In a strategic move, South African cryptocurrency platforms Revix and BitFund have joined forces with Austria’s Coinpanion to create a new powerhouse in the alternative investment space — Altify.
In an official joint statement released on Friday, the companies announced the formation of Altify with a mission to empower individuals to grow their wealth beyond traditional stock market avenues. The newly formed Altify aims to democratize access to a diverse range of alternative investment opportunities, spanning private credit, venture capital, real estate, crypto assets, and collectibles.
Altify will build upon the strengths of Revix, Coinpanion, and BitFund, continuing to offer crypto investment products, including a wide range of ETF-style crypto bundles that were a hallmark of the individual platforms.
Sean Sanders, the founder and CEO of Revix, will assume the role of Altify CEO. The unified entity, now boasting over 80,000 clients, will be headquartered in London, with additional offices in Vienna and Cape Town.
Sean Sanders, the founder and CEO of Revix
Sanders expressed the overarching goal of Altify, stating, “Our aim is to position ourselves as the go-to alternative investment platform across South Africa and the broader Europe, Middle East, and Africa region.” He emphasized the mission to bridge the investment gap, particularly targeting investors aged 25–50, and enabling everyday South Africans to capitalize on a more extensive array of investment opportunities.
The recent crypto market downturn served as a catalyst for the merger, propelling Altify to expand beyond crypto-centric offerings. Sanders highlighted the prevailing market dynamics that have created ripe conditions for consolidation within retail investment platforms, especially in the crypto space. Altify is actively exploring opportunities to collaborate with investment platforms in the UAE, UK, and Europe in the coming months.
Disclosing a collective deposit figure exceeding US$250 million, the companies underscored strong support from shareholders, including notable entities such as Johannesburg-listed specialist investment group Sabvest, CVVC, Founders Factory, Emurgo, High-Tech Gründerfonds, and Calm/Storm Ventures. Angel investors, including MySugr Founder Frank Westermann and business angel ‘Hansi’ Hansmann, further backed the transaction, solidifying Altify’s foundation for future growth and success.
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
In a development that adds a new layer of intrigue to the ongoing saga surrounding Tingo Group, the multinational fintech giant, Nasdaq has issued a request for information following the expiration of the Securities & Exchange Commission’s (SEC) temporary suspension of trading in the company’s securities.
Tingo Group, Inc. (NASDAQ: TIO), a global player in the realms of fintech, agri-fintech, food processing, and commodity trading, disclosed today that it received Nasdaq’s information request despite the SEC’s lifting of the trading suspension on November 28, 2023. Nasdaq, however, has chosen to keep the trading of Tingo’s securities halted pending a thorough review of the provided information.
The temporary suspension, initiated by the SEC on November 14, 2023, cast a shadow over Tingo Group, prompting Nasdaq to scrutinize the situation further. The company, resilient in its stance, asserts its commitment to a transparent resolution by promptly responding to Nasdaq’s inquiry within the next 3 to 4 business days. Tingo Group emphasizes its willingness to cooperate fully with Nasdaq, aiming to expedite the review process and resume trading at the earliest opportunity.
Tingo Group, listed as Nasdaq: TIO, operates globally with a significant presence in Africa, Southeast Asia, and the Middle East. The company’s diversified portfolio includes Tingo Mobile, a leading Agri-Fintech entity with a focus on innovative products, and TingoPay, a SuperApp in collaboration with Visa, offering an array of B2C and B2B services.
The recent expansion of Tingo Mobile into international markets and strategic trade partnerships seeks to elevate the company’s reach. These initiatives are contracted to boost the number of subscribed farmers from 9.3 million in 2022 to over 32 million, providing them access to various services through platforms like the Nwassa ‘seed-to-sale’ marketplace.
Apart from its core business verticals, Tingo Group also operates in food processing through Tingo Foods and engages in commodity trading through Tingo DMCC, based in the Dubai Multi Commodities Center. Additionally, the company holds an insurance brokerage platform business in China and Magpie Securities, a regulated finance services Fintech business operating in Hong Kong and Singapore.
