Peleza merges with YC-backed Prembly to form Prembly Group
Kenyan identity management startup, Peleza has merged with YC-backed Prembly to form the Prembly Group. Both companies declined to provide the specific financial details of the transaction. While Prembly provides identity verification, security, and compliance, Peleza conducts background checks for businesses. Peleza has key partnerships in East Africa with mobility apps Uber and Bolt and logistics corporation FedEx. With this merger, the Prembly group will build a bigger East African business using Peleza’s industry knowledge and improve customer service offerings. Over the last 18 months, Peleza has been using Prembly’s infrastructure. “This merger serves as an extension of that collaboration and our longstanding partnership, providing an opportunity to expand service offerings to customers across various markets and globally,” Peleza’s cofounder Marita Mutemi told TechCabal. “Merging both companies significantly increases our options and value, positioning us as the most used provider across Pan-Africa and achieving leader status in this space,” said Lanre Ogungbe, the co-founder and CEO of Prembly. Ogungbe has been appointed the CEO of Prembly Group. Marita Mutemi, the founder and CEO of Peleza, will join the Prembly Group as CFO and double as the CEO of Prembly East Africa. “Other executives from Peleza have been reassigned and retained their leadership roles, ensuring continuity and stability,” Mutemi told TechCabal. The merger creates a combined team of about 100 employees. Ogungbe and Marita disclosed that at least ten employees will be let go because their roles have been duplicated because of the merger. Those staff members will receive a severance package. “The decision to name the entity Prembly Group is borne out of a mutual agreement to leverage the brand equity and established market presence of Prembly, especially given its global recognition in compliance and digital security solutions,” said Ogungbe. There are plans to integrate the KYC/B technology platforms for both companies. Peleza is the older of the two companies; it was founded in 2015 and has not disclosed funding from venture capital firms. Prembly was founded in 2021 and raised a $2.8 million seed round in 2022, backed by MaC Venture Capital and Soma Capital.
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👨🏿🚀TechCabal Daily – Mano eyes food delivery pie
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning It’s been a week since Kenyan president William Ruto rejected the much-contested Finance Bill, and now, Kenyan youths are rejecting him as their leader. Thousands of protesters, scattered across Kenyan suburbs wielding #RutoMustGo placards, want the president and his cohorts to take responsibility for their role in the deaths of over 20 protesters and abductions of 50 more in last week’s protests. President Ruto, meanwhile, is fuming over the lost KES350 billion from the Finance Bill’s taxes. Huge consequences are coming, he said earlier this week. What’s on the line includes a $7.8 billion loan, and the contracts for 46,000 secondary school workers. In today’s edition LATAM fintech Minka launches in Africa Local cloud providers in Nigeria lobby for government patronage Mano eyes food delivery pie Tunisia welcomes 5G telcos bid The World Wide Web3 Opportunities Fintech LATAM fintech Minka launches in Africa Fintech startups from Latin America (LATAM) don’t always make their way to Africa. However, when they do, their arrival is usually well thought out, with minimal initial launches in a traditionally receptive market. Uruguay’s dLocal’s launched in West Africa and Kenya in 2020, before EBAN, headquartered in Brazil, arrived in 11 African countries two years later. Another fintech toeing that line is Colombia’s Minka. It recently launched operations in East Africa, specifically in Kenya, Uganda, and Ethiopia. The startup builds payment networks that allow money to be sent between participating banks or other financial institutions But here’s the catch: Tens of fintech startups already offer market-fit products and services specifically designed for the African continent. How Minka will compete is something the industry will keep tabs on, considering the startup will be speaking with a broad range of organisations like fintech and payment associations, non-profits, banks, central banks, and other financial institutions such as SACCOs and credit unions for potential collaborations. Some of these startups already have partnerships with high-value clients; Nigeria’s Flutterwave, for instance, processes Uber’s fund transfers from a customer’s mobile money wallet (M-PESA) to Uber wallet. And there are dozens of similar working relationships between companies and fintech startups. What sets Minka apart: Alexander Perko, Minka’s Growth Lead, told me that the company builds