Nigeria's next IPO

Today: Founders Factory out, 54Collective in: What does it mean?                                                                                                                                                                                                                                                                                                                                                                                                                 August 08, 2024 | [Read Online]( In partnership with Share this newsletter: //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUVQSBeiqQ9VKn4A6C7byTHGLdKvrdlMyxVmGITSCPfzdhpV2fLLyvlj8A_9ji-v0BP6GV7uvlIukirCpjNHPD2MNVwfGpleNX8V9Lf7QtBsmf5fo9iur5HQLfpqcWC0J0pwBtnenxMFVWhnyxMjxlWkZwF92mG2E2jjvXIqAVvaDZPKlXeeFENBZXpIdcZYIHl8h9psN3Jc5fdURL-flGYAcRxkngrhDxkdCQd7wDPvtjACz4IPmpu98kXGrTHHAb8ExkKnG1tuS4VxjK2d4kgQ/48q/YOVaKb-ISDq5WxnfaaheMg/h2/h001.pw2NJAg5Z_dWAXs-TuEYcmanzxF9hCOzzPTYP9_ZKpw [Lire en Français]( [اقرأ هذا باللغة العربية]( Happy pre-Friday ☀️ It’s the last day before tickets to Moonshot 2024 get pricier. [Get your early-bird tickets here]( to join 85 speakers and 4,000 guests at Africa’s most ambitious tech festival in Lagos, Nigeria, from October 9–10, 2024. In today's edition - [Founders Factory Africa rebrands to 54Collective](#Story1) - [FCMB Group plans to go public with Credit Direct](#Story2) - [Adani inks $900 million power transmission deal in Kenya](#Story3) - [MTN’s MoMo PSB CEO and CCO leave the company](#Story4) - [The World Wide Web3](#WW3) - [Events](#Opps) Funding //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWU-t0qORm6BBc4J6b0fBDV-Jyr9LXyvXll-_EDxergmCEgC3ClcZZsMR_UrR_rhBGlrMUgOzeeYnB1ORCLdIYv4eVD4nM1iT6tejWWqmhgSrG4xeWpg4TcloJKlKOcSqbNXRHwylWYC5qrivL3qINpA84KDmpDFFr81jXbZuFeblmdX158WOHVpAvJVLppETTPn_BIyEcWmrwqmVlyDqtZIt0iBwV234jhYcsF0rYeZBpL_3LTk9R3-50AgND7QrloklBWHS_KSxEmD6Ol255I6w/48q/YOVaKb-ISDq5WxnfaaheMg/h8/h001.1Op8sJDJwP2ibUfAcBVOMEojFTiwQWV13V13y2m1Hw8 Founders Factory Africa rebrands to 54Collective In 2023, the early-stage accelerator, Founders Factory Africa (FFA), [raised $114 million]( from Mastercard Foundation and Johnson & Johnson Impact Ventures. Before the raise, the accelerator which combines venture studios and VC models raised $32 million to invest in early-stage startups across the continent. FFA invested $20 million of that money in 57 companies. The accelerator [has now rebranded as 54 Collective](, a VC firm with a $40 million fund for early-stage startup investment. The VC firm has made over 20 investments as part of the fund. The startup writes checks of up to $250,000 and offers $150,000 loans at 5% to startups. 54 Collective claims the VC firm manages about $150 million in startup investment. Unlike traditional accelerators, which typically provide short-term support and seed funding, 54 Collective now offers larger investments and a longer-term commitment to its portfolio companies. The VC firm says it will be a sector-agnostic VC firm, by investing across all sectors. CEO Bongani Sithole is confident that his team's deep understanding of the local scene and ability to identify high-potential startups across various industries will yield returns. