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Ajim Capital

In the first quarter of 2023, we reported that Jumia recorded its lowest losses in four years. Its adjusted EBITDA and operating losses dropped to $27 million and $30.9 million, respectively. Those numbers represented a 55% and 57% decrease year-over-year, on track to meet the company’s end-of-year target of $100 million to $120 million in adjusted losses.

Jumia, the e-commerce giant, has revealed positive financial results for Q2 2023. Following its earlier report of decreased losses in Q1, Jumia has continued to reduce losses significantly in Q2, with adjusted EBITDA and operating losses dropping by 66% to $19.3 million and $23.3 million, respectively. This impressive performance has led the company to revise its year-end adjusted loss projection to a range of $90 million to $100 million.
 
CEO Francis Dufay attributed the improved financials to disciplined efforts to navigate challenging macro conditions. Notably, fulfillment, sales, and advertising expenses were significantly reduced. Jumia had streamlined its operations, including headcount reduction and recalibrating its product and service portfolio in Q4 2022.
 
While these changes impacted growth metrics such as quarterly active customers, orders, and gross merchandise value (GMV), there are signs of success. Jumia shifted focus from fast-moving consumer goods (FMCG) to electronics and big-ticket items, leading to higher average order values and experiments with buy now, pay later (BNPL) services in certain markets.
 
JumiaPay, the platform's payment solution, has seen transactions and total payment volume decline but is working to expand its range of payment methods and introduce "JumiaPay on delivery" in additional countries. Additionally, Jumia is developing a white-label checkout solution for third-party merchants.
 
Despite the positive changes, Jumia faces challenges from high inflation affecting purchasing power and import restrictions in certain markets. The company remains optimistic about its growth prospects, especially in regions like Senegal and Ghana, where key categories such as electronics are performing well. Jumia aims to continue its efforts to reduce losses and foster growth in strategic areas.
 
Read more on <a href="https://techcrunch.com/2023/08/15/jumia-expects-losses-not-to-exceed-100m-this-year-per-q3-financials/">TechCrunch</a>

Jumia expects losses not to exceed $100M this year, per Q3 financials

Bird Story Agency

Nongcebo Langa fell in love with wine after a chance encounter with a winemaker at a fair. She went on to study the craft at South Africa’s renowned Stellenbosch University and her passion and mastery of the industry’s technical processes has resulted in her creating award-winning wines, like the 2022 Delheim Gewürztraminer.

Taurai Maduna, bird story agency
 
As Nongcebo Langa walked between the barrels of a beverage enjoyed worldwide, a bubbling sound could be heard from the gas emitted during fermentation - part of the journey of every great wine. It's a sound Langa said now makes her feel at home - and stirs her imagination.
 
“We have fermentation, then you age (the wine). You can age three months, six months, nine months, 18, 24 months to five years for MCC - Méthode Cap Classique. This is the method used to make South African sparkling wines,” she explained.&nbsp;
 
Langa didn't grow up expecting to make wine. It took a careers fair and a chance encounter with a winemaker there to open her eyes to what is now her career as a South African winemaker and one of the few black women in the industry.&nbsp;
 
“It hasn't been our thing, but now it's becoming our thing,” Langa said of her community's interest in wine.&nbsp;
 
Nongcebo grew up in Pietermaritzburg’s Imbali township where family gatherings were stocked with beer and spirits. This is no longer the case; because of her knowledge of wines, she has become the unofficial ‘family sommelier’ and wine is now a popular choice at family functions.
 
“'I got this wine, how do I drink it, how do I enjoy it?' are some of the questions I get asked by those close to me who have started to enjoy drinking wine,” she explained.&nbsp;
 
KwaZulu-Natal Province where Langa comes from is known for its sugarcane production and dairy and cattle farming and the thought of studying wines never crossed her mind till she visited the careers fair and heard a winemaker there talk about their work.
 
After the fair, the idea of making wine seemed like an exciting challenge, so she decided to give it a go by enrolling at Stellenbosch University in the Western Cape Province to study Viticulture and Oenology.
 
“Viticulture is a study of grapes and the grapevine. From the soil to the insects in the ground to the weather, the climates, everything around the growth of the vine. And then Oenology is the study of wine. So wine sciences, the microbes, the machinery, the processing of the grape itself, once it gets into the cellar,” Langa explained.
 
She went further in her education and pursued a Master's program, focusing on the influence of wildfire smoke on vineyards.
 
“It's actually becoming much more relevant in the wine industry all over the world where we are seeing a lot of wildfires around winemaking regions. So my research actually focused on trying to help out once the incidence of this has occurred,” she said.&nbsp;
 
After completing her studies in 2018, Langa interned at the renowned Delheim Wines in Stellenbosch - and never left. She rose through the ranks and was appointed winemaker in May 2022.
 
That same year, she produced the 2022 Delheim Gewürztraminer - a white wine classified as off-dry - which won her the 2023 Diners Club Young Winemaker of the Year Award.
 
“The Gewürztraminer is quite a nice and unique grape in South Africa. I think there's about maybe five or so wine farms that actually make wine out of Gewürztraminer. It's exciting to work with and the flavours that come of it are very, very amazing. It's a nice combination of fruits, you've got a nice balance between the acid and the sugar on the palate”, Langa said. &nbsp;
 
Her award came with prize money and a trip to any wine region in the world. She is planning on going to Bordeaux in France in September.&nbsp;
 
“It's one of those regions that are iconic in the world. The wines that come from there are very well known. And, you know, the quality that comes from there is also well-known in the world.”
 
Langa plans to travel when it's harvest season to learn as much as she can - both inside the winery and out.
 
“Wine is a lot about culture as well as the drink and the winemaking itself,” she said, adding that she considers her profession both a science and an art.&nbsp;
 
“Everywhere you go in the world, you're going to learn the same thing about winemaking and then how you express that science, because you learn the science of it, the basics of it, but how you express that, that's up to you.”
 