real-time payment networks that enable money transfers between participating banks or other financial institutions. “The network aims to connect the world’s financial resources through the web using shared, connected ledgers, simplifying the complex process of moving balances,” Perko said. This isn’t necessarily a new business model, as many other fintech startups offer similar services. Here’s more on how Minka wants to build its East African arm. Process payments smoothly with Moniepoint And we’ll have processed almost 5,000 more by the time you’re done reading this. Your business payments can be one of them. Click here to sign up. Cloud Computing Local cloud providers in Nigeria lobby for government patronage “Sometimes I wonder how Nigerian startups pay for cloud services, from email to server to Slack to Github etc. Imagine having expenses in USD and revenue in Naira,” someone tweeted last year, and for good reason too. Over the past year, Nigeria’s currency has lost 70% of its value, currently trading at ₦1,500 against the dollar. This steep decline has increased the cost of operations for businesses and government agencies. One HR startup, for example, is spending up to $80,000 monthly on cloud storage. And government agencies aren’t left out too with their cloud costs reaching $500,000. But things could be changing. A lobby of local cloud providers in Nigeria wants to help businesses meet their cost-cutting targets through less expensive cloud solutions. How? Five Nigerian cloud companies are talking with the government to make them their preferred host for sensitive government data. While the move is part of a 2019 National Cloud Computing Policy that prioritises local cloud providers for government consideration, the local cloud providers are making such bids with the government with hopes to attract private businesses. Considering that 70% of government agencies already use Amazon AWS and Microsoft Azure, bidding on this contract could be a strategic move. Local cloud providers which accept payments in Naira are also pitching their ease of payment as a moat. Per TechCabal, these local cloud providers are also in talks with Mobile Virtual Network Operators (MVNOs) and pension fund administrators (PFAs) to host data locally. Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. Startups Mano eyes food delivery pie “If you don’t cannibalise yourself, someone else will,” – Steve Jobs. Moe Nesr, Mano’s co-founder, may have had this thought when his grocery delivery startup decided to expand into Nigeria’s food delivery market—the same market that drove Bolt Food and Jumia Food out of the country last year due to “harsh economic climate”. Usually, when a business is expanding to an adjacent market, it means that it is either trying to gain new customers, reposition its business, or benefit from economies of scale. We’re hedging our bets on the latter as Mano previously operated its own inventory dark stores for its grocery delivery business. With an aggregator food listing model, the company may be trying to lower costs on its food delivery service. It has the markings of a balancing act. The move pits Mano against established players like Glovo and Chowdeck in a $2 billion revenue market, dwarfing the $0.83 billion grocery delivery sector. It is quite tempting to switch from small boats to pirate ships. But consumer behaviour remains the biggest elephant in the room for food delivery service. Mano’s move is coming at a time when consumers want to pay less for food delivery services, with 30.9% of Nigerians (62,418,000) living in extreme poverty, and not being able to afford spending up to ₦3,000 ($2.15) per
Read MoreProtests in Kenya enter second week despite withdrawal of Finance bill
Multiple gunshots, teargas, and a heavy police presence have been reported across the country as thousands of Kenyans protest the rising living costs despite the recently withdrawn 2024 Finance Bill. This marks the second week of protests in Kenya, with young Kenyans vowing to continue demonstrating every Tuesday and Thursday. They are also calling for President William Ruto’s resignation or an overhaul of his entire government. Anti-riot police efforts have cleared Nairobi’s central business district, leaving it with few demonstrators; however, hundreds of protesters remain scattered in the suburbs. Movement into Nairobi is difficult as some access roads, including Waiyaki Way connecting Nairobi to western Kenya, have been closed. Public transport vehicles, which most Nairobians use to and from work, have also been removed from the streets. Those using personal vehicles have also reported thorough inspections from the police manning volatile areas within the city. There have also been reports of isolated looting incidents. With matching t-shirts and wielding placards with #RutoMustGo slogans, protesters say high levels of