Hi Fintech friends👋
A lot has happened this week in Fintech Africa, but before we delve into that, the team and i would like to thank and appreciate everyone who attended our 3rd Annual Nairobi Fintech Meetup last week. Special thanks to our partners Asilimia, Turaco, Peach Payments, Onafriq, HoneyCoin, and DCG.
Incredibly grateful to @NikMilanovic and the @twifintech team. What a privilege to be able to get people together for a truly spectacular time. also F1: fintech but make it fashion https://t.co/A99yBMwG4Y pic.twitter.com/jMMXgMHFqo— Wiza Jalakasi (@wizaj) February 16, 2024
Here are the highlights of what happened in African Fintech this week;
Three Fintech deals worth over $10 Million were announced, including a $3 Million investment by Africa’s payment unicorn into Nigeria’s savings Fintech.
Nigerian digital Bank acquired Ai-Fintech startup to extend its business banking.
Two Funds worth over $20 Million were launched to fund African SMEs and Web3 startups.
Ex VP at African Unicorn launched a Fintech to power hospitality businesses.
Africa’s leading Ecommerce reduced losses to $4.5 Million, its Fintech business grew by 41% YOY.
African Fintech Acquisition Resulted in $10 Million Payout for 190 Employees.
Nigeria’s Biggest Bank by Asset named the Acting Group CEO after the unfortunate passing of its co-founder, Herbert Wigwe.
💸 Fundraise and Exits
Nigerian Fintech-Mobility startup, Moovereceived $10 million Debt from Stride Ventures for India expansion. In 2023, Moovecollaborated with Uber to deploy approximately 25,000 electric vehicles in India having completed over 4.2 million trips.
Africa’s Mobility landscape
Nigerian digital Bank Carbonacquired Ai-fintech startup VellaFinance in an undisclosed deal. Carbon is absorbing Vella Finance to launch Carbon Business. Leveraging Vella Finance's AI-powered SME banking.
Carbon acquired Vella to extend its business banking service
In 2018, Piggyvest had only 53,000 users and only $5 million had been saved on the platform. Now, Piggyvest says it has 4.5 million users and has disbursed over ₦1.1 trillion ($1.42 billion) since 2016 to some of its customers. https://t.co/2WqXtCkEZ0— muktar (@mroladunmade) August 31, 2023
💰 Venture Funds
Injarosecured a $17.5 Million fund to back Ghanaian and Ivorian SMEs. Industries targeted include mining support services, food and agriculture, education, healthcare, financial services, industrial services, and light manufacturing.
Top 4 venture capital firms in Ghana
Core DAOLaunched $5 Million Core Africa Innovation Fund To Empower Local Web3 Builders.
60 African Crypto Startups
🚀 Partnerships & Product Launches
Visapartnered with the Egyptian Banks Company (EBC) to ease and improve the process of international remittances for Egyptians living abroad.
Visa African Portfolio startups
Ex-Flutterwave VP launchedMira to power order management and payment systems for restaurants and other hospitality businesses.
Afican Food Business Facts/stats
South African fintech Stitchlaunched WhatsApp payment bot.
📰 News of the Week
Jumiaslashed operational losses to $4.5 Million in Q4, Its Fintech business grew by 41% YOY but profitability remains out of reach.
Jumia Listed NYSE
Jumia, Africa's prominent e-commerce and Fintech platform, reduced Q4 2023 operating losses to $4.5 million through strategic changes, including shutting down Jumia Food. Despite workforce reductions and shifts away from low-ticket items, profitability remains elusive. Key highlights include $59.4 million in revenue, a decline to 2.3 million quarterly active users, and a Gross Merchandise Value drop to $233.3 million due to currency devaluation.
Jumia MAFIA ~ impact in African ecosystem
However, JumiaPay transactions grew by 41% year-over-year, reaching $3 million. CEO Francis Dufay emphasizes improved cost discipline and cash utilization. With a cash balance of $35.5 million and liquidity of $120.6 million, Jumia eyes expanding JumiaPay in Nigeria to tap into the potential of a cashless economy by 2024.
📑 Read of the week
Inflation is a two-sided coin for BNPL startups in Nigeria. (Techcabal)
January '24 Africa Fintech Market Update. (Afridigest)
Founders of African Fintechs that disclosed fundraises in January 2024
African product, global market: Tunisia based Expensya employees cashed out $10M from 2023 acquisition. (Techcrunch).
It took these entrepreneurs, from a small market in Africa (Tunisia), 9 years to create an exit value of over $700mn +. Exits take time. Businesses pivot. World-class African tech talent is an advantage. It’s possible to find global buyers. African founders can compete globally. pic.twitter.com/9ncCsZjDJm— Hope Ditlhakanyane (@Hope_N_D) February 16, 2024
📖 Other News, Reads, and Media
Lunoplanned to release a monthly proof of reserves report to gain customer trust.
The Central Bank Of Nigeria ordered electronic payments for travel allowance, banned cash payments. This new policy aimed to improve transparency and stability in the foreign exchange market while preventing malpractices.
Mastercard appointed Folasade Femi-Lawal as West Africa Country Manager. Femi-Lawal has 25+ years in finance, consulting, telecom, and advisory. At First Bank Nigeria, she led Cards and Messaging, driving Mobile Financial Services and Digital Banking Strategy.
Folasade Femi-Lawal
Access Holdings Plc named Bolaji Agbede as the Acting Group CEO after the unfortunate passing of its co-founder, Herbert Wigwe, on Friday, February 9, 2024. Agbede, former head of business support at Access Bank, with nearly three decades in banking and consulting, she's proven herself at Guaranty Trust Bank and Access Bank, including leading Group Human Resources.
Bolaji Agbede
Africa's Highest Inflation Rates (2023)
1. Zimbabwe - 224% (1st Globally)
2. Sudan - 103% (5th globally)
3. Ghana - 50.3%
4. Ethiopia - 35.1%
5. Rwanda - 33.8%
6. Sierra Leone - 33%
7. Burundi - 26.8%
8. Malawi - 25.8%
9. Sao Tome & Principe - 23.5%
10. Nigeria - 21.5%— Africa Facts Zone (@AfricaFactsZone) January 16, 2023
Disha’s message about the temporary shut down
🎥 VIDEO INTERVIEWS/DISCUSSIONS
Interview with Yemi Keri, co-founder of Rising Tide Africa, a women oriented angel network in Nigeria.Rising Tide Africa portfolio has Fintechs like Bankly, Oze and Wealth8.
🦉 Tweet of the Week
1. Founders need to be sensitive. Fundraising frauds are back. They were a thing circa 2013 to 2016. One particular one is the legal/DD fee scam. It targets startups that just announced a raise or just joined an accelerator. Here's how it works.— Oluyomi Ojo (@OluyomiOjo) February 14, 2024
Great report and happy to see more leaning into digital commerce. Disagree with the order of payments fundamentally driving commerce, but the context is well laid out.
On the high end of optimism for some of the trends, but refreshing.
h/t @j0sephbens0nhttps://t.co/CHiXvJiVQE pic.twitter.com/O8HBbigX6A— Stephen Deng 邓广藻 (@mrstephendeng) February 13, 2024
🎯 Fintech Opportunities
Julaya is hiring for Business developer.
Made in Tanzania 🇹🇿 with 💚
