Pages Navigation Menu

The blog of DataDiggers

Categories Navigation Menu

Live Briefing: Ethiopian Airlines Crash Updates: E.U. Suspends Boeing Max Operations, but F.A.A. Stands Firm

Posted by on Mar 13, 2019 in Airlines and Airplanes, Aviation Accidents, Safety and Disasters, ethiopia, Ethiopian Airlines, kenya | 0 comments

The latest on the crash of Ethiopian Airlines Flight 302, a Boeing 737 Max 8.
Source: New York Times

Read More

African e-commerce startup Jumia files for IPO on NYSE

Posted by on Mar 12, 2019 in africa, eCommerce, Egypt, Fundings & Exits, Ghana, Goldman Sachs, IPO, jumia, kenya, Lagos, morgan stanley, morocco, Naspers, Nigeria, online retail, Rocket Internet, Smartphones, Startup company, Startups, TC, tech startup, travel bookings, U.S. Securities and Exchange Commission, unicorn | 0 comments

Pan-African e-commerce company Jumia filed for an IPO on the New York Stock Exchange today, per SEC documents and confirmation from CEO Sacha Poignonnec to TechCrunch.

The valuation, share price and timeline for public stock sales will be determined over the coming weeks for the Nigeria-headquartered company.

With a smooth filing process, Jumia will become the first African tech startup to list on a major global exchange.

Poignonnec would not pinpoint a date for the actual IPO, but noted the minimum SEC timeline for beginning sales activities (such as road shows) is 15 days after submitting first documents. Lead adviser on the listing is Morgan Stanley .

There have been numerous press reports on an anticipated Jumia IPO, but none of them confirmed by Jumia execs or an actual SEC, S-1 filing until today.

Jumia’s move to go public comes as several notable consumer digital sales startups have faltered in Nigeria — Africa’s most populous nation, largest economy and unofficial bellwether for e-commerce startup development on the continent. Konga.com, an early Jumia competitor in the race to wire African online retail, was sold in a distressed acquisition in 2018.

With the imminent IPO capital, Jumia will double down on its current strategy and regional focus.

“You’ll see in the prospectus that last year Jumia had 4 million consumers in countries that cover the vast majority of Africa. We’re really focused on growing our existing business, leadership position, number of sellers and consumer adoption in those markets,” Poignonnec said.

The pending IPO creates another milestone for Jumia. The venture became the first African startup unicorn in 2016, achieving a $1 billion valuation after a $326 funding round that included Goldman Sachs, AXA and MTN.

Founded in Lagos in 2012 with Rocket Internet backing, Jumia now operates multiple online verticals in 14 African countries, spanning Ghana, Kenya, Ivory Coast, Morocco and Egypt. Goods and services lines include Jumia Food (an online takeout service), Jumia Flights (for travel bookings) and Jumia Deals (for classifieds). Jumia processed more than 13 million packages in 2018, according to company data.

Starting in Nigeria, the company created many of the components for its digital sales operations. This includes its JumiaPay payment platform and a delivery service of trucks and motorbikes that have become ubiquitous with the Lagos landscape.

Jumia has also opened itself up to traders and SMEs by allowing local merchants to harness Jumia to sell online. “There are over 81,000 active sellers on our platform. There’s a dedicated sellers page where they can sign-up and have access to our payment and delivery network, data, and analytic services,” Jumia Nigeria CEO Juliet Anammah told TechCrunch.

The most popular goods on Jumia’s shopping mall site include smartphones (priced in the $80 to $100 range), washing machines, fashion items, women’s hair care products and 32-inch TVs, according to Anammah.

E-commerce ventures, particularly in Nigeria, have captured the attention of VC investors looking to tap into Africa’s growing consumer markets. McKinsey & Company projects consumer spending on the continent to reach $2.1 trillion by 2025, with African e-commerce accounting for up to 10 percent of retail sales.

Jumia has not yet turned a profit, but a snapshot of the company’s performance from shareholder Rocket Internet’s latest annual report shows an improving revenue profile. The company generated €93.8 million in revenues in 2017, up 11 percent from 2016, though its losses widened (with a negative EBITDA of €120 million). Rocket Internet is set to release full 2018 results (with updated Jumia figures) April 4, 2019.

Jumia’s move to list on the NYSE comes during an up and down period for B2C digital commerce in Nigeria. The distressed acquisition of Konga.com, backed by roughly $100 million in VC, created losses for investors, such as South African media, internet and investment company Naspers .

