The Israeli delivery app Haat intends to increase its operations in Morocco as part of its aim to expand outside of Israeli markets and into the MENA region. In the upcoming years, the food delivery business hopes to serve thousands of towns. The Haat is adamant about not just reaching cities but also rural areas.
The Israeli business, whose name in Arabic means “Bring,” hopes to become a significant regional and global player in the years to come.
Hassan Abbassi, a co-founder of Haat, stated, “Today we are an Israeli company, but we will become an international company. The company hopes to reach thousands of communities in the future years, both in Israel and outside of Morocco.
The software was created shortly before the coronavirus pandemic in early 2020 after Abbasi, a former employee of Intel and Google, returned to his hometown of Umm al-Fahm from Haifa with his wife but was unable to place an order for delivery in the Arab world city, which is home to around 180,000 people and 150 restaurants.
Haat’s expansion into Morocco is driven by the country becoming a hub for delivery apps, with Glovo and Jumia topping the list.
Glovo, is a Spanish startup that delivers food to several major cities including Casablanca, Rabat, Marrakech, Tangier, Agadir and Fez. In 2020, with the pandemic, the startup achieved a turnover of 360 million euros, compared to 128 million in 2019.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Since the Covid-19 outbreak, online training has emerged as a viable learning option. To best service the continent’s people, many companies have entered the field. Sayna is a digital platform created by the same-named Malagasy startup. It enables the teaching of digital skills to the next generation of African software developers through the use of a mobile video game specifically built for this purpose.
Matina Razafimahefa, a Franco-Malagasy entrepreneur, started the start-up in 2018 and has already garnered more than $600,000 in funding from firms such as Orange Ventures to assist its expansion.
“Our team now has 25 personnel spread between France and Madagascar. It is also a symbol of optimism for hundreds of thousands of young African talents who have not had the opportunity to turn professional in order to benefit from the continent’s fourth industrial revolution,” Matina Razafimahefa said.
Matina Razafimahefa is the founder and CEO of Sayna. Source: Sayna
The young startup instructs young people in coding through gamified instruction that lasts three to six months. The formation must be completed by unlocking all six levels in the game. Following this, Sayna offers developers the opportunity to undertake numerous duties on behalf of companies. Of course, they get compensated for this task based on their rank.
The startup monitors the progress of all its developers and conducts exams every quarter to determine whether or not the learners should be improved. The six grades range from coal level to diamond level. Task remuneration varies according to level. Sayna claims to have trained 450 students and served more than 60 partner firms and clients to date. It intends to teach approximately 8,000 developers by 2024 and to grow into West Africa.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Onlookers might have assumed that by the time Egyptian transport firm Swvl made it to Nasdaq via SPAC purchase, it would have become one of the African startup ecosystem’s few success stories. However, it appears that this is no longer the case. Swvl’s hopes of relying on the Nasdaq adventure are dwindling by the day: the company’s share price has plummeted from $9.33 to $1.64 in the four months after it announced its Nasdaq listing. As per its latest statement, Swvl has also cancelled one of the largest purchases by an African startup in recent years, the acquisition of UK-based competitor Zeelo for about $100 million. Swvl indicated in the statement to its stakeholders that all prerequisites for finalising the Zeelo sale had been completed, but the transaction could not proceed due to the present financial market turbulence.
Swvl’s Recent Notable Timelines
August, 2021: Swvl acquired Spain’s Shotl, and consequently entered Europe. Shotl was present (at the time of the acquisition) in 22 cities across 10 countries, including Brazil, Japan, and had a pan-European footprint, with over 350,000 bookings.
August, 2021: Swvl received $35.5m in PIPE (Private Investment In Public Equity) funding including from investors Agility and Chimera Abu Dhabi. Swvl’s proposed business merger with Queens Gambit Growth Capital (the SPAC acquisition) was the reason for the investment. The PIPE investment was made using Swvl’s exchangeable notes. Each note was exchanged for shares of the combined company at an exchange price of $8.50 per share.