corruption, poor governance, and police brutality are forcing them to take action. Thousands have protested in Mombasa, Nakuru, Kisumu, and smaller towns that haven’t traditionally seen protests, including Lamu and Karatina. Last week’s demonstrations turned deadly, with over 20 people shot dead across the country, the majority in Nairobi and its surroundings. While some injured protesters recover in hospitals, concerns are mounting over reports of abductions by plainclothes police. The government appears intent on identifying leaders behind the Gen Z protests, yet these demonstrations lack any apparent political backing, with opposition leaders remaining largely silent. “We further condemn the ongoing arbitrary abductions of innocent Kenyans who were carted away in the most violent and inhuman manner, and held in communicado for days,” Edwin Sifuna, Nairobi’s senator said in a statement on Tuesday. Per Sifuna, over 50 illegal abductions by secret police have been conducted, and the whereabouts of these people remain unknown. “No one in government is ready to take responsibility, to render an apology or to make amends. The head of state himself has tried to distance his regime from these killings, injuries and abductions, in stead conjuring up theories when everyone can see blood on his hand.” In a televised interview on Sunday, President William Ruto said that the police were doing their work and argued that the police were only dealing with criminal elements in protests masquerading as Gen Z protesters. “I care when there are issues in town and where criminals take advantage forcing the police to use live bullets is a matter of concern. In Ngong, the police were overpowered by criminals who used firearms against the people with the police forced to shoot the criminals who hijacked a police gun,” the president said.
Read MoreTiger Global-backed Minka is the latest LATAM fintech to set up shop in Africa
In recent years, a handful of Latin American fintechs have made inroads into Africa to tap into its growing digital payments market. The latest entrant is Minka, a Colombian fintech backed by Tiger Global. Minka builds payment networks that allow people to send money between participating banks and other financial institutions. On Tuesday, Minka launched in East Africa, setting shop in Kenya, Tanzania, Uganda, and Ethiopia. The company plans to expand to Mozambique, Zambia, and Malawi in Southern Africa. Minka’s arrival in East Africa follows a trend of Latin American fintech companies expanding into Africa. In 2022, EBANX launched in 11 African countries. Two years earlier, Uruguay’s dLocal launched in West Africa and Kenya. The expansion makes sense because both regions have similar challenges—over 350 million African adults lack access to financial institutions and rely solely on cash transactions. “We are solving these problems across the LatAm region and now want to bring these advantages to the people of East Africa,” the company said in a statement to TechCabal. Minka sees “some real synergies between the work we are doing in Latin America and the issues that are being faced in East Africa,” the company’s growth lead Alexander Perko, told TechCabal. These similarities include high levels of financial exclusion, with eight out of the bottom ten ranked markets for overall financial inclusion located in Latin America and sub-Saharan Africa, and heavy reliance on cash transactions with large informal sectors. Minka’s business model is quite straightforward; it uses in-house financial protocols to speed up money transfers between banks and other financial institutions; by creating a common language for different payment systems to communicate, eliminating the need for complex reconciliations. “There are around 2,000 separate payment networks globally, with only 3% being interoperable,” Perko clarified. From Latin America to Africa Fintechs like Minka, EBANX, and dLocal offer a platform for Africans who want to buy global products but can’t, considering some global merchants do not accept their preferred payment methods, such as mobile money or cash. The fintechs offer a solution by letting global merchants accept local African payments. Like Africa, LatAm also has some financial inclusion gaps: 58% of people in the region have access to credit cards, but fewer (3 in 10) have access to other financial products like loans or investments. Per a report by the World Economic Forum, this gap widens for low-income (59% with bank accounts) and rural areas (40% with bank accounts). With over 1,500 registered fintech startups and friendly regulations and collaboration, Latin America has already made more progress with digital payments, so these companies claim they can use that experience to help Africa do the same. They also have relationships with global merchants that they can leverage to enter new African markets.
