Exclusive: Kuda Bank raised an undisclosed equity round in 2024
Kuda Bank, a Nigerian neobank, raised an undisclosed equity round in 2024, securing additional capital after its operational costs spiked losses and led to a decline in cash reserves. In 2023, Kuda’s revenue grew to $32 million, while its user base expanded to 7.2 million. However, its losses also grew to $40 million. While the bank previously denied raising funding in 2023, its latest financial report confirmed a funding round in 2024. “The Group completed one round of fundraising via equity in 2024, and the directors are confident that should further funding be required, it can be obtained,” the company said in a corporate filing to Company House, UK. The valuation for the round remains undisclosed, but past reports suggested Kuda sought $20 million at a $500 million valuation. If it raised funding at that valuation, it would signal continued investor confidence despite the bank’s aggressive 15x revenue multiple—higher than profitable neobanks like Nubank (8.4x) and Monzo (5.4x). Kuda Bank did not immediately respond to a request for comment. Before raising the equity round, Kuda held $96 million in customer deposits, much lower than some of Nigeria’s tier-2 commercial banks like Unity Bank ($1.35 billion) and Wema Bank ($1.9 billion). It also had $5.3 million in cash reserves, a significant drop from the $30.8 million it had in 2022. Kuda plans to monetise its proprietary banking software through licensing deals, similar to Sterling Bank, which pitched its core banking technology SeaBaaS, to MTN’s fintech subsidiary, Momo, in 2023. Like most neobanks, Kuda remains in a high-growth phase that demands significant capital. However, it still has time—Monzo and Nubank took nearly a decade to turn profitable. With its latest funding, Kuda has secured more runway, yet it will need to reduce operating costs ($44.8 million) while driving sustainable growth.
Read MoreWema Bank now industry’s best-paying lender after new salary bump
Wema Bank, a Nigerian commercial lender with a market capitalization of ₦260.38 billion, has implemented a salary increase for its over 1,700 employees, effective March 2025, according to three people familiar with the matter. While the bank has not publicly disclosed the percentage of the adjustment, it follows similar salary hikes across Nigeria’s banking sector as lenders compete for talent amid economic challenges. The revised pay structure at Wema Bank significantly boosts salaries across multiple levels, making it the best-paying bank in Nigeria at several job tiers. Executive trainees, previously earning ₦255,000 per month, will now start at approximately ₦541,000—a 112% increase. Assistant banking officers will see their pay rise from ₦681,000 to ₦830,000, while banking officers’ salaries will climb to ₦1.015 million from ₦875,000. Senior banking officers, who previously earned ₦1.07 million, will now take home upwards of ₦1.2 million per month, outpacing tier-1 banks like Access Bank, where senior banking officers earn ₦1.1 million. This marks Wema Bank’s second major salary increase in under two years. In July 2023, the bank implemented a 45% salary hike across all employee levels, citing inflation and the rising cost of living following government reforms that exacerbated economic hardship. Wema Bank’s salary adjustments come amid intensifying competition for skilled professionals. Many Nigerian banks are struggling with high employee turnover, as fintech startups lure banking talent with higher pay, flexible work environments, and stock options. Additionally, an ongoing brain drain has seen thousands of financial professionals relocate abroad in search of better opportunities, further tightening the local talent pool. To remain competitive, several other banks have also adjusted salaries. In late 2024, Guaranty Trust Bank (GTBank) raised staff salaries by 40%, while Union Bank followed with a similar increase. In January 2025, Sterling Bank implemented a 7% pay adjustment after previously introducing a cost-of-living allowance (COLA) to help employees cope with rising expenses. Wema Bank did not immediately comment on the latest salary adjustments. As Nigeria’s economy continues to grapple with headline inflation, banks are likely to keep reviewing salaries to retain and attract employees. However, higher payroll costs could also squeeze profit margins, making it crucial for banks to balance competitive salaries with sustainable financial performance.
