After working with Jumia Group for 11 years, the CEO of Jumia Nigeria, Massimiliano Spalazzi, will step down by December 2023.
Massimiliano took over as CEO in 2020, succeeding Juliet Anammah, who went on to become Jumia Nigeria's Chief Sustainability Officer and Jumia Group Chair.
The CEO of Jumia Ghana, Sunil Natraj, will take over in January 2024.
What's more, Natraj stated that the eCommerce giant is considering expanding into other Nigerian cities, particularly Akure and Illorin.
Here's what I've got for you today:
- Bitmama acquires Payday 9 months after the virtual card service provider raised a $3m seed
- M-KOPA enters Ghana 7 months after raising $250m
- Mtor's $2.8m seed
M-KOPA enters Ghana 7 months after raising $250m
Nearly seven months after announcing its $250 million debt and equity funding, Kenyan fintech M-KOPA has expanded into Ghana.
With 30 agents, the company started its pilot phase in the Greater Accra Region in 2021. It has successfully unlocked $10 million in digital credit and increased its agent count to 2,000 by focusing on smartphone financing.
The fintech company also said it has completed 100,000 smartphone device pilot sales through partnerships with Nokia and Samsung.
In May 2023, M-KOPA secured over $250 million in funding to expand its model to new markets, offer new financial products, and develop electric mobility solutions. It followed the announcement of a $75 million "growth equity round" in March 2022.
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Founded in 2011, M-KOPA uses a pay-as-you-go model that allows people to become owners of these energy devices over a period. Following an initial deposit, users pay a small amount daily until they complete payment.
Presently operating in Nigeria, Ghana, Kenya, and Uganda, the company intends to expand into South Africa.
Bitmama acquires Payday 9 months after the virtual card service provider raised a $3m seed
Yesterday, Bitmama, a blockchain payments company, confirmed that it had acquired Payday. This news came barely nine months after the virtual card service provider raised a $3 million seed round led by Moneipoint.
The acquisition, facilitated by Changera — Bitmama's cross-border payments product — represents a significant shift from previous speculations.
For context, a day after the fintech's seed announcement, Weetracker reported that Moniepoint and Payday had agreed on terms for a cash-plus-equity deal under $40 million.
However, an executive at Nigerian fintech startup Moniepoint denied the reports, stating that the company’s investment in Payday was "a strategic investment and not an acquisition.”
Besides, in September 2023, Payday's exploration of sale options was confirmed.
Nonetheless, withholding the deal's financial terms, a source disclosed that Bitmama initiated acquisition conversations a few weeks ago and that the process is "about 85% complete." Another person close to the matter maintained that it is an all-stock deal valued at "millions of dollars."
What now? Launched in 2021, Changera plans to consolidate its blockchain payment platform by acquiring 100% of Payday's customer base.
Changera is expected to absorb several of Payday's key personnel from departments including marketing, customer service, and engineering.
The CEO of Payday, Favour Ori, hasn’t yet stated that he will be joining Bitmama's team. Given Bitmama's strong technical team and established leadership, he appears more likely to step down.
Mtor's $2.8m seed
Mtor, an Egyptian online auto parts marketplace, has raised $2.8 million in seed funding to create products that will attract more mechanics monthly.
Algebra Ventures led the round, with other investors, including the Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and other local and global angel investors participating.
With a focus on neighbourhood workshops and car repair spaces, Mohamed Maged (CEO) founded Mtor in April 2022 after realising how challenging it would be to address inefficiencies and fragmentation within the automotive aftermarket and auto parts supply chain.
Maged, Khaled Kandil (CTO), Mohamed Altaf (COO), and Moaz El Megharbel (VP of Strategy) led Mtor initially to manage logistics and provide spare parts to nearby workshops.
Currently, Mtor resolves the issues that local workshops deal with, such as inaccurate fitment data, challenging delivery and logistics scenarios, parts availability, and open pricing.
The company, which serves as a middleman by using a platform to link these workshops with importers, aims to bridge the affordability gap for vehicle owners between official dealerships and neighbourhood workshops.
The Mechanic app simplifies ordering and provides information on compatible aftermarket parts. It also manages the redirection of parts to the importers' or Mtor’s inventory, improving efficiency and teamwork in the automotive aftermarket.
The company determines its take rates or margins using a margin model — standardised pricing that includes free delivery — based primarily on the parts themselves.
Mtor says it has served over 2,500 workshops, completed more than 70,000 orders in the three months, and partnered with at least 60 importers on the supply side.
In case you missed it
- Nigerian fintech startup, Pivo has shut down one year after raising $2 million seed
- Call of Duty: Mobile launches dedicated Nigerian server
- Lidya closes operations in two countries to focus on the Nigerian market after securing $16.45 million in funding
What I'm reading and watching
- Kenya approves use of dapivirine vaginal ring
- How I Tricked My Brain To Like Doing Hard Things (dopamine detox)
- Escaping the Rat Race: What School Failed to Teach You About Money.
- Lawyers Hub has opened applications for its 2023 Startup Law Accelerator program. Apply here.
- If you are a female between the ages of 18 and 28 who lives in Africa and is interested in pursuing a career in cybersecurity, apply for the CyberGirls Fellowship by December 11, 2023 here.
- Do you live in Nigeria and work with a local or foreign company? Whether it's remotely, on-site, hybrid, full-time, part-time or as a freelancer, @TheIntelpoint is trying to understand the Nigerian workspace: how you work, and toxicity in the workspace among others. Please, fill out the questionnaire here.
- If you are a software engineer, creative designer, product manager, design researcher, or a techie looking for an internship role, please, check out this website.
Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.