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Paymob, Founded by Three College Friends, Earns Another $22 Million, Is Profitable in Egypt

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Paymob, started by three college friends, lands another $22 million and is profitable in Egypt

Few ecosystems outside of Silicon Valley can boast successful tech startups founded by founders who were still in school or who recently dropped out of faculty, so when these events occur in regions just like the Middle East or Africa, it’s value listening to these firms.

A decade ago, Islam Shawky, Alaina El HajjAND Mostafa Menessythree students from the American University in Cairo, launched an e-commerce platform in Egypt. At the time, e-commerce was a booming industry, with only 2% of households in the country participating in it. One of the major reasons was the shortage of online payment methods.

“There was a gap between what banks were offering and the requirements of new business models from financial technology. No one was doing digital payments for e-commerce and digital startups,” Shawky said in Interview 2022.

Integrating the local banks’ payment gateway with the e-commerce platform was a pain, so Shawky and his friends launched Cry as a payment infrastructure for digital wallets in 2015 while still in college. What began as a small enterprise quickly grew into an omni-channel gateway offering over 50 payment methods, including wallets, cards, buy now, pay later (BNPL), and QR code payments, enabling over 350,000 merchants in five countries in the Middle East and North Africa to just accept online and offline payments.

To date, Paymob, which describes itself as a financial services enabler, has raised greater than $90 million to scale thus far, including a recently closed $22 million Series B round led by EBRD Venture Capital. This brings its total Series B funding to $72 million.

Cross-selling services for a growing seller base

When we last covered Paymob in 2022, the fintech was serving just over 100,000 local and international merchants, a number that had greater than tripled in two years after expanding from Egypt and Pakistan to Oman, Saudi Arabia, and the United Arab Emirates.

Paymob’s initial $50 million Series B round in 2022, co-led by PayPal Ventures, which participated in the expansion round, spurred that expansion. During that point, the fintech also beefed up its product suite, CEO Shawky told TechCrunch. It launched an app for small and medium-sized businesses (SMBs) and introduced payment methods like embedded checkout experiences and products like loans and advanced settlements.

“We help merchants accept, pay, manage and grow, those are the four divisions we have. Acceptance is the engine and the core business, and we sell everything around that,” Shawky explains. “Once merchants are onboarded, we help them accept digital transactions, and then step by step we help with payments, provide working capital and give them the tools to better manage their finances and their business.”

Paymob became profitable for the primary time in Egypt in the second quarter of this 12 months, where its revenue has increased six-fold since mid-2022. It stays unprofitable elsewhere.

Increasing the variety of merchants and increasing average revenue per merchant by cross-selling additional services has been a giant a part of the startup’s success. For example, if a Paymob customer only has a POS terminal that accepts cards, that only accounts for 10-15% of their business. By offering a collection of products through partnerships with Shopify and Tabby, Paymob’s margins have improved significantly. Doing this at scale, digitally, and without the necessity for an enormous sales force has likely fueled the startup’s effective growth (Paymob has just over 1,000 employees).

“What’s most gratifying for us is that we’ve been able to grow profitably, because over the last two years, a lot of people have said we have to stop growing to be profitable or to preserve our runway,” Shawky noted. “But we’ve shown that if you build a fundamentally sound business and you really address customer needs, you can scale quickly and still be profitable.”

Rapid adoption of online payments in the UAE

Indeed, in Egypt and the Gulf countries there’s a dynamic growth in the recognition of digital payments.

In Egypt, 88% of consumers have used not less than one recent payment method in the past 12 months, and 85% of SMEs recognize that accepting multi-channel digital payments is vital to their growth, in response to Mastercard. Meanwhile, in the United Arab Emirates, demand for digital payment methods is more pronounced, with around 77% adoption nationwide.

Based on conversations with founders, it’s clear that despite such strong demand, the market stays underserved. As such, fintech firms which have expanded into the UAE, reminiscent of Paymob and native players like Ziina, which we wrote about last week, are racing to fill the gap by offering tailored solutions to half 1,000,000 merchants, capitalizing on the country’s growing appetite for digital payments.

