July 22nd, 2023
 

Africa’s Weekly Fintech Review

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• Nigeria delists loan apps over harassment
• Rwanda’s Kasha raises $21M Series B funding round
• Nigeria’s MyCover.ai raises $1.25M pre-seed
• SARB holds interest rates
AND MORE!

Nigerian regulators delist 2 registered loan apps over debtor harassment – FCCPC vows more delistings
“The Federal Government… has delisted two registered digital loan apps from the Google Play Store for harassing Nigerians. It stated that it came to this decision after investigating the apps. According to the FCCPC, the permanently delisted digital lenders include Sycamore Integrated Solutions Limited, Orange Loan, and Purple Credit Limited, along with their respective apps — Getloan and ‘Camelloan.’” Learn more.  

MTN looks to reboot its mobile money in South Africa 
“South Africa remains an attractive opportunity for mobile money services, suggests Bradwin Roper, newly appointed CEO of MTN’s financial services unit in South Africa, which would be hoping the third time’s the charm as it makes its latest push. Two of South Africa’s biggest telecommunications companies, MTN and its long-time rival, Vodacom, both had to shut down and scrap their mobile money offerings in 2016 after failing to cut it despite years of effort.” Learn more. 

UK government announces plan to invest ~$96.4B USD from pension funds in UK-based startups 
“The UK government announced Monday that it had secured an agreement from nine UK pension funds to invest at least 5% of their default funds into the nation’s startups and fast-growing companies by 2030 — a move hailed by VCs as an important step towards mobilizing more capital for homegrown innovation. The agreement, known as the Mansion House Compact, was announced during a speech by the chancellor, Jeremy Hunt, and concerns defined contribution (DC) funds, those to which employees and employers make regular contributions.” Learn more. 

Banking & Telecom Activity

• Safaricom partners with TerraPay to enable M-Pesa customers to send and receive money from Bangladesh and Pakistan 
• Uganda’s Ubuntu Towers rebrands as TowerCo of Africa after selling 90% of its shares to TowerCo of Africa back in 2021 
• South African Reserve Bank decides to hold interest rate at 8.25%, the first rate pause of its hiking cycle since November 2021 

 

Startup Activity

 Egypt – Fintech startup, Flash, raises $6M USD seed round to accelerate product development and assist with customer and business acquisition
 Egypt –  Digital savings startup, Menthum, raises undisclosed pre-seed funding to expand its team and further develop its infrastructure 
 Nigeria – InsurTech startup, MyCover.ai, raises $1.25M USD pre-seed funding to grow its in-house operations and expand in other African markets 
 Rwanda – HealthTech startup, Kasha, raises $21M USD Series B funding round to expand the company across Africa and invest in various strategic areas 
 Singapore – Fintech company, Thunes, raises $72M USD to expand its cross-border b2b payments platform

Founder Resources

• AFTS’ AlphaExpo Micro-Accelerator applications are live – apply today for the chance to exhibit at AFTSLusaka and take part in the AlphaExpo Pitch Competition
• Women Who Build Africa (WWBA) launches application for female entrepreneurs to attend and pitch at the first WWBA Assembly in Nairobi

Featured Article

Is debt financing ideal for African startups in a funding winter? – Levi Cee in Benjamindada.com 
“Debt financing became attractive to startups seeking to cover expenses, acquire valuable assets, and embark on ambitious expansions. In contrast to equity funding, which requires relinquishing ownership and control, debt financing allows startups to access capital without compromising on their vision. It presents a more cost-effective option, eliminating the need for equity dilution.” Continue reading.