👨🏿🚀TechCabal Daily – MTN Nigeria’s share price jumps by10%
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Here’s your reminder to add TC Daily to your Primary/Main folder so you don’t miss any important updates. MTN Nigeria’s share price jumps 10% after news of tariff hike Globacom’s Ahmad Farroukh resigned as CEO after one month Kenya wants crypto firms to establish physical offices Transgrid Enerco acquires Eko DisCo World Wide Web 3 Events Telecoms MTN Nigeria’s share price jumps by 10% after news of tariff hike GIF Source: Tenor Investors holding MTN Nigeria (MTNN) shares had reasons to smile yesterday after regulators approved the 50% tariff hike on Monday. The markets reacted positively to the news, pushing MTN Nigeria’s shares up almost 10%. MTNN shares traded at ₦256.30 ($0.16) at the close of market on Tuesday—its highest since March 2024. While MTN Nigeria traded higher, shares of Airtel Africa, another publicly listed telco that has previously voiced opinions on the tariff hike, remained unchanged. This is likely because Airtel Africa’s listing covers its entire African business portfolio. So, while the news in Nigeria is positive, it is a small cog of the 14 markets where the telco operates. Telcos like MTN Nigeria and Airtel have been bleeding billions of naira in FX losses owing to the currency devaluation in major markets. During its Q3 2024 results announcement on October 30, 2024, MTN Nigeria reported a nine-month ₦514.9 billion ($331 million) FX loss. Following this, its share price stayed unchanged. However, six days later, the price fell from ₦175 to ₦169, marking a 3.4% drop. This reflected investor concerns over the company’s ability to weather Nigeria’s tough economic conditions. With the tariff hike, MTN Nigeria is expected to turn a profit—or at least hedge its FX losses—by Q1 2025. Investors are confident that the expected revenue boost will stabilise the company’s finances, improve profitability, and drive growth in the coming months. 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. Telecoms Globacom’s Ahmad Farroukh resigned as CEO after one month Ahmad Farroukh Ahmad Farroukh, who assumed Globacom’s CEO role in October 2024, stepped down in November after just one month, marking one of the briefest leadership tenures the Nigerian telecoms sector has seen. Farroukh’s resignation is more than a headline—it’s a sign of the telco’s struggles. Here’s how Ayoola Oke, a former Special Adviser to the former Executive Vice-Chairman of NCC, Ernest Ndukwe, described the news. “A CEO leaving in one month is unprecedented in the industry. The NCC can investigate the reason for his exit. The commission can seek an explanation from the CEO, who is not obligated to respond, or from the company because this is about corporate governance, which the NCC Act covers.” While Globacom has stayed silent, insiders point to the company’s centralised management style as a key reason for Farroukh’s quick exit. Led by its Nigerian billionaire founder Mike Adenuga, Globacom has long relied on a top-down approach to decision-making. Before Farroukh, Adenuga led the telco as CEO from its founding in 2003. The steady decline of telco over the years brought the issues the company faced to the public’s attention. Its market share plummeted to 12% following regulatory penalties for improperly registered SIMs. It further lost 40 million subscribers after the Nigerian Communications Commission (NCC) reviewed its subscriber data. Add to that a reputation hit from a 2023 data breach that exposed millions of customers, and you have a company in crisis mode. Bringing in Farroukh was supposed to be a statement that the telco wanted to turn things around. However, the timing of Farroukh’s resignation raises tough questions. Can Globacom adapt to regulatory pressures and regain its edge in a fiercely competitive market? Or will its entrenched governance style make it harder to retain top talent and rebuild? With Farroukh’s exit, seeing Globacom’s next moves will be interesting—whether it hires a new CEO or Adenuga reclaims the reins. A company that once defined Nigeria’s telecom success now faces a stark choice: evolve or risk falling further behind. Cryptocurrency Kenya wants crypto firms to establish physical offices, have vetted CEOs Image source: TechCabal/Timi Odueso Kenya has updated its newly introduced Virtual Asset Service Providers Bill, 2025, as part of its efforts to regulate the crypto sector. The bill now requires crypto firms to establish physical offices in Kenya, seek licences, and have their executives vetted by regulators. Last week, Kenya also demanded that social media companies establish a physical presence in the country. These actions show that the government wants to strengthen its control over global businesses by ensuring they are directly accountable to local authorities, making it easier to enforce regulations and monitor their operations. However, the crypto bill raises some concerns. Many crypto firms operate remotely without physical offices. Opening physical offices in the country would require