In late 2018, Nigerian online sales platform DealDey shut down. And TechCrunch reported this week that consumer-focused venture Gloo.ng has dropped B2C e-commerce altogether to pivot to e-procurement. The CEO cited better unit economics from B2B sales.

As demonstrated in other global startup markets, consumer-focused online retail can be a game of capital attrition to outpace competitors and reach critical mass before turning a profit. With its unicorn status and pending windfall from an NYSE listing, Jumia could be better positioned than any venture to win on e-commerce at scale in Africa.


Source: The Tech Crunch

Read More

Partech is doubling the size of its African venture fund to $143 million

Posted by on Jan 31, 2019 in africa, berlin, Business, Column, east africa, economy, entrepreneurship, Finance, kenya, Nairobi, paris, partech ventures, Private Equity, San Francisco, Startup company, TPG Growth | 0 comments

Partech has doubled its Africa VC fund to $143 million and opened a Nairobi office to complement its Dakar practice.

The Partech Africa Fund plans to make 20 to 25 investments across roughly 10 countries over the next several years, according to General Partner Tidjane Deme. The fund has added Ceasar Nyagha as Investment Officer for the Kenya office to expand its East Africa reach.

Partech Africa will primarily target Series A and B investments and some pre-series rounds at higher dollar amounts. “We will consider seed-funding—what we call seed-plus—tickets in the $500,000 range,” Deme told TechCrunch on a call from Dakar.

“In terms of sectors, we’re agnostic. We’ve been looking at all…sectors. We’re open to all plays; we have a strong appetite for people who are tapping into Africa’s informal economies,” he said.

African startups who want to pitch to the new fund should seek a referral. “My usual recommendation is to find someone who can introduce you to any member of the team. We receive a lot of requests…but an intro and recommendation…shortcuts one through all that,” Deme said.

Headquartered in Paris, Partech has offices in Berlin, San Francisco, Dakar, and now Nairobi. To bring the Arica fund to $143 million the VC firm tapped a number of other funds, several undisclosed corporate venture arms, and development finance institutions.

They include Averroes Finance III, the IFC, the EBRD, and African Development Bank. Deme would not list figures, but confirmed “the IFC and European Bank for Reconstruction committed the largest amounts.”

On why players like the IFC, which has its own VC shop for African startups, would place capital with Partech, Deme explained, “many have existing mandates to co-invest…others may not know this territory as well and would rather invest in another fund” with regional experience.

Partech used that experience in 2018 to make 4 investments in African startups (2 undisclosed). They led the $16 million round in South African fintech firm Yoco (covered here at TechCrunch) and a $3 million round in Nigerian B2B e-commerce platform TradeDepot.

Partech Africa joined several Africa focused funds over the last few years to mark a surge in VC for the continent’s startups. Partech announced its first raise of $70 million in early 2018 next to TLcom Capital’s $40 million, and TPG Growth’s $2 billion.

Africa focused VC firms, including those locally run and managed, have grown to 51 globally, according to recent Crunchbase research.

As for a bead on total VC spending for African tech, figures can vary widely.

By Partech’s numbers, compiled from an annual survey it does on Africa, 2017 funding for African startups reached $560 million.

Partech hasn’t released its 2018 Africa VC estimate but it will now be up  some $70 million more from its own recent raise.


Source: The Tech Crunch

Read More

Flutterwave and Visa launch African consumer payment service GetBarter

Posted by on Jan 17, 2019 in africa, android, Apple, cameroon, ceo, Column, credit cards, E-Commerce, economy, Facebook, Finance, flutterwave, Ghana, greycroft, kenya, M-Pesa, mastercard, money, Nigeria, online payments, rave, San Francisco, South Africa, spokesperson, Uber, Uganda, visa, vodafone | 0 comments

Fintech startup Flutterwave has partnered with Visa to launch a consumer payment product for Africa called GetBarter.

The app based offering is aimed at facilitating personal and small merchant payments within countries and across Africa’s national borders. Existing Visa card holders can send and receive funds at home or internationally on GetBarter.

The product also lets non card-holders (those with accounts or mobile wallets on other platforms) create a virtual Visa card to link to the app.  A Visa spokesperson confirmed the product partnership.

GetBarter allows Flutterwave—which has scaled as a payment gateway for big companies through its Rave product—to pivot to African consumers and traders.

