African mobile video network, StarNews Mobile, recently secured a substantial pre-Series A funding round of $3 million. The investment in StarNews was made by various venture capital firms, including Janngo Capital, with notable participation from individual investors, including professional soccer players such as Aurélien Tchouaméni, Jules Koundé, and Mike Maignan, who are associated with the athlete representation agency Excellence Sport Nation. This financial injection serves to fuel the startup’s mission to support African content creators in monetizing their work through a subscription-based model.
Why the Investors Invested
Several compelling factors underpin the investors’ decision to fund StarNews Mobile. Firstly, the company leverages its strategic partnerships with African telecommunications giants, MTN and Orange, recognizing the invaluable role of mobile operators in propelling content within Africa’s media industry. This collaboration ensures access to an extensive user base while positioning StarNews as a prominent player in content distribution, monetization, and creation. In essence, investors recognize the strategic importance of these partnerships and the potential for exponential growth in the African content market.
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Secondly, the impressive retention rate in Nigeria, one of StarNews’ primary markets, aligns with investors’ expectations for growth. Monetization metrics in Nigeria, measured by the billing rate, are three times higher compared to the Francophone markets. This signifies a favorable environment for generating revenue and making investments profitable. Additionally, StarNews distributed $1 million to content creators in the previous year, with an average monthly payout of approximately $70,000. Investors see this as a sign of a flourishing creator economy in Africa, which is still an underserved sector in the continent’s tech landscape. They believe that StarNews has the potential to significantly boost the region’s creative industry with the fresh capital injection.
A Look at StarNews Mobile
StarNews Mobile, founded by Guy Kamgaing in 2017, was inspired by his extensive decade-long experience in content monetization, particularly in Value-Added Services (VAS). During this period, he actively engaged in text/SMS-based campaigns and monetization initiatives, which laid the foundation for StarNews. This startup prioritizes offering monetization avenues for African content creators by forming distribution partnerships with major telecommunications operators.
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StarNews Mobile’s primary markets include Cameroon (where it originated), Nigeria, Ghana, Congo, Benin, Ivory Coast, and Nigeria. The startup stands out for its commitment to assisting content creators in navigating the challenges of revenue generation in a landscape marked by expensive mobile data plans and a shortage of local market-tailored services.
The company collaborates with telecommunications operators like MTN and Orange, boasting a subscriber base of over 4 million across the aforementioned markets and featuring more than 120 content creators. It operates on a channel-based structure, where each creator has a dedicated channel. StarNews actively supports creators by providing financial assistance, aiding in content production, and guiding them through their digital journey.
In addition to individual content, StarNews features hyperlocal content on various topics, including motorbike taxis in Cameroon and food recipes in Ivory Coast. It also hosts genre-specific shows like the African Cup of Nations and a program modeled after The Voice. StarNews actively utilizes its partnerships with telecom operators to boost user activations and content awareness. The company’s goal is to expand further into markets, with the aim of being present in 11 markets in the coming year.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard