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FairMoney Looking to Expand Footprint in Kenya through Umba Acquisition

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FairMoney, a digital bank based in Lagos is in talks to acquire Umba, a credit-led digital bank operating in Kenya, for $20 million in an all-stock deal.

The fintech firm seeks to grow its customer base, particularly in Kenya, solving the challenges faced by many African fintechs due to global funding slowdown.

Founded in 2016, FairMoney has become a well-known Nigerian lender, attracting over $57 million in funding and asserting over 6 million customers. While venturing into India in 2020, recent updates on that expansion remain unavailable.

Launched in 2018, Umba initially focused on retail banking in Nigeria before expanding to offer merchant financing and business banking in both Nigeria and Kenya. While user numbers haven’t been disclosed, they secured a microfinance license in Kenya through a strategic acquisition in 2022.

Obtaining a microfinance license in Kenya is notoriously difficult, with only 14 issued compared to Nigeria’s 600+. For FairMoney, acquiring Umba’s license could offer a faster entry point into the Kenyan market.

Considering Umba’s financial situation, FairMoney’s offer might be enticing. Recent data reveals they generated $335,000 in revenue versus $1.54 million in expenses between January and June 2023. Moreover, after a $15 million Series A funding round in 2022, they secured a $1.55 million bridge round at a significantly lower valuation, aligning with FairMoney’s offer.

This potential deal follows a recent acquisition in the Nigerian fintech space – Carbon’s purchase of SME-focused Vella Finance. This shows the evolving state of African fintechs, where tightened VC funding necessitates consolidation and strategic partnerships.

While acquisition talks are ongoing, Umba may explore other options. Ultimately, this potential deal, if successful, highlights both FairMoney’s expansion drive and the changing dynamics of the African fintech sector in the challenging economic climate.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Global Tech OEMS Partner Konga Group for Tech Month with Huge Discount

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E-Commerce giant with reputation for integrity and trust, Konga Online, has partnered with global OEMs like Samsung, Apple, Starlink, HP, Lenovo, Hisense, Zinox, Philips, Nokia, Infinix on daily site takeover.

This means that each OEM will take over the Konga.com website with amazing deals for Nigerians every day from Monday, May 13 through May 31.

According to Mr. Abed Steven, a senior executive from a major OEM taking part in the sales extravaganza, “It is a discount shutdown and the first of its kind in the history of eCommerce in Africa.”

He adds that because Konga has capacity with their statewide network of retail locations, they are encouraged to deliver these orders on the same day nationwide.

Konga is the only E-commerce authorized shop-in-shop for Apple, Starlink, Samsung and many others including L’Oreal, the number one cosmetics company in the world.

This means you have peace of mind when you shop these products on Konga.com. Additionally, the OEMs are offering a global warranty on all of our products.

The Konga Tech Month, according to Konga’s Commercial Manager Mr. Melvin Onochie, covers everything Tech – mobile phones, computing, electronics, home and kitchen, power systems (including generator sets, inverters, solar panels, and batteries), and much more. Shoppers can purchase as many of these items as they choose.

He announced that Konga, in partnership with OEMs, shall be realizing limited edition of high value products only available on Konga.com.

Products such as 98″ Samsung TVs, iPhones, Starlink Enterprise Kits, high-end Samsung refrigerators, deep freezers, air conditioners and huge range from different manufacturers with global warranty. This is important as they are not grey market products.

He also advises shoppers to be online each day from 12midnight to take advantage of limited stock available. There shall also be an extension of free same day delivery to major cities in Nigeria.

Interestingly, Konga Tech Month goes beyond commonly known tech devices. This year’s edition expands its offerings to include a wide range of home essentials, allowing you to spruce up your living space simultaneously.

Find amazing deals on top brands like Bosch and Haier Thermocool, covering everything from kitchen appliances to home improvement essentials.

In addition to catering to individual shoppers, Konga presents a unique opportunity for entrepreneurs and business-minded individuals to explore the world of retail.

By serving as the authorized retail outlet for OEMs, Konga empowers aspiring entrepreneurs to purchase products in bulk for resale purposes.

Whether you’re looking to start your own tech retail business or add a new revenue stream to your existing ventures, Konga provides the platform and resources to kickstart your entrepreneurial journey.

Beyond the incredible tech and home essentials deals, Konga remains the trusted platform for acquiring genuine Starlink kits in Nigeria.

This innovative satellite internet service offers high-speed internet access to remote and underserved areas, a game-changer for those struggling with unreliable internet connectivity.

And the best part? During Konga Tech Month, enjoy the added convenience of free delivery of your Starlink kit to your chosen destination within Nigeria.

Konga is the preferred destination for shoppers seeking quality products and exceptional service. Discover the convenience and value of shopping with Konga and unlock a world of possibilities for personal and business success. Browse the extensive selection of discounted products online at the Konga website (https://www.konga.com/. Shop smart.


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Glo to Unveil Innovation Hubs to Drive Digitalization – Bella Disu

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Mrs. Bella Disu, Executive Vice Chairman of Globacom says the company is poised to help drive the realization of the Federal Government’s digitalization agenda.

