Good morning! 
If you’re young and Nigerian, Microsoft has you in mind. The Big Tech company is investing $1 million to train 1 million Nigerians in AI and digital skills over the next two years, building on its previous efforts to upskill talents in the country.
While Microsoft presents this as a way to give back, it also makes good business sense. As more people and companies start using AI, having a larger group of skilled professionals means more potential customers or employees for Microsoft in the future.
Layoffs
YC-backed Vendease to cut 120 more jobs in the second round of layoffs
Vendease, a Partech and YC-backed food procurement startup operating in six Nigerian cities, has implemented its second round of layoffs in five months, according to a company spokesperson. The cuts, which begin today, are part of a restructuring effort aimed at achieving profitability and extending the company’s runway as it seeks to close a Series A extension round.
The first, in September 2024, impacted 86 employees, about 20% of the staff. About 120, 35% of staff, will be let go in the recent second round.
“Streamlining isn’t one bite of a cherry. You have to do it in stages,” Mohamed Chaudry, the company’s chief financial officer told TechCabal. While declining to specify the number of employees impacted by the current cuts, Chaudhry stated that the reductions will result in a “lean team.”
Like many Nigerian startups, Vendease—which has raised $72 million since its founding—is grappling with macroeconomic headwinds including Naira devaluation and rising inflation, which have increased operational costs across its supply chain. Despite growing revenue by 600% year-on-year in the past two years, the company’s growth remains stunted in dollar terms. Beyond layoffs, these pressures have also forced the company to reassess its business model.
A key change has been the repurposing of its buy-now-pay-later (BNPL) product from a loss leader to a revenue generator. Previously, Vendease offered flat-fee financing for food purchases, absorbing interest costs for long-term loan payments. The company now charges daily interest, allowing it to profit from lending while customers pay pro-rata interest. “Vendors were willing to wait four days for goods from Vendease, even with instant-purchase options from other suppliers, because of the access to credit,” Chaudhry explained.
Vendease has also implemented in-house AI technology to automate previously manual processes like demand and resource planning, in a bid to improve capital efficiency.
Vendease’s investors, including Greenlights Ventures, Partech, Realm Capital Ventures, TLcom Capital, VentureSouq, Hustle Fund, and Hack VC, are supportive of the company’s pivot, Chaudhry said, adding that many have committed to participating in the ongoing Series A extension. The company declined to disclose the target extension raise but noted that the extended runway, coupled with the new funding, will enable the company to achieve the milestones necessary for a Series B round.
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Cryptocurrency
How Nigeria’s 2021 ban crushed crypto startups and forced others to adapt
Policies have consequences, and one glaring highlight in Nigeria’s recent history was the “crypto ban” in 2021.
If you’re not caught up, the story goes like this: the Central Bank of Nigeria (CBN) had been wary of Bitcoin for years, siding with most global regulators at the time. The internet called the digital currency a “bubble waiting to burst.” In 2017, the CBN issued its first clear warning on digital currencies like Bitcoin and Litecoin, rightly calling them a conduit for “terrorism financing and money laundering” due to their anonymity.
That fateful year, Bitcoin made its first big splash, surpassing the $10,000 mark, partly thanks to the Mavrodi Mondial Moneybox (MMM), a Ponzi scheme that introduced Nigerians to crypto payments. At the same time, blogging was growing rapidly in popularity. Young Nigerians who could string together coherent sentences jumped on platforms like Steemit and Publish0x, which paid in digital currencies, further raising awareness of these odd crypto monies.
Seeing a business opportunity around this crypto awareness, local startups started building platforms to help Nigerians buy, sell, earn, and learn more about crypto. It was still a Wild West industry, so scams and fund losses were a major feature of the early stages of this sector, leaving regulators skittish. However, the hope of turning huge, outsized returns exceeded the risks for many Nigerians. So, they kept trooping in; crypto startups kept popping up everywhere, often with platforms that focused on blitzscaling first before security. Then, another bull market cycle happened in 2020.
This time, the CBN, wary of banks being tempted to get involved in trading the volatile asset and risking customers’ deposits, issued a directive in 2021 for them to cease providing banking services to crypto companies, effectively ending a growing industry that relied on banks to manage liquidity.
Crypto startups have had to find grey areas ways to innovate around the ban, adapting their businesses to go with the tides. In 2021, there were about 42 local and Africa-focused crypto startups operating; 26 of them folded. Today, the ones left to bear the scars of a tumultuous era carry the weight of the story. Nigeria may be the closest it has ever been to regulating crypto, yet it was just as far from doing so only four years ago.
Read TechCabal’s coverage of how crypto startups survived Nigeria’s crypto ban in 2021.
You can now Pay with Opay on Paystack Checkout
Paystack merchants in Nigeria can now accept payments from over tens of millions of OPay users through Paystack Checkout. Find out more here→
Fintech
Kuda Group grew revenue to $32 million
It took Nubank, the world’s largest neobank, a decade to be profitable as it chased growth over profitability. Kuda, one of Nigeria’s largest neobanks, is also on the same trajectory.
The rapidly growing fintech grew its revenue to $32.1 million in 2023 despite the naira’s devaluation. It also grew customers from 4.9 million in 2022 to 7.2 million as it invested in scaling its operation.
Kuda’s revenue comes from interest from loans and investments ($17.3 million), fees from banking services and partnerships ($12.8 million), transfer charges and loyalty rebates ($2 million).