them to seek licences and other operating approvals from the regulator, which some crypto companies—especially foreign ones—may view as excessive, given their operations in other markets. Yet, if the market is important enough, they’ll set up offices. Foreign crypto companies like Luno, for example, claim to have a physical presence in Nigeria, but online records do not verify this—signaling that offshore companies have largely operated without the need for physical locations, relying instead on the ruse of remote collaboration. However, with Kenya pushing for this rule, it could set a precedent for how African governments engage with foreign businesses. Kenya has faced criticism over its slow implementation of a regulatory framework for crypto. That sluggishness led to Kotanipay, its homegrown crypto exchange, obtaining a crypto licence first in South Africa before its own country. However, Kenya is now making noticeable progress in stepping up efforts to bring the crypto sector under its watch. The country’s move to regulate crypto is part of a larger trend across Africa, where governments
Read MoreMTN share price jumps 9.87% on news of tariff hike approval
MTN Nigeria’s share price soared to ₦256 on Tuesday, marking a 9.87% increase after regulators approved a 50% hike in telecom tariffs. This surge reflects investor confidence in the profitability of the company after two years of sustained losses. Meanwhile, rival Airtel Africa’s stock remained stable, underscoring the limited impact of the Nigerian tariff adjustment on the company’s overall valuation since its listing covers its entire African business portfolio. Airtel Africa’s share price closed ₦2,159 on Tuesday. Tuesday’s price is MTN Nigeria’s highest since March 2024 when it traded at ₦267.80. On December 23, 2024, when TechCabal reported that the Nigerian Communication Commission (NCC) would approve a long-pending proposal for telecom tariff hikes in January 2025. MTN’s stock price jumped 9%. Since 2023, MTN Nigeria’s profits have plunged thanks to a naira devaluation and quickening inflation. The telco giant reported a loss after tax of ₦514.9 billion in the first nine months of 2024, a 59.2% decline compared to the previous year. MTN Nigeria has been focused on accelerating its earnings to recover from the losses, according to its Q3 2024 earnings report. The approved tariff hike will reduce the impact of the macroeconomic condition and support the company’s profitability. The road to recovery for MTN is still underway. One of those strategies to restore its balance sheet is raising fresh capital. On January 17, the telco announced that it raised an additional ₦42.20 billion through commercial paper issuance. “In the first nine months of 2024, we sustained the growth in our underlying operating performance – underpinned by our resilient business model and operational agility – despite challenging conditions,” Karl Toriola, MTN Nigeria CEO said in the Q3 2024 earnings report.
Read MoreEgyptian fintech MoneyHash raises $5.2 million Pre-Series A from Flourish Ventures
MoneyHash, an Egyptian fintech startup that provides APIs to help businesses in Africa and the Middle East manage their online payments on a single platform, has raised $5.2 million in a pre-Series A funding round. MoneyHash will use the funding to to deepen its presence in the Middle East and North Africa (MEA) region and expand into other markets. The funding round was led by Flourish Ventures and saw participation from Saudi’s Vision Ventures, Arab Bank’s Xelerate Fund, and Emurgo Kepple Ventures. Angel investor, Jason Gardner, the founder and former CEO of Marqeta, also invested in the round, alongside existing investors like COTU, RZM Investment, and Tom Preston-Werner. The new fundraise brings the total fund raise to about $12.7 million. The startup raised $4.5 million in seed investment in 2024 and a $3 million pre-seed in 2022. Launched in 2020 by Nader Abdelrazik and Mustafa Eid, MoneyHash set out to solve challenges in fragmented payments problems for merchants in the MENA region. Large merchants, especially those operating across borders, face the complex task of managing multiple payment methods and providers. MoneyHash simplifies this with a single platform that integrates various payment gateways—like Checkout, Stripe, Ayden, Amazon Pay, Tap and ValU—through a unified API, optimizing for success and minimizing fraud. MoneyHash initial started by providing companies with sandbox access to its API, enabling connections to local payment gateways like Fawry, Paymob, and PayTabs. “We’ve built MoneyHash specifically to help merchants overcome these complex challenges and turn payments from a liability into a strategic advantage,” said Nader Abdelrazik, co-founder and CEO of MoneyHash. MoneyHash claims one of its key selling point is its comprehensive integration network. “With over 300 pre-integrated APIs of payment service providers and methods across 100+ markets, we’re not just solving today’s challenges—we’re future-proofing payment operations for our merchants,” said Abdelrazik.