This recent development comes against the backdrop of a series of controversies involving Tingo Group. Hindenburg Research, renowned for its short-selling strategies, targeted the company on June 6, 2023, levying allegations of financial wrongdoing and misconduct. Tingo Group, however, chose to confront these claims head-on.
On August 30, 2023, the company’s independent directors initiated a thorough investigation into Hindenburg’s allegations. Engaging independent counsel and a top-tier U.S. law firm, Tingo Group meticulously examined the claims and emerged unscathed, refuting each of Hindenburg’s allegations with a clean bill of health.
As Tingo Group navigates these challenging waters, stakeholders await Nasdaq’s review and the subsequent resolution that could determine the company’s trajectory on the stock market. The fintech giant remains steadfast in its commitment to transparency and cooperation, signaling its determination to overcome the hurdles it faces in the current financial landscape.
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
In the wake of Sam Altman’s abrupt departure from the helm of ChatGPT, a colossal $86 billion-dollar artificial intelligence behemoth, investor-backed founders across the world have found themselves terribly shaken. The unsettling reality of a founder being ousted by their own board has never been portrayed in a more unfeeling manner. Questions echo: Can investors wield such omnipotent influence that the essence of a startup, nurtured with sweat and sacrifice, dissipates at their whims? This isn’t an isolated incident but part of a recurring narrative, a stark reminder that the boardroom battleground is not for the faint of heart.
For African founders attuned to the heartbeat of the continent’s startup ecosystem, Altman’s saga might seem an anomaly garnering undue attention. After all, haven’t founders in Egypt, like those at Capiter, faced the guillotine recently? Isn’t Nigeria’s startup landscape a theatre of recurrent sackings, reshufflings, and restorations, exemplified by the tumultuous journeys of Risevest and 54Gene? Hasn’t Ghana’s Dash seen founders prosecuted, further muddying the waters of entrepreneurial uncertainty?
Yet, amidst this turbulence, a profound question lingers: Who is next? The attention on Altman’s saga serves as a compelling call for introspection, urging African founders to scrutinize the power dynamics within their own startup boardrooms. It’s a moment to pause, reflect, and decipher the implications of such upheavals.
In the African context, the urgency to dissect the power plays on the board might be downplayed. The prevailing survival mode, coupled with the less-sophisticated deal landscape dominated by pre-seed and seed-stage funding, may divert attention away from the nuances of board dynamics. However, savvy founders, those playing the long game, recognize that the road to entrepreneurial success is paved with a deep understanding of corporate governance.
As a seasoned corporate governance expert, having navigated the intricacies of numerous board and founder relationships, I seize this opportunity to sound the alarm. The questions that demand answers are not just about the when and why of constituting a board. They delve into the intricate details of power structures embedded in co-founder agreements, capitalization tables, and the strategic use of instruments like Simple Agreements for Future Equity and convertible notes. They encompass the delicate dance around intellectual property rights, Non-Disclosure Agreements, and other legal nuances, particularly those relating to stock options.
Decoding the Board’s Role in Your Startup’s Journey
In the labyrinth of a startup’s evolution, the question of when to establish a board of directors emerges as a pivotal consideration. While the embryonic stages — pre-seed, seed, ideation, and validation — may not mandate a formal board, astute founders recognize the importance of laying a robust foundation. Missteps in early structural decisions can inadvertently diminish founder authority when the critical juncture for constituting a board arrives.
Structural pillars such as co-founder agreements, capitalization tables, Simple Agreements for Future Equity, convertible notes, vesting schedules, and intellectual property ownership demand meticulous attention. Legal nuances, including advisor and consultant rights and stock option plans, must not be underestimated.
Setting the Stage: Establishing a Board for Your Startup’s Success
As a startup burgeons into the growth stage, especially during late-stage fundraising rounds, external investors often wield influence in board appointments. The board, a linchpin in steering the company, shoulders responsibilities ranging from senior management oversight to strategic direction setting. Founders, therefore, need a sagacious approach to maintain influence over board composition.
A cardinal rule in this chess game is filtering investors judiciously. The character of an investor can reverberate on the board, making investor selection a strategic lever for founders.