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TechCabal Daily – Vendease to cut 120 jobs
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! If you’re young and Nigerian, Microsoft has you in mind. The Big Tech company is investing $1 million to train 1 million Nigerians in AI and digital skills over the next two years, building on its previous efforts to upskill talents in the country. While Microsoft presents this as a way to give back, it also makes good business sense. As more people and companies start using AI, having a larger group of skilled professionals means more potential customers or employees for Microsoft in the future. Vendease to cut 120 more jobs How crypto startups survived Nigeria’s 2021 ban Kuda Group grew revenue to $32 million Kenya to regulate boda boda riders World Wide Web 3 Events Layoffs YC-backed Vendease to cut 120 more jobs in the second round of layoffs Image source: Vendease Vendease, a Partech and YC-backed food procurement startup operating in six Nigerian cities, has implemented its second round of layoffs in five months, according to a company spokesperson. The cuts, which begin today, are part of a restructuring effort aimed at achieving profitability and extending the company’s runway as it seeks to close a Series A extension round. The first, in September 2024, impacted 86 employees, about 20% of the staff. About 120, 35% of staff, will be let go in the recent second round. “Streamlining isn’t one bite of a cherry. You have to do it in stages,” Mohamed Chaudry, the company’s chief financial officer told TechCabal. While declining to specify the number of employees impacted by the current cuts, Chaudhry stated that the reductions will result in a “lean team.” Like many Nigerian startups, Vendease—which has raised $72 million since its founding—is grappling with macroeconomic headwinds including Naira devaluation and rising inflation, which have increased operational costs across its supply chain. Despite growing revenue by 600% year-on-year in the past two years, the company’s growth remains stunted in dollar terms. Beyond layoffs, these pressures have also forced the company to reassess its business model. A key change has been the repurposing of its buy-now-pay-later (BNPL) product from a loss leader to a revenue generator. Previously, Vendease offered flat-fee financing for food purchases, absorbing interest costs for long-term loan payments. The company now charges daily interest, allowing it to profit from lending while customers pay pro-rata interest. “Vendors were willing to wait four days for goods from Vendease, even with instant-purchase options from other suppliers, because of the access to credit,” Chaudhry explained. Vendease has also implemented in-house AI technology to automate previously manual processes like demand and resource planning, in a bid to improve capital efficiency. Vendease’s investors, including Greenlights Ventures, Partech, Realm Capital Ventures, TLcom Capital, VentureSouq, Hustle Fund, and Hack VC, are supportive of the company’s pivot, Chaudhry said, adding that many have committed to participating in the ongoing Series A extension. The company declined to disclose the target extension raise but noted that the extended runway, coupled with the new funding, will enable the company to achieve the milestones necessary for a Series B round. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Cryptocurrency How Nigeria’s 2021 ban crushed crypto startups and forced others to adapt Image Source: Wunmi Eunice/TechCabal Policies have consequences, and one glaring highlight in Nigeria’s recent history was the “crypto ban” in 2021. If you’re not caught up, the story goes like this: the Central Bank of Nigeria (CBN) had been wary of Bitcoin for years, siding with most global regulators at the time. The internet called the digital currency a “bubble waiting to burst.” In 2017, the CBN issued its first clear warning on digital currencies like Bitcoin and Litecoin, rightly calling them a conduit for “terrorism financing and money laundering” due to their anonymity. That fateful year, Bitcoin made its first big splash, surpassing the $10,000 mark, partly thanks to the Mavrodi Mondial Moneybox (MMM), a Ponzi scheme that introduced Nigerians to crypto payments. At the same time, blogging was growing rapidly in popularity. Young Nigerians who could string together coherent sentences jumped on platforms like Steemit and Publish0x, which paid in digital currencies, further raising awareness of these odd crypto monies. Seeing a business opportunity around this crypto awareness, local startups started building platforms to help Nigerians buy, sell, earn, and learn more about crypto. It was still a Wild West industry, so scams and fund losses were a major feature of the early stages of this sector, leaving regulators skittish. However, the hope of turning huge, outsized returns exceeded the risks for many Nigerians. So, they kept trooping in; crypto startups kept popping up everywhere, often with platforms that focused on blitzscaling first before security. Then, another bull market cycle happened in 2020. This time, the CBN, wary of banks being tempted to get involved in trading the volatile asset and risking customers’ deposits, issued a directive in 2021 for them to cease providing banking services to crypto companies, effectively ending a growing industry that relied on banks to manage liquidity. Crypto startups have had to find grey areas ways to innovate around the ban, adapting their businesses to go with the tides. In 2021, there were about 42 local and Africa-focused crypto startups operating; 26 of them folded. Today, the ones left to bear the scars of a tumultuous era carry the weight of the story. Nigeria may be the closest it has ever been to regulating crypto, yet it was just as far from doing so only four years ago. Read TechCabal’s coverage of how crypto startups survived Nigeria’s crypto ban in 2021. You can now Pay with Opay on Paystack Checkout Paystack merchants in Nigeria can now accept payments from over tens of millions of OPay users through Paystack Checkout. Find out more here→ Fintech
Read MoreKuda Group grew revenue to $32.1 million in 2023 as total losses jumped to $40 million