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Nigerian cloud providers lobby government and PFAs for local data storage
Five Nigerian cloud companies are in talks with the government to become their preferred choice for hosting sensitive government data, two people with direct knowledge of the matter told TechCabal. The lobbying efforts are based on a 2019 National Cloud Computing Policy that makes a case for local cloud service providers as “a first choice consideration.” If successful, the talks would be a good starting point for increased adoption of local cloud options amid rising costs due to the naira devaluation—some government agencies spend up to $500,000 monthly on cloud services, one person with direct knowledge of the matter said. A few local cloud companies are also considering creating a consortium having begun talks in April 2024, one person with direct knowledge of the matter said, declining to share names. For these companies, getting the government’s buy-in will help encourage private companies to host their data locally. Over 70% of government ministries, departments, and agencies (MDAs) host their data on cloud providers like AWS and Microsoft Azure, according to one 2021 report. Another group of local cloud providers has also held talks to lobby Mobile Virtual Network Operators (MVNOs) and pension fund administrators (PFAs) to host data locally, two people familiar with the matter said. The push for patronage for homegrown cloud providers comes as cloud costs have more than doubled in the past year thanks to the naira devaluation. Most Nigerian companies host their data on AWS, Microsoft Azure, and Google Cloud, and the costs are charged in dollars. Local providers aren’t just positioning themselves as cheaper alternatives, but also argue that patronising them will reduce the country’s forex burdens. “If data is hosted locally, you generate more revenue locally and the money stays within the economy,” one industry insider said. These local cloud providers are considering offering discounts to incentivise companies to host their data locally. Local providers are positioning themselves for a boom in Nigeria’s data center market projected to reach $578.1 million by 2029. The lobbying efforts coincide with rising investments in data centers in Nigeria driven by the demand for data storage solutions following the arrival of eight subsea cables. Airtel is building five hyper-scale data centers across Africa—the first in Lagos. Kasi Cloud Limited, a local cloud provider, began construction of a $250 million Tier IV data center in 2022. Last week, MTN Nigeria said it will complete work on a second data center in Lagos by December 2024. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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👨🏿🚀TechCabal Daily – Who is South Africa’s new tech minister?
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Today’s shoutout goes to Muhammad Lawal who, on X yesterday, said TC Daily has earned its keep in his inbox for another quarter! Thank you, Mohammed, and we’ll see you at the next quarterly review. If you, like Mohammed, have kind and good things to say about TC Daily, don’t keep them inside like you do with your raw thoughts about African presidents. Share them with us by responding to this email, or on X so the world can see. If you have anything not nice to say, take a leaf from The Boys’ Kimiko and or respond to this email too. Thank you for complying . In today’s edition Mara lost $16 million in a year amidst leadership fallout Lagos is bringing CCTVs to BRT buses NCBA Group acquires AIG Kenya Who is South Africa’s new tech minister The World Wide Web3 Opportunities Crypto & Startups Mara lost $16 million in a year amidst leadership fallout “Product shipping is a sign that a startup is alive.” – Vincent Li. I first heard about Mara in 2022, nearly a year after I started working at TechCabal as a newsletter writer, while my colleague showed off souvenirs he got from a Mara media parley. The power bank looked expensive. “What does Mara do?” another colleague asked. Although Mara had raised the largest seed funding for an African startup in 2022—$23 million—no one was quite sure what the company’s product was. It was par for the course because Mara only launched its product—a crypto wallet—in February 2023. Despite taking two years and hiring some expensive talent to build it, the wallet fell short of customers’ expectations, Chi Nnadi, Mara’s CEO said in an investor memo. “At least 75% of the 4 million verified users Mara reported it had were fraudulent accounts,” one former executive also said. Things continue to fall apart: Problems continued to compound. The company was burning a lot of cash and reported losses of $16 million in 2022. There were also conflicts among the company’s leadership team which eventually led to the resignation of Nnadi’s co-founders—Chinyere ‘Chi’ Nnadi, Lucas Llinás Múnera, Kate Kallot, and Dearg OBartuin. Now, Nnadi, the CEO, runs Mara by himself as Mara’s entire staff has been laid off too. Amid claims that he is evading a $3 million debt owed to Mara’s vendors, Nnadi has created another startup, “Jara” to replace Mara. If you are still curious about what Mara (now known as Jara) does, or about how it lost $16 million in 2022 as the leadership team fell apart, read my report. By Ngozi Chukwu. Process payments smoothly with Moniepoint And we’ll have processed almost 5,000 more by the time you’re done reading this. Your business payments can be one of them. Click here to sign up. Transportation CCTV cameras are coming to BRT buses in Lagos State Big Brother is coming to Lagos, but not in the way you might expect. While Nigeria’s popular reality TV show “Big Brother Nigeria” has been keeping viewers glued to their screens, the Lagos State Government (LASG) is borrowing a page from an Orwellian surveillance playbook for a more serious purpose. Two years after the tragic death of twenty-year-old Bamise Ayanwole sparked criticism and demand for improved safety measures, Lagos is finally answering the call. Who’s watching? The state government will install CCTV cameras on all Bus Rapid Transit (BRT) vehicles across the city which 200,000 commuters in Lagos depend on for their daily commute. The installation of CCTV cameras is more than a technological upgrade. It will aid automatic incident detection in cases when mishaps happen, dispatching the Lagos Transport Police to areas where these incidents happen. The government is still tinkering: Last month, the government announced its plan to install CCTV cameras at bus stops and taxi parks over the next two years, and offer danfo drivers in Lagos a chance to upgrade their run-down buses for newer models, as part of its new Transport Policy. With the introduction of 2,000 compressed natural gas (CNG) buses announced in April, these changes signal LASG’s commitment to its plan to provide access to affordable, environmentally sustainable transportation, and regain public trust in the BRT system. As Lagosians prepare for this new era of monitored public transport, one thing is clear: the eyes of the city will be watching, not for entertainment, but for the safety and peace of mind of its citizens. Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. M&As NCBA Group acquires AIG Kenya NCBA Group, Kenya’s fourth-largest bank, has acquired AIG Kenya, the local subsidiary of American International Group (AIG), for an undisclosed amount. This move strengthens NCBA’s position in the Kenyan financial sector and aligns with its strategy to become a one-stop shop for all financial needs. What you need to know: Acquisition talks with NCBA, which held a 33.3% stake in AIG Kenya as of 2022, have been in talks for months. While the final amount is unknown, one publication, last September, estimated that it would cost the NCBA KES2 billion ($13 million) to buy the 66.7% shareholding it needed for the acquisition. The acquisition grants NCBA full control of AIG Kenya, increasing its presence in the Kenyan insurance market (currently at 2.14%). This strategic move comes amidst a trend of Kenyan banks venturing into the insurance sector due to low market penetration which is currently 3% in Kenya. Kenya’s largest bank Equity Group, for example, announced its entry into the general and health insurance market earlier this year. Looking ahead: The Kenyan insurance industry is valued at $2.3 billion, offering significant growth potential. NCBA aims to leverage its existing customer base and AIG Kenya’s expertise to unlock deeper
Read MoreKenya’s NCBA Group acquires insurer AIG Kenya for an undisclosed amount
Kenya’s NCBA Group, the fourth-biggest bank by market capitalisation, has acquired insurer AIG Kenya from American International Group Inc for an undisclosed amount. For the past 18 years, NCBA Group, Kenya’s fourth-biggest bank by market capitalisation, has held a minority share in the Kenyan subsidiary of insurer American International Group (AIG) Inc. Now, the lender has a bigger share of the pie. NCBA has acquired the insurer for an undisclosed amount. The lender finalised a 66.67% buyout deal that will give it full control of AIG Kenya, which controls 2.14% of Kenya’s insurance market, it said in a statement. The acquisition puts the lender on track to its ambitious expansion drive to become a “universal bank” that provides customers with all their financial needs, managing director John Gachoras said. With the buyout, NCBA is eyeing a larger share of Kenya’s $2.3 billion (KES300 billion) insurance industry. The acquisition comes at a time when Kenyan lenders have been moving into insurance to take up opportunities presented by low insurance penetration. Equity Group, the biggest bank in Kenya, announced in March that it will enter the general and health insurance market this month, following a successful launch of life insurance in 2022. “With insurance increasingly becoming a basic financial need for the type of customers we serve, an ecosystem of NCBA’s physical and digital distribution platforms and AIG Kenya’s insurance capabilities will unlock opportunities to catalyze deeper insurance market penetration in Kenya and the East Africa region,” said Gachora. Kenya’s insurance penetration is 3%, the fourth highest in Africa after South Africa (17%), Namibia (7.8%), and Morocco (3.9%). Insurance penetration in Africa’s economic powerhouses like Nigeria and Egypt trails their peers at 0.4% and 0.6%, respectively.
