View profile

Flutterwave, Africa’s second unicorn 🦋🦄

get.Africa
Flutterwave, Africa’s second unicorn 🦋🦄
By get.Africa Weekly • Issue #60 • View online
Ẹ kàárọ̀,
That’s “good morning” in Yoruba
In Yoruba culture, aso ebi is a uniform attire normally worn during ceremonies. It’s a way for attendees to show solidarity with their hosts. 
Last week, Nigerian payment startup Flutterwave became a unicorn.
Almost immediately, social media was lit up with butterfly emojis, representing the company, and unicorn emojis, representing its new status. 
This formed a beautiful sea of light blue, white and purple, a digital aso ebi of sorts, a show of solidarity.
For purists only
A unicorn is a private company with a valuation of $1 billion or over. As of March 2021, there are more than 700 unicorns around the world. 
In Africa, there 4 billion-dollar tech companies that the press typically refers to as unicorns, but some would argue that Flutterwave is the continent’s first “true” unicorn, all the others have asterisks. 
1. Jumia, the e-tailer, reached a $1 billion market cap after its IPO in 2019, but the company had 2 asterisks: 
*Foreign ownership and 
*Publicly-traded. 
2. Interswitch, the fintech giant, was valued at $1 billion in 2019 after Visa’s investment, this made Interswitch Africa’s first unicorn. But the company had 1 asterisk:
*Outgrown startup status.   
3. Fawry, the Egyptian payments powerhouse, watched its market cap swell to $1 billion in 2020 and $2 billion in 2021. But the company, too, has
*Outgrown startup status and is
*Publicly-traded. 
4. Enter Flutterwave in 2021: 
*Startup
*Nigerian owners
*Private company
Why’s this important?
This might seem like a distinction without a difference, and on some level, it is. After all, a billion-dollar company is a billion-dollar company.
But the valuation methods used for a private company and a public company are very different (Read more). And, to use the old cliche, comparing one to the other is like comparing apples to oranges, even though they’re all fruit.
At either rate, Flutterwave might not remain private for much longer, according to CEO Olugbenga Agboola:
“We may consider the possibility of listing in New York or a possible dual listing in New York and Nigeria.” 
Although he’s also added that the idea isn’t to IPO yet but to be IPO-ready.
For the home-grown element, that’s a thing of national or even continental pride. For all its success, it’s been hard for many Africans to fully identify with Jumia because of its European origins. So when it hit the $1 billion mark, there were no digital aso ebis. 
As for the startup debate, this is about the company’s stage of growth. Fawry reached the $1 billion valuation after 12 years of operations, Interswitch did it in 18 years. Flutterwave, on the other hand, took 5.
Although, it’s not hard to see why growth was significantly more difficult for Fawry and Interswitch. Those companies were market creators, if anything Interswitch walked so Flutterwave’s butterfly could fly. Also, access to venture capital and investor confidence wasn’t as high in those company’s early days as it is now.
And as those indicators continue to trend up, you suspect that not only will Africa get more unicorns, but they’ll also be much younger.

get.Africa is a weekly roundup of the most interesting stories in African tech. To support, follow us on Twitter, subscribe to our YouTube channel, share this issue or send us an email. You can also check our archives.
Credit: Eva Blue
Credit: Eva Blue
What's the Big Deal?
+ ₦: Nigerian payments startup Flutterwave has closed a US$170 million Series C funding round, the largest amount ever secured by an African tech startup and one that gives it “unicorn” status with a value of over US$1 billion.
Reads
You may no longer be able to use your bank’s USSD service in Nigeria
Controversy isn’t slowing down Nigeria’s most popular ride-hailing app
Into the unreal world of NFTs
Is the gig economy improving the lives of African women?
Nigeria's odd mobile money system is set up to fail
Charts + Graphs
Credit: Ububele's newsletter
Credit: Ububele's newsletter
This article details the rapid growth of South African digital bank TymeBank.
+ Reads
+ Catch-22: As authoritarian governments continue to order internet shutdowns, African ISPs face a dilemma. Obey your regulator and violate your customer’s rights or protect your customer and risk losing your operating license. Also, why Big Tech companies with plans to provide internet services should be worried.
+ Takealot is under siege: The South African e-tailer is losing its CEO Kim Reid and CFO Gary Altini, the Competition Commission is investigating its dominance, and it is facing increased competition.
+ MTN in the green: The MTN Group has published its financial results for the year ended 31 December 2020, showing strong growth across its operations.
+ Innovation Central: Renewable energy company Sunculture and B2B e-commerce startup Sokowatch make Fast Company’s list of “World’s Most Innovative Companies in 2021”.
+ RIP to recharge cards: MTN Ghana is phasing out scratch cards from the market. Their reason? To minimize contact, a major way through which Covid spreads.
Watch + Listen
How a South African Tech Journalist Cofounded QAnon
How a South African Tech Journalist Cofounded QAnon
‎On Fibre, Rubies, and Finance Apps
‎African WealthTech Part 2 (Neobanks) - How TymeBank, Kuda & other digital banks are delivering banking services
Overheard on Twitter
Oo Nwoye
In all the noise, I gas recognise "small boy" E @iAboyeji who in less than a decade, co founded two startups (Bookneto + Fora) that failed, then hit homeruns with @Andela $700m + @Flutterwave $1 BILLION - before 30!

All Under Buhari's APC and Jonathan's PDP

PRODUCTIVE!🙌🏾 https://t.co/Z6lP6pqmvt
Classifieds
I'm writing a book on remote work for African businesses
I'm writing a book on remote work for African businesses
+ To make whiteboard animation videos like this for educational or marketing purposes, please send us an email.
Did you enjoy this issue?
get.Africa Weekly

African tech in a language you'll understand. The most important stories contextualized and delivered to your inbox every Monday. Curated by Chiagoziem O.

If you don't want these updates anymore, please unsubscribe here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Powered by Revue
get.Africa Media, Nigeria