Eyowo’s fintech flop

Plus: Nigeria releases guidelines for digital asset operators                                                                                                                                                                                                                                                                                                                                                                                                                 March 08, 2024 | [Read Online]( In partnership with Share this newsletter: //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUWtx0pQFN1wxk5uZ44er8hu-8l_VofSN4YfKNZ0dqIzxfYvHVFAYOX-PVfkJAnIxVGr30ulfZiW1r9QdaCq0RVIq0Ze2BLas6Jtewz-SL3ck9NQSAlhslUdRYxisI2A8OS24G7-JLRWe_cugRY7e2e7S7EDjTHd01YYSTYxpte-7CPb7HhHWPPMfD8JPQloxvMF0dVqnaUy74LxtLMJWXFaHqwcFhKk2-ikiUZrvMJOU/44h/D3ayzKqsTduQHsfoRFk1Uw/h2/h001.X87-oNa_7t6yUkiWw-xC4lw_pe3X0PTp6CfW0wyl_Vc [Lire en Français]( [اقرأ هذا باللغة العربية]( TGIF 🎉 Happy International Women’s Day! To celebrate #InternationalWomensDay, TechCabal brings you three female founders from Bamboo, SendStack, and SHOP F.A.W.L. They will be speaking on building startups in Africa, revenue being the cheapest form of funding, their thoughts on AI automation, and their hopes for the future. Catch them on[our YouTube channel!]( In today's edition - [How Eyowo’s pivot to fintech stumbled](#Story1) - [MTN recovers $7.8 million of stolen funds](#Story2) - [TowerCo secures new funds for Ugandan network expansion](#Story3) - [Nigeria releases guidelines for digital asset operators](#Story4) - [Funding tracker](#Story4) - [The World Wide Web3](#WW3) - [Job openings](#Opps) Fintech //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUBUOzKa8JQ4eJs-ui6nSs8jqj59iuNbrn1dNYjDw0ZRgGVVW1Rp6h9HLBj1KHz0sBN2tS5mdnfeG7pjzsCz337o_LeQWIIKRM8twK1CH4IXIgnY84zJITQZheafo06ZEsQz_7c7Jl5ziu5Fs23UHoXq5rozFiEJqZM5ZkVafE-JEcOiRdMhJ2GzwPvpCwqmGA_8hDdWZKdo-Gsv9sQS-Q7V2-9Fg0ZM7IanvhJ56X4BdwQ-PKViPym_FsqK8x9wQI/44h/D3ayzKqsTduQHsfoRFk1Uw/h8/h001.D8nn5ZqfEOsEYneV3gfQPRKdAIEGgLJq1Jb-2yo45aU How Eyowo's pivot to fintech stumbled Depending on who you ask, Softcom was the dream place to work. The software agency had great perks for employees—including work retreats to Dubai and SA—and lucrative contracts from clients like Coca-Cola, MTN, and the Nigerian government. In 2021, the company stopped building software for its client and took an ambitious turn to produce a fintech giant in Eyowo. Everyone loved Eyowo. Early users also gushed about the product. Ex-employees believed they could change the world. However, five years down the road, salary delays, service outages, and ultimately, a revoked licence, meant that this bet failed. How did such a promising product with its sights on becoming a fintech giant run into problems? [Dig Deeper here]( Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click [here]( to experience fast and reliable personal banking with Moniepoint. Telecom //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUlFL3a6cJkMQAVC2HF9bHNj9ZPLf1pqnBvlLTOlAN56Pbd7yKVlqXtPUY7fNTL4o33Z979kfFUnR6Eo42_5nQGHjY_IP06quSfFafwOz21mRsq_ycRt2iz2Y5UlQCm8Y1qg5n2n7sbXCnZdI82qOvdi5KUGnEEoGFLeHQShIGUyS3l_RvBIqwL9q2IJdsSZqAYGGPQIDxJLVnL5nm9qhVrg/44h/D3ayzKqsTduQHsfoRFk1Uw/h14/h001.MAobkTDfKxfp64_2wXWXkE5NpJOCXyuHmIX-qrhcogw MTN Nigeria recovers $7.85 million of the $14 million lost to MoMo glitch In June 2022, MTN Nigeria, the Nigerian arm of one of Africa’s largest telecom companies, disclosed [a ₦22.3 billion ($14 million) mobile money fraud]( that involved 18 Nigerian banks on its mobile money platform— MTN MoMo. The fraud happened due to a glitch on the platform, one week after its launch in May 2022. Despite MTN's ₦16 billion ($10 million) investment in MoMo, its 2022 financial report revealed that MoMo incurred a loss of ₦10.5 billion ($6.5 million) due to the glitch. The news: MTN has successfully [recovered ₦12.5 billion ( $7.85 million)]( of the funds lost during the glitch in its mobile money service. However, the remaining balance of ₦9.5 billion ($5.97 million) will