Sustaining Harmony: Strategies for Founder-Board Relationships
While trust is fundamental in founder-investor-board relationships, time-tested practices exist to fortify these connections. A few critical guidelines include:
Diverse Board Composition: Strive for a balanced mix of Executive, Non-Executive, and Independent Non-Executive members. A majority of Non-Executive Directors, preferably independent, fosters impartiality, mitigates conflicts, and checks excessive board powers.
Strategic appointment of independent directors: These seasoned individuals play a pivotal role in charting clear directions for the company, drawing upon their extensive experience to infuse the boardroom with fresh and innovative ideas. Independent directors who possess industry-specific expertise, as their insights are invaluable for navigating the intricacies of your business landscape. As a guiding principle, it is advisable to ensure that a majority of the Non-Executive directors are independent, reinforcing a diverse and objective perspective within the board.
Regular replacements and changes: This proactive approach to board evolution serves as a catalyst for injecting new energy and diverse viewpoints into the decision-making process. Board members, like any other aspect of a startup, should not become immune to change. A three-year cycle for board members allows for a healthy rotation, preventing the entrenchment of specific ideologies and fostering an environment receptive to evolving market trends.
Elimination of Bad Faith among Board Members: A strict avoidance of board positions in competing companies is paramount to uphold confidentiality and prevent conflicts. Therefore, prospective directors should disclose existing board memberships, minimizing suspicions and conflicts of interest.
Separation of Board Powers: A sound board should have the roles of Chairman and Managing Director/CEO decoupled to forestall concentrated authority. For example, this prevents the chairman from assuming the CEO role if the latter is displaced. There should be a standing policy of the company’s board on this.
Strategic Succession Planning: Early succession planning is not merely a precautionary measure; it serves as a cornerstone in concretizing the mandate and obligations of board members. By outlining a well-defined roadmap for leadership transitions, these plans ensure that the board’s functions remain uninterrupted, maintaining stability and strategic continuity. Succession plans offer a proactive approach to talent development within the board, identifying and nurturing potential leaders from within the existing ranks. This foresight not only mitigates the risks associated with sudden leadership changes but also facilitates a smooth transition by preparing successors well in advance.
Conflict of Interest Vigilance: Timely disclosure of any potential conflicts is imperative, subject to the company’s Conflict of Interest Policy. Accordingly, CEOs and other directors must declare conflicts of interest upon appointment and annually thereafter.
Independence: Ideally, MD/CEO and Executive Directors should abstain from remuneration, audit, and nomination and governance committees to uphold impartiality.
Administrative Rigor: A sound board should appoint a company secretary, hold quarterly board meetings, establish board committees, and define directors’ terms of engagement for clarity and focus.
External Evaluation: External Evaluation: Conducted periodically, typically on an annual basis, independent board effectiveness evaluations by external consultants serve as a vital mechanism to assess the board’s competence, diversity, and alignment with strategic goals. These evaluations are a valuable tool for identifying underperforming board members or those in need of realignment with organizational objectives.
Transparency and Governance Policies: The effectiveness of a board hinges on robust policies that guide its actions and those of its members, eliminating unwarranted surprises. Therefore, it is essential for the board to establish well-defined policies right from the outset. These policies should cover critical areas such as ownership structure, related-party transactions, anti-money laundering, terrorism financing, donations, and fraud detection, effectively mitigating the risk of board overreach. To ensure seamless implementation, directors should undergo comprehensive training on these policies before taking their positions on the board. This proactive approach not only cultivates a culture of transparency and compliance but also equips board members with the knowledge needed to make informed decisions in alignment with the established policies.
As African founders navigate the intricate tapestry of startup governance, embracing these battle-tested tactics ensures not only a smooth ride but also fortifies the foundation for enduring success. In the volatile realm of entrepreneurship, where boardrooms mirror battlefields, strategic governance becomes the armor that safeguards the visionaries forging ahead. It’s not just about surviving the boardroom battlefield; it’s about emerging victorious, with a legacy that withstands the test of time. Founders who navigate these waters adeptly lay the groundwork for sustained success and resilience.