Kuda Group, the holding company of Nigerian neobank Kuda Bank, reported $32.1 million in revenue (including other income) for 2023, falling short of its projected $40 million target. Despite this shortfall, the bank achieved a 49% increase from the $21.5 million in revenue reported in 2022. This growth was despite the naira’s 40% devaluation against the dollar in 2023. Kuda’s app user base also expanded to 7.2 million in 2023, a 47% rise from 4.9 million in 2022. However, total losses grew to $40 million in 2023, up from $18.5 million in 2022. These losses were primarily due to increased staffing and operational costs, including $8 million in salaries for 456 employees. Neobanks often lose money during the initial growth phases as they acquire customers and invest in product development while operating with limited revenue—Kuda is no exception. Monzo lost $143 million in 2020, while Revolut lost $135 million in 2019. Ex-Kuda executive sues over gender discrimination, wrongful termination allegations By the end of 2023, Kuda held $5 million in cash against annual operating costs of approximately $55 million. The bank’s liquid assets sufficiently cover customer deposits, providing a buffer exceeding $20 million. Auditors determined that the business is not exposed to short-term going concern risks; however, additional capital may be needed to cover operating expenses. In 2023, Kuda began talks to raise a $20 million bridge round at its 2021 Series B valuation of $500 million but did not close the round. Since its 2019 inception, Kuda has raised over $81 million in funding. CEO Babs Ogundeyi told shareholders that additional capital will be required to pursue its strategy, and efforts are underway with potential investors to secure further funding. Kuda did not immediately respond to a request for comments. Given its last publicly disclosed valuation of $500 million, Kuda’s revenue multiple is 23x—significantly higher than that of publicly traded neo banks like Nubank (10x), Monzo (5.4x), and Revolut (20.5x). Kuda primarily makes money through: Interest on customer loans ($9 million in 2023). Returns from treasury investments and fixed deposits ($8 million). Fees from banking services ($4.5 million). Commissions from partners ($8.3 million). The bank’s lending model remains conservative. In 2023, it issued $12.6 million in overdrafts and reduced its credit loss allowance—the funds set aside for potential loan defaults—from $12.4 million to $10.4 million. The bank currently has $96 million in customer deposits and total assets worth $125 million, a slight uptick in customer deposits from 2022’s $94 million but a decline in assets from $140 million. However, its customer deposits pale in comparison to some of Nigeria’s tier-2 commercial banks like Unity Bank, with $1.35 billion, and Wema Bank with $1.9 billion.
Read MoreExclusive: Vendease cuts 120 jobs in second round of layoffs
Vendease, a Y Combinator-backed food procurement startup operating in six Nigerian cities, has implemented its second round of layoffs in five months as part of a restructuring effort to achieve profitability and extend its financial runway. A company spokesperson confirmed the layoffs to TechCabal, saying the move aligns with the startup’s shift toward a more capital-efficient model while it seeks to close a Series A extension round. The latest layoffs, which begin today, will affect about 120 employees (35% of staff). This follows a previous round in September 2024, which impacted 86 employees (20% of staff). “Restructuring takes time and happens in phases,” Mohamed Chaudry, Vendease’s Chief Financial Officer, told TechCabal. He said the company is moving toward a “lean team” to improve operational efficiency. Despite raising $33 million since its founding in 2019, Vendease has struggled with macroeconomic headwinds, including naira devaluation and rising inflation, which have significantly increased operational costs. The company did not disclose how much of the $33 million remains or how it has been allocated. While the company claims revenue has grown 600% year-on-year over the past two years, revenues have likely remained flat in dollar terms, possibly hindering expansion. Beyond staff reductions, Vendease is making key strategic shifts to improve financial sustainability. A major change involves repurposing its buy-now-pay-later (BNPL) offering from a loss leader to a revenue-generating product. Previously, the company absorbed interest costs for long-term loan payments, allowing customers to finance food purchases at a flat fee. Now, it has switched to a daily interest model, enabling Vendease to profit from lending while customers pay pro-rata interest. “Vendors were willing to wait four days for goods from Vendease, even with instant-purchase options from other suppliers, because of the access to credit,” Chaudry explained. The new model aims to monetize this demand while improving cash flow. In addition to restructuring, Vendease has introduced in-house AI technology to automate previously manual processes, such as demand forecasting and resource planning. The company claims this shift is improving capital efficiency, though it has not disclosed specific cost savings or performance metrics. Vendease’s investors—including Greenlights Ventures, Partech, Realm Capital Ventures, TLcom Capital, VentureSouq, Hustle Fund, and Hack VC—are supportive of the company’s pivot, according to Chaudry. He added that several investors have committed to participating in the ongoing Series A extension round, though Vendease declined to disclose the target raise. While Chaudry stated that the extended runway and incoming funding will help Vendease achieve the milestones necessary for a Series B round, he did not specify what those milestones are. Given the company’s challenges, profitability and sustained growth in dollar terms will likely be key hurdles. Vendease’s restructuring underscores a broader trend among Nigerian startups adjusting to economic realities—focusing less on rapid expansion and more on profitability, efficiency, and sustainable business models. Ngozi Chukwu reports on e-commerce for TechCabal. She can be reached at ngozi@bigcabal.com or on X, @NgoziChukwu_.
