Telecom
Kwara Raises $3M for Seed Expansion and Signs Deal to Reach Over 4,000 Credit Unions
Kwara, a Kenyan fintech digitizing credit unions (Saccos), has more than doubled its customer base over the past year and plans for huge growth in the coming years after raising a $3 million seed expansion and an exclusive Digital Solutions Distribution Agreement signed with the Kenya Union of Savings & Credit Cooperatives (Kuscco), the national umbrella organization that represents Saccos.
Techcrunch in its report noted that, following the Kuscco partnership, Kwara will have connections to a pool of over 4,000 Saccos for its Banking-as-a-Service product. As part of the exclusive deal, Kwara will also acquire Kuscco’s subsidiary IRNET, a software company and provider for Saccos, for an undisclosed amount.
According to Kwara, the Kuscco deal comes at the right time in his plan to double-down on Kenya, especially as it comes right after the $3 million seed round extension. Joining the round were existing investors DOB Equity, Globivest and Willard Ahdritz, founder of Kobalt Music. New supporters One Day Yes, Base Capital, and fintech executives including Mikko Salovaara, Revolut’s CFO, also joined the round. The new funding brings the total seed fund raised by the startup to $7 million after first round investments from Breega, SoftBank Vision Fund Emerge, Finca Ventures, New General Market Partners and other VCs.
“We believe we have barely scratched the surface of the Kenyan market. And so we’re really going to invest in products and services that deepen our relationship here,” Cynthia Wandia, co-founder and CEO of Kwara, told TechCrunch.
“The reason (of the deal) is clear, firstly it is an opportunity to generate leads and sell our core product so quickly and deepen our competitive advantage. We are entering into an exclusive partnership, which also means that no other technology company can market with Kuscco. They’re counting on us, but we’ve been able to prove we can do it as we continue to grow,” said Wandia, who co-founded the fintech in 2019 with David Hwan.
Kwara, which also has a presence in South Africa and the Philippines, has grown its customer base to 120 from 50 at the end of 2021 and has maintained 100% customer retention – a testament to the value it brings to its customers. The automated onboarding process, according to the startup, has ensured customer success and growth.
Kwara’s product upgrades credit unions’ back-office operations, helping them move away from tedious paper-based processes and physical branches, and opening up new avenues for them to recruit new members and create novel products.
The company also has a next-gen neobank app that gives members of partner credit unions access to additional services like instant loans and third-party services like insurance. The neobank app’s user base, which also allows users to deposit funds directly into their Sacco accounts and track their finances and payments, has grown 35-fold since it launched last year.
The fintech plans to add more features for the Saccos and additional products for the members.
“We continue to deliver more or less enterprise-grade features for the big saccos that are well capitalized, the ones that are the same size and level as some of the banks. There are specific features that they need and specific capabilities that they need to take care of, so we will continue to invest in those. And then invest in the neo-banking experience by adding more features that help members create a personalized view of their own goals and really work towards achieving them. Third-party partnerships that add value to those end customers,” Wandia said.
“We believe that every time a sacco member leaves their sacco to obtain another service simply because the sacco does not provide it, is a missed opportunity for that member to actually benefit from the returns from that product . Any revenue generated from these products actually goes back to members as dividends,” she added.
Credit unions are formed by people with a common interest or members of an industry, such as farmers or teachers, who buy shares in the institution, save money, and borrow. They are particularly popular in developing regions because of their low-interest loans and the ease of borrowing compared to conventional banks.
Telecom
Suspected Lakurawa Terrorists Kill 3 Telcoms Workers in Kebbi
Terrorists belonging to Lakurawa group have reportedly killed three staff of a leading telecommunication firm.
The insurgents were said to have invaded a construction site at Gumki village in Arewa Local Government Area of Kebbi State.
The bandits reportedly attacked a construction site at Gumki village in Arewa Local Government Area of Kebbi State when their victims were installing a surveillance mast for the Nigeria Immigration Service and killed them and one other person who is yet to be identified.
There was a conflicting report of which organization the victims belonged as the police said three of the deceased were Airtel staff and the residents identified them to be Immigration staff.
A staff of Sir Yahaya Specialist Hospital however corroborated the villagers, saying the three victims brought to the hospital were Immigration staff.
But SP Nafiu Abubakar, police spokesperson, said four persons lost their lives, one indigene and three staff of Airtel.
He said from the report the police got, Bello M Sani, state Commissioner of Police, alongside with CIS Muhammad Bashir, Comptroller, Nigeria Immigration Service, Kebbi State Command, Lawali mobilized their men to the scene to evacuate the corpses to Sir Yahaya Memorial Hospital in Birnin Kebbi.
He said his CP has deployed additional tactical teams to the area and charged them to decisively deal with the suspected bandits operating in the area.
He said the CP also had meeting with people in the area and appealed to them to always assist the police and other security agencies with relevant information for their prompt response.
Telecom
Nigeria Has World’s Most Affordable Data Costs – GSMA
Nigeria has an average data cost of $0.38 per gigabyte, making her the most affordable countries globally and one of the cheapest in Africa for mobile data services.
United States averages $6 per gigabyte and South Africa with $1.77 per gigabyte rank the highest globally and in Africa respectively.
According to the GSMA, Nigerian data costs, as a percentage of Gross National Income (GNI) per capita, are among the lowest across Africa.
The reports by the body lends weight to telecom operators advocacy for tariff adjustments to address economic pressures threatening the sector’s sustainability.
The GSMA report, titled “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” highlighted Nigeria’s competitive data pricing, which is significantly lower than other African nations, such as Kenya ($0.59 per gigabyte), Ethiopia ($0.68 per gigabyte), and South Africa ($1.77 per gigabyte).
By contrast, the United States averages $6 per gigabyte, underscoring Nigeria’s advantage in offering cost-effective connectivity.
The cost of mobile data in Africa varies greatly by country and region.
Data costs can refer to the cost of mobile data or the cost of acquiring, maintaining, and using business data.
In 2023, the average cost of 1 GB of mobile data in Sub-Saharan Africa was $3.31, while in Northern Africa it was $0.86.
Telecommunications operators in Nigeria have been requesting some policy changes as well as tariff rebalancing to enable them deliver support to the Government’s digital economy objectives.
They have called for the simplification and improvement of the Right of Way (RoW) charging and administration process, harmonised across the country
According to them, all government authorities (at national and sub-national levels) should apply the national maximum RoW fee of N145 per/LSQM adopted by the National Economic Council (NEC) for the deployment of fibre across all states in Nigeria.
There should be a single point of contact in each state for the RoW application process while the duration for the approval process should be digitalised and limited to a maximum of one month.
Simplification and reduction of the tax burden on the mobile sector
On tariff, recall that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
Nodding in agreement, Bismarck Rewane, chief executive officer, Financial Derivatives, said the proposed tariff hike by telecommunications will help reduce inflation in the country.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
Telecom
Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
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