Startups & Corporate Governance

London-based Data-driven Cleantech Platform Bboxx Relocates HQ to Rwanda, Plans $100M Investment

January 30, 2024

London-based Bboxx, the data-driven super platform dedicated to transforming lives across Africa, has announced a strategic move of its Headquarters from London to Kigali. The decision was revealed today at the UK-Rwanda Business Forum in Kigali, underlining the company’s commitment to Africa as an “Africa-first” entity.

The move signals a significant step in Bboxx’s mission to connect consumers and deploy innovative products across the continent. Bboxx plans to invest USD$100 million in Rwanda, training nearly 1000 Rwandans in the next five years. This announcement aligns with the company’s ambitious goals for the new year, aiming to impact 36 million people by 2028, following a USD$100 million partnership with Kuwaiti investment company EnerTech announced in December 2023.

Expanding Impact in Africa

Bboxx, founded in 2010, initially focused on addressing energy poverty in Africa. Over the past 13 years, it has expanded into 11 African markets, providing electricity to over 10% of Rwanda’s households. The company has diversified its range of products and services, from solar energy to pay-as-you-go clean cooking solutions, water pumps, smartphones, and electric vehicles.

Strategic Move to Kigali

Simultaneously, Rwanda’s transformation over the past two decades, coupled with business-friendly policies, makes it an opportune location for Bboxx to base its operations. The decision to move the headquarters to Kigali places Bboxx at the core of Africa’s rapidly evolving energy and technology sectors, enhancing access to key markets and reinforcing its commitment to long-term, sustainable growth.

Francis Gatare, CEO of the Rwanda Development Board, welcomed the move, stating, “Bboxx’s decision aligns with our efforts for Rwanda as a magnet for smart, sustainable investments.” Rwanda offers a conducive business environment, a growing pool of tech and engineering talent, and easy access to the rest of Africa through its national carrier, Rwandair.

Partnerships and Commitments

Bboxx’s move is supported by strong partnerships with African governments, including the Government of Rwanda. This highlights the shared commitment to electrify the continent and empower remote communities economically. The company’s vision is a testament to its dedication to a brighter, more sustainable African future.

The UK, a key development partner for Rwanda, sees Bboxx’s move as a reflection of the strong relationship between the two nations. The British High Commissioner, His Excellency Omar Daair OBE, noted, “Bboxx’s move to Kigali exemplifies the UK’s ongoing support for African innovation.”

Bboxx’s Transformative Mission

Mansoor Hamayun, CEO and Co-Founder of Bboxx, expressed the significance of the move, stating, “In our journey to revolutionize access to essential products and services across Africa, it’s only fitting that we position ourselves at the heart of the continent.” The relocation promises to bring Bboxx closer to the communities it serves, ensuring reliable and innovative solutions to the challenges they face.

With the President of Rwanda, Paul Kagame, serving as the Commonwealth Chair-in-Office, the move to Kigali positions Bboxx strategically, reinforcing its commitment to Africa and its dedication to being a data-driven super platform for transformative change.

Bboxx is a data-driven super platform championing economic empowerment in Africa. Through its fully integrated operating system, Bboxx Pulse®, the company connects customers with clean energy, clean cooking, smartphones, e-mobility, and selected financial products. With a pay-as-you-go model, Bboxx aims to provide convenient and affordable solutions, positively impacting over 3.6 million people in 10 operating markets. The move to Kigali signifies a pivotal chapter for Bboxx as it strives to unlock potential 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.

South African Fintech Ukheshe Acquires EFT Corporation in Strategic Fintech Move

January 25, 2024

Ukheshe Technologies CEO Clayton Hayward

In a significant development for the African fintech landscape, Ukheshe International has successfully acquired 100% ownership of EFT Corporation Limited (EFTCorp) from its parent company, Loita Transaction Services (LXS). This strategic move follows Ukheshe’s noteworthy 2022 acquisition of Masterpass in South Africa and the closure of a funding partnership with Development Partners International (DPI) in 2023.

The acquisition marks a major milestone for both Ukheshe and EFTCorp, demonstrating their shared commitment to innovation and growth in transforming financial services across the African continent. Both companies will continue to operate independently under their respective brand identities, maintaining a focus on their unique strengths and expertise.

EFTCorp, a pioneering force in digital payments with 23 years of experience, operates in 35 African markets, supporting over 100 banks and processors. The company is renowned for its core switching skills and issuer processor technology. Ukheshe, on the other hand, offers a comprehensive range of end-to-end digital services aimed at digitizing banking partners.

