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Nigeria Based Mobile Solutions GONA Raises Multi-million Dollar Fund For Expansion     |     MTN gets mobile money licence in Nigeria     |     Truecaller Launches User Verification Solution For The Mobile Web     |     Banks In Nigeria Will No Longer Require Separate License To Operate Mobile Banking     |     Opera Founded Startup OPay Raises $50M For Mobile Finance in Nigeria     |    
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Nigeria Based Mobile Solutions GONA Raises Multi-million Dollar Fund For Expansion

August 4, 2019
Gona

More Africa-focused startups are raising funds to either expand or grow their businesses this year. Apart from Opay’s recent funding round, GONA, the Chinese startup that offers cashless bus services and payment solutions with a focus on the Nigerian market is the latest to join the bandwagon.

This is remarkable because it shows that the African startup ecosystem is gradually fusing into the global startup ecosystem.

Gona

Here Is The Deal

  • News website, c.m.163.com says the Chinese-led investment came from Crystal Stream Capital, UnityVC and Shaka VC.
  • According to Liu Xiaojun, the founder and CEO of GONA the round of financing will be used for team building and product technology upgrades.
  • This new investment will further allow GONA to employ more locals to help develop the product and expand its popularity.

“We will try to employ the best people to help the most Lagosians have a better daily commuting experience,” says co-founder, Noah Gu.

  • Larry, a partner at ShakaVC, notes that the minibus scene provides more efficient and convenient travel services for hundreds of millions of Africans, and the market potential is huge. 
  • As the first Chinese fund to focus on early African investment in Africa, ShakaVC will support the development of GONA in local resources, experience, and capital.
  • GONA boasts of thousands of active users and nearly 10,000 transactions every day.
GDP From Transport in Nigeria increased to 288637 NGN Millions in the first quarter of 2019 from 277338.67 NGN Millions in the fourth quarter of 2018. GDP From Transport in Nigeria averaged 198649.70 NGN Millions from 2010 until 2019, reaching an all-time high of 288637 NGN Millions in the first quarter of 2019 and a record low of 144848.60 NGN Millions in the first quarter of 2010.

What GONA Does

  • GONA is a mobile payments platform with primary operations in Lagos. 
  • GONA is enabling cashless payments on ‘informal transit’ public buses in Lagos and is also working to solve the pains of inconvenience in the local travel market. This it is doing by using technical means to improve operational efficiency.

‘‘The Rains Are Here, You deserve a less stressful bus ride to work. Pick up your smartphone and purchase a ticket on GONA, monitor the closest buses to you and hop onto one. Pay for your ride in style, avoid the chaos of “No Change”, Gona tweeted.

  • The startup recently announced the completion of a multi-million dollar Pre-A round of financing.
  • Even though GONA is headquartered in China, Lagos remains its primary focus. In Lagos, GONA has fully completed localization, with roll-out in certain routes within Lagos, one of which is Yaba to the University of Lagos (UNILAG) campus.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Truecaller Launches User Verification Solution For The Mobile Web

July 18, 2019
Truecaller

Enables developers to instantly verify users on mobile web products.

Truecaller has announced the global launch of its Truecaller SDK solution exclusively for the mobile web platform. With this, Truecaller SDK now supports all the key mobile platforms across Android, iOS, React and now mobile web including Progressive Web App support. Developers can access the mWeb SDK from Truecaller’s global developer portal.

Across emerging markets like India and Africa, mobile web-based experiences on smartphones are proving to be the first point of discovery for users trying to access products and services online. One of the key challenges in these markets has been to on-board users using email or other modes and getting verified using the inefficient OTP process.

This SDK solution on the mobile web is intended to simplify this process for developers through its OTP-less and free to use phone number based verification solution, allowing their users to seamlessly and securely access services using their Truecaller credentials.

Truecaller
 

This ensures there are reduced barriers along with fewer user drop-offs and resulting in increased growth in verified users that contributes to minimized business risks for the developer.

Commenting on the launch, Priyam Bose, Global Head, Developer Platform & Relations, Truecaller, said: “Our vision has always been to enable the developer community by providing them with solutions that help them to build user-focused, trust-based and growth-oriented products.

User onboarding and verification continue to be one of the critical use cases for developers as it is crucial in creating the first impression for their users in terms of building a seamless and secure product experience. On an average, developers in growth markets are starting to see anywhere between 40%-60% of their users now coming from mobile web, giving us more reasons to launch our Truecaller SDK solution for mobile Web interfaces.”

This launch extends Truecaller’s philosophy of building and solving problems at scale for users and developers globally, with value-driven functionalities. Truecaller SDK service for the mobile web platform can be used to fulfill use cases such as mobile number based signup, login, checkout, verification, and more such touch-points across the user journey.

