Customer Funds at Risk: Togo’s Moov Money Flooz Asks Customers to Reset Security Code

In Togo, electronic money transactions through the Money Flooz service, provided by telecommunications operator Moov Africa Togo, have been severely disrupted for over five days due to a technical incident, leaving customers in a state of inconvenience. The incident has disrupted various financial transactions, including money transfers within the country, electricity meter top-ups (Cash Power), mobile credit purchases, and internet package subscriptions. Furthermore, international transfers, particularly from Cote d’Ivoire, have also been affected, leading to grievances from subscribers.

Moove money Togo

Moov Africa Togo, in a statement, expressed their apologies to their subscribers for any inconvenience caused by this technical incident, but the exact nature of the problem was not disclosed at this time. Moov Money Flooz, a service that allows subscribers to perform financial transactions through their mobile phones, is gradually returning to normal. However, this prolonged service disruption, along with a lack of information on when it would be fully restored, has left many customers frustrated.

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To mitigate the impact of the disruption, Moov Africa Togo has provided instructions for subscribers to reset their security codes, especially for those who have already received the Flooz message with their default security code. They’ve also encouraged subscribers who haven’t received a message to contact customer service or visit a Moov Africa branch for assistance. Updating security codes is seen as a crucial step to enhance transaction security and protect users from unauthorized access to their accounts.

Despite Moov Africa Togo’s efforts to resolve the situation, the General Directorate of the Electronic Communications and Postal Regulatory Authority (ARCEP) has initiated a sanction procedure against the operator. According to ARCEP, Moov Africa Togo failed to comply with its obligations, as stipulated by Article 27.1 and Article 37.4 of its specifications. Article 27.1 requires the operator to ensure the continuous availability of authorized services and the adaptation of means. Article 37.4 mandates the operator to inform customers about the nature of the problem and the estimated time for service restoration in case of disruptions. ARCEP’s Decision №068/ARCEP/DG/21 of March 11, 2021, also highlights the necessity for operators to notify users when service incidents exceed two hours.

From October 19 to October 24, 2023, Moov Africa Togo’s Mobile Money service was completely unavailable nationwide, and the operator failed to send automated incident notification messages to subscribers, which has raised concerns about the operator’s responsibility in ensuring continuous service availability.

read also African Startups Ecentric Payment Systems and CoverAI in New Acquisition Deals

The ARCEP has emphasized the vital importance of mobile financial services in the daily lives of Togo’s population and has called on all operators to adhere to their obligations regarding the continuous availability of their services, especially Mobile Money services. The prolonged unavailability, coupled with the lack of information on service restoration, is seen as a potential threat to the well-being of the people of Togo who rely on these services for various financial transactions. The sanction procedure initiated by ARCEP will likely have legal and financial implications for Moov Africa Togo, raising questions about the need for increased regulatory oversight in the country’s telecommunications and mobile financial services sector.

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

Flourish Ventures Secures $350 Million to Fuel Emerging Market Fintechs, Including Africa

African-tech-startup-funding-rises-51-to-195M-in-2017

San Francisco-based Flourish Ventures, an evergreen venture firm with a unique focus on fintech startups in the U.S. and emerging markets, has successfully raised $350 million in new funding, expanding its total assets under management to an impressive $850 million. This significant development comes as fintech investment is on the rise, particularly in emerging markets like Africa. Here’s what founders need to know about Flourish Ventures’ latest move and its strategic approach:

A Different Approach to Investment 

Unlike traditional venture firms, Flourish operates as an evergreen firm, allowing it to maintain a flexible investment strategy without being bound by fixed timelines for deploying or exiting capital. This approach aligns with the vision of its sole LP, eBay founder Pierre Omidyar, to drive systemic change and promote a fairer financial system. According to Tilman Ehrbeck, global managing partner and co-founder, this approach gives Flourish a comparative advantage.

A Fintech Venture Fund with Purpose 

Flourish’s investment philosophy goes beyond financial returns. It seeks to support companies that demonstrate innovative and more equitable approaches to business. These innovative approaches are intended to influence and enhance the entire financial sector. Flourish’s primary focus is on fintech with a clear purpose.

read also African Agritech Accelerator Returns for Round Two, Backed by Endeavor and FMO

Global Reach and Impact 

Since its inception, Flourish has invested in 71 startups across five continents. While nearly half of its capital has been deployed in the U.S., it has made noteworthy investments worldwide, including digital bank Chime, Brazilian neobank Neon, embedded finance startup Unit, and African payments infrastructure company Flutterwave. These investments are a testament to Flourish’s ability to identify and nurture promising companies at their seed or Series A stages.

A Diverse and Inclusive Team 

Flourish prides itself on maintaining a diverse team, with a majority of its members being female and non-white. This diversity extends to the investments it makes, striving to support companies with co-founders from various backgrounds and regions.

Strategic Focus 

Flourish Ventures collaborates with policymakers, regulators, industry leaders, and ecosystem players to drive its mission of creating systemic change. The firm’s managing partners and founders each have their respective regions of focus, ensuring a broad and targeted approach to investment.