November, 2021: Swvl announced its second acquisition, gobbling up ViaPool, a mass transit company in Latin America (Argentina). The deal was reportedly worth about $10 million.
February, 2022: Swvl received extra $21.5 million in PIPE funding. Again, each note was exchanged for shares of the combined company at an exchange price of $9.1 per share. Swvl pegged $8.50 per share for notes issued in 2021 and $9.1 per share for notes issued in 2022.
March, 2022: Swvl announced its third acquisition, of door2door, a German-based high-growth mobility platform that partners with municipalities, public transit operators, corporations, and automotive companies, providing software for on-demand mobility, multimodal routing and mobility analytics. door2door has 24% market share in Germany, which is Europe’s largest mass transit market. The value of the deal was not disclosed.
March 31, 2022: Swvl went public (through a SPAC merger with Queen’s Gambit Growth Capital). As a result of this, Swvl Holdings Corp. Class A common stock and warrants of Swvl Holdings Corp. began trading on NASDAQ under the ticker codes “GMBT” and “GMBTW.” Shares were sold at $9.33 per share on the first day. An aggregate of 35% of Swvl’s total ownership became public tradable.
April, 2022: Swvl announced the acquisition of Volt Lines, a Turkey-based B2B and mobility-as-a-service company. The acquisition was made one month after Swvl’s public listing. Swvl stock was down 12% in pre-market trading at this time. The value of the deal was not disclosed.
April, 2022: Swvl announced the purchase of Zeelo, the UK’s largest smart bus platform and technology scale-up by bookings, for US$100 million. The transaction was scheduled to close in May 2022.
May, 2022: Swvl announced it has laid off 32% of its entire workforce. The lay offs affected staff in the startup’s engineering, product, and support divisions. Swvl it expected to be cash-flow positive in 2023 as a result of the downsizing.
June, 2022: Swvl the suspension of its daily and city-to-city services in Kenya and its daily services in Pakistan. In a statement, Swvl noted that the suspension was “in light of the worldwide economic slump.”
July, 2022: Swvl announced the acquisition of its Mexico-based Urbvan Mobility Ltd (“Urbvan”), a shared mobility platform that provides tech-enabled transportation services to Latin America’s second biggest country by population. Formed in 2016, Urbvan is present in 18 cities around Mexico. The value of the deal was not disclosed. According to Swvl, the deal will be completed in Q3 2022.
July, 2022: Swvl terminated their previously-announced $100m transaction whereby Swvl would acquire Zeelo. Swvl previously funded a $5M convertible promissory note to Zeelo. Following the termination of the acquisition transaction, Swvl and Zeelo mutually agreed to terminate the convertible promissory note and Swvl forgave the $5M balance under the transaction.
August, 2022: Swvl announces first major partnership outside of acquisition with the Kuwait-based City Group, a premier transport operator and provider of warehouse services in Kuwait, under which City Group will use Swvl’s Software as a Service (“SaaS”) products.
A Woeful SPAC Outing
According to Swvl’s Form 424B3 filed on July 7, 2022, it is clear that the five-year-old startup is not only dealing with the current volatility in the financial markets, but it also appears to be dealing with the uncertain confidence of its SPAC investors, who appear to be willing to hang on even longer without redeeming their shares in the company. According to lock-up extension agreements signed between Swvl and the concerned investors, who own 84 percent of the shares currently trading on Nasdaq, they would be required to hold on for extra periods ranging from one year to eighteen months after the prior lock-up periods expired.
The lock-up agreements, together with other alternative financing agreements, provide a mechanism to avoid the existing high redemption rates among SPAC investors. SPAC redemptions were on the upswing for 2021. From January through July, the average monthly SPAC redemption rate ranged from 7% to 43%, according to SPAC Research/SPAC Alpha. From July to November, however, this range expanded to 43 percent -67 percent, with the average SPAC having a redemption rate of 60 percent across these four months.
