Update on Nigerian fintech firm Interswitch and its speculative IPO – gpgmail


Nigerian fintech firm Interswitch has been circulating in business news around a possible IPO on the London Stock Exchange.

Last month Bloomberg News ran a story—based on unnamed sources—reporting the financial services firm had hired investment banks to go public on the LSE later in 2019. The piece spurred additional aggregated press.

That Interswitch—which provides much of Nigeria’s digital banking infrastructure—could become one of Africa’s earliest tech companies to list on a global exchange isn’t exactly news.

It’s more deja vu of a story that began several years ago.

As gpgmail reported, Interswitch was poised to launch on the LSE in 2016. CEO and founder Mitchell Elegbe confirmed “a dual-listing on the London and Lagos stock exchange is an option on the table,” in a January 2016 call.

Two additional sources wired into Nigeria’s tech market and close to Interswitch’s investors also said the public launch would happen by the end of that year.

The IPO would have made Interswitch Africa’s first tech company to go from startup to a billion-dollar plus unicorn valuation status. Of course, it didn’t happen in 2016.

In 2017, gpgmail checked in with Interswitch on the delay and was told the company could not comment on its pending IPO.  In other public interviews, executives Mitchell Elegbe and Divisional Chief Executive Officer Akeem Lawal named Nigeria’s recession as a reason for the delay and reaffirmed a likely dual Longon-Lagos listing by the end of 2019.

After the latest round of IPO buzz, gpgmail asked Interswitch this week about the Bloomberg reporting and an imminent public stock listing. ““Interswitch does not comment on market speculation,” was the only info a public spokesperson could offer.

So, its tough to say if or when the company could list. There are still a few reasons why the company (and its possible IPO) are worth keeping an eye on.

One is Interswitch’s growing role as a nexus for payments and financial services infrastructure in Nigeria (home of Africa’s largest economy), across Africa, and between Africa and the world. Back in 2002, the company became the pioneer for creating infrastructure to digitize Nigeria’s then predominantly paper-ledger and cash-is-king based economy.

Interswitch has since moved into high-volume personal and business finance, with its Verve payment cards and Quickteller payment app. The Nigerian company (which is now well beyond startup phase) has expanded with physical presence in Uganda, Gambia, and Kenya—the latter being home-turf of M-Pesa and Safaricom, which are largely responsible for making Kenya the mobile-money capital of Africa.

Interswitch also sells its products in 23 African countries, through bank partnerships, and has presence abroad. Through its Verve Global Card product, the company’s cardholders can now make payments in the U.S., UK, and UAE. Interswitch launched a partnership this month for Verve cardholders to make payments on Discover’s global network. The first transaction for the partnership was placed in New York, with an advertisement for the Nigerian company’s payment product flashing across Times Square. Verve Times Square Interswitch  Another facet to a possible Interswitch IPO is its potential to spark more corporate venture arm and acquisition activity in African fintech, which as a sector receives the bulk of the continent’s startup capital. Interswitch launched a venture arm in 2015called its global ePayment Growth Fundthat made two investments, but then went largely quiet.

A windfall of IPO capital and increasing competition from fintech startups could spur Interswitch to fire up its venture investing activity again. Startups such as Flutterwave and TeamAPT (formed by a former Interswitch alum) have already entered some of Interswitch’s product territory. If a public listing led Interswitch to ramp up investing in (or even acquiring) startups, the net effect would be more capital and exits in Africa’s fintech sector.

And finally, if Interswitch does IPO on the London and Lagos stock exchanges, it could provide another benchmark for global investors to gauge Africa’s tech sector beyond Jumia. This spring the e-commerce company became the first big tech firm operating in Africa to launch on a major exchange, the NYSE.

So far, Jumia’s IPO has been an up and down affair. The company gained investor and analyst confidence out of the gate, but also came under a short-sell assault and share-price volatility.

Two successful global IPOs of tech companies from Africa would and could become the best-case scenario for the continent’s startup scene. But for that to be a possibility, Interswitch will have to confirm the speculation and finally list as a publicly traded fintech firm.

 


10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something

YC is doubling down on these investment theses in its most recent batch – gpgmail


Nearly 200 startups have just graduated from the prestigious San Francisco startup accelerator Y Combinator. The flock of companies are now free to proceed company-building with a fresh $150,000 check and three-months full of tips and tricks from industry experts.

As usual, we sent several reporters to YC’s latest demo day to take notes on each company and pick our favorites. But there were many updates to the YC structure this time around and new trends we spotted from the ground that we’ve yet to share.