Investing in the Future 

A portion of Flourish’s new capital will be reserved for follow-on investments. The firm’s typical initial investments range from $2 million to $7 million, and it targets six to ten new investments annually. This flexibility allows Flourish to lead or co-lead investments and actively engage in board roles when appropriate.

What’s Next?

 Looking ahead, Flourish continues to lead the charge in infrastructure investments. It is actively seeking “next-gen” companies in the B2B payments and vertical SaaS sectors that integrate finance more deeply into their offerings. The firm also maintains a keen interest in transforming outdated legacy infrastructure, particularly in the banking, insurance, payments, lending, and identity sectors.

read also Inside Egypt: The Foreign Currency Debit Card Payments Ban and How Startups are Coping

In a landscape where fintech investment is evolving, Flourish Ventures’ substantial funding round offers a beacon of hope for fintech startups, particularly those operating in emerging markets. As the firm expands its reach and impact, it remains a prominent player in fostering innovation, equity, and lasting change within the financial sector.

This latest investment from Flourish Ventures underscores the continued growth and importance of fintech companies, especially in emerging markets, making it a valuable development for founders seeking to make a difference in the financial technology sector.

Flourish Ventures Africa Flourish Ventures Africa

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

Here Are 15 Startups Participating in 500 Global’s First ScaleUp Program in Egypt

500 Global, one of the world’s most active venture capital firms, in collaboration with the Information Technology Industry Development Authority (ITIDA), has officially announced the inaugural cohort of their business growth program in Egypt, aptly named “ScaleUp.”

This groundbreaking “ScaleUp” program, designed specifically for startups in the financing and seed stage (A) financing, spans a duration of seven weeks. Its primary aim is to empower these budding companies’ founders through individualized guidance and the introduction of growth strategies, thus paving the way for their future success.

Set to commence on November 16, the Scale Up Showcase will be a momentous event celebrating the remarkable progress made by founders and their companies across various sectors such as fintech, marketing technology, real estate, logistics, and supply chain, among others. The event will feature presentations and discussions attended by an audience that includes key stakeholders and partners.

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Amal Anan, a partner at 500 Global, commended the resilience of Egyptian company founders who, despite the challenges posed by the global and local economies, have proven that Egypt remains a thriving technology market in the Middle East and Africa. The “ScaleUp” program, she noted, boasts a cadre of capable individuals who are contributing to the development of flexible, high-capability companies. The program’s ultimate goal is to create a supportive environment for selected leaders, enabling sustainable growth and expanding their presence in their respective industries.

Anan expressed her gratitude for the ongoing partnership with ITIDA, highlighting the program’s ability to bring expert mentors and seasoned investors to Cairo to provide founders with the essential knowledge and experience required for the success of their ventures. The program’s broader mission is to nurture talent in the region, preparing them to contribute to local startups and facilitating their expansion and growth, ultimately sharing their unique business models and technologies with a global audience.

The program officially kicked off on October 1 at the Cretiva Center in Giza, one of Egypt’s Digital Innovation Centers, also known as the “Factory,” which is managed by ITIDA. The cohort embarked on a three-day retreat in Fayoum, delving into well-being and leadership development through empowerment activities, and fostering a sense of community among participants. This laid the foundation for greater engagement in the upcoming workshops organized and delivered by Global 500 mentors, covering topics such as growth experiences, sales and marketing, operational excellence, and recruitment.

The partnership between 500 Global, the Ministry of Communications and Information Technology, and ITIDA was initiated in 2022, with the goal of igniting innovation and boosting the startup ecosystem in Egypt. Dr. Hossam Othman, Vice President of ITIDA, underscored the authority’s commitment to supporting entrepreneurship throughout its entire lifecycle, emphasizing the significance of programs like “ScaleUp” in accelerating the growth of the Egyptian startup ecosystem and promoting innovation-based entrepreneurship. The collaboration brings together global leaders, experts, prominent companies, mentors, entrepreneurs, and potential founders, creating a dynamic startup community that enriches and advances the ecosystem to new heights.

read also South African Fintech Stitch Secures $25 Million Investment to Expand Payment Solutions

The program is set to culminate in the Scale Up Showcase on November 16 at the Cretiva Giza Center in Cairo. This exclusive event provides a platform for startup companies under the program’s umbrella to showcase their innovative projects. It also offers founders the opportunity to engage with the “Global 500” network, comprising leaders, partners, and key players from various sectors. The “Skillup Showcase” will feature startups delivering demonstrations and product introductions, along with keynote speeches by renowned international speakers, including Sean Ellis, author of “Hacking GrowthK.” Panel discussions will focus on both regional and global perspectives. A brunch hosted by Courtney Powell, Chief Operating Officer and Managing Partner at 500 Global, will bring together exhibition participants.

The program’s support extends for three months after the exhibition, allowing beneficiaries to access individual meetings with mentors and advisors, free office space at the “Cretiva” Giza Center for an entire year, and assistance in charting growth strategies for their companies, among other benefits.