Rave is B2B, this is more B2B2C since we’re reaching the consumers of our customers,” Flutterwave CEO Olugbenga Agboola—aka GB—told TechCrunch.

The app also creates a network for clients on multiple financial platforms, such as Kenyan mobile money service M-Pesa, to make transfers across payment products, national borders, and to shop online.

“The target market is pretty much everyone who has a payment need in Africa. That includes the entire customer base of M-Pesa, the entire bank customer base in Nigeria, mobile money and bank customers in Ghana—pretty much the entire continent,” Agboola said.

Flutterwave and Visa will focus on building a GetBarter user base across mobile money and bank clients in Kenya, Ghana, and South Africa, with plans to grow across the continent and reach those off the financial grid.

“In phase one we’ll pursue those who are banked. In phase-two we’ll continue toward those who are unbanked who will be able to use agents to work with GetBarter,” Agboola said.

Flutterwave and Visa will generate revenue through fees from financial institutions on cards created and on fees per transaction. A GetBarter charge for a payment in Nigeria is roughly 40 Naira, or 11 cents, according to Agboola.

With this week’s launch users can download the app for Apple and Android devices and for use on WhatsApp and USSD.

Founded in 2016, Flutterwave has positioned itself as a global B2B payments solutions platform for companies in Africa to pay other companies on the continent and abroad. It allows clients to tap its APIs and work with Flutterwave developers to customize payments applications. Existing customers include Uber, Facebook, Booking.com, and African e-commerce unicorn Jumia.com.

Flutterwave has processed 100 million transactions worth $2.6 billion since inception, according to company data.

The company has raised $20 million from investors including Greycroft, Green Visor Capital, Mastercard, and Visa.

In 2018, Flutterwave was one of several African fintech companies to announce significant VC investment and cross-border expansion—see Paga, Yoco, Cellulant, Mines.ie, and  Jumo.

Flutterwave added operations in Uganda in June and raised a $10 million Series A round in October that saw former Visa CEO Joe Saunders join its board of directors.

The company also plugged into ledger activity in 2018, becoming a payment processing partner to the Ripple and Stellar blockchain networks.

Flutterwave hasn’t yet released revenue or profitability info, according to CEO Olugbenga Agboola.

Headquartered in San Francisco, with its largest operations center in Nigeria, the startup plans to add operations centers to South Africa and Cameroon, which will also become new markets for GetBarter.


Source: The Tech Crunch

Read More

The Biblical Guide to Reporting

Posted by on Sep 1, 2018 in Bible, Christians and Christianity, Iscariot, Judas, Jesus Christ, kenya, Las Vegas (Nev), Liberty University, News and News Media, News Sources, Confidential Status of, ProPublica, Trump, Donald J | 0 comments

I spent five years in Christian ministry. My faith has made me a better journalist.
Source: New York Times

Read More

MallforAfrica goes global, Kobo360 and Sokowatch raise VC, France explains its $76M fund

Posted by on Aug 3, 2018 in africa, android, B2B, Business, ceo, Column, designer, dhl, E-Commerce, east africa, economy, Emmanuel Macron, Entrepreneur, France, Ghana, Honeywell, kenya, kobo360, Lagos, Marketing, mobile phones, Nigeria, paris, president, Proparco, Rwanda, senegal, SMS, sokowatch, Tanzania, TechCrunch, Uber, unilever, Village Global, wi-fi, Y Combinator | 0 comments

B2B e-commerce company Sokowatch closed a $2 million seed investment led by 4DX Ventures. Others to join the round were Village Global, Lynett Capital, Golden Palm Investments, and Outlierz  Ventures.

The Kenya based company aims to shake up the supply chain market for Africa’s informal retailers.

Sokowatch’s platform connects Africa’s informal retail stores directly to local and multi-national suppliers—such as Unilever and Proctor and Gamble—by digitizing orders, delivery, and payments with the aim of reducing costs and increasing profit margins.

“With both manufacturers and the small shops, we’re becoming the connective layer between them, where previously you had multiple layers of middle-men from distributors, sub-distributors, to wholesalers,” Sokowatch founder and CEO Daniel Yu told TechCrunch.

“The cost of sourcing goods right now…we estimate we’re cutting that cost by about 20 percent [for] these shopkeepers,” he said

“There are millions of informal stores across Africa’s cities selling hundreds of billions worth of consumer goods every year,” said Yu.

These stores can use Sokowatch’s app on mobile phones to buy wares directly from large suppliers, arrange for transport, and make payments online. “Ordering on SMS or Android gets you free delivery of products to your store, on average, in about two hours,” said Yu.