Langa is certainly in the right environment to grow as a winemaker; according to Statista, South Africa ranks eighth in wine production out of the top 10 traditional wine-producing countries globally.&nbsp;
 
As a wine master, Langa’s work involves monitoring thousands of litres of wine at various stages of production in the cellars. It also involves regularly tasting wine. In the white wine barrel fermentation cellar that houses the Chardonnay and Chenin Blanc, she uses the ‘wine thief’ to get a wine sample from the barrel, so as to assess how the wine is fermenting.
 
“As you can see this is raw wine, it won’t be as clear as you will find it in a shop, so it still has to go through a lot of processes and there is high CO2 (carbon dioxide) that keeps the particles in suspension and that is why it is cloudy. But it will settle down over time.”
 
Langa works closely with Delheim cellarmaster, Roelof Lotriet, who advised management to hire her when she was an intern. Lotriet was impressed with her work ethic and her curiosity. He recalled how she responded when he asked her what she wanted out of the internship, and she jokingly replied that she wanted his winemaker job.
 
“With wine, you’ve only got one shot on a vintage. There isn't a redo or undo button. What you do is what you do. And if it doesn't work, it doesn't work. I don't think [Delheim] will be her end place, I think it'll be just the start of a fantastic career for her,” Lotriet said.&nbsp;
 
“I wanted to learn more and work under Roelof as well, it's just been quite a beautiful journey and I’ve adopted a lot of the philosophies that I have actually learned from him. And what he sort of preaches in the cellar. So that's been quite a fascinating and worthwhile journey. And then to be at Delheim so full of history, so full of traditions. It's been a learning experience,” Langa said.
 
Shame Mumba was one of the five panel of judges at the 43rd annual Diners Club Winemaker of the year awards. A certified sommelier and board member of the South African Sommelier Association board member, Mumba described Langa’s wine as having shown a lot more purity.&nbsp;
 
“The wine showed more identity, which simply means that sometimes you don't have to interfere too much in the making of the wine, but the less you make, the better the results will be like.”
 
Mumba added that winning such an award for a young winemaker was a huge confidence booster.&nbsp;
 
“It’s also a big inspiration for the young winemakers that want to become a winemaker and especially somebody of colour. That is even a massive boost for our industry as South Africa.”
 
So what makes a good wine? Langa is quick to point out that it’s a very personal choice. It’s about how one connects with the wine.
 
“I always say, I pair my wine with my mood and the company that I have. If I pick up a Rosé I know I’m going to be chilled by the pool or outside with the braai.”&nbsp;
 
She added that for a serious dinner, she would go for something like her cellar's Grand Reserve.
 
bird story agency
 
Useful links:
https://www.delheim.com/
https://dinersclub.co.za/news-events/winemaker-of-the-year/
https://www.statista.com/topics/11626/wine-industry-in-south-africa/#topicOverview
https://www.thedrinksbusiness.com/2024/01/south-african-wine-exports-see-volumes-fall-but-value-growth-increase/
https://academieduvinlibrary.com/blogs/blog/black-women-winemakers-breaking-barriers-in-south-africa

This South African winemaker is savouring the sweet taste of success 🍷🍇 🇿🇦

TechCabal

Despite economic challenges fueled by hyperinflation and sanctions, Zimbabwean startups are resilient and forging ahead. Learn how they navigate funding constraints, access markets beyond borders, and embrace alternative financial technologies.

In Zimbabwe, serial entrepreneur Tendai Mugovi leads the charge with three startups, including Cashlinq, scaling to Zambia amidst economic turmoil. Despite limited funding options, startups leverage diaspora remittances and government initiatives like the National Venture Capital Fund for growth. B2C startups face hurdles, but B2B models thrive by accepting payments in stable currencies and catering to enterprise clients.
 
The macroeconomic landscape presents hurdles, but also opportunities for innovation and expansion beyond Zimbabwe's borders. Startups explore markets like Zambia and Botswana, while fintech solutions gain traction among citizens seeking alternative financial services. With recent sanctions easing, Zimbabwean entrepreneurs are poised for growth, armed with resilience and innovation.
 
Read more on <a href="https://techcabal.com/2024/03/15/zimbabwe-startups-hyperinflation-sanctions/">TechCabal</a>

Overcoming Adversity: How Zimbabwean Startups Thrive Amid Hyperinflation and Sanctions 🚀 🇿🇼

Chipper Cash, a prominent fintech company, announces layoffs and salary cuts after suspending its services in the US, highlighting a strategic shift towards focusing on its African markets.

Chipper Cash, backed by Bezos Expedition, faced financial challenges leading to layoffs and salary cuts, signaling a pivot away from US operations. Despite its earlier success and substantial investments, the company is now redirecting its efforts to its core markets in Africa.
 
Read more on <a href="https://techcabal.com/2024/03/15/chipper-cash-relocates-u-s-and-u-k-workforce/">TechCabal</a>

Chipper Cash Cuts US and UK Roles After Suspending US Operations 🛑 🇺🇸  🇬🇧 👉🏾🌍

Nigeria's Securities and Exchange Commission (SEC) proposes a substantial increase in the minimum paid-up capital for virtual asset service providers (VASPs) to ₦1 billion, aiming to reshape the crypto landscape.

The Securities and Exchange Commission (SEC) of Nigeria has proposed a significant hike in the minimum paid-up capital for virtual asset service providers (VASPs) from ₦500 million to ₦1 billion, indicating a shift towards a more stringent regulatory framework in the cryptocurrency sector. If implemented, this move could potentially reshape the landscape of crypto businesses in Nigeria, favoring larger, well-capitalized companies while posing challenges for smaller, local players. Additionally, the proposal includes requirements for a fidelity bond covering at least 25% of the minimum paid-up capital, along with additional documentation for registration, reflecting the SEC's aim to ensure orderly and transparent market operations in the crypto sphere. 📈💼
 
Read more on <a href="https://techcabal.com/2024/03/18/sec-capital-requirement-for-virtual-asset-companies/">TechCabal</a>