The inaugural cohort of the program includes the following startups:

  1. Bird Nest: A company specializing in technology-enabled property development, operation, and leasing.
  2. Blink: A digital consumer finance platform leveraging artificial intelligence to promote financial inclusion in Egypt.
  3. ConvertedIn: An e-commerce marketing operating system utilizing data and shopper insights to create personalized multi-channel marketing.
  4. Dress Code: A direct-to-consumer fast fashion company offering affordable, high-quality clothing for young consumers.
  5. FriendiCar: Pioneers in the car subscription model among individuals in the Middle East and North Africa.
  6. ILLA: A logistics holding group providing comprehensive delivery solutions to consumer product companies.
  7. Khaznali: A multi-channel technology platform for logistics services.
  8. MQR: Offering high-quality, accessible gathering spaces with hospitality services and amenities.
  9. Nawlon: An online shipping platform facilitating global shipping options, instant quotes, and shipment tracking.
  10. Now Pay: A fintech startup focusing on employee financial well-being.
  11. 07 Therapy: Revolutionizing mental health through an integrated digital platform in the Middle East and North Africa region.
  12. Orcas: Providing live educational experiences for students from kindergarten to twelfth grade.
  13. Rology: A platform for diagnostic radiology experts enhanced by artificial intelligence.
  14. Spled: Building a digital platform for restaurant supply chains.
  15. Cylinder: A leading marketplace for used cars in Egypt, catering to consumers and dealers in buying, selling, and financing.

For those interested in participating in the exhibition, requests to attend can be submitted by registering through the website: https://thescaleupshowcase.splashthat.com.

500 Global: Global 500 is a venture capital firm with assets under management of $2.4 billion (as of the end of June 2023). It invests in the establishment of fast-growing technology companies, focusing on markets where technology, creativity, and capital can create long-term value and drive economic growth. The company collaborates closely with key stakeholders, providing guidance to government agencies on enhancing the entrepreneurial environment for startup success. Global 500 has supported over 5,000 founders from more than 2,800 companies in over 80 countries. It has invested in 35 companies with valuations exceeding a billion dollars and 160 companies valued at over 100 million dollars, including private and publicly traded firms. The company’s team, comprising over 200 employees, operates in more than 30 countries and possesses extensive experience in entrepreneurship, investment, and technology institutions.

Information Technology Industry Development Authority (ITIDA): ITIDA serves as the executive arm of the Egyptian Ministry of Communications and Information Technology. Since its establishment in 2004, ITIDA has been dedicated to advancing the Egyptian information technology sector to enhance global competitiveness and stimulate economic growth. Recognizing the vital role of technology-supported entrepreneurship in driving economic growth, ITIDA collaborates with various private and governmental entities, universities, international organizations, business accelerators, startup incubators, and investment entities to support the growth of startups in technical fields. This includes emerging companies focused on advanced technical solutions.

500 Scaleup Egypt 500 Scaleup Egypt 500 Scaleup Egypt

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

South Africa’s Munch Software Lands Famous Brands’ Investment

Famous Brands, a prominent JSE-listed entity, made a significant announcement today regarding its latest venture in the realm of restaurant management technology. They revealed their acquisition of a stake in Munch Software, an associate company, with the intention of spearheading the digitization of the restaurant management technology ecosystem.

Famous Brands, widely recognized for its ownership of popular franchises like Wimpy, Steers, Debonairs, and Fishaways, has deemed Munch Software an innovative and contemporary player in the Point of Sale (POS) software industry. Munch Software distinguishes itself with a cutting-edge, agile, and cloud-based POS platform.

In a statement to their investors, Famous Brands expressed the profound impact they anticipate through this newfound partnership. By collaborating with Munch Software, they are poised to realize their vision of digitizing the restaurant management technology landscape. This synergy will also play a pivotal role in helping Munch Software scale up its operations and reach a critical mass.

read also Inside SuperPay: A New Egyptian FinTech Backed by Etisalat and Egypt’s Second Largest Bank

The transaction’s significance is such that it falls below the threshold requiring formal categorization, rendering an official announcement in accordance with the JSE Listings Requirements unnecessary. The acquisition of this strategic stake officially took effect on October 16, 2023.

Famous Brands has charted an ambitious course for its future endeavors. Their restaurant expansion plan is set to gain momentum, which includes an aggressive push to enhance their drive-thru presence as new locations become available. Additionally, they are dedicating resources to bolster their consumer technology capabilities and establish delivery hubs, all in a concerted effort to improve their in-house delivery services.

South Africa’s Outsized Secures Series A Funding, Set to Transform Freelance Work in Emerging Markets

The company further noted that the home delivery sector is steadily gaining ground in multiple countries, with several innovative consumer-facing technology projects recently launched. Among these projects are the establishment of a centralized call center in Zambia, the introduction of an online ordering platform for Mr Biggs in Nigeria, the deployment of self-service terminals in Namibia and Botswana, and the inception of a delivery hub in Gaborone. This series of initiatives reflects their commitment to staying at the forefront of technological advancements in the restaurant industry.