Read MoreBreaking: Microsoft pledges $1M to train 1M Nigerians in AI
Microsoft has announced a $1 million initiative to train 1 million Nigerians in artificial intelligence (AI) and digital skills over the next two years. The announcement, made at an event in Lagos on Wednesday, underscores the company’s expanding role in Africa’s AI ecosystem as it seeks to equip young Nigerians with skills for the evolving global economy. The program will be led by Microsoft Nigeria in collaboration with Tech4Dev, Data Science Nigeria, and other partners. Microsoft executives emphasized AI’s transformative potential on the continent, positioning the initiative as a step toward preparing Africa’s workforce for future jobs. However, the ambitious scale of the project—training 1 million people with just $1 million—raises feasibility concerns. That equates to $1 per trainee, prompting questions about the depth and quality of training offered. Microsoft has not fully disclosed the structure of the training program. It remains unclear whether it will focus on introductory AI awareness, hands-on technical training, or industry certifications. Olatomiwa Williams, Managing Director of Microsoft Nigeria and Ghana, suggested that Microsoft will build on previous AI upskilling efforts in Nigeria. “We are thrilled to bring our mission to life by investing in Nigeria’s talent. Our goal is to empower every person and organization to achieve more, and this investment is a step towards ensuring that Nigerians are equipped to harness the opportunities presented by the fifth industrial revolution, which AI drives,” said Williams. Williams also noted that Microsoft has worked with Nigerian AI startups in the past and claims the company has reached 4 million Nigerians through its digital skills programs since entering the country. Microsoft is not the only Big Tech firm betting on Nigeria’s AI future. In October 2024, Google announced a ₦2.8 billion ($1.7 million) grant to support AI talent development in Nigeria. This was part of its broader $5.8 million digital skills commitment across Sub-Saharan Africa. Google’s program is focused on deep AI research and startup development, while Microsoft appears to prioritize mass upskilling. However, Google’s funding surpasses Microsoft’s despite its smaller target audience. Microsoft sees AI as a key economic driver for Africa, with the potential to add $15 billion to Nigeria’s GDP and $1.5 trillion to the continent’s economy by 2050. “There is an IDC study that found that for every $1 invested in AI, businesses could expect to see a return of $3.5,” said Lilian Barnard, President of Microsoft Africa. “It’s important that we start making sure that we tick the boxes on economic growth, business return on investment, and opportunities for upskilling and reskilling.” While Microsoft frames this as a social investment, the initiative also aligns with its strategic business interests. With AI adoption rising, companies like Microsoft stand to benefit from a larger pool of skilled professionals who could become future customers or employees. The initiative could also help drive adoption of Microsoft’s AI tools and cloud services among Nigerian developers and businesses.
