Happy mid-week! How has your week been so far? If you think you can escape capitalism, just ask Rishi Sunak, the former prime minister of the United Kingdom, who recently joined Goldman Sachs as a senior adviser. It seems capitalism always finds a way to win, even reaching former prime ministers with its allure.
Three years after its initial attempt, Kuda is diving back into the remittance market. This time, they are introducing a new version of their remittance product, a multi-currency wallet integrated within the app. This feature allows users outside Nigeria to send money home without involving any third parties. The move signifies the company’s growth and maturity, backed by impressive statistics. In Q1 of 2025, Kuda processed over 300 million transactions valued at $9.3 billion, showing a 43% growth compared to previous figures. With a $20 million funding round at a $500 million valuation, Kuda now has the volume from retail and business users to support more ambitious endeavors.
Kuda’s relaunch of remittances indicates that their economic model has finally found its footing, with a positive net margin between 3% and 7%.
However, the remittance market has become increasingly competitive, with players like LemFi, Nala, Moniepoint, Western Union, and WorldRemit vying for a share of the diaspora wallets. Kuda’s strategy is to offer a streamlined user experience with a single app and minimal steps to facilitate transactions.
Looking at the bigger picture, Kuda’s elimination of intermediaries places the responsibility squarely on their shoulders. The company now has the infrastructure and user base in place, hoping to avoid another quiet exit like in their previous attempt.
In the crypto sector, consolidation is a rare sight in Africa, considering the industry’s status as an emerging market. The acquisition of Flitaa by Roqqu marked the first publicly disclosed intra-African consolidation in the region. By expanding into the East African market through this deal, Roqqu aims to capitalize on the user base Flitaa has garnered in Kenya. The move underscores the importance of acquiring users in the crypto space to drive revenue growth.
The next phase for crypto startups is to attract non-crypto native users, teaching them how to transact with digital currencies as effortlessly as with cash.
Temu, the Chinese e-commerce giant, has made a bold move by establishing a local warehouse in South Africa. This development promises faster shipping and delivery times for customers. Despite initial resistance from local retailers due to perceived unfair advantages, Temu’s strategic approach of relying on third-party couriers has allowed it to gain a foothold in the market.
In South Africa, the Competition Commission’s evolving stance on the Maziv-Vodacom merger highlights the complexities of regulatory oversight in the telecom sector. The potential approval of the deal could reshape the country’s telecom landscape, boosting fibre rollout and enhancing broadband accessibility, if certain commitments are met.
As Africa’s tech ecosystem continues to evolve, these strategic moves and regulatory decisions set the stage for significant transformations across various industries. The continent’s dynamic landscape offers both challenges and opportunities for companies looking to establish a foothold and drive innovation in emerging markets.
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