Early access developer partners for this service also shared their experiences.

Mukund Laddha, Product Manager, OYO, said: “At OYO, we have been expanding globally at a rapid pace. Improving user experience during authentication has been a key area of focus. This integration with Truecaller presented us with an opportunity to present users with a reliable alternate login method with a large presence across countries. This has made user on-boarding on the web more fluid and frictionless.”

Zairus Master, the CEO, Shine.com, said: “At Shine.com, our constant endeavor is to improve our end-user experience by adopting best-in-class technologies. As an early access partner, the integration with Truecaller’s verification solution for mobile web platform will help candidates simplify their registration process on Shine.com and facilitate a constantly active and verified set of candidates on the platform, complete with their updated contact details. We believe that this product integration will give Shine.com a competitive edge over other job portals which solely rely on traditional, OTP-based verification.”

According to Udit Tyagi, Product Head, Times Internet Limited – Indian Languages News Business: “In the ever-evolving world of PWA’s the gap between app and mWeb is slowly fading away and users expect uniformity and seamlessness in terms of experience and onboarding irrespective of the platform.

By leveraging Truecaller SDK for mobile web, we have been able to improve the on-boarding experience of users in our canvas of mobile web apps. In our case, onboarding conversions via Truecaller are 41% higher compared to standard onboarding processes.”

 

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

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Banks In Nigeria Will No Longer Require Separate License To Operate Mobile Banking

July 16, 2019
mobile banking

Whether it is to reach for more financial inclusion or to open up the heavily regulated Nigerian banking sector, Nigeria’s apex bank is already facing the heat of global digital disruption in the financial services sector. From now on, banks in Nigeria would no longer be required to have a separate license to operate a mobile banking app.

Here Is Why This Change Is Significant

  • Before now, to operate a mobile money service in Nigeria, the operator shall, among other things be : 
  • (a) Be licensed by the CBN on such terms and conditions as the Central Bank shall desire.
  • Such terms and conditions usually involve the presentation of evidence of the formation of the Consortium that will deploy the project (Certificate of Incorporation) 
  • The Consortium’s profile and functional contact e-mails and telephone numbers 
  •  Securities features that will be put in place 
  • 3 years Financial projections for the company 
  • Draft agreements with the following: a. Technical Partners b. Participating banks c. Switching company/(s) 24 d. Merchants e. Telcos f. Any other party 
  • Tax Clearance Certificate for three (3) years of each party in the Consortium 
  • Project Deployment Plan (time, location, operation, etc.) 
  • Payment of non-refundable Application fee of N100,000.00 (One hundred thousand naira) made payable to the CBN 
  • Evidence of Shareholders’ Fund of N2 billion before a license is issued
  • This document, and may be reviewed from time to time. 
  • Be issued a unique Scheme Code by the NIBSS for managing interoperability.

But all that is about to change

Going forward, once the Central Bank of Nigeria is satisfied that your current license to provide financial services in Nigeria suffices, the need to procure an additional license for your business would be obviated.

“You do not need authorisation from the CBN to go into Wallet services or mobile money schemes. All you need is to notify the CBN your current license suffix,” CBN Department of Banking and Payment System said at the First Bank cross border seminar for Banking and Telecom Regulators from sub-Saharan Africa.

  • Banks Are Being Reluctant Investing In Mobile Money Because The Heavy Regulations Don’t Make Any Case For Profitability
  •  Many institutions in Nigeria are using prepaid payment cards and the mobile phone as a means of providing financial services to the previously financially excluded. 
  • While not a bank account in the traditional sense, mobile wallets, and prepaid card products provide individuals with a safe electronic store of value and electronically initiated and accepted payment transactions and funds transfers. 
  • In 2015, the CBN published both a Regulatory Framework for Mobile Money Services in Nigeria and Guidelines on Mobile Money Services. 
  • The Regulatory Framework makes provision for only two specific models, namely bank-led, or non-bank led (a corporate organization duly licensed by the CBN). 
  • Mobile money was one of the major segments of the Nigeria e-payment ecosystem primed by the CBN to drive its financial inclusion vision, in which 80 percent of Nigerians will be established in the national banking system by 2020. 
  • However, mobile money operators (MMOs) have had little success in supporting the country’s financial inclusion targets. 
  • This is mostly due to a lack of proper understanding of the conditions of their licenses, limited funds, poor infrastructure in rural areas, and limited customer access due to limited agent network rollouts. 
  • Most of the licensed Mobile Money Operators in Nigeria are believed to have remained inactive and many have yet to officially commence payment platform operations. 
  • Consequently, the CBN took the decision to raise the capital requirements for licenses from N500 million to N1 billion at the end of December 2017 and now to N2 billion, with a caveat that any operator that fails to meet the 1 July 2018 deadline for the new capital requirements will have its licenses revoked, further reducing participation.
  • The implication of these for Nigerian banks is that from now on, they would no longer be required to have a separate license to operate a mobile banking app.
  • However, on the other hand, the situation of non-bank led organizations involved in mobile operation remain heavily uncertain, as they may be required to still apply for and obtain licenses.