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

Verod Capital and AfricInvest Join Forces to Acquire iSON Xperiences

Verod Capital and AfricInvest are excited to announce their acquisition of a majority stake in iSON Xperiences, a prominent ICT solutions provider in Africa. iSON Xperiences, a leading customer service and outsourcing company, specializes in delivering BPO, business process management, and digital customer experience solutions across Africa, the United Arab Emirates, and India. Serving over 500 million end-users in diverse sectors, the company employs more than 18,000 individuals across 19 countries, with 16 in Africa.

Verod Capital, a well-known African investment management firm specializing in private equity, has added iSON Xperiences to its portfolio through the Verod Capital Growth Fund III. AfricInvest, a leading pan-African investment platform, is renewing its commitment to iSON Xperiences through AfricInvest Funds III and IV.

Pravin Kumar, Global CEO at iSON
Pravin Kumar, Global CEO at iSON

As iSON Xperiences embarks on its next chapter with AfricInvest and Verod, the company is committed to enhancing its position in Africa. The new capital infusion will enable diversification of services and expansion into new markets, with a focus on integrating digital tools for improved customer operations, enhanced customer experiences, and agent productivity.

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iSON Xperiences’ BPO services create high-quality job opportunities in developing nations, with a strong commitment to gender equality, as women make up 54% of the workforce and hold nearly a third of line management positions.

Danladi Verheijen, Co-Founder and Managing Partner at Verod Capital, expressed his enthusiasm for the partnership, highlighting Africa’s potential for BPO services and the transformative impact of AI on addressing financial challenges.

Hakim Khelifa, Senior Partner at AfricInvest, emphasized their belief in iSON’s potential to create employment in developing nations and their goal to expand into new countries and offer more value-added services.

Pravin Kumar, Global CEO at iSON Xperiences, stated the company’s commitment to job creation and service excellence through digital transformation, with a primary focus on offshore hard currency revenue.

read also Inside SuperPay: A New Egyptian FinTech Backed by Etisalat and Egypt’s Second Largest Bank

Verod is an African investment management firm specializing in private equity, with a focus on high-growth businesses in Anglophone West Africa.

AfricInvest is a leading pan-African investment platform engaged in various alternative asset classes, including private equity and venture capital.

iSON Xperiences is a top global Customer Experience Management (CXM) player in Africa, providing flexible enablement solutions for businesses looking to scale their workforce, operations, or debt collection solutions in the region.

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

Africa-focused B2B Energy Platform Circadian Raises $1.3M

BayWa r.e. Energy Ventures, a venture investment firm affiliated with BayWa r.e.’s venture capital subsidiary, has taken the lead in a funding round, amounting to 1.25 million Euros ($1.3M), to support the Berlin-based and Africa-focused energy startup Circadian. This strategic investment is aimed at expediting the global transition towards sustainable energy solutions, especially in underserved markets. Joining in this financing initiative are notable backers, including Rockstart Energy, Persistent Energy Capital, Great Stuff Ventures, Tofino Capital, and Ralicap Climate.

Mike Rosenberg, CEO of Circadian
Mike Rosenberg, CEO of Circadian

Circadian Technologies is at the forefront of innovation, offering a comprehensive Energy Management System that encompasses both hardware and Software as a Service (SaaS). Their platform is tailored to meet the specific needs of solar developers and asset owners, with a particular focus on addressing the challenges posed by unstable grids in emerging market nations across Africa. The all-in-one solution empowers the entire value chain of solar projects, streamlining processes from initial site assessment and design through to commissioning and ongoing asset management. This remarkable technology enables commercial and industrial (C&I) enterprises to transition to renewable energy sources in lieu of diesel generators, starting with telecommunications tower companies throughout the African continent. This transition represents a significant step toward decarbonization.

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Circadian was founded by industry veterans Mike Rosenberg and Max Boit, who bring extensive experience in the African market and a profound understanding of the energy sector. Together with their dedicated team, they are committed to establishing themselves as a leading business-to-business (B2B) platform for Distributed Energy Resources (DER) in emerging markets.

Greg Zavorotniy, Managing Director at BayWa r.e. Energy Ventures, expressed his enthusiasm for this investment, stating, “Circadian’s innovative technology enables the creation of solar microgrids in emerging markets, contributing significantly to decarbonization efforts. This marks our first investment on the African continent, and we eagerly anticipate further opportunities from companies dedicated to advancing the energy transition in the region.”

Mike Rosenberg, CEO of Circadian, emphasized their mission, saying, “We aim to empower renewable energy installers and act as a catalyst for the widespread adoption of decentralized energy solutions in growing markets. Circadian is currently expanding its presence across Africa, with plans to bolster the team, enhance platform functionalities, and drive further growth. The support from our investors will play a pivotal role in achieving these objectives.”

read also Inside SuperPay: A New Egyptian FinTech Backed by Etisalat and Egypt’s Second Largest Bank

Circadian’s primary operational footprint spans West, East, and Southern Africa, where their innovative solutions are making a tangible impact on the transition to cleaner and more sustainable energy sources.