Read MoreGrocery delivery startup Mano expands to food delivery but it doesn’t want to serve everybody
Mano, a grocery delivery startup that serves high-brow areas in Lagos and Abuja, is expanding to Nigeria’s ultra-competitive food delivery segment. Founded in 2020 by Moe Nesr, Mano expanded to Nigeria in 2022 and delivers groceries and household appliances from its dark stores—physical stores that do not allow walk-ins—within a 10km radius. The Angolan startup has dark stores in Lekki, Victoria Island, Ikeja, and Wuse 2, offering deliveries in 40 minutes. With its expansion to food delivery, the self-described underdog wants to win a sizeable market share in the $936.5 million segment dominated by Chowdeck, Food Court, Glovo, and HeyFood. Bolt and Jumia exited the segment in late 2023. Mano is taking a different approach in a market where existing players are spending big on marketing, and facing pressure to reduce their commissions. Mano charges a flat delivery fee of ₦1,200 on all orders. While that’s more expensive than all other players, its focus on high-brow areas and the fact that it already charges similar fees for grocery deliveries means this is not a big risk. “We want to cater to the various palates of customers—the food enthusiasts who want to try a variety of food [no matter the price], and the aspirational customer who wants quality food at a moderate price,” said Fadekemi Adefemi, Mano’s marketing manager. The company also believes there are still many unsolved pain points in the food delivery business. “Delayed delivery, damaged food, cumbersome refund processes, are growing pain points of food delivery customers.” To solve these problems, it will take a different approach from its current operational model. While it owns the inventory for its grocery delivery business, its food delivery business will use an aggregation model similar to Chowdeck and Glovo. It will give Mano less control over food quality and preparation time. In their dark stores, Mano’s staff (pickers) can ensure quality by directly inspecting fresh produce and other items. This isn’t possible with an aggregation model that relies on partner restaurants. Mano’s solution is to allow customers to track their orders in real time—a feature many competitors offer. It will also only deliver within a 10km radius of its restaurant partners (at least one other food delivery service offers this option) and at the moment, it isn’t looking to add restaurants at breakneck speed. This is not a startup trying to blitzscale. “Mano seems to be slowly building a model that is not after scale but efficiency,” said a former food delivery executive. How YC-backed Chowdeck hit ₦1 billion in monthly order value “[Mano] is not looking to serve everybody,” Adefemi added. “If we have 1000 customers, we want to nurture them and ensure they have all they need. Adefemi clarifies that this “tactical approach” is not an absence of ambition. “We are revenue-focused, but we are a very data-driven team.” The company’s projections reportedly show revenue will grow steadily if it remains obsessed with consistently delivering quality at a steady pace. The company declined to share specific numbers about its number of users or active users, and the gross merchandise value that its grocery delivery arm has made so far. “The business is doing well, and even our investors [whom the company has raised over $4 million from] agree that the food delivery vertical is right and timely.” “We say among ourselves, ‘Mano is the underdog. You won’t see us everywhere, but we are moving and even so steadily.’”
