The Ethiopian digital finance landscape
Hi Fintech friends 👋
A lot has happened this week in Fintech Africa , but before we delve into that, I would love to remind you that we are coming back to Nairobi 🇰🇪 for our 3rd Annual Nairobi Fintech Meetup! Come meet the Opareta team building mobile money agents, as well as our partners Asilimia, Turaco, Peach Payments, Onafriq, HoneyCoin, and DCG.
Here are the highlights of what happened in African Fintech this week;
Three Fintech deals worth over $200 Million were announced including one acquisition.
Co-Founder Of Nigeria’s Largest Bank Killed In California Helicopter Crash.
A Fintech VC launched a $5 Million Climate Fund.
Africa’s Unicorn received a court order to recover $24 million lost to unauthorized POS transactions.
One of the largest Telecom and Financial services providers in Africa appealed $1 Billion ruling in favor of a former employee.
💸 Fundraise and Exits
South Africa’s Fintech LesakaacquiredHeineken’s data analytics company.
South African Fintech landscape
MosmosSecured €60K from Catalytic Africa for its ‘Save Now Buy Later(SNBL)’ platform.
The Difference between Buy Now Pay Later(BNPL) Model and Save Now Buy Later(SNBL) Model
Landscape of Save Now Buy Later(SNBL) startups in Africa
💰 Venture Funds
Rally Cap VC, a fintech investor for emerging markets launched a $5 Million climate fund.
Climate Tech Innovators in Africa
Africa’s youngest billionaire backed an Indian startup in a $1.1 Million funding round. Signaling Growing Interest of African Billionaires in Startup Ventures.
African Billionaire Club - 2024
Microtraction backed 12 companies in 2023, it’s portfolio grew to 67 companies with a combined valuation of $813 Million.
Microtraction numbers and statisctis - 2023
Why African tech startup funding declined so badly, and what happens now?
State of African Startup Funding - 2023
Africa-focused funds found their feet amid a downturn.
🚀 Partnerships & Product Launches
Absa Bankintroduced a new wallet for WhatsApp banking in South Africa.
Whatsapp is the most used social media platform in South Afica
Ghana Fintech Ecosystem
Branch and Solv by Standard Chartered Collaborated to Extend Loans to Kenyan MSMEs.
YC backed Coinprofile rebrabded to Parna, evolving to offer more global payments services.
📰 News of the Week
Mastercardinvested $200 million to acquire a minority stake in MTN's fintech division at $5.2 billion valuation.
On August 14, 2023, Ralph Mupita, President and CEO of MTN Group announced the company's plan to sell a 30% stake in the fintech firm. MTN claimed that its MTN mobile money unit has amassed 56.8 million users. MasterCard finalized a definitive agreement with MTN involving a minority investment of up to $200 million in MTN Group Fintech. This investment values MTN Group Fintech at $5.2 billion on a cash and debt-free basis.
MTN Group's new agreement with Mastercard aligns with their shared goal of fostering financial inclusion in Africa through tech advancements. This deal coincides with MTN's aim to grow its fintech arm while enhancing its telecom business.
Moneization of Africa’s Mobile Money Platforms
In 2021, MasterCard also made a significant investment of $100 million in the mobile money business of Airtel Africa, which is a competitor to both MTN and Safaricom. The investment valued Airtel Africa’s mobile money unit at more than US$2.6 billion at that time.
Herbert Wigwe, Co-Founder Of Nigeria’s Largest Bank, Access Bank, Killed In California Helicopter Crash.
Access Bank’s official death statement
Herbert Wigwe, co-founder of Access Bank, the largest bank in Nigeria, was among six people killed in a helicopter crash in California on Friday, according to multiple reports.
Top Nigerian Banks by Assets
Wigwe's Access Bank became Nigeria's largest in 2018 after acquiring Diamond Bank. Expanding in Africa and beyond, they aimed to launch banking services in Asia this year. Established in 1989, Wigwe also spearheaded Wigwe University, slated for a September launch.
📑 Read of the week
Africa to become the second region in consumer growth this year; digital commerce to expand 25% per year by 2026. (EBANX)
Raising markets lead consumer class in 2024
📖 Other News, Reads, and Media
Flutterwavegot a court order to recover $24 million lost to unauthorized POS transactions. Flutterwave, Africa’s most valuable startup, will contact over 6,000 account holders across 35 banks and financial institutions to recover $24 million illegally transferred by POS merchants after a High Court ruling in February.
The journey of Flutterwave
Leatherback CEO, Ibrahim Ibitade wanted to move on after the EFCC debacle.
TheNigerian Communications Commission lifted a disconnection notice placed on Globacom after it reached an interest payment agreement with MTN Nigeria.
Vodacomappealed ruling to pay $1 billion to an ex-employee for inventing the popular Please Call Me service.The judgment amount is 10% of Vodacom’s market capitalization.
Vodacom African Markets Overview
Kenyan Fintech startups by Category
Ecobank, Sendwave, Others Instructed to Pay Customers Money Sent From Abroad in Naira only.
🎥 VIDEO INTERVIEWS/DISCUSSIONS
Interview with James Mwangi, Group MD & CEO of Kenya's Equity Bank, he speaks on the banks Resilience & Support to customers and strategic focus 2024.
Interview with Lexi Novitske, a General Partner at Norssken22, who just launched Africa's second-largest $205 Million VC fund.
Why is only 2% of funding going to female founders? This Flip Africa’s episode is the first of a five-episode series on gender lens investing, co-hosted by Eloho Omame, Founding Partner of First Check Africa, an early-stage fund backing female-led startups, joined by the founders: Yanmo Omarogbe, the Co-founder and COO of the Nigerian investment platform Bamboo, and Sneha Mehta, the Co-founder and CEO of Uncover, a direct-to-consumer skincare brand in Kenya.
🦉 Tweet of the Week
1/24 The End of EcoCash Holdings: A Case Study for Entrepreneurs On The Importance of Focus
When EcoCash (Cassava Smartech) was listed in 2018 its share price was $1.49 today its share price is ~$0.70
How could a company set up for success struggle?
Let's Unpack!
🧵THREAD 🧵 pic.twitter.com/s4StYmnrm7— Tinashe M (@tmukogo) February 8, 2024
🎯 Fintech Opportunities
Are you building a pre-seed Fintech startup? The Mint Fintech Accelerator is offering $500K investment plus comprehensive resources to kickstart and scale your company. Apply now.
Visa is now inviting startups to apply for the second cohort of its Visa Africa Fintech Accelerator program. Apply before 29th February 2024.
LemFi is hiring for a Compliance Analyst.
Made in Tanzania 🇹🇿 with 💚