The purpose of redemption rights under a conventional SPAC arrangement is to assist motivate investors by giving them a sort of “money-back guarantee” that entitles them to return their shares for the initial IPO price, which is normally a modest $10 per share. However, if a considerable proportion of shareholders choose to exercise their right to redemption, as has recently happened with several SPACs, the combined SPAC business’s capital available for future operations may be significantly reduced. This will almost certainly expose the SPAC to the risk of failure if it occurs. A common scenario that triggers this right of redemption is when the share trades below its listing price. Swvl’s stock price has since fallen from $9.33 to $1.64. The table below depicts these difficulties among recently-listed SPAC companies.
S/N
NAME OF SPAC COMPANY
INDUSTRY
SPAC MERGER COMPLETION DATE
STOCK MARKET
PRICE PER SHARE ON FIRST DAY OF PUBLIC TRADING (IN USD )
CURRENT PRICE PER SHARE AS AT AUGUST 3, 2022 (IN USD)
Lessons African Startups Can Draw From Swvl’s SPAC Outing
Speedy Execution Is Key But Regulations Remain King
Swvl’s co-founders’ ability to execute quickly has never been questioned. Indeed, one of its early backers, Vostok New Ventures (now VNV Global), stated succinctly in 2019 that “The entrepreneur in this case is of exceptional calibre. Mostafa Kandil, previously of Rocket and Careem, has established a team that executes well and quickly. Indeed, Mostafa could be the first Arab tech entrepreneur to build a global product.” This quick execution skill ensured that the founders were able to expand the startup globally and take it public within a record period of just 5 years.
However, swift execution frequently entails dangers, notable among them being those related to regulation. SPAC was formerly only weakly regulated by the Securities and Exchange Commission (SEC), which is in charge of overseeing securities and investments in the US. SPAC financial statements were fairly brief and could be created in a matter of weeks in the IPO registration statement (compared to months for an operating business). There were no past financial results or assets to reveal, and the company risk indicators were modest. The IPO registration statement was basically standard language with director and officer biographies thrown in for good measure.
The following primary modifications for SPACs would now be required by the proposed rules: a) in certain SEC filings by SPACs, new disclosure and financial statement requirements, especially in relation to financial projections and fairness evaluations in de-SPAC transactions; b) the removal of the safe harbour for forward-looking statements under the Private Securities Litigation Reform Act of 1995 (the “PSLRA”) for disclosure in those registration statements; c) new registration requirements under the Securities Act of 1933, as amended (the “Securities Act”), for de-SPAC transactions; Securities Act liability for “underwriters” in de-SPAC transactions; and a 20-calendar-day minimum dissemination period for disclosure documents in a de-SPAC.
Perhaps the SEC’s most significant disclosure rule is the one which provides that SPAC sponsors must now inform SPAC shareholders that their incentives are to close any deal, and that shareholders who continue to hold SPAC shares through the deSPAC will have their holdings diluted by at least 20%, and frequently substantially more.
Due to this increased attention from regulatory organisations like such as the SEC and the Financial Industry Regulatory Authority (FINRA) in recent months, SPAC acquisitions are now intrinsically riskier. Numerous high-profile SPACs have recently been the subject of federal investigations, which has probably put many ordinary investors on the defensive.
Therefore, startup owners should push for speedy execution while simultaneously keeping an eye out for any regulatory ambushes and preparing a response in advance. There is no point in denying that the string of SEC regulations that were enacted after Swvl’s SPAC went public undoubtedly caught the company off guard. This is clearly evident in its recent operational decisions.
Increasing A Startup’s Burn Rate Due To High Compliance Costs May Be Costlier In The Long Run, Especially For Startups Without Any Future Funding Clarity
In any case, every startup’s ultimate goal is to exit as soon as possible, but doing so need not be costlier, especially if the startup is not yet mature enough to handle certain costly operations.