The deal positions Ukheshe to access new technologies and opportunities in a diverse market, expanding its reach across Africa and the Middle East. EFTCorp’s management, including its founding CEO Stephen Enderby, will continue to lead the company in the next phase of growth.

Ukheshe’s expertise in digital onboarding, KYC, digital wallets, and various payment channels will present new opportunities to digitize EFTCorp’s traditional customer base, providing them with an expanded suite of innovative digital services. This collaboration ensures EFTCorp’s customers will continue to engage with a trusted brand while gaining access to cutting-edge fintech solutions.

Clayton Hayward, Co-founder and CEO of Ukheshe, expressed his enthusiasm about the consolidation, stating, “The market is ripe for consolidation and disruption, bringing together these like-minded executive teams and our great products positions us to dominate the African continent as the preferred banking solutions partner.”

The acquisition aligns with the group’s strategic goals of scaling and innovating while extending its footprint across markets in Africa and beyond. This move is expected to deliver increased value to customers, shareholders, and partners.

EFTCorp’s CEO, Stephen Enderby, shared his perspective on the partnership, saying, “Together with Ukheshe, we combine great products and extensive executive depth to achieve our growth ambitions. As a group, we continue to look for complementary acquisitions and investment opportunities across the continent and the Middle East.”

James Griffiths, Partner at DPI, expressed his excitement about supporting Ukheshe in this acquisition, emphasizing confidence in Ukheshe’s innovative vision, strong leadership, and exciting growth potential.

Ukheshe International, a leading fintech enablement partner with a global footprint, specializes in enterprise platform delivery of embedded finance. The company strives for transformation and innovation in the payment industry, creating scalable and secure components ready for deployment in market-leading digital-first propositions.

EFT Corporation, with over 22 years of market experience, is a focused payment and eCommerce solutions provider catering to corporations requiring electronic payment solutions. With a robust presence across Africa, EFT Corp services over 140 retail and financial clients and represents seven industry-leading international partners.

Ukheshe EFT Corporation Ukheshe EFT Corporation

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.

Egypt’s Paymob Becomes First International Fintech Company to Obtain Full Payment License in Oman

January 19, 2024

In a pioneering move, Paymob, the leading financial services enabler in the Middle East, North Africa, and Pakistan (MENAP) region, has successfully obtained a Payment Service Provider (PSP) license from the Central Bank of Oman, becoming the first international fintech company to achieve this feat in the Sultanate.

The PSP license, acquired by Paymob after meeting all regulatory requirements stipulated by the Central Bank of Oman, grants the company the authority to accept and process payments both online and in physical stores throughout the Sultanate. This achievement is facilitated by local integration with the Central Bank of Oman Payments Network, known as Oman Net. The license also allows Paymob to offer a streamlined payment gateway, enabling merchants in the local market to accept a wide range of local and international payments.

Paymob’s CEO, Islam Shawqi, expressed pride in the company’s historic accomplishment, stating, “We are proud to be the first international fintech company to obtain a payment services provider license in the Sultanate of Oman. We appreciate the trust placed in our technology by the Central Bank of Oman, and we remain committed to enabling the growth of SMEs in the Sultanate.”

The Omani banking sector has been experiencing a notable shift towards digitization in recent years. The period from 2018 to 2022 witnessed a remarkable 300% increase in transactions processed through the Oman Net payments network, demonstrating the business sector’s commitment to digital transformation in line with Oman Vision 2040.

The issuance of the PSP license to Paymob aligns with the broader goals of Oman Vision 2040, emphasizing the importance of transitioning towards a digital economy. With electronic transactions soaring from 82.4 million to 252.9 million during this period, the Omani banking sector is clearly embracing digitization as a key driver of economic growth.

By obtaining the PSP license in Oman, Paymob continues to fulfill its mission of empowering SMEs in the MENAP region to thrive in the digital economy. The company offers a comprehensive range of innovative digital payment solutions, boasting forty payment methods — the most extensive selection in the region. These services contribute to increased sales, improved conversion rates, and enhanced customer retention, positioning Paymob as a crucial player in the evolving landscape of financial technology.

Founded in 2015, Paymob has rapidly emerged as one of the fastest-growing fintech companies in the MENAP region. With more than 250,000 merchants currently served, the company has garnered support from a distinguished group of regional and global investors, including PayPal Ventures, Kora Capital, Clay Point Capital, Global Ventures, FMO, A15, British International Investment, Helios Digital Ventures, and Nclude.