CTO and HR demo days


10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something

African incubator MEST has a new MD and 11 fresh startup investments – gpgmail


Pan-African incubator MEST announced investments in 11 startups from its 2019 cohort that will each receive $100,000 in financing.

The $1.1 million backing for a graduating class is the largest to date for the Accra-based organization — which operates as a training program and seed fund for African innovators to build successful commercial tech companies.

By country presence and membership, MEST is one of Africa’s largest tech hubs, and has a new managing director — Ashwin Ravichandran — who succeeded Aaron Fu in July.

This year’s investment recipients come from four countries: Nigeria, Kenya, Ghana and South Africa. The startups offer goods and services across diverse sectors, from agtech to fintech to beauty and entertainment (see full list below).

Ghanaian fintech startup Bezo Money will use the funding from MEST to launch its app aimed at formalizing and digitizing West Africa’s traditional savings groups, founder Mubarak Sumaila told gpgmail on a call from MEST’s Accra offices.

MEST 2019 cohort graduate and investment recipient Zuri has created a platform to organize, review and connect beauty services and professionals to clients online. “The global beauty services industry is worth over $100 billion and the African market is worth over $30 billion,” said Zuri founder Onyinye Nnedolisa. The company will use its investment funds on product development and business development.

MEST takes equity in its portfolio startups, which have 18 months of incubation support from the organization, including the option to work out of MEST incubators in multiple African markets, MEST’s new MD Ashwin Ravichandran told gpgmail.

On future focus, MEST is looking to expand to additional countries. It currently has incubator spaces in Ghana, South Africa, Nigeria and Kenya and has a strong eye on setting up shop in Cote d’Ivoire, according to Ravichandran.

MEST will continue its entrepreneurial training programs, aimed at shaping founders who can launch companies, and maintain a strong focus on developing and investing in Africa’s early-stage startups.

MEST is funded primarily by Norwegian entrepreneur and philanthropist Jorn Lyseggen’s Meltwater Foundation. For several years, the incubator has discussed forming a full on VC fund.

That could be imminent. “We have all the pieces in place right now, I think Jorn’s just figuring out the last steps before announcing it,” said Ashwin. The VC fund would have more capital and go beyond MEST’s seed-stage investments to consider Series stage rounds to African startups.

Africa has seen a boom in tech hubs over the last decade that have become focal points for startup formation, digital skills building, events and IT activity.

A joint GSMA, Briter Bridges report tallied 618 tech hubs across the continent. Like MEST, many of the hubs got their start from grant funding, and there’s an ongoing conversation about viability and sustainability for these spaces going forward.

TechHubsinAfricain2019 Briter BridgesIncreasingly, some of the largest African hubs — such as MEST, Nigeria’s CcHub and Kenya’s iHub — have moved toward more fee-based services and investment activities to generate greater operating revenue. On whether this is a future model for Africa’s tech hubs, “Yes, it definitely is,” Ravichandran said.

Startups interested in joining MEST’s 2020 cohort, and potentially gaining investment upon graduation, can get recruitment updates online.

Here’s MEST’s list and description of the 11 ventures from its 2019 class that earned $100K seed rounds:

  • Massira: a social support network and healthcare service aggregator for women,
    launching in Ghana
  • BezoMoney: a digital savings platform for traditional savings groups, launching in Ghana
  • Farmula: a web and USSD platform to create a direct connection between farmers and businesses using an automated process to increase order efficiency, launching in Kenya
  • CoFundie: a platform for crowd-sourcing funds for the development of buildings using cost efficient and time-saving techniques, launching in Nigeria
  • Niqao: a financing platform that connects merchants and lenders to enable them to offer customers the option of paying in installments, launching in Ghana
  • Saada: a messaging and mobile money ticketing services for increasing digital sales and data collection, launching in Kenya
  • Nadia: a personalized automated health companion that provides quick medical attention and prescriptions, launching in Kenya
  • Kweza: a service that enables informal retailers to order products at the best price and receive deliveries directly to their stores, launching in South Africa
  • CoVibes: a platform that pairs verified studios and producers, allowing them to list their profiles and manage bookings while enabling artists to find and collaborate with them and each other, launching in Nigeria
  • Adi+Bolga: a platform using the power of technology and community to gather data and create conversations around the black skin and black skincare, launching in Ghana
  • Zuri: a platform that helps beauty professionals manage their customers and provides an easy way for people to find and book beauty services, launching in Nigeria


10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something

Y Combinator-backed Trella brings transparency to Egypt’s trucking and shipping industry – gpgmail


Y Combinator has become one of the key ways that startups from emerging markets get the attention of American investors. And arguably no clutch of companies has benefitted more from Y Combinator’s attention than startups from emerging markets tackling the the logistics market.

