traders in Nigeria sent into hiding again If you were unable to reach your favourite bureau de change trader yesterday, it’s because they went into hiding. Why? Yesterday and the day before, Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC), conducted fresh raids on foreign exchange traders who trade on the street across major Nigerian cities. Yesterday’s raid was the second in two months. In February, the EFCC arrested over 100 currency traders in Lagos. One month later, the Central Bank revoked the operating licences of more than 4,000 Bureau de Change operators (BDCs) and banned street trading. Why the clampdown? In May, the federal government unified its exchange rate in a bid to find stability for the value of the naira. Since then, the currency has lost about 70% of its value. The naira briefly rebounded to become the world’s best-performing currency in March after experiencing huge gains, which were shortlived against the dollar and other currencies. The government believes currency speculators—like foreign exchange traders—drive up the prices of the naira, but some experts cite a lack of liquidity as the real issue. Since the start of the year, the government has maintained this belief and implemented a raft of decisions—including the ban of the global crypto exchange platform, Binance, over suspicion that crypto traders use peer-to-peer trading to manipulate the price of the naira via a pump-and-dump strategy—to rein in FX volatility. Enjoy hassle-free transactions with Fincra Collect payments without stress from your customers via bank transfer, cards, virtual accounts & mobile money. What’s more? You get to save money on fees when you use Fincra. Start now. Crypto Nigerian officials ask $150 million bribe from Binance executives Welcome to another instalment of the Nigeria-Binance saga. The arrest of Tigran Gambrayan and Nadeem Anjarwallar by the Nigerian government is probably not news to you anymore. What’s new is that one month before the arrest, Nigerian officials allegedly asked for bribes worth $150 million from Gambrayan. A $150 million bribe: According to reports from The New York Times and Bloomberg, Nigerian officials gave Gambrayan and his colleague Nadeem Anjarwallar a 48-hour ultimatum to make deposits of $150 million in crypto as bribe payments. Upon receiving the request, Gambrayan upped and left the country and drafted a three-page document describing his ordeal to Binance lawyers and the company’s contacts in the Nigerian government. Is Nigeria punishing the executives? Gambrayan would return to the country a month later with Nadeem Anjarwalla, Binance’s regional manager for Africa. What followed was the arrest of both men for “tax evasion” and money laundering charges. Although Anjarwalla fled custody in March, Gambrayan has appeared in court twice and is awaiting his next trial. Per TechCabal, Nigerian officials also threatened to arrest Richard Teng, the CEO of Binance. Since the arrest, Binance has stopped trading the naira pair
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New JAMB results 2024 updates
The Joint Admissions and Matriculation Board (JAMB) has released vital information regarding JAMB results 2024 updates. In a recent post via their official X (formerly Twitter) handle, in response to a candidate’s inquiry, JAMB emphasised that the only way to access your 2024 UTME results is through SMS verification. This update signifies a shift from previous years where candidates could access their JAMB results 2024 online through the JAMB portal. Here’s what you need to know: SMS Verification Only: To check your JAMB results 2024, you must send the SMS command “UTMERESULT” (without quotes) to either 55019 or 66019. Registered Phone Number Essential: Ensure you use the same phone number you employed during JAMB profile code generation. This ensures the results are delivered to the authorised candidate. No Online Access: Unlike previous years, JAMB results 2024 will not be accessible through the JAMB website. The board is solely relying on SMS verification for this year’s exercise. JAMB encourages all candidates who participated in the 2024 UTME to access their results using the SMS verification method. Other things to note about the UTME updates 2024 These are some things you may want to bear in mind about checking your JAMB results 2024: Lost or Damaged Sim Cards: If the phone number you used in registering for JAMB has somehow been misplaced or spoilt, you may need to retrieve it according to JAMB. Possibility of checking your results on JAMB portal: This method may eventually become available, however, it may come at a very much later date when the knowledge of your JAMB score can no longer help you take the required steps for your admission. Do not pay for result checking on the JAMB portal: Some candidates in, a bid to use the JAMB portal to access their results, have made payments as the portal stipulates, but ended up getting error prompts regarding the check. JAMB, through their X channel, has made it clear that students are not asked to make any payment on the portal for result checking as of 2024, May 7th. As such candidates who have made such payments may have forfeited their money. Final thoughts on new JAMB results 2024 updates If you need to retrieve your phone number due to loss or damage, you must act fast because 2024 admission processes such as Change of Institution are underway. The SMS option remains the only provision made by JAMB at the moment to access your JAMB 2024 results. Remember, JAMB may release further updates regarding the results, so staying informed through their official channels and verified platforms like TechCabal is recommended.