As an illustration of this explosion in demand, Paymob only offers a web based payment acceptance product in the UAE, yet in just 14 months, its transaction volume in the UAE has grown to the dimensions of Egypt’s entire business, which took five years to construct. Reasons for this rapid growth in the Middle Eastern country include higher purchasing power, currency strength, and a greater share of digital wallets versus money.

Nevertheless, Egypt stays its largest market. Shawky is confident that a collection of fintech products geared toward promoting a cashless society, combined with efforts by the federal government and the central bank, will help Egypt achieve the identical level of digital payments adoption seen in the UAE.

“Issuance and acceptance need to go hand in hand for Egypt’s economy to reach this turning point. The central bank is putting a lot of effort and investment into the country’s digital infrastructure,” the CEO noted. “We are seeing the results. Our business has grown six-fold in two years and four months; yes, we have increased our merchant base, but it is also because these merchants are processing more digital volumes.”

Paymob reported $5 billion in total payments in 2020 and facilitated greater than 120 million transactions that 12 months. However, the present numbers for each metrics remain unclear because the fintech has not disclosed updated numbers.

In addition to PayPal Ventures, the fintech’s Series B funding round included Endeavor Catalyst, in addition to existing investors: British International Investment (BII), FMO, A15, Nclude, and Helios Digital Ventures (HDV).

This article was originally published on : techcrunch.com
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SpaceX wants to test refueling spacecraft in space early next year

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SpaceX will attempt to transfer fuel from one orbiting spacecraft to one other as early as March next year, a technical milestone that may pave the way in which for an uncrewed demonstration of the spacecraft on the Moon, a NASA official said this week.

Much has been said about Starship’s potential to transform the industrial space industry, but NASA can also be losing hope that the vehicle will return humans to the Moon under the Artemis program. The space agency has awarded the corporate a $4.05 billion contract for 2 human Starship vehicles, with the upper stage (also called Starship) landing astronauts on the lunar surface for the primary time because the Apollo era. A crewed landing is currently scheduled for September 2026.

Kent Chojnacki, deputy program manager for NASA’s Human Landing System (HLS) program, provided more details on how closely the agency will work with the space company on this critical mission in an interview with Spaceflight Now. It will come as no surprise that NASA is paying close attention to the Starship test campaign, which has seen five launches thus far.

SpaceX made history in its latest test on Oct. 13 when it first managed to catch a super-heavy rocket booster in mid-air using “sticks” attached to the launch tower.

“Every time it comes to (launch), we learn a lot,” Chojnacki said.

Chojnacki’s work history includes quite a few roles in the Space Launch System (SLS) program, which oversees the event of the large rocket of the identical name being built by a handful of traditional space-first aircraft. The first SLS rocket launched the Artemis I mission in December 2023, and future rockets will launch additional missions under the Artemis program. However, no a part of the rocket is reusable, which is why NASA spends greater than $2 billion on each launch vehicle.

The first contracts under the SLS program were awarded over ten years ago as a part of the so-called a cost-plus model, meaning NASA pays a base amount plus expenses. (This variety of contract has been heavily criticized for encouraging long development schedules and high expenses.) In contrast, HLS contracts are “fixed price” – so SpaceX receives a one-time payment of $2.99 ​​billion, provided certain milestones are met.

Chojnacki said NASA has taken very different approaches to the HLS and SLS programs, even outside of the contracting model.

“SLS was a very traditional NASA program. NASA defined a very stringent set of requirements and dictated the fuel supplies, dictated everything to the various elements. They flowed downwards. These were cost-effective programs where aerospace companies responded and we worked in a very traditional way,” he said. “Moving to HLS, we’re doing a whole lot of moving parts without delay. Currently, SpaceX’s first landing contract includes 27 system requirements. Twenty-seven and we tried to be as relaxed as possible.

Under the SpaceX contract, they have to pass mandatory design reviews, but SpaceX may offer additional milestones as a part of the payment. One of the necessities required by SpaceX is an indication of ship-to-ship propellant transfer. These tests are scheduled to start around March 2025 and end in the summer, Chojnacki said.

“This could be the primary time this has been demonstrated on this scale, so it’s an enormous constructing block. And when you try this, you have really opened up the door to moving huge amounts of cargo and charge beyond the globe of the Earth. If you manage to have a spacecraft with a propellant unit, that can be the next step towards uncrewed demonstrations.