If you’re interested in a comprehensive assessment of your board’s performance through a board effectiveness evaluation, kindly reach out to us via email at info@progressionlawfirm.com.
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
Stitch, a fintech company based in South Africa, has recently unveiled a novel cryptocurrency-based payment solution. This new offering, titled “Pay with crypto,” empowers customers to make payments directly from their cryptocurrency wallets. The introduction of this payment method aligns with the escalating popularity of cryptocurrency in the local market, where an estimated 7.7 million South Africans are reported to possess cryptocurrency to date. This trend is mirrored on a global scale, reflecting an increasing interest in utilizing cryptocurrency for transactions involving goods and services.
In an official statement, Stitch highlighted that the implementation of this payment solution enables local merchants to accept cryptocurrency payments from customers seeking to purchase products and services. Junaid Dadan, the President of Stitch, remarked, “Cryptocurrency adoption in South Africa has been one of the highest in the world. There’s a massive audience that would prefer to use their crypto to make payments. We’re excited to offer Stitch clients an opportunity to reach and serve this audience, without the need to take on direct volatility risk, thanks to our ‘Pay with crypto’ method.”
Stitch API Team
Stitch, established in February 2021 as an application programming interface fintech startup, operates with offices in Cape Town, Johannesburg, and Lagos, Nigeria. The company specializes in creating infrastructure that facilitates businesses in connecting to users’ financial accounts, ensuring seamless transactions. Among its notable enterprise clients are companies such as MultiChoice, MTN, The Foschini Group, Standard Bank’s SnapScan, and Yoco.
The ‘Pay with crypto’ option presented by Stitch allows customers to either make a deposit or complete a transaction using cryptocurrency stored in their VALR or Binance wallets, or alternatively, send Bitcoin or Ethereum directly. Accessing this payment method is straightforward: customers choose ‘Pay with crypto’ at the checkout, select their preferred wallet and cryptocurrency, and Stitch handles the conversion of cryptocurrency to ZAR, settling the merchant in ZAR on the subsequent business day.
Stitch emphasizes that any business embracing digital payments can seamlessly integrate ‘Pay with crypto’ into its operations. This includes online marketplaces, e-commerce enterprises, gaming and trading platforms, as well as local and international travel service providers. Blake Player, Head of Growth at VALR, expressed enthusiasm about the collaboration, stating, “We’re excited to see yet another partner building on top of the VALR Pay API. The Stitch integration expands the options VALR customers have to spend crypto balances in South Africa in the e-commerce market. The interest we’ve had in working with the VALR Pay product has been amazing, and we’re expecting high growth in the volume of crypto payments as it becomes more widely accepted.”
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
In a dynamic landscape where African startups navigate the challenges of funding scarcity, two notable acquisitions have recently unfolded, underscoring the resilience and ambition of the continent’s entrepreneurial spirit.
Neighbourgood’s Merger with Local Knowledge:
South African proptech startup Neighbourgood has made headlines with its acquisition of Cape Town-based traveltech startup Local Knowledge in a cash and equity deal valued at $1.5 million. Describing the move as more than a merger, Neighbourgood envisions a union of two visionary missions to redefine urban living and travel experiences.
The acquisition coincides with the launch of a viral tourism ad featuring comedian Trevor Noah, in partnership with the Tourism Business Council of South Africa (TBCSA). With a bold target of attracting 21 million visitors by 2035, TBCSA CEO Tshifhiwa Tshivhengwa aims to build on last year’s 5.8 million inbound international tourists.
Murray Clark, Neighbourgood CEO
Neighbourgood, established in 2020, currently provides around 1000 living and workspaces for tourists, predominantly in South Africa, and plans to deploy an additional 650 next year. Leveraging Local Knowledge’s expertise in connecting travelers with local communities, Neighbourgood aims to create The Experience Vertical — a platform offering personalized suggestions and exclusive insights into city life, curated by knowledgeable locals.
Murray Clark, Neighbourgood CEO, sees this acquisition as a significant milestone in the travel and hospitality industry, envisioning a future where travel is about building friendships and communities. Neighbourgood’s ambitious plans extend beyond Cape Town, with an expansion into California slated for next year.
