This Week in African Tech 🌍

M-Kopa gets a surprise tax bill 💸

Author

Caleb Maru
September 22, 2024

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Now, let’s get straight into This Week in African Tech!

Tech Roundup

  • Kenyan fintech M-Kopa has been ordered to pay KSh 885.87 million ($6.8 million) in taxes by the Tax Appeals Tribunal. The ruling happened because M-Kopa couldn't prove its operations were being directed from the United Kingdom and not Kenya.

  • Nigerian health tech, Field, has launched a new service to tackle maternal mortality, newborn and child health, and nutrition. The service will be backed by US$11 million capital from the Bill & Melinda Gates Foundation.

  • Autochek Kenya has teamed up with Turaco, an insurtech startup, to make car insurance more affordable and convenient for Autochek’s customers. Autochek will now offer monthly payment plans instead of traditional annual premiums.

  • Blockchain company EMURGO has partnered with Antler's Ibex, to drive Web3 innovation and fintech growth in Africa. EMURGO’s expertise and Antler’s global network will be used to support founders and scale startups.

  • Safaricom and Mastercard have partnered to grow cross-border payments in Kenya. Over 636,000 M-PESA merchants can now use Mastercard’s infrastructure to make more secure and seamless cross-border transactions.

  • PayRetailers, a LatAm payments company, has expanded into Kenya and seven other African markets - increasing its presence on the continent to 12 countries. It now operates in Burkina Faso, Cameroon, Kenya, Ivory Coast, Ghana, Senegal, South Africa, and Nigeria.

  • Bolt has awarded the top 10 Kenyan taxi drivers and couriers KSh 288,000 ($2,200) each in seed funding through its accelerator program. The cash prize comes with mentorship to boost entrepreneurship among the drivers in Kenya.

New kids on the block

  • Kopo Kopo, a Kenyan fintech that provides short-term loans, gets a new management team ahead of a likely acquisition by Moniepoint. Dennis Ondeng steps in as CEO, Chad Larson will be CFO, Rosemary Muyeshi will be CRO, and Kibet Yegon is now CTO.

  • 4G Capital picks Julian Mitchell as its new CEO. The company's founder Wayne Hennessy takes up the position of Executive Chairman. At 4G Capital, Julian will drum up ways to fund MSMEs through loans and business support.

Deal Roundup

  • Lesaka Technologies, a South African fintech, will close its $85 million buyout of startup Adumo in October, after getting approval from shareholders and South Africa’s Competition Commission.

  • Xero, the global accounting software giant, is acquiring Syft, a South African analytics platform, for $70 million. Xero will pay $40 million upfront, including $10 million in shares, and extra payments over three years. Syft’s 70 employees will also be joining Xero.

  • Early-stage African investor Uncap has launched Unconventional Capital, a EUR30 million (US$33 million) fund to support early-stage SMEs across Africa. The fund will provide non-dilutive and revenue-based capital to SMEs.

  • Regfyl, a Nigerian compliance startup, has raised $1.1 million in pre-seed funding in a round led by Rally Cap VC. The funds will be used to boost its sales, engineering and customer support teams, and build a supply chain compliance product.

  • Tymebank, a South African digital bank, has raised $9.5 million from African Rainbow Capital (ARC). The startup has 9.5 million customers and has seen strong growth in South Africa, Vietnam and the Philippines.

  • Ghanaian battery startup, Kofa, has raised GBP6.15 million (US$8 million) from the Shell Foundation and the UK’s Transforming Energy Access platform. The funds will be used to expand its battery-swapping network and move into new markets like Ghana and Togo.

  • Moroccan startup Userguest, which helps hotels optimize revenues, has raised $2.4 million in seed funding, led by Al Mada Ventures. The startup has generated over $100 million in direct revenue for hotels since 2019 and is active in 30 countries. The funds will be used to expand its sales team.

Events and Opportunities

  • Are you an aspiring venture capitalist looking to gain the skills, knowledge, and network to break into VC? Applications for CatalyzU’s 6th Venture Capital Fellowship Cohort are now open. Classes start on the 1st of October, and you can Apply here.

  • Are you building engineering solutions to fix local problems in Africa? The Africa Prize for Engineering Innovation is offering up to $25k for viable engineering products with social and environmental impact. Apply here by the 15th of October.

  • Compete at the Future of Capitalism Tech Startup Competition for up to $1 million in investment by pitching your startup. Eight finalists will pitch to a panel of investors, founders, and entrepreneurs in London. Applications are open till the 30th of September.

  • The Meltwater Entrepreneurial School of Technology (MEST) has launched the sixth edition of its Africa Challenge, focusing on Agri-Tech startups. Winners will get $50,000 in equity funding and support to help them grow their businesses. Applications are open here till the 4th of October.

And that's a wrap!

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