Read MoreMara, a crypto startup backed by Coinbase, lost $16 million in 2022 as the leadership team fell apart
At the peak of 2021 crypto optimism, experts argued that Africans had to participate in the crypto economy, create products, and educate a continent of young people on a future that Web3 was sure to dominate. Those arguments led to the launch of startups like Mara (CoinMara Inc), a pan-African exchange that set out to “build Africa’s crypto economy.” Founded by Chinyere ‘Chi’ Nnadi, Lucas Llinás Múnera, Kate Kallot, and Dearg OBartuin in 2021, Mara was a hit with investors. In May 2022, it raised $23 million from Alameda Research, the trading arm of FTX, Coinbase Ventures, and 100 other investors at a pre-money valuation of $70 million. In a stunning reversal of fortunes that took only two years, Mara ran out of cash, with CEO Chineyere Nnadi registering a new entity named Jara in early 2024. Two cofounders who left the company in early 2023 claim that Nnadi only established the new company, Jara to avoid responsibility for Mara’s liabilities. “Mara could have been something extraordinary, but its CEO took it down a dark and rotten path,” those co-founders said in a note to investors. Chinyere Nnadi did not respond to multiple requests for comments for this article. A promising start for Mara Flush with funding in 2022, Mara began building a crypto wallet and a layer-1 blockchain backed by Mara tokens. According to Mara’s leadership team, everything was on track when Mara Wallet launched in February 2023 with “4 million verified users.” The company also touted its community of users earning Mara tokens for educating others about crypto. Like many startups that raised money at the height of the Zero Interest Rate Phenomenon (ZIRP) in 2021, Mara incinerated cash at an extraordinary pace, according to internal documents seen by TechCabal. It lost $15.9 million in 2022, according to a copy of an audited financial statement sent to investors. It didn’t report revenue because it hadn’t launched a product in 2022 yet expenses were already astronomical. Mara spent $9.1 million on salaries, bonuses, and allowances. It had 130 employees, said one person with knowledge of Mara’s operations. “We [paid high salaries] to attract talent [from well-paying companies like Apple and competitors like Yellow Card] but they didn’t always deliver,” Nnadi wrote in an investor report, acknowledging the company’s cash burn during its growth phase. With $5 million left in cash by the end of 2022, Mara began fundraising talks in 2023. Failure to raise follow-on funding worsened problems Mara’s timing could not have been worse. The end of ZIRP and the 2023 crypto winter made it difficult to raise cash. The departure of three of Mara’s cofounders effectively left only Nnadi running the company, and those exits spooked investors, one person claimed. Despite speaking to several investors for a possible $2-5 million raise, nothing materialised. Without fresh cash injection, Mara’s financial problems worsened. By June 2023, Mara had cut team size twice to save costs and seemed at risk of shutting down. One publication cited generous staff salaries and expensive marketing campaigns as big drains on the company’s resources. It owed vendors who provided technical services like compliance and communications tools over $3 million, three people with direct knowledge of the situation said. Those creditors are considering a Chapter 8/11 involuntary bankruptcy claim against Mara, according to communication seen by TechCabal. Mara also faced problems with its Mara Wallet, despite its 4 million-users claim. “At least 75% of the 4 million verified users Mara reported it had were fraudulent accounts,” one former executive said. “The financial incentive of the company’s referral program encouraged users to create fake Mara wallet accounts.