Read MoreChipper Cash resumes US operations two months after pausing services
Chipper Cash, a pan-African fintech startup, has resumed operations in the US after a two-month pause, and after a restructuring exercise that saw the company remove all US and UK roles, focusing its staff presence in Africa. Now, US-based customers can once again send money to friends and family in Chipper Cash’s African markets in Nigeria, Ghana, Rwanda, and Uganda. The company said in a statement that its “optimised account top-up experience now provides customers with dedicated bank account details. Sending money family and friends across Africa has never been easier.” Chipper has also asked customers to update the Chipper app on Apple app store and Google Play to effect the changes. A year ago, Chipper Cash launched operations in the US and secured money transmitter licenses in all 50 states in the country. Connor Headrick Chief of Staff, said that “these 40 licenses, in addition to the 15 we hold across the continent, further strengthens our global licensing portfolio to 55 licenses worldwide and is a testament to our global reach and commitment to regulatory compliance,” The push to expand its services was however halted in January when an unspecified banking partnership fell through, forcing Chipper Cash to pause its US money transfer services. With over $305 million raised in funding across 6 rounds led by Ribbit Capital and Bezos Expeditions, Chipper told TechCabal that it has 5 million verified users, with 1.4 million customers actively using the platform every quarter.
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UTME Conversion to DE 2024
Many students interested in pursuing higher education in Nigeria consider the Unified Tertiary Matriculation Examination (UTME) and Direct Entry (DE) pathways. UTME conversion to DE 2024 allows UTME candidates who meet specific criteria to leverage their UTME 2024 scores for direct entry applications. This conversion process benefits those who have the necessary qualifications for DE after registering for UTME. For instance, a candidate might have registered for UTME while awaiting their A-Level results, which qualify them for DE. UTME conversion to DE 2024 allows them to use their UTME scores to apply for admission directly into the second year of their chosen program. However, it’s important to note that the official process for UTME conversion to DE 2024 has not started yet. The Joint Admissions and Matriculation Board (JAMB) will announce the official commencement date and provide detailed guidelines. Regularly checking the JAMB website, their social media channels, and news platforms like TechCabal will help you stay updated. In the meantime, acquainting yourself with the specific requirements for your desired institutions for DE conversion is recommended. Next steps once UTME conversion to DE 2024 begins Here’s a glimpse into the possible steps for UTME conversion to direct entry based on procedures from previous years (Please note these are not confirmed steps for 2024, but are likelihoods based on recent years): 1. Wait for JAMB’s announcement of UTME conversion to DE 2024 JAMB will officially announce the commencement of UTME conversion to direct entry. Pay close attention to the official dates and deadlines. 2. Visit a JAMB Office Once the process opens, proceed to your nearest JAMB office. These offices are the only designated locations for UTME conversion to direct entry. 3 Present Required Documents Have your UTME result slip, certificates or diplomas that qualify you for DE application, and any other documents specified by JAMB readily available. 4. Complete the Conversion Process JAMB officials will guide you through the conversion process, which might involve an online application or form filling. Ensure you follow the instructions carefully. 5. Pay Conversion Fee There will likely be a processing fee associated with UTME conversion to direct entry. Be prepared to settle this fee at the JAMB office. Final thoughts on UTME conversion to DE 2024 Please bear in mind that this is based on previous years, and the official process for UTME conversion to direct entry 2024 might differ slightly. Therefore ensure you stay informed and prepare the required documents to ensure a smooth transition from UTME to direct entry for the 2024 admissions cycle.
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