Summarizing September: A review of the African Fintech Performance last month
Detailed Analysis on Funding, Growth and Products | Vol 43| Oct 3rd 2023
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The newsletter edition every 1st week of the month is a review of the previous month. It’s an insightful read filled with analysis, trends, and forecasts so you are in for a Fintech treat.
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So What made the news last month, we’ll be looking at these categories:
➡️Funding
➡️The Fintech Growth Report
➡️ September Expansion Trajectory featuring 3 Fintechs.
➡️FUNDING
Fintech funding is rising compared to last month and the interesting thing is that it picked up across all categories - Lending, Insurance, Crypto, and of course Payments.
Fintechs at Seed stage led the pack this month bringing in almost 24 million dollars.
Lending Fintechs led by the indefatigable LipaLater gave the Payments category a run for their money this month. Lipa Later raised money 3 of the 4 weeks in September.. I mean for 3 weeks they were announcing fund raises in September. 😮😮
Equity funding is back on the leader board, contributing $36.4 Million out of the $47.5 million that was the total raised this month.
#Note: Something to note on the rise is the tussle for Fintech Talent. All these funding rounds are focused on market and product expansion.
➡️GROWTH
All this news of raises, product launches, licenses, and partnerships.. what results have they been yielding? Or is it just an activity?
In this segment, we highlight the effects of the various innovative activities by Banks and Fintechs contributing to better Financials services and Revenue generation.
GDP Contribution: If someone told you all the Startup noise will one day contribute to more than 50% of a country’s GDP, you’d say we should wake up from our dream right? Well, the dream is now a reality!!
Data from the Central Bank of Kenya (CBK) showed that the value of mobile money transactions reached 56.8% of GDP by the end of 2021, and was projected to surge to 68% by the end of the 2022/2023 Fiscal Year
Digital Banking Growth: TymeBank, a Digital Bank in South Africa reached a record 7.4 million customers in 4 years of outstanding growth. For perspective, Absa Bank is 136 years old and has about 10 million customers. See the excerpt from Statista below.
If you still don’t think Fintech is an enabler, I have no words, no words 🤐
For Nigeria, both banks and Fintechs are benefitting from the cashless regulations from Dec 2022. See infographic below for some mind-blowing numbers. 🤯
➡️EXPANSION
In one of our focus editions in September, we highlighted a trend of Egyptian Fintechs expanding to Saudi Arabia and the reasons behind the move. Well Saudi isn’t the only Fintech. The African Unicorn Flutterwave's also made a move to India this month partnering with the 6th Largest bank in the country.
But this is what you don’t know about the move.
Indian Immigrants in Africa are 12.37% of all emigrated Indians.
This number is about 3 million Indians who own businesses across 46 countries in Africa. A look at Kenya, SA and Nigeria will show you how successful Indians are in business + executive positions.
because of this, there is a need to send money home frequently.
Flutterwave is currently in 30 of these 46 African countries.
Partnering with Indus Banks gives Flutterwave access to 35 million accounts accessible by the Indian diaspora on their rails.
So you see the opportunity? The same reason India’s UPI is considering expansion to Africa. 💡
We have another Poll, We are working on some End of Year reports from our Insights product. Which of these will be of most value to you ahead of 2024?
A Look at Last Week: Africa's Fintech Highlights.
Finally, on today’s dashboard, we’ve selected the top 7 headlines that made the most impact, Take a look 👇🏽.
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