On the heels of the success the accelerator had seen with Flexport, which is now valued at over $1 billion — and the investment in the billion-dollar Latin American on-demand delivery company, Rappi, several startups from the Northern and Southern Africa, Latin America, and Southeast Asia have gone through the program to get in front of Silicon Valley’s venture capital firms. These are companies like Kobo360, NowPorts, and, most recently, Trella.

The Egyptian company founded by Omar Hagrass, Mohammed el Garem, and Pierre Saad already has 20 shippers using its service and is monitoring and managing the shipment of 1,500 loads per month.

“The best way we would like to think of ourselves is that we would like to bring more transparency to the industry,” says Hagrass.

Like other logistics management services, Trella is trying to consolidate a fragmented industry around its app that provides price transparency and increases efficiency by giving carriers and shippers better price transparency and a way to see how cargo is moving around the country.

If the model sounds similar to what Kobo360 and Lori Systems are trying to do in Nigeria and Kenya, respectively, it’s because Hagrass knows the founders of both companies.

Technology ecosystems in these emerging markets are increasingly connected. For instance, Hagrass worked with Kobo360 founder Obi Ozor at Uber before launching Trella. And through Trella’s existing investors (the company has raised $600,000 in financing from Algebra Ventures) Hagrass was introduced to Josh Sandler the chief executive of Lori Systems.

The three executives often compare notes on their startups and the logistics industry in Northern and Southern Africa, Hagrass says.

While each company has unique challenges, they’re all trying to solve an incredibly difficult problem and one that has huge implications for the broader economies of the countries in which they operate.

For Hagrass, who participated in the Tahrir Square protests, launching Trella was a way to provide help directly to everyday Egyptians without having to worry about the government.

“It’s three times more expensive to transport goods in Egypt than in the U.S.,” says Hagrass. “Through this platform I can do something good for the country.”


10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something

Startups seek sperm… And venture capital backing – gpgmail


Hello and welcome back to Equity, gpgmail’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we were helmed by Kate Clark and Alex Wilhelm, but those of you who love the show having guests on don’t despair. As we explain at the top, there’s a lot of folks coming on the show soon, many of whom you know by name.

But that’s to come, and we had a lot to chat through this week. Including, right from the jump, the latest gyrations in the stock market. Earlier this week tech stocks, and especially cloud and SaaS stocks, took a nosedive. Sentiment swung around later in the week when markets caught their breath and Lyft’s earnings went well. But the movement in highly-valued SaaS companies caught our eye. Perhaps if the market finally does correct, we’ll see growth stakes take the worst of it.

But it wasn’t all bad news on the show, a new app that raised $5 million caught Kate’s attention. It’s called Squad and it’s now backed by First Round Capital, the seed fund behind the likes of Uber . You can read Kate’s interview with the founder, Esther Crawford, here.

Next, we turned to two startups that are focused on male reproductive health. While we’ve covered startups focused on fertility before on the show, this is the first time we’ve delved into male-focused services that are designed to help men take part in conception. The news here is Dadi has raised another $5 million in venture capital funding. Legacy, the other male fertility company we discussed, is taking part in Y Combinator’s summer batch right now.

On the IPO-ish beat, we talked about Postmates which has a new stadium partnership, and, more importantly, permission to use cute robots to deliver things in San Francisco. After hearing about how small, rolling robots will handle last-mile deliveries for years, we’re excited for them to actually make it to market. In our view, technology of this sort won’t eliminate the need for human workers at on-demand shops, though they may replace some routine runs. Bring on the burrito robots.

We closed on Airbnb’s purchase of Urbandoor, yet another acquisition from the popular home-sharing company that will eventually go public. It has to, right? Perhaps Urbandoor will help unlock new revenues in the corporate travel space before we see an S-1. After all, Airbnb wants to debut with plenty of growth under its belt to help it meet valuation expectations. Adding revenue to its core business could be a good way to ensure that there’s new top-line to report.

More to come, including something special next week!

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple Podcasts, Overcast, Spotify, Pocket Casts, Downcast and all the casts.




10 minutes mail – Also known by names like : 10minemail, 10minutemail, 10mins email, mail 10 minutes, 10 minute e-mail, 10min mail, 10minute email or 10 minute temporary email. 10 minute email address is a disposable temporary email that self-destructed after a 10 minutes. https://tempemail.co/– is most advanced throwaway email service that helps you avoid spam and stay safe. Try tempemail and you can view content, post comments or download something