As Paymob paves the way for further fintech advancements in Oman, the company’s success highlights the ongoing transformation of the regional financial landscape and the increasing importance of digital payments in shaping the economic future of the Sultanate.

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.

HOSTAFRICA Expands its African Footprint with Acquisition of Kenya’s Lenasi Hosting

January 18, 2024

In a strategic move to solidify its presence in the rapidly growing digital landscape of Africa, HOSTAFRICA, a leading South African provider of hosting solutions, has successfully acquired the web hosting business of Lenasi Hosting, a prominent player in the Kenyan web hosting market. The acquisition, effective from December 21, 2023, marks HOSTAFRICA’s commitment to expanding its reach across the continent and diversifying its product offerings.

This announcement follows HOSTAFRICA’s recent acquisitions in Kenya, including EAC Directory in December 2022 and Sasahost, demonstrating the company’s keen interest in establishing a strong foothold in one of Africa’s burgeoning technological hubs.

“Kenya is a growing technological hub within Africa, and Lenasi Hosting has shown that it is a performer in Kenya’s thriving digital sector. This acquisition is a strategic step for us as we look to amplify our global performance while enhancing the local Twende Kazi (‘let’s work’) spirit in our offerings. We believe this union will marry our technological prowess with the local specifics to bring even greater returns for our clients,” explained HOSTAFRICA CEO Michael Osterloh.

Lenasi Hosting, a key player in the Kenyan web hosting market for seven years, has built a strong reputation for providing exceptional domain registration and web hosting services. The company’s dedication to customer satisfaction and innovative solutions has made it a reliable partner for businesses striving to thrive in the digital space.

“This acquisition is a strategic move that will benefit both Lenasi and HOSTAFRICA. Lenasi has built a strong reputation and loyal customer base in the web hosting market, while HOSTAFRICA has the scale, reach, and innovation to take it to the next level,” said Newton Mwaniki, CEO of Lenasi Hosting.

Under the HOSTAFRICA brand, Lenasi Hosting will be fully integrated, bringing forth several key changes to enhance the customer experience. These changes include an upgraded customer support system and an improved selection of products and services. The integration aims to combine Lenasi Hosting’s local expertise with HOSTAFRICA’s global resources, providing clients with an even more robust and diverse range of hosting solutions.

HOSTAFRICA’s latest acquisition reinforces its commitment to meeting the evolving needs of businesses in Africa’s dynamic digital landscape. As the company continues to expand its footprint, clients can expect enhanced services and unparalleled support, reflecting HOSTAFRICA’s dedication to delivering cutting-edge hosting solutions 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

Baims Edges Towards Regional Dominance with Strategic Acquisition of Egypt’s Orcas in $11 Million Deal

January 9, 2024

Kuwaiti education technology company, Baims, has successfully completed the acquisition of its Egyptian counterpart, Orcas, in a comprehensive 100% deal. Established in 2017 by Bader Al-Rasheed and Yousef Alhusaini, Baims specializes in delivering online pre-recorded courses to university and high school students across Saudi Arabia, Kuwait, Bahrain, and Jordan. This strategic move aims to integrate Orcas’ personalized tutoring services into Baims’ existing platform, creating a synergistic and adaptable educational experience for learners in the MENA region.

Orcas, founded in 2019 by Hossam Taher and Amira El Gharib, provides tailored learning experiences to K12 students in international schools. The combined efforts of Baims and Orcas have attracted over $11 million in funding from prominent investors such as Access Bridge Ventures, Algebra Ventures, NFX Ventures, AlWazzan Educational Group, Rasameel Investment Company, Seedstars International Ventures, and AK Holding. This collaboration positions the newly consolidated entity as a leading EdTech player in the MENA region.

With the MENA education landscape evolving toward hybrid learning models, Baims and Orcas are committed to offering comprehensive education solutions that encompass both synchronous and asynchronous formats. Yousef AlHusaini, CEO of Baims, emphasizes the significance of the acquisition, stating, “By acquiring Orcas Tutoring, we are not just expanding our reach; we are redefining the EdTech landscape in MENA.” This consolidation aims to address the profound challenges faced by students in the region.

Baims, known for its online tailored recorded courses for university students, sees the acquisition of Orcas as a strategic move to enhance its offerings. The incorporation of Orcas’ personalized tutoring services into the platform aims to create a well-rounded and adaptable educational experience for students across the MENA region.