Cold Feet On Digital Currencies

Expecting Nigeria’s apex bank to adopt cryptocurrencies? This still remains a dream. 

The apex bank’s position on the adoption of digital currencies still remains that: 

“We [CBN] have not made up our mind on what steps to take but I am not sure or believe that the CBN will ever go crypto.

“We know what they are doing in Sweden and China. We are not running on the same parameter and so based on financial inclusion, adopting digital currency will mean a number of our population will be excluded.”

 

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/

Opera Founded Startup OPay Raises $50M For Mobile Finance in Nigeria

July 10, 2019
OPay

OPay is just a year old in Nigeria, but the startup is already making waves. Nigerian road users would be familiar with the green livery motorbike hailing startup ORide, which is a part of the OPay business. Founded by Norwegian browser company Opera, OPay, the Africa-focused mobile payments startup has raised $50 million in new funding. 

OPay
 

A Look At The Funding

  • A large chunk of the investment came from investors including Sequoia China, IDG Capital, and Source Code Capital. Opera also joined the round in the payments venture it created.
  • OPay intends to use the capital (which wasn’t given a stage designation) primarily to grow its digital finance business in Nigeria — Africa’s most populous nation and largest economy.
  • OPay will also support Opera’s growing commercial network in Nigeria, including its motorcycle ride-hail app ORide and OFood delivery service.
  • Opera founded Opay in 2018 on the popularity of its internet search engine. Opera’s web-browser has ranked number two in usage in Africa, after Chrome, the last four years.

The Startup’s Statistics

  • On the payments side, OPay in Nigeria has scaled to 40,000 active agents and $5 million in transaction volume in 10 months.
  • The $50 million investment in OPay is more than just another big round in Africa. It has significance for the continent’s tech-ecosystem on multiple levels.
  • To start, OPay’s raise tracks greater influence in African tech from China — whose engagement with African startups has been light compared to China’s deal-making on infrastructure and commodities. OPay founder Opera was acquired in 2016 for $600 million by a consortium of Chinese investors, led by current Opera CEO Yahui Zhou.
  • The majority of the investment for OPay’s raise comes from Chinese funds and sources, including Source Code Capital, Sequoia China, and GSR Ventures. There’s not a lot of statistical data on the value of Chinese VC investment in Africa, but a large portion of $50 million to a fintech venture stands out.

See Also: Nigeria: Ride-Hailing Startup MAX.ng Raises $7M Round To Go Electric 

This New Investment May Mean A Major Shift For Nigerian Digital Payments Startups

  • OPay’s VC haul also has significance vis-a-vis digital-finance in Nigeria. In tandem with other trends, it could support the shift of Nigeria surpassing Kenya as Africa’s digital payments leader. For years Kenya has outpaced Nigeria in P2P digital payments volumes and digital financial inclusion, largely due to the rapid adoption of mobile-money products, such as Safaricom’s M-Pesa.
  • Some of this is due in part to Nigeria’s Central Bank limiting the ability of non-banks (including telcos) to offer mobile payment services. The CBN eased many of those restrictions earlier this year. This opens the door for mobile-operators like MTN, with the largest phone network in Nigeria, to offer mobile-money products. In addition to fintech regulatory improvements, there’s been a gradual increase in VC flowing to Nigerian payment ventures.
  • The country’s leading digital payment company, Paga, raised $10 million in 2018 to further expand its customer base that now tallies 13 million. OPay’s $50 million backed commitment to grow mobile money in Nigeria should provide another big boost to digital-finance adoption across the country’s 190 million people.
  • And not to be overlooked is how OPay’s capital raise moves Opera toward becoming a multi-service commercial internet platform in Africa. Part of the $50 million investment includes diversifying country and product offerings. “Geographic expansion of OPay and other services is a key part of our plans,” Opera CEO Yahui Zhou told TechCrunch via email.

This could place OPay and its Opera supported the suite of products on a competitive footing with other ride-hail, food-delivery, and payments startups across the continent. It could also mean competition between Opera and Africa’s largest multi-service internet company, e-commerce unicorn Jumia.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/
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