👨🏿‍🚀TechCabal Daily – Netflix’s Nigerian Money Hoist

Social media

Facebook has removed 63,000 Instagram accounts allegedly connected to sextortion activities. The company said these accounts belonged to internet fraudsters who blackmailed victims to get money.

Meta goes hard: In April, the social media company said it would not tolerate sextortion and introduced new measures to its app, like asking users for double confirmation to send or open messages that contain obscene photos, and banning accounts that shared these images. Stricter approval measures were even given to those under the age of 18 as teens in the United States have previously been targeted in these scams.

While conducting an audit, Facebook discovered a smaller coordinated network of 7,200 accounts linked to suspicious activities, including using fake photos, providing tips for “conducting scams”, or seeming like bots or fake accounts. 

Facebook’s move is not without reason as the US Federal Bureau of Investigation (FBI) warned that sextortion is one of the growing cybercrime threats. In these cases, offenders would pressure minors to send explicit images or videos. They then threaten to release the compromising material unless the victim produces more.

Two blackmailers from Nigeria pleaded guilty in April to sextortion allegations that led to the death of 17-year-old Jordan DeMay.

Following another ugly situation that painted a bleak image for the country, director of Nigeria’s National Cybercrime Centre (NCCC), Uche Ifeanyi Henry, said his officers are hounding these criminals. According to him, many of them are “moving to neighbouring countries because of their activity” against cybercrime.

Did you know that only 2.8% of informal businesses are started out of passion? Click here to find out the motivation of businesses in Nigeria’s informal economy.

M&As

Acquisitions are often used as an expansion strategy. As businesses like Canal+ and Access Holding have mastered the ropes, RiseVest, a Nigerian fintech startup that lets users access global investments and Nigerian stocks, is following in the footsteps of the great. 

In 2023, Risevest acquired digital trading startup, Chaka. The fintech is now in talks to acquire Hisa, a Kenyan startup that allows users access to US stocks.

Why does the acquisition make sense? Hisa is one of the most popular digital trading startups in Kenya’s nascent digital trading space. The startup is licensed by the Capital Markets Authority of Kenya (CMA) and the Nairobi Securities Exchange (NSE). If successful RiseVest will gain Hisa’s market share in Kenya without the need to register a new entity and obtain new licenses. 

The acquisition talks are still in the early stages, according to people close to the matter. Erik Suma, founder and CEO of Hisa will step down from his position.

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.

Startups

Olamide Olaleye, founder of now-shuttered food delivery service, ChopNowNow, recently opened up about the challenges that led to his company’s closure in February 2024.

How it started: ChopNowNow started in 2018 as a retail restaurant outlet that catered to Nigerians living in the affluent parts of Lagos. Then one day, Olaleye had an idea to expand into the food delivery market, offering last-mile delivery to customers at no charge. This was a great idea at first, as the company quickly grew in the three years that followed. Its logistics infrastructure went from three bikes to thirty, and customer orders kept pouring in.

A free fall: But in a low-trust market like Nigeria, even perks like free delivery don’t ensure customer loyalty. In e-commerce, companies have tried to crack it with payment-on-delivery, but like free delivery, it is unsustainable. As competitors entered the space with similar offerings, customers swiftly switched allegiances, leaving ChopNowNow struggling to maintain market share. Its average order value reduced to ₦1,000 ($0.63) and the razor-thin margin dealt heavy blows to ChopNowNow’s bottom-line numbers.

Add the rising inflation, this also meant that consumers had to tone down their spending, making ordering food online a luxury. In an honest admission, Olaleye said, “thin margins worsened by intense competition” were reasons for the decline.

Running a food delivery service targeting the mass market is a difficult beast to tame globally, and Nigeria is no exception. Even well-funded companies like Bolt Food and Jumia Food have exited the sector. 

Olaleye has learnt his lesson as he is now raising funds to rebrand his business as ShopNowNow, a grocery delivery business targeting only high-value orders above ₦25,000 ($15.78). 

Join us at the Bumpa Pop-up this Saturday, July 27th for a day of fun, food, and amazing deals 🛍️ Get a free ticket here →

Mobility

Chinese electric vehicle (EV) maker NETA Auto is revving up its African ambitions with plans to open an assembly plant in Kenya. The company has already planted its flag in Nairobi with the opening of its first African flagship store, marking a pivotal moment for the EV market in the right-hand drive region.

NETA’s local assembly operations are set to kick off in the next two months, with a target of producing 250 vehicles monthly. The NETA V is already available, and the AYA and X models are on deck. The company is eyeing an aggressive expansion across the continent, aiming to reach 20 countries, establish 100 stores, and sell over 20,000 units annually within three years.

Kenya’s supportive EV ecosystem, driven by the government’s National Electric Mobility Plan, is attracting significant interest from global automakers. A recent Kenya Power report highlights the country’s burgeoning e-mobility sector, with over 1,350 electric vehicles already on the road.

EV companies drive south: NETA joins a growing list of Chinese EV players expanding their footprint in Africa. In the past two years, companies like BYD and X Peng have also made inroads into the continent—specifically in South Africa and Rwanda. With hefty tariffs imposed on Chinese EVs by the EU and US, these companies are turning their sights southward. While the continent offers immense potential, challenges persist. High EV costs and limited charging infrastructure hinder widespread adoption. Despite this, Chinese automakers are determined to gain a foothold, viewing Africa as a strategic market for expanding their EV portfolios and capturing environmentally conscious consumers.

GrowthCon is back bigger & better! Come explore proven strategies, tactics & success stories of growth & innovation in Africa via curated masterclasses, workshops & case studies led by top growth leaders. This year also includes the Executive Track, exclusive to business leaders & senior execs. Get your tickets now!

Events

• You can still get an early bird ticket to the second edition of TechCabal’sMoonshot Conference!  From October 9–11, 2024, at the Eko Convention Centre, Lagos, Nigeria, you can join Africa’s biggest thinkers and players like Iyin Aboyeji, Wiza Jalakasi, June Angelides, Kola Aina on a global launchpad for change. If you want to join these stakeholders in Africa’s tech ecosystem for three days of insightful conversations, then get an early-bird ticket to Moonshot 2024 at 20% off. 


• The Nigeria Fintech Forum is set to hold its third edition on July 25, 2024, at the Civic Centre, Victoria Island, Lagos. Nigeria Fintech Forum plays host to the most senior leaders across Nigeria’s fintech and banking, uniting industry stakeholders who are defining the future of the ecosystem, If your work resonates with fintech, payments or banking, This is where you should be. Get a ticket here. 


• JICA will organize an event related to Nigeria’s startup ecosystem in Japan on Sep 5th 2024. Find out more here.

You should definitely read these 👇🏾

• Fisayo Fosudo shares how to succeed as a YouTube creator
• The moral bankruptcy of Marc Andreessen and Ben Horowitz
• Tanzania’s wealthiest man, Dewji, to plough $100 million into Rwanda

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

ADVERTISE

To advertise with us send an email to

ads@bigcabal.com