She stated this at the launch of Nigeria’s Digital Economy Report themed ‘Driving Economic Growth through Digital Transformation’ on Thursday at the Transcorp Hilton Hotel, Abuja.

Mrs Disu, who emphasized the importance of Nigeria continuing to harness the transformative powers of emerging technologies, disclosed Globacom’s plan to enable technological advancement in the country.

“We see the current challenges in the sector as a responsibility to be at the forefront of enabling tech advancement. We are at the moment doing two things which key into the Ministry of Communications, Innovation and Digital Economy’s strategic blueprint. Under the pillar of Knowledge, the ministry is planning to have about 3m technical talents by 2027 and also increase digital literacy.

“GLOIn Glo, we have a Glo learning management solution which has the capacity to train up to 100,000 users a month on different skill sets from digital marketing and other professional courses some of which we plan to offer as CSR and also on courses covering Python, blockchain, AI to really push digital literacy”, the EVC explained.

“Under innovation, we plan to have four innovation hubs, with one to be rolled out in Lagos in the fourth quarter of the year, and three to be commissioned by the second quarter of 2025 in PH, Ibadan, and Abuja. We see these hubs as being an ecosystem and a catalyst for technological advancement where we have hubs for tech enthusiasts, entrepreneurs, incubators and accelerators to really collaborate, thrive and learn”, she added.

Mrs Disu noted that the impact of digitalization was already visible in a few sectors: “digital platforms have completely revolutionised the transportation and mobility services sector with ride-hailing companies facilitating hundreds of millions of rides in the last seven years, In ecommerce, the sector has grown significantly with online user market now about 76.7 million users. We have also seen a huge growth in POS terminals from about 155,000 in 2017 to now 1.8 million in 2023”.

“More and Nigerians are going into remote work, and with the right training, they will be able to take up even more lucrative roles in the sector. In entrepreneurship and start-ups, through fintech and content creation and startups, the opportunities are vast,” she pointed out, and pledged Globacom’s continued support for the sector.

Mrs Disu commended the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, and the Executive Vice Chairman of NCC, Dr. Aminu Maida, for show commitment and political will to address the challenges in the telecom industry.

Also speaking at the event, Dr Bosun Tijani, said with Nigeria’s huge population and resources, the country was well placed to play a critical role in a connected economy. “We can only do that by diversifying our economy and strengthening technical efficiency. This is why there is immense focus on digitalizing our economy and accelerating development in sectors like agriculture and mining to improve quality of education so we can improve learning outcomes and as such deepen pour workforce, improve on transportation and infrastructure so that our economy can get the backbone that is required to make it work for our people”, the minister stated.

The Digital Economy Report was presented by GSMA Africa and the World Bank.

 

 

 

 


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GSMA Report Highlights Telecom Sector’s Contribution to Nigeria’s GDP

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A recent Groupe Spécial Mobile Association (GSMA) digital economy report has cast a spotlight on the significant contributions of Nigeria’s telecom sector to the nation’s GDP, highlighting its crucial role in driving economic growth and development.

Released amidst growing interest in the Nigerian telecom landscape, the report provides a comprehensive analysis of the sector’s impact on the country’s economic metrics. Key findings reveal that in 2023 alone, the telecom sector directly contributed 8% to Nigeria’s total GDP. However, when factoring in the wider ICT industries’ value-added contributions, this figure surged to an impressive 13.5%.

Beyond mere numbers, the report delves into the intricacies of the telecom sector’s influence on various economic sectors. It elucidates how the mobile industry’s cumulative contribution to Nigeria’s GDP reached an estimated 20 trillion NGN in 2023, accompanied by substantial tax revenue contributions totalling 2.8 trillion NGN. Such figures further highlight the sector’s role in driving fiscal revenues and national economic stability.

Moreover, the report sheds light on the transformative potential of the telecom sector in enabling digitalisation across key industries. Projections indicate that by 2028, sectors such as agriculture, manufacturing, transport, trade, and government are poised to witness a remarkable GDP increase of approximately 2 percentage points.

This surge is expected to generate an additional NGN 1.6 trillion in tax revenue, marking a significant milestone in Nigeria’s quest for economic diversification and resilience.

“The telecommunications sector is the backbone of the digital economy. We have a strong appreciation of the fact that if we are able to improve the business environment and invest in the sector, we can continue to improve the level of productivity.

A country like Nigeria has significant opportunities to contribute to the world, but this is impossible without diversifying the economy”. Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy added.

The report also highlights the vital role of 5G networks in enhancing operational efficiency across sectors through real-time data transmission and remote monitoring.

It spotlights the immense potential of digitalisation in sectors like manufacturing and trade, with the capacity to add trillions in industry value and generate substantial employment opportunities and tax revenues.

Despite these promising revelations, the report also acknowledges the challenges faced by the telecom sector, particularly its capital-intensive nature.

The report’s findings beckon a clarion call for concerted efforts to leverage the telecom sector’s potential as a catalyst for economic advancement. With the right policies and investments, Nigeria stands poised to harness the full spectrum of opportunities offered by its vibrant telecom landscape, driving inclusive growth and prosperity for all.


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