Swvl had raised $122 million in total funding as of February 2022. It then paid more than $10 million in fees for its SPAC IPO. While acknowledging that it may incur significant expenses and devote significant management effort to ensuring compliance with the requirements of Section 404 of the Sarbanes-Oxley Act, which will increase further when it is no longer an “emerging growth company” as defined under the US Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), Swvl suggests that it may have to delist from Nasdaq in the future if it becomes increasingly unprofitable to continue to list.
The higher compliance costs, as well as the company’s dismal performance on Nasdaq, explain why it has recently had to curtail its operations. It is still unclear whether the company would avoid more downsizing in the future.
Startup’s Management Should Implement Standard Corporate Governance Practices And Undergo Relevant Training Early Enough
One important takeaway from Swvl’s SPAC adventure is the importance of early exposure to sound corporate governance principles. This will get the startup’s management ready for the challenges of following and putting into practise the accepted corporate governance standards.
Swvl acknowledged that its management team has limited expertise to handle a publicly traded firm, deal with investors in public companies, and adhere to the ever-more-complex legislation governing public corporations.
“Swvl’s management team may not successfully or efficiently manage their new roles and responsibilities or the transition to being a public company subject to significant regulatory oversight and reporting obligations under U.S. federal securities laws and the continuous scrutiny of analysts and investors. These new obligations and constituents will require significant attention from Swvl’s senior management and could divert their attention from the day-to-day management of Swvl’s business, which could adversely affect Swvl’s business, financial condition and operating results,” the recent disclosure from the company reads.
Startups should therefore prepare themselves from the beginning for the challenges of building a global company as well as the regulatory and corporate governance practices they will face during the growth stage of their business.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Sendy, a Kenyan logistics firm, has cut off 10% of its 300 staff, according to a company statement. This is the latest public layoff announcement from Africa in the last two months, following the downsizing of Swvl, Vezeeta, and Wave teams to cut expenses amid a series of worldwide downturns and venture capital downturn events.
Sendy made this move in June, according to CEO Mesh Alloys, in reaction to “present realities affecting Internet-based companies internationally.” He also revealed that the corporation decreased its employees in July, “which affected 10% of our workforce.”
Sendy Founder and CEO Meshack Alloys
Sendy was formed in 2015 by Alloys, Kenyans Evanson Biwott and Don Okoth, and American Malaika Judd. By 2020, the startup’s platform included over 5,000 cars transporting various types of goods.
Sendy provides e-commerce, business, and freight delivery services to clients such as Unilever, DHL, Maersk, Safaricom, and the African online retailer Jumia. The business operates on an asset-free approach, with an app that manages hired drivers who own their own vehicles, while also confirming deliveries, producing performance metrics, and managing payment. Some of its competitors include Goldman Sachs-backed Kobo360 and China-backed Lori Systems.
Co-founder Malaika Judd told Bloomberg in 2021 that the Kenyan startup, which facilitates door-to-door delivery between individuals and businesses, was hoping to raise $100 million this year to fuel its development ambitions in West and Southern Africa, mainly Nigeria.
However, as per Crunchbase data, this money has yet to be raised. The logistics startup has raised more than $26 million in funding, including a $20 million Series B round in 2020 from Atlantica Ventures and Toyota Tsusho Corporation, a commercial and investment subsidiary of Toyota. Some of its expansion plans were also shelved.
Sendy, which operates in Nigeria, Kenya, Ivory Coast, and Uganda, is rumoured to be scaling back its operations in Egypt and South Africa.
The rest of the statement on layoffs reads as follows:
“This change was made in accordance with all applicable laws and industry best practises. All contractual and employment termination benefits were provided to all impacted employees. As a corporation, our greatest asset has always been our team. We have always appreciated their various abilities as well as, more importantly, their well-being. Decisions affecting them are not made carelessly. In keeping with our aim to empower people and businesses by facilitating commerce, we will continue to focus on developing solutions for businesses across the continent.”