Sokowatch generates revenues by earning “a margin on the goods that we’re selling to shopkeepers,” said Yu. On the supplier side, they also benefit from “aggregating demand…and getting bulk deals on the products that we distribute.”

The company recently launched a line of credit product to extend working capital loans to platform clients. With the $2 million round, Sokowatch—which currently operates in Kenya and Tanzania—plans to “expand to new markets in East Africa, as well as pilot additional value add services to the shops,” said Yu.

MallforAfrica and DHL launched MarketPlaceAfrica.com: a global e-commerce site for select African artisans to sell wares to buyers in any of DHL’s 220 delivery countries.

The site will prioritize fashion items — clothing, bags, jewelry, footwear and personal care — and crafts, such as pictures and carvings. MallforAfrica is vetting sellers for MarketPlace Africa online and through the Africa Made Product Standards association (AMPS), to verify made-in-Africa status and merchandise quality.

“We’re starting off in Nigeria and then we’ll open in Kenya, Rwanda and the rest of Africa, utilizing DHL’s massive network,” MallforAfrica CEO Chris Folayan told TechCrunch about where the goods will be sourced. “People all around the world can buy from African artisans online, that’s the goal,” Folayan told TechCrunch.

Current listed designer products include handbags from Chinwe Ezenwa and Tash women’s outfits by Tasha Goodwin.

In addition to DHL for shipping, MarketPlace Africa will utilize MallforAfrica’s e-commerce infrastructure. The startup was founded in 2011 to solve challenges global consumer goods companies face when entering Africa.

French President Emmanuel Macron <a href=”https://pctechmag.com/2018/05/french-president-emmanuel-macron-launches-a-usd76m-africa-startup-fund/”>unveiled a $76 million African startup fund at VivaTech 2018 and TechCrunch paid a visit to the French Development Agency (AFD) — who will administer the new fund — to get details on how it will work.

The $76 million (or €65 million) will divvy up into three parts, AFD Digital Task Team Leader Christine Ha told TechCrunch.

“There are €10 million [$11.7 million] for technical assistance to support the African ecosystem… €5 million will be available as interest-free loans to high-potential, pre-seed startups…and…€50 million [$58 million] will be for equity-based investments in series A to C startups,” explained Ha during a meeting in Paris.

The technical assistance will distribute in the form of grants to accelerators, hubs, incubators and coding programs. The pre-seed startup loans will issue in amounts up to $100,000 “as early, early funding to allow entrepreneurs to prototype, launch and experiment,” said Ha.

The $58 million in VC startup funding will be administered through Proparco, a development finance institution — or DFI — partially owned by the AFD. “Proparco will take equity stakes, and will be a limited partner when investing in VC funds,” said Ha.

Startups from all African countries can apply for a piece of the $58 million by contacting any of Proparco’s Africa offices.

The $11.7 million technical assistance and $5.8 million loan portions of France’s new fund will be available starting in 2019. On implementation, AFD is still “reviewing several options…such as relying on local actors through [France’s] Digital Africa platform,” said Ha. President Macron followed up the Africa fund announcement with a trip to Nigeria last month.

Nigerian logistics startup Kobo360 was accepted into Y Combinator’s 2018 class and gained some working capital in the form of $1.2 million in pre-seed funding led by Western Technology Investment.

The startup — with an Uber like app that connects Nigerian truckers to companies with freight needs — will use the funds to pay drivers online immediately after successful hauls.

Kobo360 is also launching the Kobo Wealth Investment Network, or KoboWIN — a crowd-invest, vehicle financing program. Through it, Kobo drivers can finance new trucks through citizen investors and pay them back directly (with interest) over a 60-month period.

On Kobo360’s utility, “We give drivers the demand and technology to power their businesses,” CEO Obi Ozor told TechCrunch. “An average trucker will make $3,500 a month with our app. That’s middle class territory in Nigeria.”

Kobo360 has served 324 businesses, aggregated a fleet of 5480 drivers and moved 37.6 million kilograms of cargo since 2017, per company stats. Top clients include Honeywell, Olam, Unilever, and DHL.

Ozor thinks the startup’s asset-free, digital platform and business model can outpace traditional long-haul 3PL providers in Nigeria by handling more volume at cheaper prices.

“Logistics in Nigeria have been priced based on the assumption drivers are going to run empty on the way back…When we now match freight with return trips, prices crash.”