be absorbed by MTN Nigeria under a shared services cost agreement between the telecom company and its MoMo service. How has this loss affected MoMo’s service? As at June 2023—one year after its launch— the service was reportedly still seeking adoption by Nigerians. MTN Nigeria's CEO, Toriola, noted slower-than-anticipated business development. Regulatory approval delays and challenges with NIN requirements hindered MoMo's growth. However, Toriola expressed satisfaction with MoMo PSB wallet base, which has increased from 3.3 million monthly active users to 5.3 million, supported by 326,000 MoMo agents and 324,000 merchants. Meanwhile, MTN Nigeria has also swallowed its first loss in three years. The telecom reported a [loss after tax of ₦137.0 billion ($86 million) in 2023]( compared to profits of ₦348.7 billion ($218.9 million) in 2022, after a naira devaluation and rising cost of doing business ate into its margins. Investments //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUWtx0pQFN1wxk5uZ44er8hu-8l_VofSN4YfKNZ0dqIzxfYvHVFAYOX-PVfkJAnIxVGr30ulfZiW1r9QdaCq0RVIq0Ze2BLas6Jtewz-SL3ck9NQSAlhslUdRYxisI2A8OS24G7-JLRWe_cugRY7e2e7S7EDjTHd01YYSTYxpte-7CPb7HhHWPPMfD8JPQloxvMF0dVqnaUy74LxtLMJWXFaHqwcFhKk2-ikiUZrvMJOU/44h/D3ayzKqsTduQHsfoRFk1Uw/h20/h001.5zfKZuW4v7pYPA-eFepjougN0wZKbrDjkNDrL83__u0 TowerCo Uganda secures $40 million to expand network coverage in Uganda In July 2023, Ubuntu Towers Uganda [rebranded into TowerCo of Africa](Uganda after TowerCo of Africa (TOA)—a tower infrastructure company—acquired a 90% stake in Ubuntu Towers. Already managing a network of towers spanning 360 locations, with most utilising hybrid energy solutions, TowerCo is keen on adding more sites in a few years. Fueled by a [$40 million investment,]( TowerCo Uganda wants to expand its reach by constructing 506 new towers in underserved areas in Uganda. The project aims to expand mobile network coverage in Uganda from 65% to 95%, reaching remote areas currently lacking access, and will enable rural communities to access 4G and 5G data services. The investment: The European Investment Bank, in partnership with ACP Trust Fund, will provide $16 million, and $12 million each will come from the Development Bank of Austria (OeEB) and the Belgian Investment Company for Developing Countries (BIO) over the next 10 years. Multiple mobile operators will share the towers and a significant portion will be solar-powered for sustainable development. The tower construction is expected to create 2,000 jobs and be completed within the next two years. TOA also operates in Madagascar, the Democratic Republic of Congo (DRC) and Tanzania. Zoom out: In other African countries like Zambia, following their announcement of digital centres for free internet access, the Zambian government plans to construct [60 new 4G mobile towers]( specifically targeting remote areas. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. [Start now](. Crypto //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUWtx0pQFN1wxk5uZ44er8hu-8l_VofSN4YfKNZ0dqIzxfYvHVFAYOX-PVfkJAnIxVGr30ulfZiW1r9QdaCq0RVIq0Ze2BLas6Jtewz-SL3ck9NQSAlhslUdRYxisI2A8OS24G7-JLRWe_cugRY7e2e7S7EDjTHd01YYSTYxpte-7CPb7HhHWPPMfD8JPQloxvMF0dVqnaUy74LxtLMJWXFaHqwcFhKk2-ikiUZrvMJOU/44h/D3ayzKqsTduQHsfoRFk1Uw/h28/h001.I2ilVnM6Tcwh0w-Ej-fx5KtA41e9G0FOL322eJJpC4A Nigeria releases guidelines for Digital Asset Operators Last year, Nigeria’s Security Exchange Commission (SEC) [began processing the application]( of digital exchanges on its capital market, a move to attract the country’s young digitally-savvy population. The commission’s head of securities and licence investment at the time said it was going to register tokenized assets backed by equity, debt, and real estate. Now, as the NGX inches closer to including digital assets in the capital markets, it has released new guardrails to mitigate risks associated with the asset class. The news: Yesterday, [the commission released new regulations]( aimed at licensing and registering new digital and virtual asset service provider (VASPs) entrants to the capital market. The