👨🏿‍🚀TechCabal Daily – Zero To $10 Billion

E-commerce

Inside Jiji’s playbook for gaining market dominance

On Thursday, TechCabal published a report by TLP Advisory, a Nigerian venture law firm, that generated significant online discourse. 

Per the report, 49% of Nigerian startups—venture companies that have raised one form of funding or another—founded within the last ten years make less than ₦10 million ($6,000) in annual revenue. It’s critical to note, however, that two-thirds of these startups were founded between 2019–2023.

Online reactions that trailed the story argued the report’s methodology and veracity.

“This is very hard to believe. Less than ₦10 million? It’s hard to believe,” wrote one user on X. This captured most of the reactions to this report.

Yet, while many startups are focused on rapid growth, it’s important to consider that sustainable profitability, even with lower yields, can be more valuable than high-revenue models with excessive spending.

Running a tight ship in the Nigerian market is challenging. Think the lack of growth capital, currency devaluation, macros, government policies, customer erratic behaviour, talent churn, and sometimes, simply neglect.

Businesses that prioritise lower cash burn and cut costs could be winners. Yet, can Nigerian startups outcut the macros?

The report also showed that half of the startups without partnerships or collaborations struggled with profitability. Partnerships and mergers and acquisitions (M&As) are another crucial aspect of Nigeria’s startup market. They are signs of a maturing tech ecosystem.

One recent example is OmniRetail acquiring Traction Apps, a Nigerian payments provider. What started as a partnership became a deal that could help both companies grow. This has been received positively, showing the country’s readiness for this kind of maturity.

In Nigeria, there have been 26 local M&As (with one pending) since 2019. With more partnerships, the country’s tech ecosystem can unlock more growth opportunities.

Opposition groups to Adani’s airport and power transmission deal in Kenya can finally have some respite.

On Thursday, US prosecutors charged Gautam Adani, chairman of the Adani group, with helping drive a $250 million bribery scheme. The indictment left President Ruto with no choice but to scrap plans to award the Adani group a $2.6 billion power and airport project.

Both projects—especially the airport project—have been strongly opposed in Kenya. Critics claim they were unaffordable, threatened job losses, and offered no value for money to the taxpayer. 

The airport project, for example, which will see Adani manage Nairobi’s biggest airport, JKIA, came with a controversial 30-year clause that stops Kenya from building or expanding other competing airports for 30 years. 

Aviation workers at the JKIA airport began a strike in September over that proposal, protesting the deal and disrupting flights. The Kenyan Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) also filed a suit at a Kenyan high court, arguing that the 30-year concession was irrational. In its defence, the Kenyan government believed the deal was the best option to expand JKIA amid a starved development budget. 

Gautam Adani’s indictment and President Ruto’s annulment of the deals leave the Kenyan government, which has struggled to fill its budget deficit, with more holes to plug.

Although Adani has denied any wrongdoing, US prosecutors claim he promised to pay more than $250 million in bribes to Indian government officials to secure solar energy contracts. News of the indictment wiped nearly $30 billion off Adani Group’s market value. The indictment also removed $15 million from the Indian businessman’s wealth.

This week, Egypt-based supply chain startup Qara raised $2.6 million in funding from undisclosed investors to enhance its operations and expand into Saudi Arabia. (November 19).

Here are the other deals for the week:

• Egyptian insurtech startup Amenli raised $2.3 million. The European Bank for Reconstruction and Development Venture Capital arm (EBRD) led the funding round, which was followed by an investment from Y Combinator (November 19).
• Senegal-based electric mobility startup Solarbox closed a $1 million pre-seed funding round. The round attracted investors such as Digital Energy Facility, Launch Africa Ventures, JLL Foundation, and Teranga Capital. (November 21)
• Nigeria’s Beacon Power Services (BPS), a technology company providing data and grid management solutions, announced the completion of its Series A funding round for an undisclosed amount. The round was led by Partech, with participation from Finnfund, Gaia Impact Fund, Proparco, Kaleo Ventures, Seedstars Africa Ventures, Clermount, Global Brain, the JGC MIRAI Innovation Fund, and On.Capital. (November 19).

Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. Before you go, our Future of Commerce: Outlook for 2025 Report is out. Click thislink to download it.

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