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
SWVL, a Dubai-based provider of transportation and mobility solutions, has terminated its proposed acquisition of Zeelo, a UK-based B2B smart bus operator. The transaction was completed in April of this year and was valued at $100 million.
In a statement issued on Friday, the corporation stated that the decision was made in response to the current turbulence in global financial markets. It further stated that it has previously invested a total of $5,000,000 in the aforementioned firm.
SWVL purchased five global startups in addition to Zeelo. Urbvan, a Mexico-based mass transportation firm, is the most recent addition to its acquisition spree.
Earlier this month, the Nasdaq-listed company laid off 30% of its workforce as part of its aim to attain profitability by 2023. A month later, it ceased operations in Kenya and Pakistan, as well as suspending a number of routes in Egypt.
SWVL has also established a strategic agreement with City Group Co. KSCP (“City Group”), a premier transport operator and provider of warehouse services in Kuwait, under which City Group will use Swvl’s Software as a Service (“SaaS”) products. Swvl and City Group will collaborate to deliver the best mobility platform for Kuwaiti people, with the goal of making their lives easier. The platform will offer a variety of services, including on-demand, door-to-door, ride hailing, ride sharing, network buses, and school and corporate solutions.
Swvl and City Group will first focus on the creation of a “Citylink Shuttle” launch programme. The programme will feature demand responsive transportation (“DRT”) and other preferred services, with intentions to expand to 100 or more cars in the next six months. Following the successful completion of these phases, Swvl and City Group anticipate launching a thorough platform onboarding of City Group’s remaining vehicles over a mutually agreed-upon time frame.
“We are excited to partner with City Group to bring next generation of transportation solutions to Kuwait. We are deeply committed to the Kuwaiti transport sector and believe that collectively, we have the unique ability to transform the current offering and customer experience for the benefit of the country’s daily passengers. In the process, we will make mobility more reliable, affordable, and convenient,” Mostafa Kandil, Swvl Founder and CEO, said.
“This partnership is another great example of how Swvl is leveraging strong and rapidly accelerating demand for its SaaS and B2G offerings, in turn facilitating expansion into new, attractive markets. We continue to demonstrate tremendous progress against our business plan goals. This SaaS partnership demonstrates the substantial synergies from our recent acquisitions of a controlling stake in Shotl and door2door, both leading SaaS platforms in Europe,” he added.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
As part of its global expansion, Moove, the first mobility fintech in the world and Uber ’s first car leasing partner in EMEA, has announced that it will launch in India. Moove, which provides revenue-based financing to business owners in the mobility industry, has established itself throughout Africa and is now expanding to Mumbai, Hyderabad, and Bangalore. All three cities have a combined population of over 27 million, and are top most populated cities in the Asian country.
The firm provides auto financing through a loan only available to drivers on the Uber network.
One of the largest Uber fleets in India is anticipated to be created as a result of this partnership, and Moove plans to fund 5,000 electric or CNG vehicles in the first year. Over the next five years, the company wants to expand to 30,000 vehicles, offering long-term job possibilities in this quickly expanding industry.
Moove was introduced in 2020 with the goal of democratising access to automobile ownership. In order to provide loans to drivers who had no prior access to financial services, the firm integrates its alternative credit scoring technology with ride-hailing platforms and makes use of its own unique performance and revenue data. Entrepreneurs in the mobility industry can finance their new car through Moove in exchange for a portion of their weekly income.
Image credits: Moove
With its clients having travelled more than 5 million miles in four different countries in Moove-financed automobiles over the past two years, the company has helped to create sustainable jobs and opened up the option of asset ownership. Given that Uber has more than 600,000 drivers in India, this initiative will give Moove the perfect chance to make accessible funding available to thousands of drivers, assisting them in increasing productivity and expanding their businesses.
“This launch in India, our first outside of Africa, is a very meaningful occasion for the whole Moove team,” said Ladi Delano, co-founder and co-CEO of Moove. “Our revenue-based vehicle financing model will be expanded in order to generate long-term employment across the nation, where ownership rates are among the lowest in the world, primarily as a result of limited access to credit. To address this issue for our newest consumers in India, we are thrilled to strengthen our collaboration with Uber.”