SEC Proposes ₦1 Billion Capital Requirement for Virtual Asset Companies 🇳🇬

Nigeria's Access Bank strengthens its presence in Kenya with the acquisition of the National Bank of Kenya from KCB Group, marking its second Kenyan acquisition in recent years. 🌍💼

Nigeria's Access Bank continues its expansion in the East African market with the acquisition of the National Bank of Kenya from KCB Group, following the unsuccessful attempt to acquire Sidian Bank in 2023. The deal is expected to close within 6 to 9 months, positioning Access Bank for increased scale and growth in Kenya's banking sector. 📈💰
 
Read more on <a href="https://techcabal.com/2024/03/20/access-bank-acquires-national-bank-of-kenya/">TechCabal</a>

Access Bank Expands Footprint in Kenya with National Bank Acquisition 🏦 🇳🇬 🇰🇪

Access Bank's acquisition of National Bank of Kenya (NBK) marks a significant move in its East Africa expansion strategy, valued at around $100 million, pending regulatory approval. 📈💰

Access Bank's acquisition of NBK from KCB Group for 1.25x of the bank’s book value indicates a significant step in consolidating its presence in Kenya, with plans to inject more capital into NBK for growth and sustainability. 🌍💡
 
The transaction, subject to regulatory approvals, is expected to take six to nine months to complete, further underlining Access Bank's commitment to expanding its footprint in East Africa's largest economy. 🚀🌟
 
Read more on <a href="https://techcabal.com/2024/03/21/access-bank-national-bank-kenya/">TechCabal</a>

Access Bank Acquires National Bank of Kenya for Approximately $100 Million in East Africa Expansion 🏦💼 🇰🇪

Benjamindada

Explore how Leatherback's collaboration with YES BANK is revolutionizing remittances by enabling seamless Indian Rupee transfers worldwide, fostering economic growth and cultural exchange between India and Africa.

Leatherback, a global banking service provider, has joined forces with YES BANK, a leading private bank in India, to streamline Indian Rupee (INR) remittances and payouts globally, catering to the burgeoning trade and cultural ties between Africa and India.
 
The partnership marks Leatherback as the first Africa-focused fintech company to offer INR remittance payouts, serving as a pivotal link between individuals and businesses in India and users worldwide, empowering financial accessibility and connectivity across borders. With innovative solutions like SendR, users can now effortlessly transfer funds to India, leveraging advanced technology and YES BANK's market expertise for a seamless and efficient remittance experience.
 
Read more on <a href="https://www.benjamindada.com/leatherback-and-yes-bank-partner-to-enble-indian-rupee-transfers-for-global-users/">BenjaminDada</a>

Leatherback and YES BANK Partner to Facilitate Indian Rupee Remittances Globally 🌍💸 🇮🇳

From ranking as the world’s worst-performing currencies in 2023, the Kenyan shilling and Nigerian naira have made significant progress. They are now among the best-performing currencies in the world for 2024, raising hopes for a lower cost of living in these countries.

By Conrad Onyango, bird story agency
 
Squeezed by painfully high prices for over a year, households in Kenya and Nigeria are beginning to get some relief as their national currencies strengthen against the US dollar and the cost of living starts to come down.
 
In 2023, the shilling and naira were ranked among the worst-performing currencies in the world, according to data from Bloomberg and World Currency Monitor.&nbsp;
 
The naira was the worst-performing currency in Africa in 2023, depreciating by over 40% against the US dollar while the shilling ranked 6th worst worldwide, with a slump of over 15% against the US Dollar.
 
However, consumers in both countries are in for some relief in 2024 as their currencies gain ground and the cost of living becomes more bearable, especially in Kenya which has witnessed drops in the prices of some key foods and fuel.
 
Kenya's National Bureau of Statistics shows that the country’s annual inflation eased to a two-year low thanks to a strengthening shilling, which has helped to lower import prices. Kenya is a net importer.
 
Consumer prices rose 5.7% in March in the East African country, compared with 6.3% in February and 9.2% in March 2023, &nbsp;driven by falling prices for flour, sugar and fuel, according to the Bureau of Statistics. Flour dropped by 9.2%, Sugar 5.3% and petrol by 3.5%.
 
Kenya’s inflation is now within the government’s preferred range of 2.5% and 7.5% in the medium term.
 
On the eve of Good Friday, Kenya’s commercial banks quoted the shilling at a high of 132.00 to the US dollar, compared to a high of 161.00 at the start of the year.
 
Such robust performance has earned the shilling the title of best-performing currency in 2024, according to Bloomberg research.
 
The naira is also on a winning streak, posting N1,300 against the dollar on the eve of Easter celebrations after a historic low of N1,851 per dollar In February.&nbsp;
 
The country had been grappling with dollar shortages that depressed its currency.
 
Nigeria’s central bank Governor Olayemi Cardoso has expressed hope that the naira will continue to gain strength against the dollar after clearing a foreign exchange backlog and raising interest rates by 200 basis points to 24.75% to counter inflation.
 
“The committee noted with satisfaction the level of stability achieved in the foreign exchange market in the last few weeks...This will greatly enhance investor confidence and attract foreign investments to Nigeria,” said Cardioso during its latest Monetary Policy Committee (MPC) Press Briefing.
 
“These considerations underscore the importance of CBNs commitment to the price stability mandate and the need to urgently bring inflation under control to ensure that purchasing power of ordinary Nigerians is restored in the short to medium term,” Cardioso added.
 
Nigeria's apex bank has intensified oversight of the recapitalisation of banks and other financial services firms, which it believes will strengthen the country’s financial system against external shocks. The regulator has also cracked down on unregulated cryptocurrency trading.
 
bird story agency

Cost of living relief on the cards as Kenya, Nigeria currencies gain ground 🇳🇬 🇰🇪

Mozambique doubles down on growth with Africa's first dual benchmark rate cuts in 2024 as currencies across the continent score gains against the greenback.

Seth Onyango, bird story agency
 
Mozambique’s central bank has decisively cut its benchmark lending rate to 15.75% from 16.5%, setting a precedent as the first African country to slash rates twice in 2024.&nbsp;
 
The move highlights Maputo’s aggressive push for economic growth amid a wider trend of cooling inflation and currency stability against the US dollar across Africa.&nbsp;
 
Rate cuts in the southeastern African nation, prompted by near-four-year low consumer inflation, aim to stimulate economic activity through household spending.
 