Hossam Taher, CEO of Orcas Tutoring, highlights the goal of establishing product and market synergies. The focus is on introducing personalized K12 tutoring services in the GCC and expanding the portfolio to cater to the diverse needs of university students.

While Baims plans expansion in the GCC, particular attention is given to the growing Saudi Arabian market. Recognizing Riyadh as a future startup hub, Baims aims to solidify its presence by launching specialized AI-driven test preparation products. The company also plans to expand its offerings by incorporating one-to-one tutoring services and reaching more universities in Saudi Arabia.

The newly consolidated company, leveraging the experience of both teams, seeks to achieve its objectives of product and market expansion, along with regional dominance. Seasoned professionals with over 35 years of combined experience in the EdTech space, including Hossam Taher and Amira El Gharib, join Baims’ leadership.

The strategic acquisition has gained support from investors who recognize the potential of the consolidated entity in transforming education in the MENA region. Issa Aghabi, Managing Partner at Access Bridge Ventures, expresses enthusiasm for the promising path ahead for EdTech in the Middle East.

Despite the immense potential, the $100 billion education market in the MENA region remains largely untapped. Baims aims to bridge the gap by offering a consolidated platform that fosters skill development and prepares students for success in the workforce.

Baims also envisions contributing to job creation in the MENA region. Yousef AlHusaini emphasizes the goal of not only solving the education problem but also creating more job opportunities in Saudi Arabia, Kuwait, Egypt, UAE, and Jordan.

The Orcas exit, led by CEO Hossam Taher, is seen as a positive development for the Egyptian startup ecosystem. In a challenging environment, Orcas’ focus on expansion serves as a beacon of hope for the region. Taher remarks, “Our journey with Orcas has been about empowering students and teachers, and with Baims, we see this impact expanding even further.”

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.

MINDEX Launches Mauritius’ First Virtual Assets Marketplace

December 29, 2023

MINDEX, a leading financial technology company, proudly announced the inauguration of Mauritius’ inaugural virtual assets marketplace, marking a significant milestone for the region’s financial ecosystem. The Financial Services Commission (FSC) recently granted MINDEX the Virtual Assets Marketplace license, further expanding its capabilities in the digital financial landscape.

This achievement follows MINDEX’s previous approvals for the digital securities exchange and clearing house from the FSC in February 2023 and the MINDEX Digital Custodian in January 2022. The newly acquired license complements MINDEX’s existing digital securities exchange, digital custodian, and clearing house, creating a comprehensive ecosystem for users to exchange virtual assets, including tokenized real-world assets, stablecoins, and cryptocurrencies.

Manisha Dookhony, Chairperson of MINDEX Limited and Advisor to multiple African governments, expressed optimism, stating that this development positions Mauritius as a regulated center for virtual assets in Africa and beyond. She emphasized the positive impact of this step towards creating a unique marketplace for virtual assets, aligning with the vision of the African Continental Free Trade Area (AfCFTA).

Christian Angseesing, Chairman of the Board of MINDEX Digital Custodian Limited, praised the FSC’s forward-thinking approach, seeing it as a proactive endorsement of innovation and technology. He highlighted the potential for Mauritius to become a hub that unites investors from diverse African economies, fostering economic collaboration.

MINDEX leverages blockchain technology to facilitate regulated market access for both institutional and retail investors. The company aims to establish a comprehensive digital ecosystem for Africa, combining its digital custodian, exchange, clearing and settlement facilities, and now, a virtual assets marketplace. With three decades of success as an International Financial Centre (IFC), Mauritius is poised to retain its competitive edge by embracing the opportunities presented by financial technology.

Jessica T. Naga, CEO of MINDEX, emphasized the importance of providing investors worldwide with direct access to information for assessing investment opportunities. She highlighted MINDEX’s commitment to utilizing blockchain technology to optimize trade and enhance liquidity in Africa.

The government’s commitment to establishing Mauritius as a regulated FinTech hub of choice for Africa is evident in the FSC’s issuance of relevant licenses to MINDEX. The move signifies a strategic step towards leveraging local skills and capabilities to propel the jurisdiction to new heights in the evolving landscape of digital finance.

MINDEX’s aspiration is to build a fully regulated virtual asset ecosystem that spans Mauritius, Africa, and beyond. By harnessing blockchain technology, the company aims to streamline financial services and products, providing a comprehensive suite of services, including listings, automated transactions, collateralization, fund administration, asset management, and post-trade support.