In addition to testing, Starship’s next major review can be the Critical Design Review (CDR) in summer 2025, when NASA will certify that the corporate has met all 27 system requirements. Chojnacki said NASA astronauts also meet with SpaceX once a month to provide information concerning the interior of Starship. The company is constructing mock-ups of the crew cabin, including the sleeping area and laboratory, in Boca Chica. NASA anticipates receiving a design update this month before it during next year’s CDR.

That’s not the one place NASA shared its input: it also provided feedback on some facets of the rocket’s design, similar to the vehicle’s cryogenic components, and in addition performed some tests on thermal plates that help keep the temperature of cryogenic fuels low.

If all goes according to plan, SpaceX will send astronauts to the Moon in September 2026.

“It’s definitely a date we’re working towards. We haven’t any known roadblocks. We have some things that need to be demonstrated for the primary time and we’ve a plan on how to exhibit them.

This article was originally published on : techcrunch.com
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Microsoft and A16Z are putting aside their differences and joining hands in protest against artificial intelligence regulations

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Image of a computer, phone and clock on a desk tied in red tape.

The two biggest forces in two deeply intertwined tech ecosystems – large incumbents and startups – have taken a break from counting money and together they demand this from the federal government to stop even considering regulations that might affect their financial interests or, as they prefer to call it, innovation.

“Our two companies may not agree on everything, but it’s not about our differences,” writes this group with very different perspectives and interests: A16Z founders, partners Marc Andreessen and Ben Horowitz, and Microsoft CEO Satya Nadella and president/director legal affairs Brad Kowal. A very cross-sectional gathering, representing each big business and big money.

But they are supposedly taking care of little boys. That is, all the businesses that may be impacted by this latest try to abuse the regulations: SB 1047.

Imagine being charged a fee for improperly disclosing an open model! A16Z General Partner Anjney Midha he called it a “regressive tax” on startups and a “blatant regulatory capture” by Big Tech firms that, unlike Midha and his impoverished colleagues, could afford the lawyers needed to comply with the regulations.

Except that was all disinformation spread by Andreessen Horowitz and other wealthy interests who actually stood to suffer as supporters of billion-dollar enterprises. In fact, small models and startups would only be barely affected since the proposed law specifically protected them.

It’s strange that the identical form of targeted carve-out for “Little Tech” that Horowitz and Andreessen routinely advocate for was distorted and minimized by the lobbying campaign they and others waged against SB 1047. (In an interview with the bill’s sponsor , California State Senator Scott Wiener talked about this whole thing recently on Disrupt.)

This bill had its problems, but its opposition greatly exaggerated compliance costs and didn’t significantly substantiate claims that it will chill or burden startups.

It’s a part of a longtime pattern in which Big Tech – to which, despite their stance, Andreessen and Horowitz are closely related – operates on the state level, where it could possibly win (as with SB 1047), while asking for federal solutions that it knows will won’t ever come, or which can have no teeth because of partisan bickering and congressional ineptitude on technical issues.

This joint statement of “political opportunity” is the second a part of the sport: After torpedoing SB 1047, they will say they did it solely to support federal policy. Never mind that we’re still waiting for a federal privacy law that tech firms have been pushing for a decade while fighting state laws.

What policies do they support? “A different responsible market approach”, in other words: down with our money, Uncle Sam.

Regulations needs to be based on a “science-based and standards-based approach, recognizing regulatory frameworks that focus on the use and misuse of technology” and should “focus on the risk of bad actors exploiting artificial intelligence.” This signifies that we must always not introduce proactive regulation, but quite reactive penalties when criminals use unregulated products for criminal purposes. This approach has worked great in this whole FTX situation, so I understand why they support it.

“The regulation should only be implemented if the benefits outweigh the costs.” It would take 1000’s of words to clarify all of the ways this idea expressed in this context is funny. But they are principally suggesting that the fox needs to be included on the henhouse planning committee.

Regulators should “allow developers and startups the flexibility to choose AI models to use wherever they build solutions, and not tilt the playing field in favor of any one platform.” This suggests that there may be some agenda requiring permission to make use of one model or one other. Since this is just not the case, it’s a straw man.