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Realising regional expansion for African startups
Next Wave: A founder’s personal assets as collateral for failure: Lessons from China’s startup ecosystem. Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner January 19, 2025 The Pan-African dream: Realising regional expansion for African startups Image | Pixbay African founders have often been criticised for their rapid pan-African expansion drives. Understandably, the African continent holds undeniable allure for entrepreneurs with a balance of lofty ambitions and business acumen to serve marginalised groups. With over 1.4 billion people and an estimated combined GDP of $3.1 trillion, the African continent presents boundless opportunities for indigenous startups. Drawing from recent successes and failures, a deeper look at local startups’ pan-African expansion reveals that a one-size-fits-all model might not always be the best for founders and VCs looking to expand across borders. From Nairobi to Lagos, Cape Town to Cairo, the vision of a single African market under the African Free Trade Area (AfCFTA) has promised to lift the trade barriers and logistical hurdles. However, the reality of pan-African expansion for startups is still far more complex. A Pan-African dream Building scale and maintaining a lower burn rate can coexist in a symbiotic relationship. Every founder aspires to scale their business, yet many—along with their investors—fail to evaluate the broader impact of every strategic decision. The consequences are often severe, leading to layoffs and shutdowns after ambitious attempts to scale. For tech startups in the logistics, fintech, and e-commerce sectors, expansions can create the network effect needed to grow and unlock new revenue streams. Success stories like M-Pesa’s, Jumia’s, and Flutterwave’s inspire founders to embrace the pan-African dream, presenting cross-border expansion as a benchmark. The catch is that these examples are exceptions, not norms. The diversity of African markets, including cultural differences, a fragmented regulatory landscape, and varying levels of infrastructure, makes expanding across the continent daunting. Too often, the pan-African dream collides with harsh realities like regulatory challenges or different consumption behaviours. However, the challenges startups face in expansion drives offer valuable lessons to founders. In 2021, Twiga Foods, a Kenyan B2B agricultural produce platform, reversed its plan to expand into Nigeria. The startup struggled to replicate its centralised distribution model. It paused its pan-African ambition to focus on deepening its footprint in Kenya. Despite M-Pesa, Jumia, and Flutterwave’s success in their respective home markets, some regional markets have been a hard nut to crack. For instance, M-Pesa struggled to gain traction in South Africa due to the high penetration of card payments and a significant proportion of the population already being banked. Flutterwave has faced delays in securing licensing in Kenya, hindered by the absence of clear regulatory frameworks. Similarly, Jumia had to shut down its operations in Tanzania due to restrictive local laws. In most cases, the barriers are due to outdated regulations, like in Kenya where payment systems and banking laws do not recognise fintechs outside the traditional mobile money and financial institutions. M-Pesa’s success in the early days was tied to its ability to reach millions of unbanked Kenyans, especially in rural areas without physical banks. It enabled people to receive and send payments, bypassing traditional banking systems. For its part, Jumia’s achievements can be attributed to good market timing and adaptability to challenges. Jumia launched in 2012 when Africa’s e-commerce was in its infancy, giving it brand recognition that has helped it build customer trust. The company’s localised approach in its expansion has helped it set shop in about 10 African countries. Bureaucratic inefficiency and corruption in key institutions like parliament slow reforms. It permits political patronage where powerful individuals and companies influence law changes. Many reforms have also been tied to external conditions from multilateral lenders like the World Bank and the International Monetary Fund (IMF). While some reform recommendations open up sectors—like the current push from the IMF to regulate crypto—others are unpopular and face resistance from industry players. African founders are exploring mergers and acquisitions to skirt challenges hampering expansion like delays in licensing. Acquiring an existing player in the target market is proving to be a shorter route to expanding across the continent. In 2024, Nigerian fintech Rise acquired Kenya’s Hisa, giving it access to the market without licensing delays from the regulators. Moniepoint’s acquisition of Kopokopo also achieved the same goal. Harmonisation of laws could ease startups’ expansion headaches