“We look forward to working closely with the Uber India team and launching Moove’s revolutionary platform,” said Binod Mishra, regional director for South Asia at Moove. “Over the following five years, we will gradually expand to many more cities after starting with Mumbai, Hyderabad, and Bangalore.”
“Moove has developed an innovative “rent-to-own” model, providing drivers with a flexible choice for entering the ride-hailing industry without having to borrow a car from an owner or obtain a bank loan to fund the purchase of his automobile from a dealership. We are eager to collaborate with Moove in order to fully realise the growth potential that India’s post-pandemic demand awakening offers. The addition of new vehicles will improve the customer experience while giving drivers using Uber’s platform options to make a steady living,” Business Development Manager for Uber India South Asia, Abhilekh Kumar, said.
In India, Moove is now introducing its impact-driven business model. Its purpose, which aims to address the issue of inadequate funding for business owners in the global mobility sector, includes this first growth outside of Africa. Moove is dedicated to making sure that 60% of the vehicles it finances globally will be hybrid or electrical in order to establish itself as a global leader in the adoption of electric vehicles for ride-hailing and the mobility industry. India has announced goals to use more renewable energy sources and cut harmful emissions by 2030, which provided Moove with the ideal chance to promote their easily available financing of fuel-efficient electric automobiles.
A Look At What Moove Does
Global startup Moove was founded in Africa. The first mobility Fintech in the world, it gives mobility entrepreneurs financial services and income-based loans to finance their vehicle. In order to provide loans to drivers who had no prior access to financial services, Moove may integrate its alternative credit scoring algorithm with ride-hailing, e-logistics, and instant delivery platforms. By doing this, Moove can then use its own performance and revenue analytics. With support from some of the biggest investors in the world, Moove has raised more than $200 million to far, grown to 13 markets across 3 continents, and seen a rise in usage of its sponsored vehicles by consumers to the tune of more than 5 million journeys.
Moove is a mission-driven business that prioritises impact in its growth by pledging to have at least 60% of its fleet consist of hybrid and electric vehicles.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
In a first international expansion outside of Morocco, Guichet.com, the first Moroccan ticketing website, has announced the formal opening of its subsidiary in Senegal.
The new company, which has its headquarters in Dakar, was created as a result of a strategic alliance with a top Senegalese operator. According to the same source, the Moroccan ticketing platform intends to support the growth of the arts and entertainment industry and encourage the exchange of knowledge between Morocco and Senegal, two neighboring nations with remarkable relations.
“I am moved and delighted to announce the launch of Guichet in Senegal today in Dakar, in close partnership with a Senegalese partner of choice, whom I would like to thank for his dedication. Guichet is making its international debut. This delight is heightened by the fact that Morocco and Senegal are two fraternal countries whose excellent ties exemplify an ambitious and inspiring paradigm of South-South cooperation to which I am profoundly connected and convinced. By establishing in Dakar, Guichet hopes to contribute to the amazing energy of Senegal’s culture and entertainment business by making smart ticketing solutions created in Morocco available to the public and actors,” Guichet.com’s founder and CEO, Ahmed Tawfik Moulnakhla, said.
Credits: Guichet.com
Guichet.Com in Morocco recently exceeded the million-ticket-sold-online mark. This extraordinary performance in Moroccan entertainment history underlines Guichet.com’s contribution to the reform and development of this dynamic market, according to a press release.
“The public is rapidly trusting the Moroccan digital ticketing platform to buy tickets online in one click on the website or mobile application,” the statement reads.
Guichet.com has more than 2,000 events and shows sold since the platform’s launch in 2019.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Gumtree South Africa, a well-known online classified ad and community website, has been purchased by Durban-based Impresa Capital from Norwegian firm Adevinta for an unknown sum.