Kobo360 will expand in Togo, Ghana, Cote D’Ivoire and Senegal.

[PHOTO: BFX.LAGOS] And finally, applications are open for TechCrunch’s Startup Battlefield Africa, to be held in Lagos, Nigeria, December 11. Early-stage African startups have until September 3 to apply here.

More Africa Related Stories @TechCrunch

More Africa Related Stories @TechCrunch

·         CowryWise micro-savings service opens high-yield government bonds to everyday Nigerians


African Tech Around the Net

·         More Than Half of Sub-Saharan Africa to Be Connected to Mobile by 2025, Finds New GSMA Study
·         Ethiopia’s Gebeya acquires Coders4Africa to accelerate its growth
·         Rwanda, Andela partner to launch pan-African tech hub in Kigali
·         Google’s free public Wi-Fi initiative expanded to Africa
·         Accounteer wins 2018 MEST Entrepreneur challenge
·         SafeBoda completes expansion to Kenya, now live in Nairobi
·         Uganda government sued over social media tax


Source: The Tech Crunch

Read More

Sokowatch closes $2 million seed round to modernize Africa’s B2B retail

Posted by on Jul 26, 2018 in africa, android, Business, ceo, Column, E-Commerce, east africa, economy, kenya, kpmg, mobile phones, Nigeria, Retail, SMS, supply chain, Tanzania, TC, unilever, Village Global | 0 comments

Kenya based Sokowatch aims to shake up the supply chain market for Africa’s informal retailers.

The B2B e-commerce company closed a $2 million seed investment led by 4DX Ventures. Others to join the round were Village Global, Lynett Capital, Golden Palm Investments, and Outlierz  Ventures.

Sokowatch’s platform connects Africa’s informal retail stores directly to local and multinational suppliers—such as Unilever and Proctor and Gamble—by digitizing orders, delivery, and payments with the aim of reducing costs and increasing profit margins.

The term disrupt is used less frequently in African tech since startups are often entering new business spaces where there’s little to actually disrupt.

That’s not the case with Sokowatch, which sees price and productivity benefits to revamping existing supply chain structures for Africa’s informal retailers.

“With both manufacturers and the small shops, we’re becoming the connective layer between them, where previously you had multiple layers of middle-men from distributors, sub-distributors, to wholesalers,” Sokowatch founder and CEO Daniel Yu told TechCrunch.

“The cost of sourcing goods right now…we estimate we’re cutting that cost by about 20 percent [for] these shopkeepers,” he said

Quantifying the size and potential of Africa’s informal markets has captured the attention of economists and startups. GDP revisions in several African countries have revealed outdated statistical methods were missing billions of dollars in economic activity. And one estimate by The International Labor Organization places up to two-thirds of Sub-Saharan Africa’s non-agricultural employment in the informal economy.

On the number of small shops on the continent, Yu noted a lack of reliable numbers but cited a 2016 KPMG study pegging fast moving consumer goods spending in Nigeria alone at $41 billion annually. A portion of those goods move through the continent’s vast network of roadside markets, shops, and stands.

“There are millions of informal stores across Africa’s cities selling hundreds of billions worth of consumer goods every year,” said Yu.

These stores can use Sokowatch’s app on mobile phones to buy wares directly from large suppliers, arrange for transport, and make payments online. “Ordering on SMS or Android gets you free delivery of products to your store, on average, in about two hours,” said Yu.

Sokowatch generates revenues by earning “a margin on the goods that we’re selling to shopkeepers,” said Yu. On the supplier side, they also benefit from “aggregating demand…and getting bulk deals on the products that we distribute.”

The startup has delivered 100,000 orders to customers for “a few thousands shops,” according to Yu and company data.

The company recently launched a line of credit product to extend working capital loans to platform clients. With the $2 million round, Sokowatch—which currently operates in Kenya and Tanzania—plans to “expand to new markets in East Africa, as well as pilot additional value add services to the shops,” said Yu.

Peter Orth, Co-Founder and Managing Partner at lead investor 4DX Ventures, will join Sokowatch’s board of directors.

Yu also noted the possible big data benefits to informal African retail from Sokowatch. “If you are …selling into this market you have no clue who ultimately ends up with your product, even two layers down. That’s a big challenge,” he said.

“With us, not only do we know who’s buying the product, we know when they are buying the product, what they’re buying it in conjunction with, and the pricing.”


Source: The Tech Crunch

Read More