Read MoreEx-Kuda executive sues over gender discrimination, wrongful termination allegations
A former executive at Kuda, one of Nigeria’s leading fintech startups, has filed a lawsuit alleging a toxic work culture, gender discrimination, and retaliatory dismissal. Rosemary Hewat, the company’s former group chief people officer, claims in court documents seen by TechCabal that Kuda’s CEO, Babatunde Ogundeyi, fostered an environment where women were belittled, discriminated against, and sidelined. Her lawsuit also alleges that she was denied stock options under terms promised to her male colleagues and was fired after raising concerns about workplace treatment. The allegations starkly contrast Kuda’s public image as a champion of gender inclusivity. The Target Global-backed startup has promoted its efforts to recruit and retain female talent, and Hewat, who joined the company in 2021, was a key figure in these initiatives. In March 2023, she announced that Kuda had reached a 1:1 ratio of female-to-male employees. However, her lawsuit describes a work culture where women were routinely undermined and excluded. Hewat’s lawsuit paints a picture of a hostile work environment under Ogundeyi’s leadership. She alleges he made disparaging remarks about female employees, publicly humiliated two female colleagues during a December 2023 strategy retreat, and described them as “low class” for their lack of exposure to luxury. She further claims that Ogundeyi encouraged a culture of fear, stating that employees “see him as God” and are “afraid to approach him.” Kuda confirmed Hewat had filed a lawsuit against the company, but declined to comment on the allegations. “In line with our current policy and out of respect for privacy, we do not comment on matters of this nature involving current or former employees,” the company’s spokesperson wrote in an email to TechCabal. Hewat also declined requests for comments. A key point in Hewat’s lawsuit involves her employee stock ownership plans (ESOPs). She claims Kuda failed to honour a contractual agreement to grant her shares at the Series A price, instead offering them at the higher Series B valuation, while a male colleague, Steven Bastian, had his terms adjusted to reflect the more favourable Series A price. According to the lawsuit, Ogundeyi justified this discrepancy by stating that Bastian’s role as Group CFO was “more important” than Hewat’s. Hewat alleges that she was systematically sidelined after raising concerns about these issues. She was excluded from a key strategy meeting in January 2023 despite her role as the company’s top HR executive. Over time, Pavel Khristolubov, Kuda’s group chief operating officer, allegedly took over aspects of her job while harassing and undermining her. Ogundeyi allegedly dismissed her concerns when she complained, telling her to “spend the next six months getting Khristolubov to like her.” Her dismissal came soon after she filed a formal grievance about the ESOP issue in December 2023. On February 20, 2024, she was fired while en route to an executive retreat in Nigeria. She alleges that her dismissal was sudden and unjustified and that Kuda attempted to frame it as redundancy without following any selection criteria. Despite this, her role remained within the company, with other employees expected to take over her responsibilities. Adding to the contradictions, Kuda’s chief technical officer, Mutairu Mustapha, reportedly told her the termination was a “mistake” and urged her to return to work. Kuda has not publicly responded to the allegations. However, Ogundeyi allegedly cited cost-cutting measures as a reason for Hewat’s dismissal, pointing to the sharp devaluation of the naira in 2024. Hewat disputes this claim, arguing that the company continued discretionary spending, including employing a nanny for Ogundeyi’s children at Kuda’s expense. Hewat’s lawsuit alleged these events took a toll on her mental and physical health, citing depression, panic attacks, and insomnia. She is seeking financial compensation for lost benefits, emotional distress, and punitive damages for what she describes as egregious misconduct. The exact compensation Hewat is demanding is not specified in court documents.
Read MoreHow crypto startups survived the ban in Nigeria
When Franklin Peters founded the crypto startup Bitfxt in 2017, he set out to provide three solutions: a crypto payment gateway, a cross-border remittance product, and a crypto trading platform. At its peak in 2019, Bitfxt was processing “tens of millions” of transactions annually. The company was in the middle of a fundraising round when a seismic event changed its trajectory. On February 5, 2021, the Central Bank of Nigeria (CBN) barred banks from facilitating crypto transactions. This forced banks to close the accounts of crypto companies, locking them out overnight. In a matter of days, a thriving sector was forced underground. While some exchanges rejigged their business models, for Bitfxt, LocalBitcoins, and Paxful—once pioneers of crypto trading—the ban was fatal. A bull market During the bull run of 2017, Bitcoin crossed $10,000 for the first time, raising awareness of digital assets. Nigerians eagerly joined the market, hoping to make crypto money but buying Bitcoin in 2017 was difficult. Existing crypto exchanges were not built for Nigeria, making it difficult to buy crypto with Naira. Buyers either sent money to a contact abroad to buy Bitcoin from a foreign exchange, which would then be transferred to a decentralised wallet or relied on WhatsApp groups to interact with crypto traders. Both methods carried some risks, particularly the threat of falling victim to scams due to the lack of secure and regulated platforms. Bitfxt was a crypto trading platform that allowed Nigerians to buy crypto with Naira. It made money from token listing fees and transaction charges. With listings, the startup charged crypto token creators an integration fee for listing on its app. However, revenues weren’t enough to sustain its overhead and operating expenses. “We were not ever profitable; we never had extra cash to keep,” said Peters, former founder of Bitfxt. “The money always went back to paying our engineers.” Due to the shortage of local blockchain talent, Bitfxt hired Indian engineers, paying them in dollars while earning revenue in Naira. These engineers maintained the platform and managed token integrations—one of the company’s primary income streams. “There was a lack of education and legitimacy around crypto back then,” said Peters. “Nigerian software engineers didn’t want to risk it, so they stayed in Web2 jobs. We had no choice but to hire foreign engineers.” By 2020, the challenges mounted. Foreign exchanges like Binance, Huobi, and OKX entered Nigeria, with deeper pockets and global experience, expanded to Africa, undercutting local crypto startups. Their entry coincided with a second bull market cycle, when Nigerians, cash in hand, queued again to buy Bitcoin, hoping to turn profits. Swooping in to attract these buyers, foreign exchanges engaged in pricing wars on transaction fees and attracted top-tier blockchain engineers. Facing stiff competition, Bitfxt struggled to raise capital, and a failed funding round in 2020 left it on shaky ground. Without sufficient capital to continue running Bitfxt, Peters shuttered the business for months, later rebranding and pivoting it to Boundlesspay in 2021. Then came the final nail in the coffin—the CBN ban. A seismic shift “When the [crypto ban] happened, everybody—crypto exchanges—was affected, including us,” said Peters, now CEO of crypto remittance startup Boundlesspay. “That was when the first version of Boundlesspay was supposed to launch. And in that first version, we had a bank partnership that allowed us to integrate their core infrastructure into our system. This allowed our users to buy virtual assets on our platform.” Banks became cautious of crypto transactions because the crypto industry was very risky. Checking these risky transactions took a lot of time and money, which banks didn’t like, especially since they already followed strict rules. Banks wanted to protect their customers’ deposits and avoid fines. Few businesses accepted crypto, and the risk of big losses made banks even more hesitant to get involved. The ban hit customers the hardest. Nigerians suddenly found their accounts frozen if they had been linked to crypto transactions. Others couldn’t buy or sell their digital assets. For months, they were locked out of their crypto holdings. For local startups, it was innovate or die. In 2021, there were 42 local and Africa-focused crypto startups operating in Nigeria, including Egoras, Cryptofully, Lopeer, Bitmama, NairaEx, BuyCoins, Fluidcoins, and VIBRA. Twenty-six of them shut down, were acquired, or pivoted due to regulatory challenges and liquidity shortages. Once-thriving local crypto startups like Naijacrypto, NairaEx, and Bitfxt had gone under. In 2023, Lazerpay, which allowed businesses to process crypto payments, shut down in 2023, citing “uncertain regulatory framework around crypto in Nigeria.” Bundle Africa, another crypto startup, shut down its exchange platform to restructure its business. Paxful, a foreign crypto trading platform, temporarily exited Nigeria to focus on its global operations, returning one month later. In 2024, another crypto company, Helicarrier—formerly known as BuyCoins—also shut down its exchange platform over liquidity concerns. Web3 startups were reeling from the impact of the persisting bear market and the crash of popular crypto exchange FTX. Adaverse-funded startup Payourse rebranded to Partna, shifting its focus to B2B remittance. Similarly, Y Combinator-backed iFlux (now known as Flux) pivoted from operating as a crypto exchange to providing traditional remittance services. “Nobody wants to work with you anymore if you deal with crypto. We’ve had to rethink our approach,” Ben Eluan, CEO and co-founder of Flux told TechPoint in June 2024. Yet, adversity met grit. The first wave of innovation came with the introduction of peer-to-peer (P2P) platforms, a trend started by foreign exchanges and quickly adopted by local startups adapting their models. The CBN ban didn’t allow banks and payment providers to issue virtual accounts to crypto companies; so crypto startups tweaked the WhatsApp model of 2017, integrating it into their platforms. With P2P, users controlled liquidity; the startups were mere facilitators. In 2021, Roqqu and Quidax launched their versions of P2P. Initially, the P2P space on platforms like Binance and Roqqu was not strictly regulated. With people allowed to self-regulate in their dealings with one another, scams and loss of funds became a
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TechCabal Daily – Meta goes undersea…again