Gumtree South Africa will now have South African owners for the first time in 18 years, after having been controlled by American international e-commerce business eBay and subsequently Adevinta.
The majority owner of the Durban-based Ignition Group of companies, formed in 2002 by brothers Sean and Donovan Bergsma, is the acquiring company Impresa Capital.
Sean and Donovan Bergsma, Ignition Group cofounders. Image: Ignition Group
Why The Acquisition?
“As a proudly African-rooted business, this acquisition cements our strategy of investments in the technology and media sectors and provides our portfolio of businesses with a solid platform for growth. We plan to enable Gumtree customers to experience new ways of buying and selling through partnerships with the Ignition ecosystem of services,” says Sean Bergsma, cofounder and CEO of Ignition Group.
The acquisition of Gumtree, in his opinion, is the best “next step” in moving the company in new and interesting areas and creating a variety of opportunities for Gumtree users through the platform.
“The accelerated growth of Gumtree on the African continent will see new jobs being created, and with the technology developed further using local South African talent, it means exciting times ahead for all stakeholders,” he said.
Gumtree SA, an online marketplace that allows millions of users and consumers to buy and sell used items every day, was established in 2004. It continues to be one of the most popular websites in the nation.
A community-based marketplace like Gumtree SA, according to general manager Claire Cobbledick, benefits strategically from having access to local knowledge and expertise.
“And so being acquired by a South African investor is an important and exciting next step for the Gumtree SA business. We look forward to unlocking synergies within the Ignition Group businesses and network,” says Cobbledick.
Final regulatory permissions are still pending on the transaction.
Gumtree online classified ad Gumtree online classified ad
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The National Bank of Ethiopia has formally granted a mobile money licence to Kacha Digital Financial Services S.C., making it the first private company to hold such a license.
Kacha, which has a registered capital of 200 million Birr, heralds the start of a new era for expanded private sector involvement in the framework of the country’s digital financial services.
Kacha was built over the course of three and a half years with the help of both international and Ethiopian developers.
Angesom Teklay is the founder of Kacha digital. Credits: Angesom Teklay
The Kacha mobile money platform aims to open up opportunities for users by giving them access to secure, convenient, and cost-effective digital financial services that promote sustainable growth, expand financial inclusion, and enhance citizens’ quality of life.
More than 30,000 agent networks across the entire nation will be able to offer cashless transactions through the Kacha mobile money platform.
Opening wallet accounts, cashing in and out, microsaving, uncollateralized microcredits, microinsurance, direct payments, bill payments, international remittance, fund transfers, airtime top-up, card payments, and other cutting-edge services are among the services offered.
Angesom Teklay, the company’s founder and driving force, is the founder of Kacha. Angesom is a young serial entrepreneur who has invested in a number of startups, including Hulugram, a Telegram-based multipurpose messaging software.
Additionally, he has launched other tech firms in Africa, including the internet service provider Linknet and the company Aidu, which specialises in ICT (Telecom) Infrastructure, software development and maintenance, and Information Systems Solutions.
There are 13 shareholders in the locally designed mobile money platform. Tewodros Ashenafi, the founder and chairman of the Ethiopian holding company SouthWest Holdings Ltd. as well as the chairman of Ambo Mineral Water, is one of them. Haile Leul Tamiru, co-founder of HST Consulting Plc, is also listed as a shareholder in Kacha.
Abraham Tilahun has been named the founding CEO of Kacha Digital Financial Service, and the National Bank of Ethiopia has also approved the nomination of seven board members.
On July 28, 2022, at the Skylight Hotel, Kacha is slated to host an introduction session for participants, partners, and stakeholders in the financial services sector.
Up until recently, Telebirr was the only mobile money platform operated by a non-financial firm, and the state-owned Ethio Telecom was the first to obtain a mobile money license from National Bank.
The telebirr digital payment platform has over 21 million users, 89 master agents, over 73 thousand agents, and over 21,000 merchants as of July 19, 2022, having transacted 25 billion Birr in electronic currency.