Chimoney’s Strategic Move in Fintech:
On another front, Nigerian fintech startup Chimoney has quietly sealed an undisclosed deal to acquire Scrim App, a social payment app catering to Gen Z. Founded by Pleasant Balogun two years ago, Scrim App enables users to send payments via social handles and direct messages.
Uchi Uchibeke, Chimoney CEO, commends the brilliance behind Scrim’s concept and expresses confidence in its growth potential. The Scrim App is set to be relaunched in December 2023, powered by Chimoney’s API and Wallet as a Service (WaaS).
The relaunched Scrim App promises enhanced features, including earning opportunities, shopping with Scrim wallet balance, and global real-time payments. Users will have flexible withdrawal options, including transfers to bank accounts in over 100 countries, mobile money wallets in 17 countries, and engaging in cryptocurrencies across seven blockchains.
Uchibeke emphasizes the seamless integration of Scrim with Chimoney’s API, ensuring greater stability and reliability while preserving the Scrim name and brand. The collaboration is positioned to elevate Scrim to new heights, offering users a diverse range of financial options.
These acquisitions highlight the strategic efforts of African startups to expand their reach, diversify their offerings, and overcome funding challenges, signaling a promising trajectory for the continent’s entrepreneurial ecosystem. As these ventures unfold, the African startup landscape continues to be a focal point for innovation and growth.
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
In the latest developments surrounding Fawry’s alleged security breach, the company has released the findings of a meticulous examination conducted by Group-IB, a globally recognized cybersecurity firm. The results of this examination affirm that Fawry’s systems, serving both individual and institutional clients, remain secure with no signs of breach or data leakage.
Fawry, a leading e-payments solutions provider in Egypt, took a proactive step by enlisting Group-IB to conduct a thorough examination of its systems and applications. The multinational cybersecurity firm’s comprehensive review of the infrastructure supporting Fawry’s applications has provided assurance that the company’s security measures are robust and effective.
Group-IB’s affirmative findings have been promptly communicated to regulatory authorities, and Fawry expresses gratitude for their collaboration throughout the inspection process. In light of these examinations, Fawry reassures its users that no data related to cards used in its applications or any financial transactions, whether for individuals or institutions, has been compromised. The company emphasizes that its applications remain entirely safe for use.
Addressing a recent incident, Fawry acknowledges the temporary suspension of the myFawry application, attributing it to an unprecedented surge in customer demand that exceeded the application’s capacity. Fawry assures its customers that a measured and composed approach is being taken to restore normal functionality to all applications promptly.
In an additional commitment to user security, Fawry pledges to conduct thorough verification procedures regarding information circulated on various websites. This verification will only proceed after ensuring the absolute integrity of the infrastructure supporting applications for individuals and institutions.
As Fawry and Group-IB collaborate to address concerns and fortify security measures, the unfolding situation will continue to be closely monitored. Updates will be provided as the company works towards full restoration and verification of its systems.
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
In a recent turn of events, Fawry, Egypt’s leading electronic payment solutions and digital financial services company, is grappling with allegations of a significant security breach. The company, however, vehemently denies these claims and asserts the integrity of its electronic defenses.
Amidst rumors circulating on social media platforms suggesting a potential cyber attack on Fawry, the company took swift action by conducting live investigations on its servers. The results of these tests, according to Fawry, reveal that servers serving both customers and banks have not suffered any breaches. Additionally, Fawry assures its users that no financial or banking data of customers has been compromised.
Credits: Fawry
In an official statement, Fawry emphasized its commitment to the highest cybersecurity standards, aligning with the requirements set by global regulatory authorities. The company seeks to quell concerns about the alleged breach, maintaining that the reports are unfounded.
However, conflicting information has surfaced online, with some users claiming unauthorized charges on their accounts. A screenshot circulating on social media purports to be an internal memo from AAIB, suggesting that Fawry is undergoing a cyber attack and customer information may be exposed. The alleged perpetrator behind this breach is the LockBit 3.0 ransomware, with a ransom deadline set for November 28. The amount demanded remains undisclosed.