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

Inside SuperPay: A New Egyptian FinTech Backed by Etisalat and Egypt’s Second Largest Bank

In a significant stride towards bolstering Egypt’s financial technology landscape, Banque Misr, one of the country’s largest banks and a pioneer in electronic payment solutions, has joined forces with Etisalat Misr to launch SuperPay, a cutting-edge electronic payment technology company. This strategic partnership between financial stalwart Banque Misr and telecommunications giant Etisalat signifies a critical milestone in Egypt’s financial technology journey.

The Vice President of Banque Misr, Akef Al-Maghrabi, underlined the bank’s steadfast commitment to the FinTech sector. They have diligently adhered to state directives, promoting the automation of payments and fostering a transition towards a cashless society. By mid-2023, Banque Misr had deployed over 500,000 electronic payment machines across Egypt, showcasing their unwavering dedication to technological progress.

Moreover, Al-Maghrabi shed light on the exponential growth in the number of collection contractor clients and the volume of business conducted through their electronic payment gateway. During the first half of 2023, these figures had skyrocketed by a staggering 100% compared to the same period in 2022. The bank had also forged numerous strategic partnerships with global industry giants, facilitating the automation of payment systems in diverse sectors, including transportation, aviation, real estate development, retail sales, and insurance.

read also South African Fintech Stitch Secures $25 Million Investment to Expand Payment Solutions

The collaboration between Banque Misr and Etisalat Misr not only signifies a significant leap in advancing Banque Misr’s vision of a cashless society but also heralds the birth of SuperPay. This new venture promises to offer innovative digital solutions encompassing mobile charging services, bill payments and collections, merchant services, an online payment platform, and plans to expand into agent banking, microfinance, and payroll advances in the future.

One of SuperPay’s most ambitious targets is the deployment of over 190,000 electronic payment machines in Egypt within the next five years. This audacious endeavor aims to replace traditional cash transactions with electronic payments and introduce soft Point of Sale (POS) systems and the Tap on Phone service, which will inevitably propel substantial growth in Egypt’s financial landscape.

Akef Al-Maghrabi emphasized that the presence of companies like SuperPay in the electronic payment sector not only accelerates technological development but also provides opportunities for young professionals, aligning with the national strategy to bolster economic growth.

SuperPay Egypt

SuperPay’s introduction marks a turning point in Egypt’s financial technology landscape, supported by the unwavering commitment of Banque Misr and Etisalat Misr, two powerhouses that have set their sights on a future where digital solutions revolutionize payments in Egypt.

Banque Misr’s vision of a cashless society is fully supported by the Central Bank, which reported an impressive increase in financial inclusion in Egypt, reaching 64.8% in 2022, primarily attributed to the growth of financial technology companies. The Egyptian market has witnessed a substantial uptick in digital transactions, with 212 million transactions via mobile wallets worth 250 billion pounds and 110.6 million transactions through electronic payment points worth 108 billion pounds.

The growing number of emerging FinTech companies in Egypt is a testament to the state’s and Central Bank’s commitment to financial inclusion and non-cash payments, with their numbers surging from 32 in 2017 to 177 by the end of 2022.

The launch of SuperPay is a momentous occasion in Egypt’s financial technology journey. Its establishment will have a positive impact on the nation’s economy, solidifying Banque Misr and Etisalat’s roles as key players in driving economic development.

read also African Startups Ecentric Payment Systems and CoverAI in New Acquisition Deals

Partnerships between public and private sectors have been instrumental in the growth of Egypt’s financial technology sector, fostering innovation and economic progress. The joint endeavor of Banque Misr and Etisalat from &e signifies their dedication to advancing financial inclusion in Egypt, a core goal of the country’s overarching efforts.

SuperPay’s goal is to offer pioneering and advanced financial solutions, serving individuals, businesses, and stores under one comprehensive platform. Their services include cash payments, electronic wallet payments, and electronic payments through point-of-sale machines, alongside bill payment services. This is only the beginning for SuperPay, as the company plans to introduce an array of innovative products and services to enrich the electronic payment experience.

Engineer Hazem Metwally, CEO of Etisalat from &e in Egypt, expressed his enthusiasm for the launch of SuperPay. He highlighted Etisalat’s vision to transform into a technology company providing digital services, including the expansion of financial services for corporate and individual clients. The integration of technology, communications services, and financial services represents a groundbreaking step in the Egyptian market.

Akef Al-Maghrabi, Vice Chairman of the Board of Directors of Banque Misr, echoed this excitement, emphasizing the alignment of their strategy with Egypt’s Vision 2030. Their joint efforts aim to bolster financial services and support the digital payments sector, fostering financial inclusion and enabling more segments of society to access appropriate financial solutions.

The partnership between Etisalat from &e and Banque Misr signifies a pivotal strategic move, strengthening Egypt’s digital financial solutions sector. It combines Etisalat’s technological expertise with Banque Misr’s extensive banking experience to provide secure and advanced financial solutions that prioritize customer protection and data security.

read also Inside Egypt: The Foreign Currency Debit Card Payments Ban and How Startups are Coping

Etisalat from &e in Egypt is uniquely positioned to lead the charge in digital transformation, with the most modern network in Egypt and a legacy of delivering innovative technological solutions. Their efforts are directed towards enhancing productivity and contributing to the greater goal of financial inclusion in Egypt.