across Africa. Regional trade blocs like EAC, ECOWAS and SADC should adopt a unified regulation approach. For instance, as EAC works on a monetary and customs union, they should adopt a single licensing regime for startups and companies. Movement across Africa is still more expensive than on other continents. Increased investments in roads, rail and air transport could cut travel costs for talent and goods. In addition, massive investment in digital infrastructure like fibre optic cables is required to increase connectivity and bring down internet costs. Next Wave continues after this ad. Join millions of Nigerians earning 20% interest on their savings with zero risk. Trusted by 35 million users and 1.2 million businesses, PalmPay empowers your money to do more. Start saving today! Why one-size-fits-all doesn’t work Even with six regional trade blocs, each country on the continent has its regulatory frameworks, consumer behaviour, and infrastructure challenges. These complexities are often underestimated by startups, leading to costly missteps. Take Sendy and Copia, for example. Both Kenyan startups expanded across borders prematurely, before consolidating their presence in their home market. Copia, a B2C e-commerce platform, ventured into Uganda in 2022 while still grappling with order fulfilment issues in Kenya TechCabal. Such rushed expansions can stretch resources thin and jeopardise long-term growth, which is why it’s important to master the home market before venturing into new territories. Consumer spending habits, for instance, are one behaviour that startups often overlook. Southern African consumers have a higher spending power and prefer formal retail stores and e-commerce platforms. In East and Central Africa, informal markets play a bigger role. A strategy that works in Kenya may fail in Uganda or Ghana, and
Read MoreGlobacom CEO Ahmad Farroukh resigns after one month amid governance challenges
Ahmad Farroukh, who was appointed CEO of Nigerian telecom giant Globacom in October 2024, resigned after just one month in the role, multiple sources close to the matter confirmed. While Globacom has not issued an official statement or communicated the resignation internally, several industry insiders suggest the decision was linked to significant challenges within the company’s organisational structure. A mid-level manager at Globacom, speaking on the condition of anonymity, speculated Farroukh’s departure was tied to problems with the organisational setup. A top-level executive at the Nigerian Communications Commission (NCC) who asked not to be named confirmed Farroukh’s exit but declined to share specifics. Globacom did not respond to multiple requests for comments. Farroukh’s abrupt resignation highlights significant internal challenges at the company, which has long been criticised for its centralised decision-making process. According to a former Globacom executive, the company’s founder, Mike Adenuga, is key to most decisions within the company. Adenuga has managed the telecom giant alongside his other business interests, including oil and gas, financial services, and real estate, with minimal structural separation between his other ventures and Globacom’s operations. This approach has historically worked for the company but may have presented obstacles for Farroukh, whose experience at more structured organizations like MTN and Airtel might have led him to expect a different level of operational autonomy. Farroukh’s departure also comes when Globacom is facing heightened regulatory scrutiny. In late 2024, the NCC’s sector audit revealed that over 40 million subscribers were not properly registered with their National Identification Numbers (NIN), violating government regulations. This led to a significant loss of market share, with Globacom’s share of the Nigerian mobile market shrinking by approximately 60%, leaving it with just 12%. Globacom has also faced ongoing cybersecurity issues, including a high-profile hack in 2023 that exposed the personal data of millions of its subscribers. These issues may have created an environment where Farroukh’s leadership efforts could not make a meaningful impact quickly. “A CEO leaving in one month is unprecedented in the industry. The NCC can investigate the reason for his exit. The commission can seek an explanation from the CEO, who is not obligated to respond, or from the company because this is about corporate governance, which the NCC Act covers,” said Ayoola Oke, a former Special Adviser to the former Executive Vice-Chairman of NCC, Ernest Ndukwe. Globacom’s leadership void following Farroukh’s departure will raise questions about the company’s ability to navigate its ongoing internal challenges and regain its competitive edge. Without significant structural changes, it is unclear how Globacom can address the organizational weaknesses that led to Farroukh’s exit.
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👨🏿🚀TechCabal Daily – No shaking!