Kacha Mobile money Ethiopia Kacha Mobile money Ethiopia
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
The African continent is of interest to numerous European scaleups due to its dynamism and rapid acceptance of innovative technologies. The Chapter54 accelerator, developed by KfW and Partech, aims to assist them in structuring their African expansion and achieving success. Be Energy and Kawarizmi make up the first group of French companies to benefit from the accelerator.
“The idea was originated by the German development bank, KfW, on behalf of the German Federal Ministry of Economic Cooperation and Growth, which thinks that entrepreneurship is one of the keys to the development of the African continent,” explains Chapter54’s Managing Director, Vincent Previ.
Vincent Previ is Chapter54’s Managing Director. Credits: Chapter54
The bank went to Partech, a fund with great expertise in European technology and good knowledge of the continent (in 2018, Partech founded Partech Africa), to develop this framework.
Thus, the financial institution becomes a sponsor of the programme established and developed by Partech Shaker, the innovation programmes department of Partech.
Chapter54 seeks to assist businesses in identifying their own development plan in order to successfully promote their product in one or more African nations.
Vincent Previ confirms that the COVID-19 pandemic has hastened the growth of some models in Africa, particularly in B2C payment and e-commerce. This reinforces the palpable, five-year-old interest in European scaleups for the African continent.
“Fifteen percent of the top European IT firms are already active in Africa,” recalls Chapter54’s general manager. “Consider Bolt, whose mobility solutions are available in 10 African countries, or Babylon Health, which has established a presence in Rwanda. We also find that B2B players are positioned, either directly or through resellers.”
“Africa seems to offer European entrepreneurs more opportunities than ever before. However, we must not forget that the African continent is comprised of over fifty countries with diverse characteristics. Sometimes, business cultures, market potential, demands, and rules vary greatly. This can soon make expanding a firm in one or more of these countries challenging. Typically, startups have their own approach for establishing themselves in a new country, comprised of important phases. It is highly probable that some processes do not function in Africa. Nonetheless, an organised strategy is required,” Vincent Preevi says.
Enters Chapter54
According to Preevi, Chapter54’s purpose is to assist firms plan their expansion in Africa by selecting the best means to do so (merger, acquisition, partnership, opening an office) and providing the appropriate resources to the appropriate projects (recruitment, training, etc.).
In contrast to other acceleration frameworks, Partech Shaker has opted to rely on a vast network of seasoned mentors.
“We have chosen to rely primarily on operational personnel who are already familiar with the African continent,” explains Vincent Previ. “They are primarily C-level or ex-C-level employees or former employees of IT players like Fawry, Jumia, Copia Global, Wasoko, as well as significant international corporations already operating in Africa like Uber, Glovo, and Galileo Global Education.”
To their knowledge are added the networks of the various African hubs with which Chapter54 has partnered — such as AfricaWorks in Cape Town, Flat6Labs in Cairo and Tunis, Nairobi Garage in Kenya, or the Westerwelle Startup House in Kigali.
“Companies participating in the programme also have access to a catalogue of advantages to facilitate their entry into the market, whether it is Afriwise, an interactive platform for the African legal sector, Asoko Insights, or the Wester,” he says.
Previ states that Chapter54 has chosen an agnostic perspective that enables it to take an interest in and support startups in a wide range of industries, including energy, payments, and advertising.
He acknowledges in order to choose a participant, the company must already have had expertise with worldwide expansion in at least two or three countries.
The general manager also states that the focus is on the number of employees rather than the revenue.
“The Chapter54 programme is quite demanding, so participants must be prepared to handle the amount of work that participation in the programme implies,” Vincent Previ says.
SumUp, CellCube, CoachHub, and two French firms, Be Energy — battery, oil, and motor regeneration — and Kawarizmi — digital advertising and programmatic media buying — are part of the inaugural cohort.
The second cohort will be selected in the fourth quarter of 2022, with support beginning in early 2023.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