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Here’s some insider information for you: TechCabal is publishing two big stories today. If you want to be the first to know when we publish, sign up for breaking news alerts straight to your inbox. Subscribe here now. With that, let’s get into it. All eyes on Meta’s Project Waterworth Inflation is ‘down’, but Nigerians aren’t feeling it Ditch the grid, embrace solar Nigeria is amending digital asset rules to tax crypto World Wide Web 3 Opportunities Telecoms Meta’s Project Waterworth, the world’s longest undersea broadband cable to pass through South Africa Image Source: Hum News There must be something in the water. Big Tech companies are doubling down on building high-capacity undersea cables to accelerate the progress of the digital economy across many countries. The latest effort is Meta’s Project Waterworth, which will pass through five continents—including a landing station in South Africa. Project Waterworth is projected to be the world’s longest undersea broadband cable, spanning 50,000km and connecting millions of businesses and individuals to the digital economy, deepening internet penetration across the regions. Project Waterworth just barely edges out the 2Africa cable project—which Meta is also part of—stretching 45,000km across 46 landing points and nearing completion. Meta is clearly making a strong push to become a major player in Africa’s telecom infrastructure. By backing both projects, the company is positioning itself as a key partner for operators across the continent. This global infrastructure build-out isn’t just about connectivity—it’s also a strategic move to support Meta’s AI goals. After laying off 3,600 people, Meta plans to hire more machine learning engineers, showing its focus on leading the AI race. Building these networks ensures the data and connectivity needed to power AI systems, further strengthening Meta’s position as a tech leader. South Africa’s broadband network has seen steady improvements, but challenges remain. While urban centres enjoy relatively fast internet, rural areas still struggle with connectivity gaps. Existing undersea cables like Seacom, WACS, and Equiano have boosted capacity, yet high costs and infrastructure limitations continue to slow progress. Project Waterworth is expected to improve internet speeds, reduce latency, and make data more affordable in the long run. Streaming, online gaming, and remote work could become smoother and more reliable. Businesses that rely on cloud computing and international data transfers may also benefit from more stable connections. Beyond convenience, stronger digital infrastructure could drive economic growth. A more robust network could attract tech investment, support startups, and expand access to digital services in underserved areas. Digital inclusion has been a challenge, and this project could help bridge that divide. With greater connectivity, however, come questions about data privacy and regulatory control. As big tech firms like Meta play a larger role in global internet infrastructure, concerns over data security, competition, and pricing fairness will need to be addressed. Collect payments Fincra anytime anywhere Are you dealing with the complexities of collecting payments in NGN, GHS or KES? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. Get started now. Economy Inflation is ‘down’, but Nigerians aren’t feeling it Image Source: Zikoko Memes When the National Bureau of Statistics (NBS) changed how it calculates inflation, only one outcome was expected: a sharp slowdown in the official inflation rate. Why? Because the new method gives less weight to food prices—the biggest driver of inflation—shrinking its share of the inflation basket from 51.8% to 40.1%. And, right on cue, yesterday’s revised Consumer Price Index (CPI) report showed inflation cooling dramatically: from nearly 35% in December to about 24.5% in January. Sounds great, right? Inflation is down. Except, well, people still feel broke. Food prices are still high, and your money still doesn’t go as far. That’s because this isn’t about prices going down. It’s about how inflation is measured. The NBS rebased its calculations, setting 2024 as the new base year and adding new items to better reflect consumer spending patterns. But while the math has changed, the cost of living crisis hasn’t. For most Nigerians, food takes up a huge share of their income—much more than the 40.1% weighting now assigned in the inflation calculation. If food prices go up by 24% but the price of other elements in the CPI basket stays the same, inflation looks tamer on paper. So, yes, inflation has “fallen” on paper, but at the market, at the fuel station, and in people’s wallets, reality tells a different story. Analysts expect the Monetary Policy Committee (MPC) to hold interest rates when it meets on Thursday, February 20. You can now Pay with Opay on Paystack Checkout Paystack merchants in Nigeria can now accept payments from over tens of millions of OPay users through Paystack Checkout. Find out more here→ Features Ditch the grid, embrace solar Image source: Nuno Marques/ Unsplash ‘’Up NEPA!’’ This is one slogan most Nigerians grew up chanting. But times are changing. Nigerians are ditching unreliable grids and embracing solar power. With electricity tariffs skyrocketing by a staggering 240% in 2024, and fuel costs also quadrupling, many households are struggling to keep the lights on. Imagine paying ₦45,000 ($30) monthly for basic appliances – that’s more than half the new minimum wage. On the brighter side, solar power has proved to be a sustainable solution. While the initial investment might seem daunting (ranging from ₦400,000 to ₦20 million~$265 to $13,271), the long-term savings are undeniable. Think about the benefits: no more surprise electricity bills, no more frustrating power outages. Just clean, reliable energy powering your home. Whether you’re looking for a basic setup to power a few lights and devices, or a full-blown off-grid system to run your entire household, there’s a solar solution for you. Even a modest ₦400,000 ($265) investment can get you started, offering a mini power station to keep your essentials running during short outages. And as you scale up to mid-range systems (₦1 million to ₦5 million~$664 to $3,318),
Read MoreDigital deception: How the Kenyan government uses misinformation to drive its agenda