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Let’s dive right in. Tariff hikes have come to Nigeria A big step forward for payments in Kenya Kobo360 cut jobs in November 2024 Nigeria’s cloud players say they’re more than just pricing World Wide Web 3 Events Telecoms NCC approves 50% tariff hike for Nigerian telcos GIF Source: Tenor While the December holidays were in full swing, TechCabal’s Frank Eleanya reported that the proposal to raise Telco tariffs (a.k.a. the amount you pay for calls, texts and data) was a done deal. Here’s what Frank wrote at the time: “The Nigerian Communications Commission (NCC) will approve a long-pending proposal for telecom tariff hikes…in January 2025. This marks the end of over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile.” At the time, one person with direct knowledge of the talks shared that the conversations began in October 2024, with telcos asking for 100% increases. Reality was a little disappointing, with the NCC capping the increase at 50%. While it will still prove deeply unpopular, some will argue that telco prices should not be regulated in the first place. Companies in other sectors have raised (and continue to raise) prices in response to inflation, yet telcos have been forced to sit there and eat the losses. After billions in losses in 2023 and 2024, something had to give—50% to be precise. Will it be sufficient for the long term? That appears doubtful. But for now, the telcos get a bit of relief. Now imagine if you had bought telco shares when we broke the news in December (this is not financial advice!) 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. Fintech A big step forward for payments in Kenya Image: Reuters/Noor Khamis Last week, Safaricom, Kenya’s largest Telco, published a joint report with the Kenya Bankers Association (KBA) where it estimated that building a new fast payment system (FPS) could cost $200 million and require four years to complete. In that report, the telco argued that upgrading the Pesalink, which facilitates interbank transfers between 39 banks in Kenya, will save the Central Bank of Kenya (CBK) money compared to building the FPS. Following that report, Safaricom’s mobile money platform, M-Pesa is now set to join Pesalink. Pesalink’s current infrastructure doesn’t support mobile money platforms. As a result, sending money from M-Pesa to a bank account is more expensive than bank-to-bank transfers via Pesalink. Also, M-Pesa users cannot receive money from bank transfers, revealing the flaw in Kenya’s fragmented payment system. If M-Pesa joins Pesalink, it will make transfers between the mobile money platform and banks cheaper and seamless, helping the country achieve interoperability. The move will also usher in other Kenyan mobile money platforms like Airtel Money into the network. Importantly, M-Pesa’s proposal could be a strategic move to convince the CBK to upgrade Pesalink instead of building a new FPS. M-Pesa is a widely popular payment service for Kenyans, with users processing more than 61 million transactions daily. Compared to banks, 69% of Kenyan adults do not have bank accounts. This popularity will give fintech a vote of confidence and help fast-track its proposal as banks and other financial service players in the ecosystem see the advantages of onboarding M-Pesa. With M-Pesa as part of the network, a huge pool of Pesalink adopters will instantly be created. Companies Goldman Sachs-backed Kobo360 cut jobs in November as part of restructuring Image source: Kobo360 It feels like ancient history when technology-enabled logistics was the sexiest sector in Africa. Companies raised money hand over fist with the assumption that an Uber-type (on-demand) model could bring order to the chaos of haulage. Kobo360 was at the forefront of that charge, promising to match manufacturers and trading houses to truck owners. Yet, using technology to solve that problem was a real Gordian knot. Here’s Kobo360’s founder in a 2022 conversation: “How do you derisk a truck driver to a bank or financial institution? They don’t want to touch drivers.” “The banks wanted us to ensure we charge the financing costs before they could touch them. They wanted us to structure something where we provide the first loss tranche — that is, if a service isn’t completed, Kobo bears the first loss.” The understanding of the haulage business model remains in flux. And for Kobo360, that has meant leadership changes and in November 2024, some business restructuring. Here’s Ngozi Chukwu in a Monday news story: “Kobo360, a Nigerian truck-hailing startup backed by Goldman Sachs, implemented a company-wide layoff across its seven markets in November 2024. The job cuts followed the exit of immediate ex-CEO Cikü Mugambi who cited difficulty with fundraising as one of the reasons for her departure. In its largest market, Nigeria, Kobo360 cut at least 30 roles from its 50-person team, according to four employees affected by the layoffs. It is unclear how many roles were cut in other markets.” Read more here. What’s it like to work as an engineer at Paystack? Paystack’s engineering team builds simple, powerful tools to connect African businesses to customers. Learn more → Cloud Computing Nigeria’s cloud players say they’re more than just pricing Image Source: LitsLink Smaller competitors often feel the heat when major players expand in a market. But for Nigerian cloud providers, AWS’s decision to accept naira payments isn’t a game-changer. Last week, AWS announced it would now accept naira payments, signalling a potential shakeup in Nigeria’s $1.03 billion cloud market (projected for 2025). For startups earning mostly in naira, the move offers relief from dollar-denominated pricing, which has doubled cloud costs following a 2023 naira devaluation. Local cloud providers, however, say the move isn’t a game changer. Their naira-based billing—designed to shield businesses from exchange rate volatility—has been their core pitch for
Read MoreNCC approves 50% tariff increase for Nigerian telcos
The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for telecoms companies, the first such increase in the sector in almost eleven years. Despite quickening inflation, the NCC remained resolute on holding voice and data costs stable, but mounting losses in the sector after a naira devaluation forced the regulator’s hands. The telcos began speaking with regulators in October 2024, one telecom executive who asked not to be named discussing private conversations told TechCabal. The telcos asked for 100% tariff increases for voice and data at the time. The NCC was concerned that approving that increase would be deeply unpopular. The NCC claimed it wanted to strike a balance between protecting telecom consumers and ensuring the industry’s sustainability, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem. “The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” a statement from the NCC read. *This is a developing story.