The steady Mozambican metical against the dollar since 2021 solidifies the central bank, Banco de Moçambique's move, balancing the rate cuts without igniting inflation or destabilising the currency.
 
Mozambique’s fiscal manoeuvre and stability reflect a larger pattern across the continent. Both Kenya and Nigeria are witnessing their currencies gain ground against the greenback, offering their economies some respite.&nbsp;
 
In Kenya, commercial banks have recently quoted the shilling at a high of Sh132.00 to the US dollar, a significant recovery from Sh161.00 at the year's start.&nbsp;
 
Similarly, Nigeria's naira is experiencing a resurgence, trading at N1,300 against the dollar on the eve of Easter celebrations, rebounding from a historic low of N1,851 per dollar in February.
 
In Mozambique, the burgeoning LNG sector, kick-started, adds to the country’s growth prospects. However, insurgencies pose risks to major projects.&nbsp;
 
Despite challenges, its economy grows by 5.4% in Q4 of 2023, showcasing resilience and growth beyond its LNG sector.
 
TotalEnergies aims to restart its US$20 billion Mozambique LNG project, halted due to Islamist insurgencies in Cabo Delgado province, leading to a force majeure declaration in April 2021 that still stands.
 
Banco's recent rate cut, however, aims to counteract these challenges, ensuring continued economic progress.
 
Mozambique, with its long Indian Ocean coastline, is dotted with popular beaches like Tofo, as well as offshore marine parks, also anticipates stellar earnings from tourism.
 
Efforts to stabilise the economy and ensure security are likely to enhance Mozambique's appeal as a premier tourism destination, further diversifying its income sources and strengthening its economic resilience.
 
Mozambique is also tweaking its visa process to lure in more visitors.
 
Its complex visa process once deterred tourists and business visitors, affecting its regional and global competitiveness.&nbsp;
 
However, significant improvements began in December 2022 with the launch of a streamlined e-visa platform by the Mozambican Government.&nbsp;
 
Further easing occurred in March 2023, introducing visa-free entry for citizens of 29 countries, including the US, for tourism and business. Now, travellers can use the e-visa platform before their trip and pay a small fee of MZN650 (about US$10).
 
Furthermore, the regional economic landscape is witnessing a pivotal shift, with African nations increasingly adopting innovative monetary policies and reforms to navigate the complexities of global finance and trade.
 
Mozambique is now at the forefront of Africa's money policy manoeuvre, with the continent's economic landscape witnessing a pivotal transformation.&nbsp;
 
Its collective progress towards stronger currencies and thoughtful monetary strategies provides a brighter economic outlook for Africa.
 
Central bank governors across the continent will likely study Mozambique’s approach closely, seeking to replicate its successes in their jurisdictions.&nbsp;
 
bird story agency

Twin rate cuts set Mozambique apart as African currency rally 🇲🇿

Despite a dip in overall funding levels, the continent is witnessing a marked increase in the number of ventures securing $1 million or more.

Seth Onyango, bird story agency&nbsp;
 
Start-ups in Africa are increasingly hauling in US$1 million or more in funding, even as the investment climate on the continent cools off.
 
Data from Africa: The Big Deal, shows ventures raising over US$1 million thrive due to their bankability, suggesting a selective but keen interest from investors amidst a cautious investment backdrop.
 
"While the amount raised quarterly is still at its lowest since Q4 2020, we can see that the number of ventures raising at least $1m during a quarter has started to bounce back in Q3 2023 and continued to do so consistently since," The Deal says.
 
Investors appear to be placing targeted bets on start-ups with clear scalability and impactful solutions, indicating a move towards more strategic, long-term investments rather than widespread, speculative funding.
 
Investment patterns also reveal a notable shift towards equity financing, despite a slight 9% decrease from the previous quarter.&nbsp;
 
Conversely, debt financing has taken a substantial hit, decreasing by 44%. This indicates a growing preference among investors for equity stakes in promising start-ups, in a show of confidence in their growth trajectories and the potential for long-term returns.
 
Broadly, the total funding secured by African start-ups from April 2023 to March 2024 amounted to US$2.4 billion — a 14% decrease from the preceding 12 months but still a substantial portion of the peak funding era between July 2021 and June 2022, according to The Deal.
 
Data from Africa: The Big Deal further underscores a strategic recalibration by investors in response to the evolving global economic landscape and the unique challenges and opportunities presented by the African market.
 
African start-ups, with their deep understanding of local markets and innovative approaches to solving complex problems, are increasingly becoming the season's must-have for both local and international investors.
 
Tellingly, a separate report from Africa: The Big Deal in March showed that more African investors are funnelling substantial investments into homegrown enterprises.
 
It highlighted a departure from the previous years, when North American investors, particularly from the U.S., led the charge in startup funding across the continent.
 
Africa: The Big Deal identified at least 619 unique investors who participated in deals of US$100k or more within the continent, with 35% of these being headquartered in Africa, making it the region with the most investors in African startups.
 
This shift came after a dramatic 47% year-on-year drop in the number of North American-based investors involved in the continent, according to the report.
 
“The fact that Africa was the continent where most investors in Africa were headquartered contrasts with the previous two years when the number one spot was held by North America (the U.S., really),” the analysis observed.
 
European investors remained significant, with a stable 25% representation, closely following African investors and indicating a potential rise in interest from this region as well.
 
When considering individual countries from around the world, however, the United States maintained its position as the single largest external investor in Africa.
 
South Africa stands out as the primary African country with active investors, highlighting its role as a significant hub for investment on the continent.
 
The top five countries hosting active investors have remained reasonably stable, with the United States, South Africa, Nigeria, the United Kingdom, and France (replacing Egypt) making the list.
 
