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Editor’s Note

  • Week 47, 2022
  • Read time: 5 minutes

The tech industry is headed for a long winter, it may seem. This week brings news of more layoffs, closures, and even theft as companies in the ecosystem feel the frigid gusts of the global economic winter. SWVL and Quidax lay off some of their employees, while SweepSouth clears out of Nigeria. On a lighter note, Kandon Technologies and Korapay were cleared of all charges in Kenya.

More stories of happenings in the tech ecosystem await you in this edition of TC Weekender. Happy reading!

Pamela Tetteh Editor, TechCabal.

Editor’s Picks

Kenya acquits Kandon Technologies

Kandon Technologies, a Nigerian payment company, has been cleared of money laundering and card fraud allegations. In July, Kenyan authorities accused the startup of being a conduit for international money laundering activities.

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Kora cleared of fraud allegations in Kenya

KoraPay, another Nigerian payment startup, was also accused of money laundering and card fraud in July. The charges have been dropped as authorities found no evidence to prove Kora guilty.

Learn more.

Google to delist unregistered loan apps in Nigeria and Kenya

Google now demands that all loan apps in Nigeria and Kenya have licenses from the Federal Competition and Consumer Protection Commission (FCCPC) and the Central Bank of Kenya, respectively. This is to stem the predatory activities of digital lenders.

Learn more.

Jumia plans layoffs and ends “Prime”

Ecommerce giant Jumia is planning to lay off employees to reduce its operating costs. Though the country had a great financial year, it is terminating Jumia Prime, a loyalty program that provided limitless free deliveries.

Learn more.

Twitter to negotiate with its Africa team

The Accra-based ex-employees of Twitter have accused the social media behemoth of terminating them in an illegitimate and discriminatory manner. After CNN reported the situation, the Elon Musk-led company contacted them to negotiate fairer severance terms.

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SweepSouth leaves Nigeria

South African cleantech startup SweepSouth is pausing its operations in Nigeria. One year after entering a lucrative Nigerian market, it appears that the country’s dire economic situation is forcing it to reevaluate its position.

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Quidax lays off 20% of its workforce

Nigerian crypto startup Quidax has laid off 20% of its just over 100-strong staff. The startup is reducing its workforce in an effort to fend off the effects of the global economic downturn and possibly the ripple effects of the collapse of crypto exchange FTX.

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Swvl lays off more employees

SWVL is tightening its belt again. The mass transport app has carried out a second wave of layoffs, seven months after it laid off one-third of its global workforce. The company is trimming its workforce to save more money during the persisting funding winter.

Read more.

Hackers steal $2.1 million from Airtel Uganda

Hackers drained Airtel Mobile Commerce Uganda Limited’s (AMCUL) systems of nearly USH8 billion ($2.1 million). They used a betting platform to gain access to AMCUL’s system, and a number of banks and microfinance deposit-taking institutions in Uganda were affected.

Read more.

Chipper Cash to buy Zoona

Payment app Chipper Cash is set to acquire Zambian fintech company, Zoona Transactions International. This acquisition will allow Chipper Cash to expand its online services and add a new agent network to its offerings.

Learn more.

Who brought the money this week?

  • Tanzanian retail-tech company Ramani raised $32 million in series A funding. The round was led by Flexcap Ventures and Jared Schreiber, the founder and CEO of Infoscout.
  • Djamo, a consumer finance startup based in Tanzania, raised $14 million in an undisclosed round led by Enza Capital, Oikocredit and Partech Africa.
  • Egypt’s digital pharmacy platform, Grinta, raised $8 million in seed funding led by Raed Ventures and Nclude with participation from Silicon Valley-based Endeavor Catalyst and 500 Global.
  • Nigeria-based fintech, Pivo, received $2 million in seed funding from Precursor Ventures, Vested World, Y Combinator, FoundersX and Mercy Corp Ventures.
  • Kenyan supply chain and logistics company, Leta raised $3 million in pre-seed funding from 4Di Capital, Chandaria Capital, Chui Ventures, PANI, Samurai Incubate, and Verdant Frontiers Fintech.

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Written by: Ngozi Chukwu

Edited by: Pamela Tetteh

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