Read MoreSafaricom’s M-Pesa to join Pesalink as Central Bank plans new payment system
Safaricom’s M-Pesa is set to join the Pesalink network, which could significantly reshape Kenya’s digital payments landscape. In a proposal submitted jointly with the Kenya Bankers Association (KBA) to the Central Bank of Kenya (CBK), Safaricom wants to integrate M-Pesa, Kenya’s largest mobile money platform, into the national interbank payment system, Pesalink, which already connects 39 banks across the country. This integration is expected to break down the barriers between mobile wallets and traditional bank accounts, creating a more unified payments ecosystem in Kenya. It could make transferring money between mobile wallets and bank accounts faster and more seamless for millions of Kenyans, bridging the gap between mobile money and the formal banking sector. Currently, Pesalink, operated by Integrated Payment Services Limited (IPSL), facilitates instant bank-to-bank transfers but does not include mobile money services like M-Pesa. By joining the network, Safaricom would allow M-Pesa users to transact with any bank without the need for separate agreements between banks and mobile money providers. It aligns with the CBK’s broader goal of streamlining payments and fostering financial inclusion through a new Fast Payment System (FPS), which aims to allow smooth cross-platform transactions. “The majority of the industry is already connected to the IPSL switch with Safaricom M-Pesa set to join the switch soon,” Safaricom and KBA said in their report. The announcement signals the push towards a more integrated payments infrastructure supporting a wider range of financial products and services across Kenya. Safaricom did not immediately respond to requests for comments. The integration of M-Pesa into the Pesalink network could also be a key component of the CBK’s planned FPS initiative, which will allow instant, low-cost transactions between various financial institutions, including commercial banks, SACCOs (Savings and Credit Cooperative Organizations), and microfinance institutions. One key benefit of this integration is the potential to reduce transaction costs. Sending money via M-Pesa costs significantly more than transferring funds through traditional banks. For example, sending KES 10,000 (USD $77.22) via M-Pesa costs approximately KES 100 (USD $0.77), while bank transfers via Pesalink can be significantly cheaper, with charges ranging from KES 30 (USD $0.23) to KES 50 (USD $0.39). “Integrating M-Pesa with PesaLink would create a more seamless and interconnected financial ecosystem. This would allow users to easily move money between mobile wallets and bank accounts, breaking down the current silos between these systems,” said Ali Hussein Kassim, Association of FinTechs in Kenya chairman. An integrated payments network could make it easier for small businesses to accept payments across different platforms without operating multiple wallets, a huge step forward for payments in Kenya.