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria's informal economy are under 34 years old? [Click here]( to find out more about the demographics of Nigeria’s informal economy. Banking //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUVQSBeiqQ9VKn4A6C7byTHGLdKvrdlMyxVmGITSCPfzdhpV2fLLyvlj8A_9ji-v0BP6GV7uvlIukirCpjNHPD2MNVwfGpleNX8V9Lf7QtBsmf5fo9iur5HQLfpqcWC0J0pwBtnenxMFVWhnyxMjxlWkZwF92mG2E2jjvXIqAVvaDZPKlXeeFENBZXpIdcZYIHl8h9psN3Jc5fdURL-flGYAK7-opcK89A9jN7zrCe62Xxe-yrB4g6vFibY0nPh-3sLnQquefGoOfRjwfJRlnIgA/48q/YOVaKb-ISDq5WxnfaaheMg/h15/h001.02usGAahoaUSm6fbZVUwI6SGhh8KOHk47Tfj2dQ4Xcc FCMB Group plans to go public with Credit Direct FCMB Group is [planning an initial public offering (IPO)]( for its lending subsidiary, Credit Direct. The company’s strong business health will be an enticing entry point for investors who want to own a piece of the pie. Credit Direct has been on a steady growth climb since last year. It returned a [profit after tax]( of ₦4 billion ($2.5 million) in 2023, and in Q1 this year, it recorded ₦2.9 billion ($1.8 million) pre-tax profit. Despite these strong showings, Credit Direct doesn't get the same level of recognition as private lenders like Fairmoney do. The company has been doing great business under the radar servicing customers in the public sector. Credit Direct offers payday loans to paramilitary officers and civil servants. It serves more than 1.5 million users across 25 states in Nigeria, and now the company wants to expand its offering to private borrowers. When we caught up with CEO Chukwuma Nwanze in May, [he told TechCabal]( that the next growth phase the company needed to unlock is visibility—and an IPO makes a great use case. Credit Direct will likely be listed on the Nigerian Exchange (NGX). In the last ten years, 21 companies have been listed on the exchange, with 13 of them listed in the last three years. Credit Direct's holding company, FCMB Group is currently offering 15.197 trillion shares to the public for ₦110.9 billion ($70.125 million), as part of Central Bank of Nigeria’s recapitalisation requirements. Going public with a subsidiary company will help it raise extra funding to run its businesses. That's what holding companies are trying to achieve with their non-core banking businesses. Credit Direct will also launch a customer-facing app as it plans to reach more users. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. [Get started now](. Energy //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUnbcs-gXpweN7QeCWCmeAx3ekNp_qlT8WfhUG6o7e7o6TBn_8qe2eX53pHZC8wXfNMK_fNgoVfuYBVkLI8Lb2AALwf_UD9SMQ-zhWW4ZTbKnlLWFAj-__64A_gv1oeoXNsU6gmkbeCtBhuDOYSbMNWyX-qBXAFsYFfskIEWra0hjEyXTVZymWbK9MYt5ibc20kGaRuw5DvjxHqE2B8LhM52HuBKRwlGMxEkLPgcOXw4Feca7LOMGhYsIidkwYoDag2Mol-RzqsU9Ih_8tvxk-YJAS8aPS16AQi95DFaO6DzcB3WJghTXYullgykg-bPV75YmOnvq30y1gh4bYow-EBw/48q/YOVaKb-ISDq5WxnfaaheMg/h23/h001.0GqcPxc3rhShsCPRar9mGcCFj8nIiaCdJ4ix5vrvtr8 Adani inks $900 million power transmission deal in Kenya Gautam Adani's has just inked a [$907 million deal to electrify Kenya]( to build out transmission lines and substations in a classic public-private partnership. Adani Energy Solutions, which operates more than 21,000km of power distribution lines, will build 371km of lines and five substations in the west and eastern of Kenya. But while the project promises to brighten the country's power grid, it's also throwing a spotlight on the growing concerns about Adani's business practices. The latest venture comes hot on the heels of the equally controversial Jomo Kenyatta International Airport concession, which has sparked outrage and questions about transparency. These deals are part of Kenya's push to offload infrastructure projects to private investors, a move driven by a mountain of debt. Adani, which has been weathering a storm of accusations over market manipulation and fraud, seems undeterred. A recent $1 billion equity raise suggests investors are still betting on the tycoon. However, with each new deal, the pressure mounts for the company to prove its critics wrong. Mobile Money //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUGKfmxfuNYMIYAXHoLaS6677tCc4LLRszn_BsFLL9rthbbtmF1-JOOBPD8wKMgm12vBg-reuP2MfKtTe8qCvbGEGPiIuli3vPXcxh77Xh9Fya_ir4NkOwij36P20acFHGaM8oOaKUQoyzNBqRwOj3ZElVz20W2uZNk-RtBI9BuH_glW6N2Xd41w5rlUZkBjuQAwS757UfFAz9xP5S6XrNgcb499ar0mUtYAuYo48tEnM6S4or7ZPDU-mFrbR7fNkD/48q/YOVaKb-ISDq5WxnfaaheMg/h27/h001.VxVL72vJ0WOAGVJt4MOi18HvOhES9DHUUiEzuSzLK0s MTN’s MoMo PSB CEO and CCO leave the company MoMo Payment Service Bank (PSB), MTN Nigeria's wholly-owned fintech arm, saw a major [leadership reshuffle](. CEO Eli Hini and chief commercial officer Elsa Muzzolini both left the company in June and July 2024 respectively, with Muzzolini joining M-PESA Ethiopia as CEO three days after resigning. Phrase Lubega, previously the company's group executive for fintech commercial operations, has been named the acting CEO, pending approval from Nigeria’s central bank. Hini and Muzzolini joined the company when MoMo launched in 2022 and are two executives credited for the growth initiatives at MoMo leading to its uprising in the mobile money sector. MoMo had [over 77 million]( customers in 2023 and is one of the biggest MNO-led mobile money providers—second only to the 220 million customers Airtel’s SmartCash boasts. Following MoMo PSB’s strong performance in 2023 and H1 2024, it increased mobile money wallet signups to 5.5 million and [contributed to MTN Nigeria's revenue bank]( despite a slow first half. MoMo expanded across other African countries in April 2024, including Ethiopia. With Muzzolini taking charge of M-PESA in Ethiopia, the competition will make for a great dynamic as MoMo tries to grow its operations there. All eyes will be on MoMo to see how it continues its solid performance under Lubega’s interim leadership. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. [Learn more on the Paystack blog →]( Crypto Tracker //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUVQSBeiqQ9VKn4A6C7byTHGLdKvrdlMyxVmGITSCPfzdhpV2fLLyvlj8A_9ji-v0BP6GV7uvlIukirCpjNHPD2MNVwfGpleNX8V9Lf7QtBsmf5fo9iur5HQLfpqcWC0J0pwBtnenxMFVWhnyxMjxlWkZwF92mG2E2jjvXIqAVvaDZPKlXeeFENBZXpIdcZYIHl8h9psN3Jc5fdURL-flGYIrXUw_X_WtVvR0jW_TnzvkvV9shZBM5bH8hiL8mMBBvckNS7dFN6JohuqHL3FLTxw/48q/YOVaKb-ISDq5WxnfaaheMg/h35/h001.McPGL-_m6DApqaszP4ciM60ByJJNjbHOJ92tOk-LFRw The World Wide Web3 Source: [Coinmarketcap logo] Coin Name Current Value Day Month Bitcoin $56,960 + 0.14% + 2.80% Ether $2,430 - 3.47% - 16.58% XRP $0.604 + 17.05% + 39.26% Solana $153.07 - 1.23% + 8.56% * Data as of 06:45 AM WAT, August 8, 2024. You should definitely read these 👇🏾 - [Sendsprint expands to the US with Nobel Financial Inc. acquisition]( - [MTN Nigeria renegotiates tower lease with IHS and ATC, quashes conflict rumours]( - [MTN concludes sale of Guinea-Bissau subsidiary to Telecel]( - [Advocating for better gender representation in Africa’s tech ecosystem]( Written by: [Emmanuel Nwosu]( & [Faith Omoniyi]( Edited by: [Muyiwa Olowogboyega]( & [Timi Odueso]( Want more of TechCabal? Sign up for our insightful newsletters on the business and economy of tech in Africa. - [The Next Wave](: futuristic analysis of the business of tech in Africa. - [Entering Tech](: tech career insights and opportunities in your inbox every Wednesday at 3 PM WAT. - [TC Scoops](: breaking news from TechCabal P:S If you’re often missing TC Daily in your inbox, check your Promotions folder and move any edition of TC Daily from “Promotions” to your “Main” or “Primary” folder and TC Daily will always come to you. ADVERTISE To advertise with us send an email to [ads@bigcabal.com]( [Unsubscribe from TC Daily]( [fb]( [tw]( [ig]( [yt]( [in]( Update your email preferences or unsubscribe [here]( © 2024 TC Daily 18 Nnobi Street Surulere, Lagos 101212, Nigeria [[beehiiv logo]Powered by beehiiv]( [Terms of Service](