Connect with us

Telecom

FairMoney Looking to Expand Footprint in Kenya through Umba Acquisition

Published

on

Kindly share this post

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.


Kindly share this post

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

Telecom

ATCON Commends FG for $2Bn “Project Bridge”, Pledges Support

Published

on

Kindly share this post

Association of Telecommunication Companies of Nigeria (ATCON) on Monday commended the Federal Ministry of Communication, Innovation, and Digital Economy (FMCIDE) for spearheading a new initiative known as ‘Project Bridge’.

ATCON Commends FG for $2Bn "Project Bridge", Pledges Support

Tony Emoekpere, president, ATCON, stated in an interview with NAN in Lagos that the initiative aimed to create a robust and resilient telecommunications backbone across Nigeria.

Emoekpere stated that the project was an ambitious public-private partnership designed to connect all 36 states and Abuja, as well as LGAs, via fiber optic cables.

According to him, the initiative is not meant to replace existing infrastructure but to complement it, creating a more resilient network.

“Right now, most of the networks that we have are linear in nature. ’Just imagine, if there’s only one road from Lagos to Ibadan; if anything happens to that road, you would not get to Ibadan.

‘’This project will create alternative routes,” he said.

The ATCON boss stated that the project was modeled after the successful PPP framework in the energy sector, with the government contributing a certain percentage to the Special Purpose Vehicle and the private sector providing the remaining funding.

He stated that the project’s goal was to establish alternative, redundant connections, thereby ensuring that services remained uninterrupted even if one part of the network was compromised.

The president expressed the full support of telcos, noting that the project would enable members to deliver services more effectively in locations where infrastructure was currently a significant challenge.

“With this project, we will have multiple options,” he said.

Project BRIDGE involves building a nationwide fiber optic network to expand digital infrastructure and connectivity, rather than a physical bridge, as part of Nigeria’s National Broadband Plan.

The project is a public-private partnership ($2 billion cost) using an SPV to deploy 90,000km of fiber-optic cable to enhance education, healthcare, and the digital economy.

 

 

 


Kindly share this post
Continue Reading

Telecom

MTN Restores Services After Planned Network Maintenance in Parts of Adamawa, Borno, and Kano

Published

on

Kindly share this post

MTN Nigeria has successfully completed a scheduled network maintenance operation that affected 101 sites across 15 Local Government Areas (LGAs) in Adamawa, Borno, and Kano States.

The restoration marks a significant step in the company’s ongoing efforts to enhance service reliability in the Northeast region, amidst multiple fibre cuts and vandalism.

The maintenance, which took place on Sunday, August 24, involved the cutover of traffic to a newly installed fiber span along the AFCOT–Bawo Village route in Adamawa State.

This upgrade was necessary to replace a previously damaged section of the network infrastructure. All service maintenance was done within timeframe and restorations before 1 PM on Sunday August 24th.

We can confirm that all impacted sites have been fully restored, and services are now operating normally. We appreciate our subscribers’ patience and sincerely apologize for any inconvenience caused during the downtime.

The affected services included 2G, 3G, 4G, and enterprise connectivity, with temporary disruptions experienced in LGAs such as Girei, Song, Mubi North, Hong, and Michika in Adamawa; Askira/Uba and Shani in Borno; and Nasarawa in Kano.

The work was scheduled during daylight hours to ensure the safety of field engineers, given the linear and unprotected nature of the route.

This restoration is part of MTN’s broader strategy to strengthen its infrastructure in underserved regions and ensure consistent service delivery across Nigeria, amidst constant fibre cuts and vandalism.


Kindly share this post
Continue Reading

Telecom

TikTok Unveils Artist Insights Platform in Nigeria

Published

on

Kindly share this post

TikTok has launched its music insights platform, TikTok for Artists, in Nigeria to support artist growth and fan engagement across the country’s vibrant music industry.

The platform, which debuted globally earlier this year, provides artists, labels, and management teams with access to daily-updated dashboards and analytics tools to track music performance, audience demographics, and fan interactions.

Toyin Mustapha, Head of Music Partnerships for the UK, Ireland, and Sub-Saharan Africa at TikTok, said the initiative was part of the company’s commitment to empowering African creators.

“With the launch of TikTok for Artists in Nigeria, we’re giving artists and their teams access to insights that can help them engage their fans in more meaningful ways and grow their careers globally,” Mustapha said.

The platform offers detailed song performance metrics, including views, posts, and creator engagements per track. It also provides granular post-level data such as likes, comments, shares, and completion rates, alongside demographic breakdowns by gender, age, and language.

In addition to analytics, TikTok for Artists includes educational resources and step-by-step guides to help artists build sustainable careers.

A key feature of the platform is the Pre-Release tool, which allows artists to launch campaigns for upcoming albums and enables fans to pre-save tracks on streaming platforms like Spotify and Apple Music.

British artist Jordan Adetunji described the platform as a “game changer,” noting its value in helping artists and their teams plan effective campaigns.

TikTok said the rollout reaffirms its investment in Africa’s creative economy and aims to foster deeper connections between artists and fans across the continent.

The platform is now available to all certified TikTok Artist Accounts, with access also extendable to managers and label teams.


Kindly share this post
Continue Reading

Trending