Banque Misr is the second-largest bank in Egypt with a market share of 18.2% and 17.6%, 20.1% in terms of assets, loans and deposits, respectively as at end-September 2022. BM was established in 1920, and is 100% state-owned.

SuperPay Egypt SuperPay Egypt SuperPay Egypt

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

SWVL Founder Reveals How it Made Zero-Cash Acquisitions, and Employees Dumped Their Stock Amid Crisis

Mostafa Kandil is the co-founder and CEO of SWVL, an Egyptian mobility startup. As a reminder, SWVL is a platform that aims to revolutionize public transportation in major cities. Kandil started this journey in 2017 as a university student in Egypt, living in Cairo. At that time, he noticed a gap in the public transportation system, and together with his friends, decided to address this issue. SWVL made waves by going public on the American stock market in 2021 through a Special Purpose Acquisition Company (SPAC), but since then, the company has faced challenges, with a significant drop in its market value. In a recent interview with Swalif Business monitored by Afrikan Heroes, Kandil shared his latest experience at the helm of affairs of SWVL.

Woeful Outing on Nasdaq

In 2021, we decided to go public. It’s logical for many companies not to want to go public, as no one might be interested in acquiring them. At that time, people couldn’t envision it, but we decided to go public right away. We benefited from coverage, but we faced a tough market, and the business dropped by half. In 2020, we lost 93% of our revenue. Only 3% of revenue remained. It went down significantly, and we persevered for four months without any income. This occurred during a time when there were no lockdowns. For instance, Cairo’s economy wasn’t affected, and people there weren’t staying at home. We had to weather the storm for four months until things started to normalize. During this period, the community declined significantly, and we saw investors and employees losing faith. We remembered our initial commitment not to let anyone profit during this challenging period. We didn’t cut employees’ salaries, but we did cut other expenses. I was personally covering nearly 100% of everything, excluding employee salaries, as we had discussed earlier.

read also Egyptian Startup SWVL Sells Off Mexican Startup It Bought at $82M for $12M

SPAC and its Fallout

Numerous issues arose, or went unresolved with companies that went public through the Special Purpose Acquisition route, as those companies failed to meet their promised targets. Many companies, especially those solely on paper, were unable to deliver on their claims. Several might have even profited from these schemes. When they entered the market, they were primarily companies with just ideas and lacked substantial operations. As people often say, nobody was fixing these problems. Unfortunately, we got embroiled in this entire situation. We became part of a war; and the internet boom, among other factors, greatly impacted us. The markets were highly volatile, with fluctuations as high as 60%. In currencies and other areas, it felt like a storm. Like idealism, the SPAC market collapsed within the first six months of the IPO.

We had investors, including significant ones from Russia. However, the war caused them to reconsider their investments. They decided not to put more money into the company or, if they did, they demanded the ability to sell their stock. The very next day, we already knew the market was collapsing. We stood firm and refused to let them withdraw their commitments. Those investors were the first to sell off their stocks, and as the markets plummeted, even the stock we bought from them was rendered almost worthless. The global financial crisis had begun, and everyone was panicking. Investors abandoned the ship, which in turn exacerbated the situation.

This, in addition to other points we’ve mentioned, had an impact on employees. Employees were not previously concerned about the stock’s value. They understood how the company operated and knew it was a robust business. Our faith was unwavering, and the stock’s value didn’t mean much to us. Regardless, it created a crisis, and it was disheartening to see how the employees who had worked diligently saw their stock options lose value.

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The employees began to sell their stocks and depart. There was no clear objective behind it. It wasn’t my stock, and I had no control over the situation. Those were the investors, and some of them were major players like Apple. They initially invested in the IPO, but the market was no longer favorable for them. They made their exit. In a crisis, employees often sell and move on. Purely from a financial perspective, I believe they sold because they saw little value in the stocks. I didn’t have any say in the matter, as the investors were the ones in control. Initially, our investors included large players like Apple.

On the Strategies Behind SWVL’s several acquisitions

We purchased companies, and we did so without using cash. We acquired these companies through stock transactions, paying their value in shares only. We bought all these companies at a fixed price per share, all done without cash payments. We paid them based on certain multiples that were considerably lower. Therefore, we made a profit with every acquisition, buying these companies without needing to expend cash, only using shares. We continued buying companies using shares without any out-of-pocket expenses. At present, these companies are part of your business. Yes, these companies are now integrated with us, and they were instrumental in our growth. We did have to let go of some companies as our performance declined, but others remained and played a crucial role in our success.

SWVL’s stock was at risk of being delisted?

