Africa's electronic-payments market is expected to grow by 152 percent from 2020 to 2025.
Hi Fintech friends 👋,
IHere are the highlights of what happened in African Fintech this week;
A 2-year-old Nigerian Fintech company acquired a 10-year-old US company.
Two Egyptian Fintechs raised seven figure dollar funding rounds:
Nigeria based Neo Bank tripled revenue to $22 Million in 2022.
A $40 Million African VC rebranded and ready to fund more startups.
Two executives of one of Africa's mobile money fintech companies have left the company.
💸Fundraise and Exits
Sendsprint, a cross-border payments startup, expanded to the US with the Nobel Financial Inc acquisition.
The future of payments in Africa |
Egypt’s Lucky ONEsecured $3 Million to expand operations and enter new markets.
Top 20 best fintech companies in Egypt
Egyptian lending startup Qardyraised a 7 figure dollar pre-seed funding round.
💰 Venture Funds
$40 Million African VC, Founders Factory Africarebranded to 54 Collective.
Founders Factory Africa - Investment Snapshot
🚀 Partnerships & Product Launches
dLocal and iTransferpartnered to simplify cross-border payments in Nigeria.
Nigeria Fintech Map - 2023
Kenya’s BuuPass and insurtech startup, mTekpartnered to assure passenger safety with easy travel insurance.
Kenya Fintech Map - 2022
CRDB becomes the first bank in Tanzania to cross TZS 10 TRILLION assets as NMB remains most profitable bank
ASSETS
CRDB 10.25 trillion
NMB 9.05 trillion
DEPOSITS
CRDB 7.15 trillion
NMB 6.6 trillion
PRE-TAX PROFIT
NMB 298 billion
CRDB 250 billion
- June 2022 financials in TZS pic.twitter.com/mIGutaMrTx— Tanzania Business Insight (@TanzaniaInsight) July 29, 2022
👔 Leadership Lineup
Eli Hini, CEO of MTN’s MoMo Payment Service Bank (PSB), and Elsa Muzzolini, Chief Commercial Officer, left the company in a surprising leadership change at the fintech. Muzzolini joined M-PESA Ethiopia, Safaricom’s mobile money business as CEO on July 15.
MTN Momo
📰 News of the Week
Kuda, the Target Global-backed challenger bank, tripled revenue to $22 million in 2022.
Kuda in Numbers
Kuda, a digital bank focused on Nigeria and backed by Target Global, tripled its revenue to $22 million in 2022, thanks to a surge in user adoption, with its customer base growing from 2.4 million to 4.9 million. Operating primarily through its Nigerian subsidiary, Kuda MFB, the company has been expanding its services, including international remittances, and is entering new markets like the U.K., Canada, Ghana, Tanzania, and Uganda.
Kuda’s Growth
Kuda’s deposits more than doubled to $100 million, with business banking services seeing significant growth, serving over 100,000 businesses. The company also earned $3.5 million from treasury investments in Nigeria, benefiting from rising interest rates. However, Kuda’s net losses grew to $32 million in 2022 due to higher staffing costs and aggressive marketing during its expansion.
Kuda's non-fee revenue is benefitting from higher interest rates in Nigeria.
Although cash reserves fell, Kuda has cut marketing expenses and is working toward breakeven, with its CFO confident that they have sufficient funds to reach this milestone.
👀 Eye Openers
Can the below idea help to fight fraud locally in Africa?
Share your thoughts in the comments, and I will publish them in the next newsletter.
📑 Read of the week
Banks and Fintechs new revenue model, Selling Ads like Google, and I bet you love it.(By Reuben Mwantosya, COO at Tembo Plus)
📖 Other News, Reads, and Media
Jumianarrowed losses to $19 million as currency problems pressured revenues.
First Banksacked over 100 employees after $25.6 Million fraud, freezes their personal accounts.
The Central Bank of Nigeria (CBN)provided a facility to support the merger between Providus and Unity Bank, a bank that recorded losses of $24.8 Million during the first half of 2023.
🎥 VIDEO INTERVIEWS/DISCUSSIONS
From Setbacks to $3M Seed Fund: Building an African Startup with Mohammed Awami, Co-founder at Settlo, Tanzania based Fintech.
🦉 Tweet of the Week
CBN aproves financial accommodation for Unity Bank and Providus Bank Merger.
What does this mean?
Permit me to explain this to you at no cost.
A thread>>> https://t.co/M0A6zXfRbE— Prof Phil® - ACA (@philoffinance) August 7, 2024
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Made in Tanzania 🇹🇿 with 💚
