This week: Kuda loses over ₦6 billion

By
Ngozi Chukwu
Sep 17, 2022

How Nigerian neobank Kuda incurred a loss of over ₦6 billion in 2021

Kuda Financial institution co-founders: Babs Ogundeyi (CEO) and Mustapha Musty (CTO). Picture supply: Kuda MFB

Editor’s Observe

Week 37, 2022
Learn time: 5 minutes

For higher or worse, this week introduced much more regulatory drama, fascinating partnerships and brow-raising information from widespread startups. In the meantime, Brazil and Singapore made main entries into the African tech ecosystem. Learn on to be taught extra!

Immaculata Abba,
Senior Editor, TechCabal.

Editor’s Picks

	Kenya drops cash laundering circumstances Almost a dozen Nigerian firms, together with fintech unicorn Flutterwave, have been entangled in cash laundering scandals in Kenya this 12 months. This week, the Asset Restoration Company in Kenya dropped lawsuits towards three of them and unfroze their financial institution accounts. Which companies were acquitted?
	Kuda loses over ₦6 billion Nigerian neobank Kuda has been bleeding money for the previous two years. It misplaced ₦6,092,554,866 ($14,214,681) in 2021, 602% of its 2020 loss. It appears that evidently defaulted loans, rising personnel prices, and the worth of promoting are the culprits. Learn more.
	Edtech Edukoya pivots to fintech? Is Edukoya shedding weight for flight? Former staff of Nigerian Edtech Edukoya declare that the corporate is pivoting to fintech. They are saying that it fired most of its employees, retaining principally builders to construct its upcoming fintech product. Read Edukoya’s response.
	Adobe buys Figma for $20 million When you can’t beat them, purchase them. American design firm Adobe has acquired certainly one of its greatest rivals—design startup Figma—for $20 billion. The information of acquisition has stirred unrest amongst designers in Africa. Find out why.
	MultiChoice limits alternative Multichoice doesn’t need multi-users on one streaming account except they’re paying extra money. Aside from ShowMax, Multichoice will restrict streaming to 1 account on all its streaming platforms. How MultiChoice will do it.

	EBANX expands into Africa Money remains to be king in Africa. The last decade-old Brazilian funds unicorn, EBANX, says that Africa’s present state of funds reminds it of Brazil’s early days in fintech. It has expanded into Africa to push the boundaries of fintech. Learn about EBANX’s plans.

Occasion: T-minus 6 Days Till #FOC2022

When you haven’t signed as much as attend #FOC2022, what are you ready for?

At this 12 months’s Way forward for Commerce 2022, our conversations will centre round ‘cash on the streets.’

Greater than 30 enterprise leaders and consultants will talk about how innovation in funds, social media, and logistics are powering Africa’s commerce. We are going to talk about the present state, challenges, and options, from the important thing gamers within the commerce ecosystem.

#FOC2022 is a convention you don’t wish to miss, so click here to sign up now.

	Uber and Bolt face hurdles in Kenya In Kenya, laws are threatening the profitability of mobility firms Uber and Bolt. One thing comparable occurred in Tanzania. Will Uber go away Kenya prefer it left Tanzania? Learn more.
	Kenya provides digital lenders a 3-day ultimatum To curb exploitation and safeguard debtors’ rights, Kenya established laws to information the digital lending sector. Now, it has issued a three-day ultimatum, threatening to close down digital lenders who haven’t conformed to the brand new guidelines. Learn what the rules are.
	SafeBoda will get automobiles SafeBoda is getting extra wheels within the recreation. For 7 years, it provided solely bike-hailing. Now it’s including automotive rides to its mobility companies in Nigeria and Uganda. The startup says its ride-hailing companies will likely be fully cashless. Learn more.
	Rain valued at $1 billion Rain, the South African data-only cellular community operator, is now valued at about $1 billion. African Rainbow Capital Investments, its second largest investor, valued Rain so as a result of Rain maintained excessive profitability earlier than and after the easing of Covid-19 restrictions. Read more.
	Orange energy pockets transfers in Botswana Partnering with pan-African fintech Cellulant, Orange’s cellular cash service (Orange Cash) has made card-to-wallet transfers attainable for 8 banks in Botswana. Learn more.

Who introduced the cash this week?

Kenyan-based insurtech firm Turaco raised $10 million in a sequence A fairness spherical led by AfricInvest (by means of the Cathay Africinvest Innovation Fund) and Novastar Ventures.
Kippa, a Nigerian monetary administration app, raised $8.4 million in an undisclosed spherical.
BusyMed additionally raised an undisclosed quantity from Entrepreneurs for Entrepreneurs Africa (E4E Africa).

TC Crossword: Guess the gadget

I discovered ATM as a result of I’m after the money. Cease questioning whether or not an ATM is a gadget or not, begin questioning what

the other gadgets are.

High Tweets of the Week

What else to learn this weekend?

As college strikes linger, Nexford presents Nigerians with inexpensive US-licensed degrees.

Is Capiter the latest casualty of the enterprise funding downturn in Africa?

The Subsequent Wave: There was nothing particular about raising $5 billion.

Adaverse is backing a various vary of Web3 startups throughout Africa.

simply understand blockchain and key into it.

build a website for small enterprise in 5 steps.

Meet the 13 Nigerian neighborhood leaders fueling Africa’s tech expertise pipeline.

Coming into Tech #003: turn into a no-code developer.

Nigeria can’t assist its tech expertise. Now, they are leaving.

Mastering LinkedIn is a vital talent for African entrepreneurs who wish to succeed.

On Friday, the twenty third of September, TechCabal in partnership with Moniepoint (by TeamApt) will host a very powerful gamers in tech and enterprise on and off the continent to debate the way forward for commerce in Africa. Register now to attend.