On most mornings, Kenyans wake up to what has now become a familiar pattern on social media platforms: hashtags celebrating the country’s supposed economic success. From infographics touting record-low inflation numbers and job creation to testimonials praising Kenyan government programs in healthcare, education, and infrastructure, the messaging depicts significant achievements. Yet, the progress shared on popular social media platforms like X, TikTok, and Facebook does not reflect reality. It’s a different story on the ground. Small businesses and multinationals are shutting down under heavy taxes, hospitals are turning away patients despite claims of universal healthcare, and the cost of living continues squeezing ordinary Kenyans. Through a well-coordinated digital communication machine, Kenyan government ministries and departments have almost managed to shape a parallel narrative, downplaying economic hardships facing millions, discrediting critics, including independent media, and managing public perception carefully. A Nation.Africa report, tracking a series of attacks on individuals and companies, found that the majority of related posts originated from the same users. The government uses X and TikTok to shape public opinions, hiring social media influencers to push exaggerated achievements, selective data, and, in some instances, outright falsehoods to attack critics. Familiar social media accounts and suspiciously new ones have created a network of ‘digital mercenaries,’ labelling themselves as communication strategists and digital advertisers. When called upon, they push and amplify the messages of the highest bidder, often the Kenyan government. “It’s a well-oiled narrative control system where State House, government ministries, and even members of parliament hire people believed to have sway on social media to push misleading content,” said Allan Magaki, a social media researcher in Nairobi. Take, for instance, a supposed continued economic growth under President Ruto. While government-linked influencers have highlighted increased taxation as a path to better roads and healthcare, most businesses have struggled, with over 4,000 small enterprises shutting down in 2024. At least three multinationals, including Procter & Gamble (P&G) and G4S, have either exited the market or cut their workforce, citing high operational costs, challenging economic conditions, and unfavourable business environment. In November 2024, Tile & Carpet, a building materials manufacturer, laid off over 100 employees, signalling a struggling economy with limited job opportunities. Startups like Copia, Mobius, and iProcure blamed economic challenges for their collapse. In contrast, social media channels have been awash with stories of a booming economy. “As part of its strategy, the government is enlisting influencers to promote projects like the controversial housing levy and highlighting completed house units,” said Prof. Fred Ogolla, an economist in Nairobi. “ You don’t need bloggers to tell Kenyans that houses have been built, they need to see the houses built.” ” You don’t need bloggers to tell Kenyans that houses have been built, they need to see the houses built.” Prof. Fred Ogolla Attack dogs for hire A 2023 Mozilla Foundation report confirms a well-established disinformation industry in Kenya, primarily driven by social media influencers. In pushing narratives, they use tactics such as sock puppet accounts—using multiple accounts controlled by a single user, and astroturfing—masking the sponsors of online campaigns to make them appear organic. Under Kenyan laws, government agencies like the Communication Authority (CA) and the police service protect the public from perceived harmful information while preserving people’s rights to information and freedom of expression. But on the other hand, the government and all its extensions actively engage in misinformation, according to investigation by Code for Africa, a digital democracy lab. Attempts to regulate social media, which could give the government even more influence on the platforms, have stalled due to pressure from human rights groups and the public. Social media influencers are paid between $15 to $100 based on following and influence. Larger accounts with massive followings owned by public figures can attract as much as $2,000 daily, which they partly use to recruit micro-influencers to make their conversations appear organic. “It’s a full-time job for some people, especially young tech-savvy graduates,” said an insider who worked on digital campaigns for the former deputy president. “We create talking points which we share to account owners who are required to push them aggressively.” The insider said that influencers in a single campaign can range from 25 to 200 depending on the budget. Before 2023, the campaigns would drown genuine grievances, but it has become increasingly difficult due to widespread economic hardships. Kenya’s internet connectivity is among the highest in the region, with 40% of the population online. Many of the country’s youth, the largest voting bloc, use social media to discuss important issues. Silencing critics Beyond shaping public opinions and promoting government programs, Kenyan social media spaces have become grounds for silencing critics like independent media outlets. In 2024, the Nation Media Group (NMG) was on the receiving end, with hashtags like #WhatIsNationHiding, #RIPNationMedia, and #DearAgaKhan trending on X after a publication owned by the outlet ran stories critical of the government. The attacks even included claims that the ink and paper the newspaper uses causes cancer. Judges who ruled against implementing key government policies were also targets in the malicious campaigns. With social media giants rolling back content moderation, Kenya’s ‘propaganda’ machine will likely continue churning. However, as economic hardships bite and widespread skepticism grows, the government’s edge on information warfare may face a test similar to the nationwide protests of June 2024.
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