Fawry users are urged to take precautionary measures, with some social media posts advising the removal of credit card details from the Fawry app until the situation is resolved. Despite the company’s reassurances, these reports have caused a minor dip in Fawry’s stock price, slipping from 5.46 Egyptian pounds to 5.2 EGP — approximately a 4.75% decrease in Fawry’s stock price as at the time this report was filed.
As the situation unfolds, Fawry For Banking Technology And Electronic Payment S.A.E, a company providing online payment, ATMs, mobile wallets, and retail points, faces increasing scrutiny over the alleged security breach. The company’s response and the evolving details of the cyber attack will be closely monitored to determine the full extent of the incident and its impact on Fawry and its users. We will continue to provide updates as more information becomes available.
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
Gozem, a startup from Togo that offers on-demand transportation, food delivery, and courier services through its app, has announced its acquisition of Moneex , a fintech company based in Benin. While the exact value of the deal remains undisclosed, Gozem’s CEO, Raphael Dana, mentioned that Moneex’s founders will become equity stakeholders in Gozem.
This acquisition is aimed at bolstering Gozem’s capabilities by integrating Moneex’s expertise. The goal is to develop a mobile wallet service, which will pave the way for Gozem to obtain a license to offer a financial service known as ‘Gozem Money’ to customers in both Togo and Benin.
Gozem positions itself as a super app, aspiring to achieve the same level of ubiquity and usage as leading Chinese apps like WeChat and AliPay. The company boasts 160,000 unique customers across four countries, including Cameroon and Gabon. Its app provides transportation options such as motorcycles, tricycles, and cars, positioning itself as the French-speaking West Africa equivalent of Uber. Gozem has secured funding of $46.6 million from various investors, including the World Bank’s International Finance Corporation.
Gozem’s CEO, Raphael Dana. Credits: Gozem
Moneex, previously focused on facilitating remittances between Europe and Benin through cryptocurrencies, changed its direction in 2022. It shifted its focus to offer multi-currency accounts to both businesses and individuals. As they were seeking investment, Gozem stepped in to acquire the company and integrate its services to enhance Gozem’s existing offerings.
This marks Gozem’s second acquisition since its launch in 2018. In 2020, the company acquired Delivroum, a food delivery service in Togo, for an undisclosed amount.
While the concept of super apps has waned in Africa in recent years, Gozem remains committed to its super app vision. Unlike Chinese-backed startup OPay, which abandoned its super app ambitions after facing regulatory challenges, Gozem continues to thrive. Motorcycles play a vital role in transportation in cities like Lome and Cotonou, serving as the backbone for services such as food delivery and courier services. These regions have effectively enforced safety regulations, making commercial motorcycle use safe and secure.
Gozem’s strategy includes offering value-added services, like providing credit to enable users to purchase cars, with the aim of attracting more users to its platform. Additionally, bringing a payments company on board to create ‘Gozem Money’ aligns with its growth plans, which involve expanding into other countries in the CFA currency region and exploring further acquisition opportunities.
Raphael Dana, the CEO of Gozem, expressed confidence in their choice to start in Togo and expand into the Francophone region, citing the attraction of currency stability. They deliberately chose a market that was not too large to facilitate learning without intense competition, as seen in larger markets like Nigeria. The CEO emphasized that the demand for on-demand transportation remains a fundamental and massive daily need in their chosen regions.
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
In a remarkable move demonstrating their unwavering commitment to the ever-evolving African job market, Socium, a startup established in 2021 by Samba Lo, has announced its expansion into Central Africa with the inauguration of a new office in Douala, Cameroon. This strategic decision marks a pivotal milestone in the company’s journey, solidifying its dedication to meeting the continent’s increasing demands for recruitment and personnel administration solutions.
Already having established offices in Senegal and Côte d’Ivoire, Socium has strategically chosen Cameroon as the launchpad for its expansion into Central Africa, citing its belief in the market’s maturity and the country’s dynamism.
To steer this ambitious endeavor, the company proudly welcomes Jordan Tchato as the Director of Central Africa. Tchato’s wealth of experience and in-depth understanding of the unique challenges of Central Africa positions him as a crucial asset in guiding Socium’s growth in this vibrant region.