It didn’t reach that point; we implemented a stock split, a technical financial maneuver. Instead of having a stock valued at one dollar, we divided it into two one-dollar stocks. It was a precautionary measure to prevent delisting. When you’ve been listed for more than thirty days, it’s possible to merge stocks and start afresh. But this is a real danger indicator. It signifies that you’re not meeting the numbers. Even when things get tough, we don’t plan on leaving Nasdaq. Nasdaq is a financial market. To be there, you must comply with legal regulations, essentially behaving as a public company. There are others in this market too. But stock prices in Nasdaq can recover, and the merger process continues.

Five-year-old Egyptian Transport Startup SWVL Goes On IPO Via SPAC Today -  Afrikan Heroes
Mostafa Kandil is a co-founder and CEO of SWVL. Credits: SWVL

SWVL’s Current value?

I won’t provide exact figures, but some people have sold due to various factors, such as market sentiment or low daily trading volumes. Even if the trading percentage is small, it impacts stock prices. A high price is good because it signifies that even if immediate buyers are scarce, most initial investors saw the company’s true value beyond its stock price. We aim to reach the highest potential. Some companies have restrictions that prevent investors from selling before a specific time, like six months from now. We’ve been in a similar situation before, and the stock initially dropped from ten to four, but it later rebounded to a remarkable extent. Investors extended the offering period because they saw the company’s real value was much higher than the stock price.

Employee Reduction

In 2022, we let go of about a third of our employees. It was challenging, as I met many of these employees for the first time. We had to reduce costs to exit certain markets, such as Portugal. We focused on sectors where we were more profitable and cut back in areas where we weren’t. I believe in 100% transparency. I share everything that happens in the company with the employees. We consider ourselves the first employees of the company, and I emphasize that we’re all in this together.

Market Presence

Initially, we were in six countries, but by the time of the IPO, we had expanded to ten and then scaled back. Now, we operate in three countries.

On Delisting from Nasdaq, and Going Private

Indeed, there were such speculations. Some believed that the company’s diverse operations might benefit from being taken private. They claimed the company itself generates revenue. I won’t delve into specifics. I would consider starting with approximately half of the company, no more, I would say.

The challenges SWVL faced as it entered new markets and how it managed to overcome them

Our ambition has always been to be a part of the global community. We hope and aspire to it. For us, entering new markets is a challenge due to the differences in language and culture. We wanted to learn and engage with various cultures. At a time, we were in Kenya, four hours away from Cairo. It presented a similar time constraint. Our goal was clear, but Kenya posed a significant problem with the absence of public transportation services. Everything was disorganized, and I bought a bus and started a service on my own; there was no established public transport system. In Egypt, there was also a lack of public transportation services.

That’s how challenging it was. Within six months, we managed to acquire fifty buses. It was a daunting task, given that the existing system had been in place for decades. We entered the market and offered a vastly improved quality of service compared to the informal transport network. We realized that the organization needed proper regulation. The regulatory body is known as National Transport and Safety Authority’s (NTSA) if I remember correctly. The board of directors primarily consisted of individuals from the informal transport network.

The Kenyan Nightmare

The same regulatory framework was created by those who initially benefited from it. The members of the board of this regulatory body in Kenya were the same individuals who owned informal transport buses. Exactly, they were our initial competitors. They attempted to hinder our progress and work against us. We were competitors, but we were not compelled to operate outside the law. However, we had no other option. Our staff were arrested and released from prison on the same day. They even included my name in the records and placed it in a specific location. A significant number of them were corrupt. Thankfully, we managed to overcome these challenges. When you meet the right people in a country, engage with them, and provide a service that benefits the public, you can succeed.

How SWVL adapt its services to different countries with unique cultural and geographical aspects

The cultural aspects of people vary significantly. For instance, in Kenya, people are willing to walk to the bus station, and if it takes them more than five minutes to reach the station, they won’t use the service. We always had to be within a five-minute reach for our customers. If they choose to take cars, the service demand drops significantly if they have to walk for more than five minutes. For instance, in Kenya, people don’t mind walking a bit if there is a reasonable distance, as it aligns with their lifestyle. They wait for the bus and are comfortable with more passengers getting on. However, they do have a problem with long delays. Thus, each country has its unique characteristics, and the city’s geography plays a significant role. In some cities, the residents both live and work in the same area. In such areas, you can establish a public transport company that connects points throughout the day. However, in a city like Nairobi, there are suburbs where people commute from the outskirts to the city in the morning for work and return to the outskirts at the end of the day. In these cases, the buses operate accordingly. Coastal cities have their own dynamics. In a city built entirely along the coast, you can offer a service similar to that in Cairo, launching it from various locations. Our approach has always been to provide services that cater to the needs of the people in a specific geographic area.

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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

Tingo Group Strengthens Nigerian Presence Amidst Fraud Allegations

In a strategic move aimed at reaffirming its commitment to the Nigerian market and bolstering its operations, Tingo Group, a prominent player in the Nigerian fintech sector, has announced the establishment of a new office in Lagos, Nigeria. This expansion comes against the backdrop of recent fraud allegations and demonstrates Tingo Group’s determination to maintain a strong foothold in the country.