In 2023, it loaned out $12.6 million in overdrafts and reduced its credit loss allowance (money for potential loan defaults) from $12.4 million to $10.4 million.
Kuda also launched in Canada and Tanzania in 2023. While it is only operational in Nigeria, it is also present in Ghana and Uganda.
As it chases its pan-African ambition, the fintech lost $40 million in 2023 up from $18.5 million in 2022, due to higher operating costs. Its operating expenses surged to $44.8 million while staff costs were $11.8 million.
Kuda’s assets also fell from $140 million in 2022 to $125 million in 2023. It held only $5 million in cash reserves but it was able to navigate the naira’s devaluation by holding USD reserves like most Nigerian banks.
The fintech is also predicting that it can secure software licence deals and monetise its technology. Sterling Bank, a Nigerian bank, tried to sell its core banking software last year to Momo, MTN’s fintech subsidiary.
Kuda last raised money at a $500 million valuation and with a revenue of $32 million, this means that its revenue multiple is 15x—significantly higher than that of profitable neobanks like Nubank (8.4x) and Monzo (5.4x).
Muktar Oladunmade, our fintech reporter, breaks down Kuda’s business model in his article. Read it here.
The Moonshot Deal Book is Coming!
Introducing the Moonshot Deal Book—our exclusive collection of the most promising and investable startups in Africa. If you’re an investor looking for the most exciting investment opportunities on the continent, sign up to join the waitlist and you’ll be among the first to access this investor-focused resource once it is live. Join the waitlist.
Regulation
Kenya to regulate boda boda riders
Kenya’s boda boda industry may soon face new regulations as the Public Transport (Motorcycle Regulation) Bill, 2023, reaches the National Assembly. Proposed by Senator Boni Khalwale, the bill requires motorcycle owners to sign formal contracts with their riders, setting clear terms for pay, working hours, and conditions. This could reshape an industry that has long operated informally, affecting both owners and the millions of riders who depend on it for a living.
There are about 3 million boda bodas in Kenya, many run through informal hire-purchase agreements. Riders take motorcycles on credit, paying in installments until they fully own them. Formal contracts could provide legal certainty to these arrangements, but they may also come with extra costs and requirements that make it harder for new riders to enter the trade.
Most boda boda riders earn between KES700 and KES1,500 ($5.4 to $11.6) per day, depending on where they work. The bill’s requirements, such as joining cooperatives and meeting stricter safety standards, could cut into their earnings. However, structured contracts might also create more predictable income streams and prevent exploitative working conditions for riders.
If passed, the bill will change how boda bodas operate. Set routes and stricter traffic rules could ease congestion and improve safety, while security trackers on motorcycles could help curb crime, which has historically been a cause of public safety concern. The changes may make it more difficult to work as a rider, but they could also bring more structure and safety to a sector that millions of Kenyans rely on for daily transport.
CRYPTO TRACKER
The World Wide Web3
Source:
|
Coin Name |
Current Value |
Day |
Month |
|---|---|---|---|
 Bitcoin |
$97,132 |
+ 1.84% |
– 4.31% |
| Ether |
$2,736 |
+ 1.75% |
– 17.10% |
| Pi [IOU] |
$31.01 |
– 51.59% |
– 30.07% |
| Solana |
$172.4 |
+ 2.31% |
– 26.13% |
* Data as of 06:40 AM WAT, February 20, 2025.
Events
- The ATCG Abuja 2025 Convening, themed “From Potential to Practice—Accelerating AfCFTA Implementation for African Tech and Creative Sectors” will be held from February 24-25, 2025. A centrepiece of the programme will be a ministerial roundtable featuring Nigeria’s Ministers of Communication, Innovation & Digital Economy, and Trade & Industry. During this two-day event, anticipate game-changing insights, powerful partnerships, and high-energy discussions that challenge boundaries and unlock new opportunities across the continent. If you work in the technology and creative sectors in Africa and wish to create new business opportunities by leveraging pan-African digital trade, then this event is for you. Don’t just witness Africa’s digital transformation—be a part of it! Register here.
- The Africa Tech Summit in Nairobi, Kenya taking place 12th & 13th Feb 2025 will once again provide unrivaled insight, networking and business opportunities for African and international investors and tech leaders who want to drive growth across the Continent. The event connects 2000+ industry leaders, 1000+ companies, and 160+ speakers via four tracks plus workshops, expo and multiple fantastic networking opportunities. Tickets are on sale now.
- The Lagos Tech Fest is set to hold its fifth edition from February 19–20, 2025 at the Landmark Event Center, VI, Lagos. Lagos Tech Fest gathers startups, innovators, investors, and government representatives to shape Nigeria’s tech future through conferences, exhibitions, networking, and driving ecosystem investments. Get a ticket here.
- GITEX AFRICA 3rd edition is NOW OPEN for registration. Africa’s largest tech and start-up event will be held from 14-16 April 2025 in Marrakech, Morocco. Attend to see the leading brands in tech, and the most innovative startups, and network with tech leaders, investors, speakers and government delegations from across Africa and across the globe. Register here.
Written by: Ngozi Chukwu, Emmanuel Nwosu, and Muktar Oladunmade
Edited by: Olumuyiwa Olowogboyega
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I am the CEO of 9JAGISTLAND.My name is Adedeji Timothy and my co-owner is Oyekola Damilare.This blog is born out of our passion to educating to people in all aspect of internet life.We are enthusiastic about writing posts and articles online.
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