Notably, France is the only country among the top 10 to see an increase in the number of investors involved in African deals from 2022 to 2023.
 
bird story agency&nbsp;

More African founders secure $1M+ Funding in new trend 💰🌍

The Next Wave

TechSafari

Big Tech This Week

🌍 From humble beginnings in Africa, InstaDeep has grown into a global AI powerhouse. In just over a year under BioNTech’s umbrella, the startup continues to drive innovation in biotech and beyond. CEO Karim Beguir reveals how InstaDeep’s cutting-edge AI is revolutionizing healthcare and industrial optimization alike.

InstaDeep's AI Revolution: Scaling Global Innovation 🚀
InstaDeep, Africa's largest AI startup, was acquired by BioNTech for $550M in 2023. Under BioNTech’s wing, the Tunis-born startup has achieved significant progress in AI-driven biotech applications, including AI models that accelerate tissue analysis by 5x and support cutting-edge cancer research. Their DeepChain platform, focusing on protein design, plays a key role in fighting diseases like cancer.
 
 
Key Highlights:
<ul>
 <li>📊 BioNTech acquisition enhances InstaDeep’s biotech focus, accelerating drug development using AI.</li>
 <li>InstaDeep maintains independence, still collaborating with non-biotech sectors such as industrial optimization.</li>
 <li>🦗 A key AI project: predicting locust outbreaks in Africa with NASA-backed geospatial data, helping protect food security.</li>
</ul>
 
 
CEO Karim Beguir believes InstaDeep’s AI innovations in biotech are at a pivotal stage—similar to GPT-3’s debut in 2020, opening up endless possibilities for the future of healthcare and industrial optimization.
"AI is now a game changer in biology—just like GPT was for NLP," says Beguir.
 
 
Read more on <a href="https://techcrunch.com/2024/10/12/where-we-are-today-in-biology-ai-is-similar-to-gpt-in-2020-an-interview-with-the-ceo-of-africas-biggest-ai-startup/">TechCrunch</a>

InstaDeep's AI Journey: From Africa to Global Biotech Innovator

🌍 Flutterwave, Africa's largest fintech, is gearing up for its next phase of growth. With new executive hires and a refined product focus, CEO Olugbenga Agboola aims to establish the company as the Adyen of Africa. Could Flutterwave's expansion and IPO plans be just around the corner?

<h3>Flutterwave, valued at $3 billion, is making strategic moves to cement its leadership in Africa's fintech space. With the recent hire of Mitesh Popat as CFO and the appointment of six other senior executives, the company is focusing on sustainable growth. The new hires are part of a larger restructuring effort, which also saw Flutterwave lay off 3% of its workforce and discontinue its Barter app to concentrate on enterprise payments and remittances.</h3>
<h3> </h3>
<h3> </h3>
Key points to note:
<ul>
 <li>Flutterwave’s enterprise product contributes 90% of its revenue, serving sectors like e-commerce, transportation, and FMCG.</li>
 <li>The Send App for remittances accounts for the remaining 10%, helping facilitate international transfers across Africa, the U.S., Europe, and Canada.</li>
 <li>Flutterwave aims to expand its presence in Egypt, Morocco, Nigeria, and Ghana, and secure its position as the top infrastructure layer for payments in Africa.</li>
</ul>
 
Agboola emphasized that the company’s ambition is to be the "Adyen of Africa", with a deeper focus on acquiring its own licenses in key markets. Despite IPO speculations, Flutterwave's current priority is to enhance market penetration and strengthen risk management.
 
 
🚀 With over 1 million businesses on its platform, Flutterwave continues to lead the way in Africa’s digital payment landscape, aiming for long-term scalability and deeper market penetration.
 
 
Read more on <a href="https://techcrunch.com/2024/10/07/flutterwaves-ceo-agboola-on-hires-product-focus-and-future-plans/">TechCrunch</a>

Flutterwave's Growth Strategy: Executive Hires, Product Focus, and IPO Ambitions

Kenya’s competition authority has fined Eleving’s local subsidiary, Mogo Kenya, for deceptive lending practices. As Kenya tightens regulations on unethical digital lending, this penalty exposes continued breaches of consumer trust. Could this be the tipping point for curbing unethical digital loans in the country?

Kenya’s Competition Authority (CAK) has fined Mogo Kenya, a subsidiary of Baltic fintech Eleving Group, $84,120 for misleading customers and altering loan terms without consent. The fine, although modest, highlights ongoing unethical practices among digital lenders, despite Kenya’s 2022 regulatory crackdown on predatory lending.
Key issues include:
<ul>
 <li>Unethical Loan Term Adjustments: Mogo Kenya secretly changed loan terms, increasing interest rates without informing clients and charged extra fees by denominating loans in USD, while disbursing in Kenyan shillings.</li>
 <li>Consumer Protection Laws Ignored: Despite new regulations mandating transparency and privacy protections, many digital lenders, including Mogo, continue to flout the law.</li>
 <li>Industry-Wide Problem: Other lenders like Platinum Credit and Premier Credit face similar complaints for unethical practices, raising concerns about the effectiveness of regulations.</li>
</ul>
 
Mogo Kenya is now required to refund overcharged amounts and has been issued a warning by CAK. Despite the company’s denials, this incident sheds light on a broader issue of unethical behavior among Kenya’s digital lenders, who have a long history of exploiting loopholes for profit.
 
This fine marks another step in Kenya's ongoing effort to bring accountability and fairness to the digital lending space, as the country attempts to clean up a market once rife with privacy violations and predatory lending tactics. Consumers are advised to stay vigilant and well-informed about the terms of any digital loans.
 
This regulatory action highlights the need for stronger oversight as digital lenders continue to exploit vulnerabilities in Kenya's financial landscape.
 
