TGIF!
We have come to the end of TC Daily for 2024!
Thank you so much to all our readers who have stuck with us through all the ban puns and insightful articles. We’ll be taking the next two weeks to strategise. TC Daily will be back in your inboxes on January 6, but TechCabal will be publishing some insightful pieces to keep you going.
To close out the year, we’ve got you a gift. Ecosystem thought-leaders Osarumen Osamuyi, publisher of The Subtext, and Derin Adebayo, publisher of Unevenly Distributed, have co-authored today’s edition.
Let’s get started!
Next Wave
When will the exits cross the road?
by Osarumen Osamuyi and Derin Adebayo
Four days ago, Tyme Bank announced its $250 million Series D round which valued the company at $1.5 billion. This comes just under two months after Moniepoint’s Series C, which also took the company to unicorn status.
In November 2019, Interswitch became Africa’s first unicorn. This was six months after Jumia listed on the New York Stock Exchange. Since 2019, eight other African startups have hit a billion dollar valuation (add one or two more companies depending on how you feel about the provenance of companies like Go1 and Zipline). The exits have also accelerated, with companies such as Paystack, Sendwave, DPO, & Instadeep all getting acquired since 2019.
However, while the continent has seen many billion dollar valuations and has seen some companies exit, it has not seen a single company hit a billion dollar valuation and then exit. African unicorns account for a combined $14.7 billion in valuation. In comparison, since 2010, all major exits (>$100 million) for African startups sum up to just $4 billion.
We first addressed the lack of African exits in an essay titled The Chicken or The Exit? (2021). In the 11 years before that article (2010-2020), the ecosystem raised $7B in venture capital. At the time we argued that it was too early for a conversation about exits. In the three years since (2021-2023), the ecosystem raised more than $12 billion. A significant portion of that capital went to a handful of growth stage companies.
Given the level of capital that has come into the continent, and the number of growth-stage companies that have emerged, it is difficult to argue that the ecosystem is still too early to face real questions about the lack of exits. With this in mind, we’ve revisited the question in a new essay titled “When Will The Exits Cross The Road?”
The piece explores the journey of the African ecosystem since 2010. We place Africa within the context of other emerging markets while chronicling the continent’s first real venture cycle. We also explore the core tension that this cohort of African growth-stage companies must navigate if they are to achieve significant exits. Finally, the piece tries to explore how the past few years have set up the foundation for the next stage of the ecosystem’s growth.
You can read it on The Subtext, and Unevenly Distributed.
Osarumen Osamuyi is the founder of The Subtext, an Africa-focused tech analysis firm. Previously, he has studied/supported the ecosystem via roles at Meta, DFS Lab, and Ventures Platform.
Derin Adebayo is a Manager at Endeavor. Through his newsletter, Unevenly Distributed, he explores the diffusion of technology, entrepreneurship, and venture capital in emerging markets.
Read About Moniepoint’s Impact on Pharmacies
Do you remember what you bought the last time you visited a pharmacy? Data from Moniepoint’s pharmacy case study reveals it was likely a painkiller. Click here to discover how Moniepoint is enabling access to healthcare through payments and funding for community pharmacies.
Companies
Eskom records $3 billion in losses in 2024
Eskom is having a rough time.
The South African power company which was last profitable in 2017 recorded a R55 billion ($3 billion) loss in its 2024 fiscal year. The loss was 2x its 2023 loss of R26.1 billion ($1.4 billion).
The steep loss was expected following widespread power outages stemming from failures at inadequately maintained generating facilities. The power facility recorded 329 days of scheduled power outages or load-shedding during the fiscal year. Those power outages caused the company to lose R22 billion ($1.14 billion) in revenue.
The company has now improved power supply, with no scheduled load shedding scheduled since Q2. The company has also lowered its diesel spend by R11.9 billion ($643 billion) according to a presentation on the company’s website.
A significant portion of Eskom’s 2024 losses also stemmed from a R36.6 billion ($1.9 billion) impact after the unbundling of its transmission business.
Eskom chief executive officer Dan Marokane believes that the power company can return to profitability in the 2025 financial year due to a reduction in diesel usage and a drop in power cuts. The company projected an after-tax profit of more than R10 billion ($548 million) for its 2025 fiscal year.
Lower debt and debt service costs will also contribute to the improved profit outlook, in addition to a 12.7% tariff hike. The company’s liquidity has significantly improved, primarily due to a government bailout of R76 billion, which covered much of its debt servicing obligations.
Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE
Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts.
Investment
Proparco invests $5 million in Equator Africa Fund
Introducing Paystack transfers in Kenya
Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more →
TC Insights
Funding Tracker
CRYPTO TRACKER
The World Wide Web3
Source:
Coin Name |
Current Value |
Day |
Month |
---|---|---|---|
Bitcoin | $97,138 |
– 4.70% |
+ 5.05% |
Ether | $3,392 |
– 7.39% |
+ 8.88% |
Dogecoin | $0.32 |
– 11.44% |
– 16.87% |
Solana | $197.34 |
– 6.36% |
– 16.60% |
* Data as of 06:30 AM WAT, December 20, 2024.
Jobs
- PressOne Africa – Growth and Sales Operations Manager – Lagos, Nigeria
- Condia – Sales and Partnership Associate – Remote (Nigeria)
- Moniepoint – Growth Product Partner – Lagos, Nigeria
- 54 Collective (Radease) – Growth Manager – Hybrid (Lagos, Nigeria)
- Renmoney – Chief of Staff – Lagos, Nigeria
- Interswitch Group – Data Engineer, Mobile App Developer – Hybrid (Lagos, Nigeria)
- Fairmoney – Data Engineer – Remote (Lagos, Nigeria)
- Duplo – Senior Product Manager, SaaS, Risk & Compliance Manager – Hybrid (Lagos, Nigeria)
- Reliance Health – Content Strategist – Remote (Lagos, Nigeria)
- Darey.io – Quality Assurance Specialist – Lagos, Nigeria
There are more jobs on TechCabal’s job board. If you have job opportunities to share, please submit them at bit.ly/tcxjobs.
Written by: Osarumen Osamuyi, Derin Adebayo, Towobola Bamgbose, Oluwaseun Joseph, and Faith Omoniyi
Edited by:Timi Odueso
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