All On Invests $2.25M in Nigeria’s Baobab+ for Solar Solutions

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’s Latest Scorecard: A Bounce in Earnings Overshadowed by Revenue Challenges

December 27, 2023

Mostafa Kandil, Swvl’s co-founder and CEO

In the ever-evolving landscape of tech-driven mobility solutions, Swvl Holdings Corp has recently presented a financial scorecard that showcases a noteworthy rebound in earnings, but not without casting shadows over its revenue performance. The Nasdaq-listed company, a prominent player in enterprise and government mobility solutions globally, is making headlines for its resilience amid economic headwinds, yet questions linger about the sustainability of its financial turnaround.

Earnings vs. Revenue: A Delicate Balance

The latest financial report for the first half of 2023 unveils a stark contrast between Swvl’s earnings and revenue. While the company boasts positive figures in operating cash flow and net profits, the revenue picture paints a less rosy scenario. The figures present a financial narrative where earnings are the shining star, but revenue remains a stumbling block.

Earnings in the Spotlight:

One cannot ignore the commendable achievements in Swvl’s earnings. Operating cash inflows of $2.2 million in H1 2023, compared to the staggering outflows of $76.8 million in H1 2022, highlight a strategic pivot that merits applause. The gross profit of $1.8 million in H1 2023, in contrast to the gross loss of $2.7 million in H1 2022, signals a significant boost in operational efficiency. The operating profit’s impressive shift from a loss of $56.0 million to a profit of $13.4 million showcases the effectiveness of the portfolio optimization program initiated last year.

Most striking is the reversal in net profit, transforming from a daunting net loss of $161.6 million in H1 2022 to a positive net profit of $2.1 million in 2023. CEO Mostafa Kandil attributes this success to the team’s adept handling of a macroeconomic downturn, crediting the completion of the portfolio optimization strategy.

Revenue Woes:

However, the celebration of earnings is tempered by the less-than-stellar revenue figures. Swvl reports a decrease in revenue from $21,671,391 to $11,116,013, signaling challenges in generating top-line growth. The drop raises critical questions about the company’s market positioning, the impact of its strategic decisions, and the adaptability of its business model.

The sale of subsidiary Urbvan, representing approximately 7% of Swvl’s IFRS revenues, for gross proceeds of $12 million, adds another layer to the revenue puzzle. The move prompts industry observers and investors to ponder the implications for future revenue streams and the overall strategic direction of SWVL.

SWVL profit 2023 SWVL profit 2023 SWVL profit 2023

Algeria Commences Tax Convention With Japan

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.

MaxAB and Wasoko Merge for Survival Amid Funding Crunch: Exploring Key Motivations

December 22, 2023

There are currently ongoing merger talks between Egyptian B2B e-commerce startup MaxAB and Kenyan-based e-commerce player Wasoko, Bloomberg reports. Multiple sources have confirmed the ongoing negotiations, emphasizing that the terms of the deal remain undisclosed, and the agreement has not been finalized. As the negotiations progress, a closer examination unveils the profound motivations driving this potential collaboration.

Addressing Funding Scarcity in B2B E-commerce

The merger discussions arise against the backdrop of a challenging landscape for B2B e-commerce companies in Africa, grappling with funding scarcity. Wasoko, in particular, recently underwent a significant round of layoffs in response to financial constraints, accentuating the pressing need for strategic alliances to navigate these challenges effectively.

Optimizing Resources and Achieving Synergies

Sources indicate that both MaxAB and Wasoko recognize the potential for resource optimization and synergies in a combined entity. By merging operations, the two companies aim to pool their strengths, leveraging each other’s assets and capabilities to create a more resilient and efficient B2B e-commerce platform.

Strategic Geographic Expansion

The merger presents a strategic opportunity for both entities to expand their geographic footprint. Wasoko, having exited West Africa, sees this collaboration as a means to consolidate its presence in East Africa and explore new markets. Simultaneously, MaxAB, which had envisaged expansion into Saudi Arabia, may find the combined entity to be a more robust platform for realizing its regional ambitions.

Navigating Market Dynamics and Achieving Profitability

The challenges faced by Wasoko, including its recent market exits and significant layoffs, underscore the imperative for B2B e-commerce companies to adapt swiftly to market dynamics. The merger is viewed as a strategic move to enhance operational efficiency, achieve profitability, and fortify the joint entity against uncertainties in the competitive landscape.

Unlocking Funding Potential

While Wasoko secured a substantial funding round last year, the merger discussions reveal a nuanced financial backdrop. The release of funds contingent on meeting milestones has fueled the need for additional resources, making the merger an avenue to unlock potential funding and strengthen the financial foundation of the joint entity.