 
Read more on <a href="https://techcrunch.com/2024/10/04/baltic-fintech-eleving-fined-in-kenya/">TechCrunch</a>

Kenya Fines Eleving’s Local Subsidiary for Misleading Customers Amid Crackdown on Digital Lenders

Africa's tech ecosystem has seen impressive startup exits, showing how far the continent has come in tech innovation. From AI pioneers to payment processors, these exits highlight the growing success of African companies on the global stage. Read on to discover the biggest African startup acquisitions, their valuation, and what the future holds for tech exits in Africa! 🚀🌍

Africa's tech ecosystem has witnessed some significant startup exits, despite global challenges with IPO markets and M&amp;A deals. In 2021, the continent saw a peak of 44 M&amp;A exits, while in 2022, that number decreased to 29. Despite a reduction in venture capital investments, African investors remain optimistic, predicting that mergers and acquisitions will increase as startups seek liquidity in a tightening market. 🌍💡
Notable startup exits include:
<ul>
 <li>InstaDeep (AI Startup) 
Acquired by BioNTech in 2023 for €500 million ($550M). 
Raised over $108 million from top investors like Google and Endeavor Catalyst. 🌐🧠</li>
 <li>Sendwave (Money Transfer Service) 
Acquired by Zepz in 2020 for $500 million. 
Raised $15 million from major investors such as Founders Fund and Partech. 💸📲</li>
 <li>Paystack (Payments Platform) 
Acquired by Stripe in 2020 for over $200 million. 
Raised $12 million and revolutionized African e-commerce payments. 💳📈</li>
 <li>MainOne (Data Center Solutions) 
Acquired by Equinix in 2021 for $320 million in cash. 
Pioneered connectivity services across West Africa. 📡💼</li>
</ul>
 
These landmark exits show that African startups are not only attracting significant investments but are also setting the stage for future acquisitions and IPOs, providing promising returns in a developing market. With an eye on future growth, the potential for more exits continues to rise, thanks to the increasing role of cloud computing, AI, and fintech across the continent. 🌍📊
 
Key Takeaways:
<ul>
 <li>African startups raised billions, with M&amp;A deals showing strong returns.</li>
 <li>Major sectors: AI, fintech, data services, and cloud computing.</li>
 <li>Optimism remains for future exits despite the global economic challenges.</li>
</ul>
This summary emphasizes Africa’s evolving startup scene, encouraging optimism for more high-value exits in the coming years! 📈🚀
 
Read more from <a href="https://techcrunch.com/2024/09/01/from-instadeep-to-paystack-here-are-africas-biggest-startup-exits-and-how-much-they-raised/">TechCrunch</a>

Top African Startup Exits: Jumia, Paystack, InstaDeep & More

The global cross-border payment market is booming, yet many businesses are still underserved by traditional banks. 🌍💸 Conduit is stepping in to revolutionize the landscape, expanding from Latin America into Africa, and making it easier for businesses to connect to the global financial system. Here’s how they plan to transform international transactions.

Conduit, a leading fintech startup specializing in B2B cross-border payments, is expanding its operations from Latin America into Africa after securing a $6 million seed extension from Helios Digital Ventures. With the global cross-border payment market poised for substantial growth, Conduit aims to provide faster, cost-effective solutions to businesses navigating complex financial landscapes across continents.
 
<h3>Key Highlights:</h3>
<ul>
 <li>Market Potential: Cross-border payments are expected to surge by 60%, reaching $250 trillion by 2027.</li>
 <li>Pivot to TradFi: After facing challenges in the crypto market downturn of 2022, Conduit shifted focus to traditional banking, specifically B2B cross-border payments.</li>
 <li>Global Expansion: Conduit initially launched its platform in Latin America and now targets the African market, where businesses face similar transaction challenges.</li>
 <li>Investment &amp; Growth: Conduit raised $6 million from Helios Digital Ventures, boosting its annualized transaction volume to over $5 billion. Notably, 20% of its business now comes from African countries like Kenya and Nigeria.</li>
 <li>Technological Edge: Partnering with local banks, Conduit leverages technology to ensure faster, more transparent money transfers, offering a cost-effective alternative to traditional banking systems.</li>
 <li>Future Roadmap: With plans to expand into Ghana and South Africa and a goal to break even by the end of the year, Conduit is on track to surpass its achievements in Latin America.</li>
</ul>
<h3> </h3>
<h3>Additional Insights:</h3>
<ul>
 <li>Competitive Landscape: Conduit’s main competitors in Africa include established platforms like AZA Finance, YC-backed Verto, and Waza.</li>
 <li>Operational Leadership: The African expansion will be managed by Eric Wainaina, formerly of The Kenyan Wall Street, with compliance and operations led by former executives from Marqeta and the SEC.</li>
 <li>Strategic Vision: According to Wale Ayeni, managing partner at Helios Digital Ventures, Conduit's mission is to rebuild the backend for global payments, better serving African ecosystems in connecting with the global economy.</li>
</ul>
 
Conduit’s strategic expansion into Africa, backed by a robust investment and a focus on technology-driven solutions, is set to redefine how businesses engage in cross-border payments. With impressive growth metrics and a clear vision for the future, Conduit is poised to lead the charge in bridging financial gaps across continents. 🌐💼
 
 
Read more on <a href="https://techcrunch.com/2024/08/12/conduits-cross-border-payments-expand-from-latam-into-africa-with-6m-round/">TechCrunch</a>

🚀 Conduit Expands Cross-Border Payments from LatAm to Africa with a $6M Seed Round

In a strategic move to drive growth and break even faster, African e-commerce giant Jumia plans to raise over $100 million through a new share offering. This capital injection aims to expand its supply chain, enhance logistics, and invest in technology, amidst a challenging market environment. 📈💼

Jumia, a leading African e-commerce company, is set to raise over $100 million by selling 20 million American depositary shares. Despite recent market volatility, this fundraising effort aims to capitalize on strong performance and drive growth. The funds will be used to enhance Jumia's logistics network, particularly in smaller cities, and invest in technology and marketing to attract more customers and vendors.
 
