Hi Fintech friends 👋,

Here are the highlights of what happened in African Fintech this week;

• Emerging market-focused payroll service provider secured $7.1 Million.
• South Africa based insurance company acquired over 60% of one of Africa’s media insurance company.
• European based VC launched a $75 Million Africa focused fund.
• African payments Unicorn partnered with the Financial Crimes Authority to build a Cybercrime Research center.
• Two US lawmakers visited executive of world’s largest Crypto exchange who has been held by Nigeria.
• Nigeria based digital bank secured full license reinstatement from the Central Bank amid past challenges.

💸Fundraise and Exits

• Cadana raised  $7.1 Million seed to accelerate remittance for African talents.

• Uganda based Ensibuuko, a savings and loans management platform, raised funds from CARE to boost financial inclusion for women.

• South Africa’s Sanlam acquired over 60% of MultiChoice’s insurance business.

💰 Venture Funds

• European early-stage VC firm Breega launched a $75 Million Africa-focused fund.Breega plans on investing checks ranging from US$100,000 to US$2 million, entering as the initial investor.

🚀 Partnerships & Product Launches

• Tanzania based startup Nala partnered with the largest bank in Tanzania, CRDB to power Remittance for Tanzania diaspora.
• Flutterwave and EFCC collaborated to build a Cybercrime Research Centre.
• Paystack launched Virtual Terminal in Côte d’Ivoire, Ghana, Kenya, and South Africa.
• Tanzania based financial services provider, UBX launched Saccos management platform.

👔 Leadership Lineup

• Two US lawmakers, French Hill and Chrissy Houhalan called for the immediate release of detained Binance executive Tigran Gambaryan after visiting him in Kuje prison on Wednesday, demanding that all charges against him be dropped.

📰 News of the Week

• Eyowo secured full license reinstatement from the Central Bank amid past challenges.

Eyowo’s journey to this point has been marked by significant hurdles. In 2023, the company faced severe setbacks that threatened its operations and raised concerns among users and industry stakeholders. Reports of a potential shutdown circulated, which Eyowo addressed by clarifying its plans to pivot into a financial technology platform providing “financial connectedness and intelligence” for smartphone users.

The company’s challenges were compounded when the Central Bank Of Nigeria revoked the licenses of Eyowo and 46 other microfinance banks. This action was taken due to various issues, including inactivity, insolvency, failure to submit returns, or cessation of licensed banking activities for over six months.

During this period, Eyowo partnered with Providus Bank to ensure customers could access their funds while completing individual verification processes.This measure was implemented to safeguard funds, prevent fraud, and ensure regulatory compliance.

👀 Eye Openers

• Who are African Soonicorns?

Africa is home to seven tech unicorns. Who else might soon join Africa's Tech Unicorn Club?

TymeBank; This South Africa based digital bank has over eight million customers and annualized revenue run rate of $160 Million.The company became profitable December 2023 and is now raising its series D round of $150 Million at Unicorn valuation.

Moniepoint; The profitable Nigerian digital bank company last year processed 5.2 billion transactions worth $150 Billion. The startup currently has more than 3 million SME and individual customers, and $200 Million annual revenue.

📑 Read of the week

• How to insure Africans.(Substack)
• Why chasing fintech licenses could lead to early downfall of your startup.(Techpoint)

📖 Other News, Reads, and Media

• Worldcoin might resume operation as Kenyan police dropped the investigation into allegations that it had illegally collected and transferred users' data.
• Nigerian fintech Carbon discontinued debit card service nearly 3 years after launch.
• The Bank of Uganda (BOU) placed Mercantile Credit Bank Limited under liquidation, revoked its license and ordered for winding up of its operations after over 30 years of operation.

🎥 VIDEO INTERVIEWS/DISCUSSIONS

• Interview with Y-Combinator's Michael Seibel: How African Founders Can Build Global Tech Companies.

🦉 Tweet of the Week

🎯 Fintech Opportunities

• African Fintechs can apply for Ecobank Fintech Challenge and stand a chance to win an overall cash prize of US$50,000, and the opportunity to partner and scale their solutions with Ecobank.
• Want to sponsor or share your fintech story and reach over 100,000 fintech enthusiasts each week? reach out to john@thisweekinfintech.com to get started.

Made in Tanzania 🇹🇿 with 💚

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