The new office, strategically located in Victoria Island, Lagos, adds to the existing headquarters on Lagos Island. While the latter focuses on commodity trading and operational support, the new facility is poised to become the epicenter of the company’s broader operations. Spanning three stories and encompassing 60,000 square feet, it is equipped to accommodate a sizable workforce, further propelling Tingo Group’s growth initiatives.

Dozy Mmobuosi, Interim Co-Chief Executive Officer of Tingo Group
Dozy Mmobuosi, Interim Co-Chief Executive Officer of Tingo Group

Dozy Mmobuosi, Interim Co-Chief Executive Officer of Tingo Group, expressed his pride in enhancing the company’s investment in Nigeria, stating that the upgraded facilities are expected to accelerate the company’s growth not only in Nigeria but also across the African continent and globally. Moreover, this expansion will fortify Tingo Group’s position and impact on Nigeria’s agricultural sector, addressing the ongoing food security challenges while enhancing shareholder value.

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Ken Denos, Interim Co-Chief Executive Officer, shared his excitement about the extended facilities and the opportunities they bring. He emphasized the company’s partnerships with organizations such as the All Farmers Association of Nigeria (AFAN) and its expansion into markets like Ghana, reinforcing its commitment to global growth.

This strategic expansion underlines Tingo Group’s unwavering dedication to the Nigerian market and its resolve to tackle the recent allegations head-on. By increasing its ground presence and investing in state-of-the-art infrastructure, the company signals its commitment to transparency, growth, and its long-term mission in the fintech sector. The recent allegations have spurred Tingo Group to take proactive steps to secure its position and maintain the trust of its stakeholders.

Tingo Group Nigerian Tingo Group Nigerian

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

Tunisia Startup Ecosystem Breaks into Top 15 Globally, Reports Impressive 17.3% Growth

According to the 2023 Global Startup Ecosystem Report (GSER) unveiled on Wednesday by the Caisse des Dépôts et Consignations (CDC), Smart Capital, the World Bank, and Startup Genome, Tunisia has risen among the top 15 global ecosystems in terms of talent accessibility.

The Tunisian ecosystem generated an economic value of $120.3 million between July 1st and December 31st, 2022, marking an annual growth of 17.3%.

Indeed, Tunisia has moved up 3 positions in 2023 compared to the GSER 2022. Looking at its long-term growth from the GSER ranking in 2020 to 2023, the ecosystem has gained an impressive 10 places in just three years.

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The MENA region, on the whole, maintained stability from 2021 to 2022, with only a slight 5% decrease in initial funding, a 19% decrease in series B+ transaction amounts, and a 14% decline in total venture capital funding. Despite this slowdown, the region still retained higher funding levels than in 2020.

In the ranking of emerging ecosystems in the MENA region, Tunisia ranked fourth, preceded by Amman, Sharjah, Casablanca, and Beirut, highlighting its growing role as a leader in innovation and entrepreneurship in the region.

On this occasion, the CEO of CDC, Ms. Nejia Gharbi, emphasized that this report provides insights into Tunisia’s position compared to other ecosystems and its ranking within the MENA region. She first introduced the Startup Act program for innovative SMEs, launched by the World Bank, aiming to provide funding solutions to all startups in the Tunisian ecosystem.

She also added that the achieved ranking is primarily the result of this favorable climate, reinforced by the Startup Act, as well as all the funding programs put in place to support both support structures and startups. The goal is to energize the ecosystem and attract global investors’ attention.

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The top 5 global ecosystems have remained unchanged since 2020, with Silicon Valley in the first position, followed by New York City and London tied for second place. However, Boston and Beijing have lost their places in the top 5, each falling two positions.

They have been replaced by Los Angeles in the fourth position and Tel Aviv in the fifth position. These five ecosystems together represent an economic value of $4 trillion, accounting for 53% of the total of the top 30 ecosystems.

Based on data about 3.5 million startups in over 290 global ecosystems, this report provides new insights and in-depth knowledge about startup trends worldwide. It ranks the top 30 global ecosystems and the next 10, and offers a ranking of the top 100 emerging ecosystems.

ANAVA invests 5 million euros in Tunisian startups

As part of the startup support project jointly funded by the World Bank, CDC, and KFW, the ANAVA fund has announced its commitment to invest 5 million euros in a brand-new fund, Titan Seed Fund I, managed by the Medin Fund Management Company.

With an initial target size of 100 million euros, of which 40 million euros come from a World Bank loan subscribed by CDC, and 20 million euros subscribed by KFW, the fund of funds aims to provide the necessary means for addressing the financing and internationalization challenges of Tunisian startups.

Titan Seed Fund aims to reach a size of 10 million dollars to invest in 280 Tunisian startups. It is the first early-stage Deeptech-focused fund in North Africa. The fund plans to invest an average of between 300 and 650 thousand dollars to prepare them for a “Series A” fundraising.

ANAVA represents the very first fund of funds in Tunisia, denominated in euros. Managed by Smart Capital, it plays a central role in the national “StartUp Tunisia” initiative, aiming to make Tunisia an innovation and startup hub at the crossroads of the Mediterranean, the MENA region, and Africa.

Tunisia Startup Ecosystem Tunisia Startup Ecosystem

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