With a current workforce of 25 employees, Socium stands out with its predominantly African ownership structure. Following a successful initial fundraising round of one million euros conducted between February and May 2022, the startup has extended its reach in West Africa, now operating in over 20 countries across the continent. It boasts a robust network of partners, encompassing more than 90 companies of all sizes, 25 schools and universities, and has forged close ties with active diasporas.
Among its distinguished clients, Socium serves multinational corporations such as Orange, EY, and Philip Morris, as well as national champions like Petroivoire and Azalaï. With a presence in Gabon and Cameroon, Socium aims to expand further throughout the entire sub-region. This expansion carries particular significance in a region where businesses and their employees grapple with significant organizational challenges, particularly in areas like salary administration, contracts, and validations. By embracing a comprehensive approach to human resources, Socium aspires to streamline the day-to-day operations of businesses while bolstering their ability to attract top local and international talent.
Samba Lo, the CEO of Socium, expresses his enthusiasm for this expansion, emphasizing, “Socium was conceived from our vision of a vibrant and interconnected African continent. Our presence in Central Africa signifies a major stride in realizing this vision, and we are eager to continue aiding local businesses and talents in driving growth and innovation.”
Samba Lo is the CEO of Socium. Credits: Socium
Jordan Tchato, the new Director of Socium for Central Africa, also eagerly anticipates this opportunity, stating, “It is a true honor to join the Socium team to lead the company’s operations in Africa. I am convinced that our expertise in recruitment and personnel administration will bring real added value to this burgeoning region, helping businesses and professionals fully harness their potential.”
The inauguration of the Douala office represents a significant step in the ongoing expansion of Socium in Africa, underlining its steadfast dedication to economic empowerment and connectivity on the continent. Socium positions itself as a comprehensive provider of Human Resources Information Systems (HRIS), encompassing the entire human resources cycle, from recruitment to personnel administration. The different modules have been developed by incorporating the specificities of local markets, offering a tailored solution to meet the unique needs of businesses across the African continent.
Socium is a pan-African startup founded by Samba Lo in 2021, committed to delivering innovative recruitment and human resources management solutions. With a robust network of partners and a team of dedicated professionals, Socium is devoted to driving business growth and supporting career development across Africa. Its comprehensive HRIS solution, integrating local specificities, streamlines human resources management, enhances productivity, and facilitates decision-making.
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
Xpand IT, a company specializing in IT managed services with its headquarters located north of Johannesburg, has successfully acquired Premier IT Solutions, an IT support firm situated in the East Rand region. The financial details of this acquisition remain undisclosed.
In a recent statement, Xpand IT announced the acquisition of a majority stake in Premier IT Solutions, marking a significant step towards Xpand IT’s future growth objectives and reaffirming its commitment to enhancing the overall customer experience. Brett Scott, Managing Director of Xpand IT, explained, “While our main office is based in the northern part of Johannesburg, our intention was to expand our presence to the east of the city. This strategic move aligns perfectly with our overarching business strategy, which aims to expand our national footprint and provide broader customer coverage through the establishment of multiple branches, both domestically and internationally.”
Brett Scott, Managing Director of Xpand IT
With over a decade of experience and strong local relationships in the East Rand area, Premier IT Solutions brings a valuable dimension to Xpand IT’s positioning in the market, according to Scott. Neil Sears, the owner of Premier IT Solutions, expressed his enthusiasm about the partnership: “We are excited to join forces with Xpand IT, a company renowned for its expertise in support and cybersecurity. This collaboration enables us to enhance our existing client relationships and offer a wider range of services.”
Xpand IT anticipates that this acquisition will benefit both its existing and potential clients. The expanded geographical footprint is expected to enhance service accessibility. The company aims to leverage its strengths to bring additional services and operational efficiencies to Premier IT Solutions’ client base.
Looking ahead, Xpand IT has ambitious growth plans and is actively seeking partnerships in various locations, including Bloemfontein, Kimberley, Mbombela (Nelspruit), Paarl (Winelands), Polokwane (Pietersburg), Rustenburg, Gqeberha (PE), Gaborone, and Windhoek.
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