regulations, aimed at reducing the participation of bad actors from trading in the capital market, packs a punch with three separate guidelines, including Countering the Financing of Terrorism (CFT), Anti-Money Laundering (AML), and Countering Proliferation Financing (CPF) onboarding manual. The new regulation is another litmus test for Nigeria’s crypto landscape which has seen Binance [discontinue providing naira services]( in the country after the government blamed it for currency speculation and remanded two of its executives. While exchanges in the country are gearing up to include digital assets in their list of trading options, it remains to be seen if Nigeria will not go back on its word given its relationship with crypto. Accept fast in-person payments, at scale Deploy your in-person point-of-sale solution to hundreds of sales agents, in seconds. [Learn more →]( TC Insights //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUWtx0pQFN1wxk5uZ44er8hu-8l_VofSN4YfKNZ0dqIzxfYvHVFAYOX-PVfkJAnIxVGr30ulfZiW1r9QdaCq0RVIq0Ze2BLas6Jtewz-SL3ck9NQSAlhslUdRYxisI2A8OS24G7-JLRWe_cugRY7e2e7S7EDjTHd01YYSTYxpte-7CPb7HhHWPPMfD8JPQloxvMF0dVqnaUy74LxtLMJWXFaHqwcFhKk2-ikiUZrvMJOU/44h/D3ayzKqsTduQHsfoRFk1Uw/h36/h001.ueMYbNm0hVvuu38HBUlcQUWydYnq9ZWwuLe0yEt8R6k Funding tracker This week, MDaaS Global, a Nigerian healthtech startup, [raised]( $3 million in pre-Series A funding. Aruwa Capital Management and Newton Partners co-led the round, while Ventures Platform participated. Here’s the other deal for the week: - Moroccan finTech start-up Tookeez [announced](a fundraising round of $1.5m from the Azur Innovation Fund. Before you go, our much anticipated State Of Tech In Africa Report for Q4 2023 is now out. Click this [link to download it](. Follow us on [Twitter](, [Instagram](, and [LinkedIn]( for more funding announcements. You can also visit [DealFlow](, our real-time funding tracker. Crypto Tracker //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUWtx0pQFN1wxk5uZ44er8hu-8l_VofSN4YfKNZ0dqIzxfYvHVFAYOX-PVfkJAnIxVGr30ulfZiW1r9QdaCq0RVIq0Ze2BLas6Jtewz-SL3ck9NQSAlhslUdRYxisI2A8OS24G7-JLRWe_cugRY7e2e7S7EDjTHd01YYSTYxpte-7CPb7HhHWPPMfD8JPQloxvMF0dVqnaUy74LxtLMJWXFaHqwcFhKk2-ikiUZrvMJOU/44h/D3ayzKqsTduQHsfoRFk1Uw/h46/h001.26Skf6CG4ATr5Cy5_6EJ-bH5y59xDdPJbBf0udJ4m-g The World Wide Web3 Source: [OneLiquidity logo] Coin Name Current Value Day Month Bitcoin $67,331 + 1.51% + 52.41% Ether $3,877 + 0.93% + 59.78% Tether USDt $1.00 - 0.00% + 0.07% BNB $470.52 + 10.03% + 55.24% * Data as of 11:07 PM WAT, March 7, 2024. [OneLiquidity GIF]( Experience the best rates and enjoy swift 6-24hrs delivery times. Elevate your business with OneLiquidity–[get started today](. Job openings //link.mail.beehiiv.com/ss/c/u001.3gD7PSbuofKNJf4aviiyABEwLaotY-cnTvL9XkLJeecz8HFi5aIcJRlOHNPACAGtlq5KbbmzlzCpN5GuBGOUoSMHEQdMvCCErcPqfkCTamGENiBnMw13k66-yrDlLxWUWtx0pQFN1wxk5uZ44er8hu-8l_VofSN4YfKNZ0dqIzxfYvHVFAYOX-PVfkJAnIxVGr30ulfZiW1r9QdaCq0RVIq0Ze2BLas6Jtewz-SL3ck9NQSAlhslUdRYxisI2A8OS24G7-JLRWe_cugRY7e2e7S7EDjTHd01YYSTYxpte-7CPb7HhHWPPMfD8JPQloxvMF0dVqnaUy74LxtLMJWXFaHqwcFhKk2-ikiUZrvMJOU/44h/D3ayzKqsTduQHsfoRFk1Uw/h51/h001.Qe_qsoIuqhOdHhQQenRZ_gmagxrjFLxwPlkIxXtbewc - Paystack - [Design Manager]( - Nigeria (Remote) - Bamboo - [Communications Associate]( - Lagos, Nigeria (Hybrid) - Paystack - [Senior Backend Engineer]( - Cape Town, South Africa - LemFi - [Country Marketing Manager]( - Kampala(remote) - Visa - [Biz Dev Analyst](- Lagos - Nigeria - Renmoney - [Product Manager](- Lagos, Nigeria There are more jobs on [TechCabal’s job board](. If you have job opportunities to share, please submit them at [bit.ly/tcxjobs](. What else is happening in tech? - [Record funding in women-led healthtech startups sets agenda for founders]( - [CBN signs MoU with blockchain firm to boost eNaira adoption]( - [Senegal’s presidential election is set for March 24]( - [How much fuel tax government loses with every electric tax in South Africa]( Written by: [Mariam Muhammad]( & [Faith Omoniyi]( Edited by: [Timi Odueso]( Want more of TechCabal? 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