Key points:
<ul>
 <li>Share Offering: Jumia plans to raise around $100 million through secondary shares, although the final amount depends on the fluctuating share price.</li>
 <li>Growth Strategy: The new funds will boost supply chain capabilities, enhance logistics, and invest in technology to improve user acquisition and vendor engagement.</li>
 <li>Financial Performance: Jumia’s Q2 2024 report shows a cash position of $92.8 million, with plans to strengthen this further with the new capital.</li>
 <li>Market Challenges: Despite order growth, Jumia's GMV and revenue saw declines due to currency devaluation in key markets like Egypt and Nigeria.</li>
 <li>Profitability Focus: Jumia aims to reduce losses, with a 27% year-over-year decrease in loss before income tax from continuing operations, highlighting its commitment to profitability.</li>
</ul>
 
Jumia's CEO, Francis Dufay, emphasized the company's efforts to shift towards growth after significant cost management and efficiency improvements. The company aims to leverage the new funding to scale operations faster and achieve quicker break-even. 🚀💡
 
Highlights:
<ul>
 <li>Jumia’s share price has fluctuated recently, impacting potential funds raised.</li>
 <li>The company raised nearly $600 million from secondary shares between 2020 and 2021.</li>
 <li>New funds will support logistics expansion, technology investment, and vendor growth.</li>
 <li>Jumia's active customer base has remained around two million per quarter, with significant growth potential in African markets.</li>
 <li>Despite order increases, revenue and GMV declines are influenced by currency devaluation.</li>
 <li>Jumia's adjusted EBITDA loss decreased by 10%, showing improved financial management.</li>
</ul>
 
Stay tuned as Jumia takes bold steps to enhance its market position and drive substantial growth across the African e-commerce landscape! 🌍📦
 
 
Read more on <a href="https://techcrunch.com/2024/08/06/jumia-plans-to-raise-more-than-100-million-in-secondary-shares-to-drive-stalled-user-growth/">TechCrunch</a>

Jumia to Raise Over $100 Million Through Secondary Shares to Boost User Growth 🚀

Cartona, an Egyptian B2B e-commerce platform, has successfully raised $8.1 million despite a cooling investor interest in the sector. With a focus on FMCG and HORECA, Cartona is leveraging its asset-light model to enhance efficiency and expand its market presence. Discover how this startup is navigating the competitive landscape and driving digital transformation in Egypt's retail market.

📈 Egypt's Cartona Raises $8.1M Amidst B2B E-commerce Challenges
Cartona, an Egyptian B2B e-commerce platform, has secured $8.1 million in a Series A extension, bringing its total Series A funding to $20.1 million. Despite a broader pullback from B2B e-commerce investments in Africa, Cartona's near profitability and strategic market position attracted investors like Algebra Ventures and Silicon Badia.
 
Key Highlights:
<ul>
 <li>Funding Details: $5.6 million in equity and $2.5 million in debt.</li>
 <li>Investment Focus: Expansion in FMCG and HORECA sectors in Egypt, with potential regional growth in Saudi Arabia.</li>
 <li>Strategic Model: Cartona's asset-light approach enhances supplier efficiency without direct competition.</li>
 <li>Market Impact: Over 180,000 retailers managing 40,000+ SKUs on the platform.</li>
 <li>Future Plans: Increasing embedded finance in transactions and leveraging local currency financing.</li>
 <li> </li>
</ul>
🛒 Expanding Vertical MarketsCartona is exploring synergies between FMCG and HORECA, boosting its annualized GMV to EGP 10 billion ($210 million). The HORECA sector, though currently small, shows promising growth and higher profitability compared to FMCG.
 
📊 Growth and Financial InclusionEmbedded finance now constitutes over 20% of Cartona’s GMV, with local currency financing supporting 90% of credit orders. This financial inclusion drives growth and stability for small merchants.
 
🌍 Market PotentialEgypt's retail market, worth $120 billion, remains largely offline. Cartona, along with competitors, is gradually digitizing the sector, covering only 2-4% of the market. The shift towards B2B e-commerce promises significant future value.
 
🚀 Looking AheadCartona’s scalable asset-light model positions it well for further regional expansion and deeper market penetration. The company aims to continue enhancing its technology and financial services to support the evolving needs of retailers and suppliers in Africa.
 
Stay tuned as Cartona revolutionizes the B2B e-commerce landscape in Africa, driving efficiency and financial inclusion in the retail sector.
 
 
Read more on <a href="https://techcrunch.com/2024/07/30/egypts-cartona-raises-8-1m-even-as-investors-pull-back-from-b2b-e-commerce-in-africa/">TechCrunch</a>

Egypt's Cartona Secures $8.1M Amidst B2B E-commerce Challenges in Africa

Pesa is breaking barriers in the remittance industry, providing fast, affordable, and secure money transfers across continents. With a multi-currency wallet, Pesa is transforming how diaspora communities send money home. 🌍💸

<h3>Pesa, a fintech startup, is revolutionizing remittance services with a multi-currency wallet. Now expanding into the US and 27 European countries, Pesa aims to make global money transfers faster, cheaper, and more accessible.</h3>
<h3> </h3>
Pesa's Global Expansion in Remittance Services
Pesa, a fintech startup founded by Nigerians Tolulope Osho, Yusuf Yakubu, and Adewale Afolabi, is revolutionizing remittance services by making them more accessible, affordable, and reliable. After launching in Canada in 2021, Pesa has rapidly expanded into 27 European countries and is now eyeing the US market. The startup’s multi-currency wallet allows users to send, receive, and hold multiple currencies, making international money transfers seamless and efficient.
 