Read MoreGoldman Sachs-backed Kobo360 cut jobs in November as part of restructuring
Kobo360, a Nigerian truck-hailing startup backed by Goldman Sachs, implemented a company-wide layoff across its seven markets in November 2024. The job cuts followed the exit of immediate ex-CEO Cikü Mugambi who cited difficulty with fundraising as one of the reasons for her departure. In its largest market, Nigeria, Kobo360 cut at least 30 roles from its 50-person team, according to four employees affected by the layoffs. It is unclear how many roles were cut in other markets. Employees were sent an email containing a “separation agreement” in November 2024, which many interpreted as the company avoiding calling the event a layoff, said two former employees who declined to be named because of confidentiality clauses in those agreements. “Pension obligations dating back six months remain unpaid,” those people claimed. In an email to TechCabal, Kobo360 blamed the delay on a third-party HR company. “This matter is currently the subject of an active investigation at a federal law enforcement agency,” said a company spokesperson. The layoffs follow other leadership departures at Kobo360. At least three executives also resigned in November. One of those executives, Tosin Fadipe, who left to launch his startup, told TechCabal the timing of his exit was coincidental. Kobo360’s board is currently in the process of appointing new executives, a critical step in determining the company’s future trajectory. Kobo360 is no stranger to leadership changes or job cuts. In 2021, co-founder Ife Oyedele left to pursue other interests. Two years later, co-founder and ex-CEO Obi Ozor accepted a position as transportation commissioner in Enugu State. “We often joke that Kobo360 is a tsunami as you can lose your job in a shake-up at any time,” an ex-employee who declined to be named because of confidentiality clauses in his separation agreement told TechCabal. Another ex-employee who left the company in 2021 also described the company as a ‘tsunami’ on Glassdoor, a site where employees can publish anonymous reviews about their workplaces. Beyond the layoffs and exits, Kobo360 is restructuring its business, leading to a slowdown. Kobo360 paused most logistics operations except for a handful of clients to which it provides fleet management services. “We’re just keeping the lights on, handling tasks like invoicing and reconciling past trips,” an employee who asked not to be named discussing private company issues told TechCabal. “Kobo360’s internal restructuring, financial arrangements, and personnel changes are strictly confidential,” the company said in an email to TechCabal, declining to comment on layoffs or restructuring plans. A smaller workforce will reduce operating costs and extend the runway for a company which last raised $48 million in a Series B round in 2021. Raising money may be an uphill battle for the startup as investor interest in the sector is shrinking in Nigeria. Only three logistics startups raised venture capital in 2024—-Renda, Fez Delivery, and Cargo Plus, and they raised $2.1 million between them—-$200,000 raised by Fez Delivery was a grant. Eghosa Omoghui of EchoVC, an early-stage VC firm, believes most of the founders backed so far lack the crucial market insight necessary for disruption and product market fit. “This is why giants [in their target market] like Dangote still invest in their trucking fleets,” he notes. Many B2B trucking startups have launched since 2018, promising to provide cost efficiency to cargo owners by increasing the visibility of trips and using well-vetted third-party truck drivers. However, these startups have ironically fallen prey to the very issues they aimed to solve, especially cargo theft which costs can cause liabilities running into hundreds of millions per trip.
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Piggyvest paid out ₦835 billion in 2024 as it crosses ₦2 trillion in total payouts
Piggyvest, a nine-year-old Nigerian savings platform, paid ₦835 billion to its customers and crossed 5 million in 2024. Since its launch in 2016, customers have withdrawn over ₦2 trillion, a fraction of the total deposits held by Piggyvest. “2024 was our most profitable year, one of the years we achieved the most growth, and our most focused year as a company,” said Somto Ifezue, the CEO and co-founder of Piggytech Global Limited, Piggyvest’s parent company. Piggytech also owns PocketApp, a consumer payments app that crossed ₦1 trillion in transaction volume in the same year. Across Piggyvest, Piggyvest business and Pocket App, Piggytech processed over ₦2 trillion. Ifezue links the growth to focusing on customer service and meeting user needs. “We adjusted our interest rates to align with market trends and worked diligently to offer our users even greater value for every naira. Every milestone…stems directly from our focus on serving our users better,” he said. Piggyvest said it grew its assets under management by 76% in 2024. The fintech also claims that its users were saving ₦44,000 every second on its platform towards the end of 2024, which suggests an annualised savings total of ₦1.39 trillion. The startup will launch a budgeting product in 2025, according to Ifezue, its CEO. “[Our customers] have complained that their salaries no longer last until the end of the month. This year, we plan to roll out an additional feature on Piggyvest to help you manage your day-to-day expenses and ensure your salary lasts until the next payday,” he said. Piggyvest has since evolved its business model several times since it was founded. It initially allowed users to deposit funds into savings accounts and earn interest. Withdrawals are restricted to four times a year, with a penalty fee for early access. But it has since added Pocket, through the acquisition of Abeg, and Piggyvest Business, a point-of-sales product that allows retail stores to accept payments offline. In August 2023, Josh Chibueze, co-founder and CMO of Piggyvest, told TechCabal that the company planned to leverage its three licenses—a fund manager license from the SEC, a mobile money license from the Central Bank of Nigeria, and a microfinance bank license—to expand into money management and offer credit to Nigerians. Exclusive: How Piggyvest paid out ₦1.1 trillion in six years
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