The Briefing: The Flutterwave hack and denials, amidst eCommerce startup layoffs
Consumers will only keep their money in a place where they’re sure to find it tomorrow if they need it
Hi,
Is there a restriction on your bank account?
Yesterday we shared the news about Flutterwave’s hack, where more than NGN2 billion was stolen and the statement released afterwards assuring its users that their funds are safe and there was no hack. What do we believe?
Well, apart from the hack and other negative sentiments the brand “Flutterwave” may invoke, they’ve been listed as part of the top 100 YC private companies - number 30. Be generous with your claps.
In a recent interview, Isaac Kamuta - an Ecobank executive pointed out an advantage traditional banks have over neo-digital banks. And one of them is - “Consumers will only keep their money in a place where they’re sure to find it tomorrow if they need it”. How true?
Now, you could run off with the narrative of old vs new but that’s not the real reason consumers are seeking a safe haven for their money. For instance, consumers do not really trust traditional banks in that they are old but because they operate within a regulated bandwidth and must adhere to strict regulations and requirements as set by their central bank.
So, apart from low or no transaction fees, can the neobanks give us a plausible reason to trust them with our money? It’s still The Briefing - Samson.
Quick Stats.
In 2022 Q3, financial services was the sector most targeted with malicious emails, accounting for 20% of all such attack attempts, followed by state and local government at 13%, manufacturing at 12% and federal government at 11%.
E-commerce startup blames Nigeria’s ‘post-election landscape’ for hundreds of layoffs
In an email to staff sent on Friday (March 3), seen by Semafor Africa, chief executive Adewale Opaleye blamed the layoffs — the third round in 12 months — on a challenging economic climate in the past year which he expects will be worsened by “uncertainty around the post-election landscape.” One of the people estimated 600 employees were laid off and 14 warehouses closed in the cuts. Responding to questions from Semafor Africa, Alerzo’s chief financial officer Harish Venkatesh confirmed the number of warehouses affected was accurate but said they had been suspended. He did not specify the number of employees that were laid off. Semafor
Hackers have stolen ₦2.9 billion from Flutterwave accounts
According to documents seen by Techpoint Africa, ₦2,949,557,867 has been illegally transferred from the accounts of African fintech unicorn, Flutterwave. On February 19, 2023, Flutterwave’s legal counsel, Albert Onimole, reported the case to the Deputy Commissioner of Police, State Criminal Intelligence Department, Panti, Yaba, Lagos. A Twitter user said, “I got a mail from my bank saying I’m a 4th beneficiary to this acclaimed fraud money. This was after over five days after a successful trade. My account is locked 🔒 can’t access fund inside. Pls is this right? It’s unfair I have zero business with flutter wave or the hack.” Africa Tech Memo
[Partner Content] SURVEY:
We [Curacel] currently taking this survey to assess the general attitudes to insurance and help us create new solutions to address these problems. Help us understand what you need when it comes to insurance.
Your response will be appreciated! It will take less than 2 minutes to complete.
Have you ever bought insurance?
FinTechs Struggle to Retain Consumer Trust in Africa
There is no denying that trust plays an important role when it comes to payment transactions. According to Isaac Kamuta - global head, payments and cash management at pan-African banking institution Ecobank; “it’s one of the key advantages regulated traditional banks have over newer, unregulated firms in the financial services sector. Consumers will only keep their money in a place where they’re sure to find it tomorrow if they need it.” PYMNTS
Top PrivateYC Companies - 2023
Since 2005, YC has funded over 4,000 startups, including many that have become household names. Discover the top private, public, and exited companies that are part of the YC community here. A list of high-growth startups that have received significant additional investment from YC can be found on the Breakthrough Companies list. YC
Big Tech on notice as regulators in Africa group to investigate their market conduct
Several competition watchdogs in Africa plan to collectively interrogate the market conduct of global digital firms, putting big techs firms like Google and Meta, which have faced investigations and remedial action in other jurisdictions, on alert. “The members identified the need to collectively interrogate market conduct that has been the subject of investigation and remedial action in other international jurisdictions, but which remain unattended in African markets to the detriment of African consumers, businesses and economies,” Dr. Adano Wario, the acting director-general of Competition Authority of Kenya, one of the member states, told TechCrunch.
MFS Africa partners Western Union to broaden financial inclusion
Paytech MFS Africa has partnered with Western Union to enable individuals and businesses across the continent to receive money from more than 200 countries and territories. Kumar Shourav, managing director at MFS Africa, says: “Africa’s fast-growing populations and markets present important opportunities for businesses and individuals in an environment of slowing global growth.” The service, which is set to launch in Madagascar, will see funds from around the world move through payment rails operated by MFS Africa, the continent’s largest payment gateway. Fintech Futures
Startups in Francophone Africa are on the rise
While the "big four" African startup markets are dominated by English-speaking countries, in the recent past Francophone Africa has made strides. US-based venture capital firm 500 Global is especially upbeat about the future of Francophone Africa startups. “There has been some good news for startups in French-speaking Africa, which are gradually catching up. It all comes down to ecosystem maturity. Francophone markets are on their way to reaching the scale needed to attract greater capital from regional and global investors,” says Mareme Dieng, Africa Lead, at 500 Global. QZ
Nigerians’ Rejection of Their CBDC Is a Cautionary Tale for Other Countries
Nigerians are protesting the African country's digital currency and demanding renewed access to paper money, despite government incentives. The country’s experience strongly suggests the average citizen understands that CBDCs present a substantial risk to financial freedom while providing no unique benefit. Coindesk
What we are reading.
Osun state waives Right of Way fees and localises startup Act to attract tech startups
Maersk advances fulfilment speed with software, scanning tech
*Sponsor a post
About The Briefing.
The Briefing is a quick bite briefing of African tech and business activities trending. The writers’ opinion on one huge trending topic that matters, followed by “In Other News” and “What We Are Reading”
This Briefing by Sam.
For Adverts, send us an email - at giantaffairs@gmail.com OR call - 08074727030 | See Africa Tech Memo Ad Rate