Key Highlights:
<ul>
 <li>Pesa is finalizing licenses to launch in the US and recently expanded into 27 European countries.</li>
 <li>The platform allows users to send, receive, and hold six different currencies.</li>
 <li>Pesa aims to make global money transfers fast, secure, and affordable, reducing the need for risky informal channels.</li>
 <li>The startup has processed over a million transactions valued at $380 million and serves 60,000 users, 30% of whom are active.</li>
 <li>Expansion into new markets, including India and Sub-Saharan Africa, positions Pesa as a major player in the digital remittance space.</li>
</ul>
 
Impact and Future Goals:
<ul>
 <li>Pesa’s efforts align with the World Bank’s projections of increasing remittance flows to low-and-middle-income countries, expected to reach $129 billion in India by 2025.</li>
 <li>The startup’s expansion will intensify competition with other digital remittance platforms like Wise, Nala, and Flutterwave.</li>
 <li>Pesa plans to introduce multi-currency cards and other financial products to enhance user experience and drive further growth.</li>
</ul>
 
By leveraging technology and innovative solutions, Pesa is poised to significantly impact the global remittance industry, empowering diaspora communities and fostering financial inclusion. 🚀💼
 
 
Read more on <a href="https://techcrunch.com/2024/07/22/pesa-pursues-global-growth/">TechCrunch</a>

Pesa Unlocks New Markets to Keep Remittances Flowing to Emerging Economies

Nala, a Tanzanian fintech startup, just closed a $40 million Series A round to bolster its B2B payments platform and expand remittance services. This funding, led by Acrew Capital, marks one of Africa’s largest Series A deals, showcasing investor confidence in Nala’s vision. 🚀💸

<h3>Nala, a Tanzanian fintech startup, raised $40 million in a Series A round led by Acrew Capital, marking one of the largest such deals in Africa. The oversubscribed round saw participation from DST Global, Norrsken22, HOF Capital, and several prominent angel investors. The funds will support Nala’s global expansion, focusing on scaling its remittance business into Asian and Latin American markets.</h3>
<ul>
 <li>Nala's Expansion: Initially providing local money transfers in Tanzania, Nala now enables remittances from the EU, UK, and US to 11 African markets. The integration with services like M-Pesa allows direct bill payments into mobile wallets.</li>
 <li>B2B Platform - Rafiki: Launched in March, Rafiki serves global businesses making payments to and from Africa, integrating directly with banks and mobile money providers. This ensures reliable, low-cost payments and improves service availability for Nala’s consumer app.</li>
 <li>Global Growth Plans: CEO Benjamin Fernandes emphasized that the new funding will enhance infrastructure, supporting reliable and cost-effective payments. Nala aims to build a robust payments ecosystem beyond Africa and reach 500,000 customers soon.</li>
 <li>Market Opportunities: The World Bank predicts a 1.5% growth in remittance flows to sub-Saharan Africa, with similar trends in other regions. Nala’s focus on reducing transaction costs makes it competitive in the growing remittance market.</li>
 <li>Investor Confidence: Acrew’s Lauren Kolodny highlighted Nala’s potential to lead in remittances for Africa's youth, expected to represent 35% of the global youth population by 2050.</li>
</ul>
<h3>Highlights:</h3>
<ul>
 <li>Raised $40 million Series A led by Acrew Capital</li>
 <li>Expansion into B2B payments and global remittance services</li>
 <li>Integrates with 249 banks and 26 mobile money services in 11 African markets</li>
 <li>Plans to enter Asian and Latin American markets</li>
 <li>Achieved profitability and aims to cross 500,000 customers</li>
 <li>Emphasizes low-cost, reliable payments through its platform Rafiki</li>
</ul>
Nala's growth is a testament to the potential of African fintech companies, demonstrating how innovative solutions can address unique market challenges and attract significant international investment. 🌍💼
By maintaining a focus on reliability and cost reduction, Nala sets a new standard in the fintech industry, promising to benefit both consumers and businesses with its advanced payment solutions.
 
Read more on <a href="https://techcrunch.com/2024/07/09/nala-series-a/">TechCrunch</a>

Nala Secures $40M Series A to Expand B2B Payments and Scale Remittance Services Globally 🇹🇿

Breega, a Paris-based venture capital firm, is making a bold move to support Africa's growing tech ecosystem with a $75 million fund aimed at early-stage startups. This investment underscores Breega’s commitment to nurturing innovation in emerging markets. The firm’s expansion into Africa is marked by the opening of new offices in Lagos and Cape Town.

<h3>🌍 Breega's New Venture in Africa: Paris-based VC firm Breega has announced a $75 million fund to invest in early-stage startups across Africa. The firm, known for its founder-friendly approach, aims to leverage its European success to boost African tech innovation.</h3>
<h3> </h3>
📈 Historical Growth: Africa's tech ecosystem has seen significant growth, with venture capital inflows rising from under a billion dollars to $6 billion annually, and the number of unicorns growing from one to seven in three years.
 
💼 Strategic Expansion: Breega has secured 70% of the capital for its new fund and opened offices in Lagos and Cape Town to strengthen its presence in Africa. These offices join Breega’s existing locations in Paris, London, and Barcelona.
 
🤝 Founders-for-Founders Approach: Breega prides itself on being a founders-for-founders fund, providing operational expertise alongside capital. This approach has driven their rapid growth in Europe, and they aim to replicate this success in Africa.
 
🌱 Investment Strategy: The "Africa Seed I" fund will focus on pre-seed and seed stages, investing between $100,000 and $2 million in startups across major African markets, including Nigeria, Egypt, South Africa, Kenya, and Francophone countries like Morocco and Senegal.
 
💡 Local Expertise: Breega's Africa fund is led by Melvyn Lubega and Tosin Faniro-Dada, who bring extensive entrepreneurial and operational experience. The fund has already backed nine startups, including Numida and Klasha, with plans to make at least 40 investments.
 
<h3>Key Highlights:</h3>
<ul>
 <li>Target Markets: Nigeria, Egypt, South Africa, Kenya, Morocco, Senegal, Ivory Coast, Cameroon, and DRC.</li>
 <li>Supported Sectors: Fintech, healthtech, proptech, logistics, and edtech.</li>
 <li>Investment Size: $100,000 to $2 million per startup.</li>
 <li>Unique Value Proposition: Local market understanding, operational expertise, and tailored support.</li>
 <li>Team Expertise: Former founders and operators providing hands-on support.</li>
</ul>
 
<h3>Breega's Vision:</h3>
Breega aims to foster innovation and address local challenges with tailored solutions. By bringing their European experience and integrating local market insights, they plan to catalyze the next wave of African tech startups.
 
 
Read more on <a href="https://techcrunch.com/2024/06/20/paris-based-vc-breega-75m-africa-fund/">TechCrunch</a>

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