In this letter, we explore:

• Temu’s big entry to Nigeria
• Namibia orders Starlink to cease all operations
• M-Kopa to hit 400m revenue by year-end

We also curated updates on startup funding in Africa, weekend reads, and several opportunities.

The big three! 

Temu’s big entry to Nigeria

Chinese e-commerce platform Temu has officially launched in Nigeria, bringing its affordable, factory-direct consumer goods to the country. With a far-reaching marketing campaign and a rapidly expanding global presence, Temu seeks to capture a share of the Nigerian market, competing directly with established e-commerce platforms like Jumia.

Context: Temu, a subsidiary of PDD Holdings, which owns the Chinese giant Pinduoduo, has grown rapidly since its 2022 launch in the U.S. The company’s approach is centred on providing low-cost goods shipped directly from China, offering significant savings for consumers. However, despite the promise of affordability, Temu faces challenges unique to Nigeria, including a complicated logistics landscape and increasing competition from local players.

Zoom In: Temu’s low-cost business model could resonate well with Nigerian consumers facing rising inflation and a depreciating naira. However, the platform will need to navigate logistical issues such as limited infrastructure and high delivery costs, which have hampered the growth of local e-commerce players like Jumia.

Namibia joins the Starlink regulatory saga

In our last roundup, we shared how Elon Musk’s Starlink, faced regulatory delays in Nigeria, where the satellite internet service paused others due to licensing delays. Now, Namibia has entered the spotlight with an intensifying standoff.

Namibia’s sparse population and limited broadband options make Starlink’s technology a promising solution for remote connectivity. However, authorities have doubled down on enforcement, confiscating illegally imported terminals and warning the public against subscribing without a telecommunications license. 

The Communications Regulatory Authority of Namibia (CRAN) has even opened criminal cases against those in possession of the devices.

Scoop: Neighboring countries like Zimbabwe and Kenya have taken different approaches to regulating Starlink, highlighting the broader challenge of balancing the need for better connectivity with concerns about content control and economic impact in Africa.

M-KOPA eyes $400M ARR, disburses $1.5B in credit

13-year-old M-KOPA is on track to hit a $400 million annual revenue run rate (ARR) by year-end, a significant leap fueled by recent milestones. Just last month, the fintech reached 3 million customers in Kenya, where its local smartphone factory has now produced 1.5 million devices and created 325 jobs since 2023.

Through its pay-as-you-go model, M-KOPA has served over 5 million customers across Africa, disbursing $1.5 billion in credit to underbanked individuals. Operating in five markets, including its fastest-growing—South Africa—the company continues to scale quickly, maintaining low loss rates despite economic challenges. 

CEO Jesse Moore credits this success to a synergy of innovative technology and robust offline networks, which drive financial inclusion by offering affordable access to smartphones, e-motorbikes, and microloans.

Context: M-KOPA’s influence extends beyond financial inclusion, with 92% of users crediting the platform for making technology more affordable and 70% achieving financial goals. As the company targets 10 million locally produced smartphones by 2027, it solidifies its role as a transformative force in Africa’s digital economy.

💰 State of Funding in Africa

Here’s a roundup of African startups that secured funding this week:

• Egypt-based home furnishing startup Ariika raised $3 million in a Series A extension led by Beltone Venture Capital and Citadel International Holdings to scale operations and expand its market reach.
• Kampala-based Spouts International secured $3 million from Incofin’s Water Access Acceleration Fund (W2AF) to boost clean water access and develop its carbon credit initiatives.
• Kenya-based ISP Mawingu raised $15 million in debt and equity financing, including $11 million from Africa Go Green Fund, to drive its East African expansion.

🍿 Weekend binge

• Are we now too impatient to be intelligent?
• Warren Buffett’s $3 Billion Philanthropic Shift
• The Right Response with Michael Jr.

💼 Opportunities

We carefully curate open opportunities in Product & Design, Data & Engineering, and Admin & Growth every week.

Product & Design

• Hustlebean — Visual Communications Specialist, Remote
• Leap Tools — UI/UX Designer, Remote

Data & Engineering

• Sporty Group — Android Engineer, Remote
• Paladin — Senior Full Stack Engineer, Remote

Admin & Growth

• Clickout Media — SEO Executive, Remote
• Bonzee Consulting — Admin Officer, Lagos
• Condia — Sales & Partnership Associate, Hybrid