“ Bogged down by financial problems and a poorly received Mara Wallet, Nnadi registered a new crypto company called Jara. By April 2024, Mara was no more, and in its place, there was Jara. “Mara no longer exists,” said a Telegram message from an anonymous community manager, who urged the nearly 10,000 users in the Mara Telegram group to download the new Jara app—a non-custodial crypto wallet. Users were told, “The company’s investors are aligned with the new vision.” Coinbase Ventures, one of its most prominent investors, did not immediately respond to comments. Nnadi offered to transfer the equity of Mara’s institutional investors and the tokenised shares of nearly 100 individual investors to Jara, said two people familiar with the matter. He also claimed he invested $700,000 of his funds into Jara, the same people said. The rebrand to Jara was to move past the “shoddy engineering work of the past and be more authentic to how Africans transact,” CEO Chinyere Nnadi told investors. In a separate memo, he also claimed an employee hired to work on the over-the-counter trading product stole $600,000 from the company’s first OTC transaction. However, former Mara executives have questions that may blight Jara’s new start. They claim Nnadi spent company funds with little oversight and question how money was spent. While the company’s 2022 financial statement showed directors earned a combined $2.6 million, it is unclear how much Nnadi drew as salary. Of five C-suite executives excluding Nnadi, three earned $170,000 each, a fourth earned $120,000 while another earned $600,000 annually. The combined earnings of those five executives were $1.23 million, suggesting Nnadi, the only executive whose salary was not disclosed may have earned as much as $1.3 million. There are also questions about $500,000 donated to Mara Foundation, the startup’s non-profit arm. “The Swiss government has formally launched action against the Mara Foundation,” one former executive wrote to investors. TechCabal could not independently verify that claim. At least two former executives also claim creating Jara is a way to avoid Mara’s liabilities. “Mara could have been something extraordinary, but its CEO took it down a dark and rotten path,” those executives said in a note to investors.
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JAMB to now issue customised SIM cards to UTME candidates
The Joint Admissions and Matriculation Board (JAMB) has just released its bulletin and a major news in it is the announcement of the introduction of JAMB customised SIM cards. This initiative, developed with the Nigerian Communications Commission (NCC), aims to streamline the Unified Tertiary Matriculation Examination (UTME) registration process. This move by JAMB may also curb the issue of lost lines faced by a lot of candidates in accessing their results for the 2024 UTME exercise. Things to note regarding the JAMB customised SIM cards: These SIM cards will only be accessible by parents/guardians of candidates. It’s valid for 5 years. The customised SIM cards will be available starting from the next UTME registration cycle, which is 2025. Benefits of the JAMB customised SIM cards Some benefits of the forthcoming JAMB customised SIM cards include: Enhanced security: Each SIM card will be uniquely tied to the candidate, reducing the risk of registration fraud. Simplified registration: Candidates will find the registration process more straightforward and user-friendly. Longevity: The five-year validity period means candidates can use the same SIM card for multiple registration cycles if necessary. Extension of student loan applications Through the JAMB bulletin, the Nigerian Education Loan Fund (NELFUND) has announced the extension of the student loan application process: 1. The extension is for state-owned institutions. 2. It adds 14 extra days to the deadline. 3. This is due to incomplete data submissions. 4. Approximately 1.2 million students will benefit. 5. N3 billion is allocated for disbursement. Promotion of STEAM education JAMB is partnering with key educational bodies to promote STEAM (Science, Technology, Engineering, Arts, and Mathematics) education: Partners include the Nigerian Academy of Science and Nigerian Academy of Letters. The initiative includes workshops and mentorship programmes. Targeted at students and teachers in Adamawa State. Forthcoming policy meeting and cut-off mark JAMB has announced a national policy meeting scheduled for July 18, 2024. This meeting will: 1. Set admission cut-off marks for the 2024/2025 academic year. 2. Include stakeholders such as the National University Commission (NUC) and heads of tertiary institutions. 3. Address policy issues affecting admissions and other related matters. Final thoughts on JAMB custom SIMs and more The JAMB 2024 latest bulletin highlights several significant updates. The introduction of customised SIM cards is a major step towards improving UTME registration. Other key updates include the extension of student loan applications, commendation from the National Assembly, efforts to address illegal admissions, and initiatives to promote STEAM education.
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