Creating a B2B Powerhouse

The merger positions MaxAB and Wasoko as a formidable force in the B2B e-commerce arena, connecting suppliers with a vast network of traditional and informal retailers across multiple markets. This strategic alignment is envisioned to create a powerhouse capable of providing a comprehensive suite of services to a combined network of over 450,000 merchants in eight African countries.

As the negotiations progress, the core motivations behind the MaxAB and Wasoko merger underscore a shared commitment to overcoming industry challenges, optimizing resources, and strategically positioning themselves for sustained growth and resilience in the dynamic B2B e-commerce landscape of Africa. The outcome of these talks holds significant implications for the future trajectory of B2B e-commerce 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

Why Algeria’s Taxi Union Is Filing a Complaint Against Local Startup Yassir

In a bid to address longstanding concerns, the Algerian taxi union is demanding an increase in taxi fares and taking legal action against the ride-sharing platform Yassir. The National Union of Taxi Transporters (SNTT) sent a letter to the Minister of Transport on December 18, highlighting that taxi fares have remained unchanged since 2012.

The SNTT argues that the lack of fare adjustments is putting a strain on taxi drivers, particularly in light of efforts to increase salaries for civil servants and retirees. Affiliated with the UGTA, the union contends that despite being regulated, taxi pricing fails to meet the needs of Algerian workers and retirees, emphasizing the necessity to address the challenges faced by their profession.

Alongside concerns about the escalating operational costs for taxi drivers, the union is raising issues regarding the “illegal competition” posed by clandestine transporters and ride-sharing applications. These applications, which have proliferated in recent years across Algeria, are accused of creating an unfair playing field for traditional taxi services.

In a proactive move, the SNTT has also lodged a complaint against Yassir. In their letter, the union suggests a solution to alleviate the burden on taxi drivers, proposing a scheme that allows them to acquire vehicles without taxes. This, the union argues, would enable taxi drivers to implement a “reasonable” increase in fare prices.

The situation highlights the evolving landscape of transportation services in Algeria, with traditional taxi services grappling with economic challenges and seeking regulatory adjustments to ensure their sustainability in the face of emerging competition.

Yassir Taxi union

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 in Crisis: CEO Faces SEC Fraud Charges Amidst Company’s Downfall

December 19, 2023

In a startling sequence of events, Tingo Group, a once-thriving fintech entity, is now caught in the throes of a deepening crisis. The latest blow comes as the company’s CEO, Dozy Mmobuosi, faces serious fraud charges filed by the US Securities and Exchange Commission (SEC). This development marks the culmination of a series of allegations, regulatory interventions, and market turbulence, spelling out a grim narrative for the embattled company.

The saga began on June 6, 2023, when Hindenburg Research, a reputable short seller, released a damning report that pierced through the veneer of Tingo Group’s success. The report alleged financial improprieties, casting doubt on the legitimacy of Tingo’s reported user base, pointing to licensing irregularities, and raising questions about the veracity of the company’s financial practices.

The aftermath of Hindenburg’s revelations was swift and brutal. Tingo Group’s stock prices plummeted by an alarming 60%, triggering a seismic shock in the market. Investors, once optimistic about the fintech giant’s future, found themselves facing unprecedented uncertainty, with growing concerns over the integrity of their investments.

In response to these grave allegations, Tingo Group’s independent directors took a proactive stance. On August 30, 2023, they initiated a comprehensive internal investigation, enlisting the expertise of independent counsel and a top-tier legal firm to scrutinize the claims made by Hindenburg Research. The company aimed to address the allegations head-on and provide clarity to stakeholders amid the escalating crisis.

However, matters took a decisive turn on November 14, 2023, when the US Securities and Exchange Commission (SEC) stepped in, suspending trading in Tingo Group and its subsidiary, Agri-Fintech Holdings. The SEC cited concerns regarding the adequacy and accuracy of publicly available information, casting a dark shadow over the company’s operations.

The climax of Tingo Group’s ordeal has now unfolded with the SEC filing charges of “massive fraud” against CEO Dozy Mmobuosi. The charges allege Mmobuosi orchestrated a scheme to fabricate financial statements and engage in fictitious transactions through Nigerian subsidiaries, totaling billions of dollars.

Turbulence Continues: Nasdaq Keeps Tingo Group Further Suspended Amid New Query

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

Afrikan Heroes

Category: Startups & Corporate Governance