Here is a lengthy quote that I have to quote in full:

The right to education: Copyright goals to advertise the progress of science and the applied arts by extending protection to publishers and authors to encourage them to make recent works and knowledge available to the general public, but not on the expense of society’s right to learn from those works. Copyright law mustn’t be co-opted to suggest that machines needs to be prevented from using data – the premise of artificial intelligence – to learn in the identical way as humans. Unprotected knowledge and facts, whether or not contained in protected subject material, should remain free and accessible.

To be clear, the clear statement here is that software operated by billion-dollar corporations has the “right” to access any data since it should give you the chance to learn from it “in the same way as humans.”

First of all, no. These systems are not like people; they generate data in their training data that mimics human activity. These are complex statistical projection programs with a natural language interface. They haven’t any more “right” to any document or fact than Excel.

Second, the concept that “facts” – by which they mean “intellectual property” – are the one thing these systems are interested in, and that some type of fact-gathering cabal is working to forestall them, is an artificial narrative we have seen before. Perplexity made the “facts belong to everyone” argument in its public response to a lawsuit alleging systematic content theft, and its CEO Aravind Srinivas repeated that mistake to me on stage at Disrupt, as in the event that they were being sued for knowing tidbits just like the Earth’s distance from the Moon.

While this is just not the place to totally discuss this particular straw man argument, let me simply indicate that while facts are indeed free agents, there are real costs to how they are created – say, through original reporting and scientific research. This is why copyright and patent systems exist: not to forestall the wide sharing and use of mental property, but to encourage its creation by ensuring that it could possibly be assigned real value.

Copyright law is much from perfect and is more likely to be abused as often as used. However, this is just not “co-opted to suggest that machines should be prevented from using data” – it’s used to be sure that bad actors don’t bypass the worth systems we’ve got built around mental property.

This is a fairly clear query: let’s allow the systems we own, operate and take advantage of to freely use the worthwhile work of others without compensation. To be fair, this part is “in the same way as people” because people design, run and implement these systems, and these people don’t desire to pay for something they do not have to, and they don’t desire to. I don’t desire regulations to alter that .

There are many other recommendations in this small policy document, which were little question covered in greater detail in the versions sent on to lawmakers and regulators through official lobbying channels.

Some of the ideas are undoubtedly good, if slightly selfish: “fund digital literacy programs that help people understand how to use artificial intelligence tools to create and access information.” Good! Of course, the authors invest heavily in these tools. Support “Open Data Commons – collections of accessible data managed in the public interest.” Great! “Examine procurement practices to enable more startups to sell technology to the government.” Excellent!

But these more general, positive recommendations are something the industry sees yearly: invest in public resources and speed up government processes. These tasty but irrelevant suggestions are merely tools for the more vital ones I described above.

Ben Horowitz, Brad Smith, Marc Andreessen and Satya Nadella want the federal government to step back from regulating this lucrative recent development, let industry resolve which regulations are value compromising, and invalidate copyright laws in a way that kind of acts as a blanket reprieve for illegal or unethical practices that many imagine have enabled the rapid development of artificial intelligence. These are principles that are vital to them, whether children are acquiring digital skills or not.

This article was originally published on : techcrunch.com
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Nigerian technology company Moniepoint secures $110 million investment

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Moniepoint, a Nigerian fintech company that serves thousands and thousands of entrepreneurs across Africa, has secured $110 million in financing for expand your corporation. The financing got here from 4 entities: London Development Partners International and Lightrock, which had previously invested within the company; The recent investors are the Google African Investment Fund and Verod Capital.

Moniepoint – formerly called TeamApt –was named fastest growing fintech company in accordance with Financial Times for 2 years.

The company provides quite a lot of financial services, including bank accounts, loans and business management services. It processes over 800 million transactions monthly value over PLN 7 billion.

Moniepointe co-founder Tosin Eniolorunda says the brand new investor will provide financing help the company improve customer experience.

“Our mission is to assist our customers solve their challenges by making our platform more progressive, transparent and secure. Proceeds from this fundraising will speed up our efforts towards financial inclusion and supporting Africa’s entrepreneurial potential. I need to sincerely thank all the Moniepoint team for making this achievement possible, ” – said Eniolorunda in a press release shared Afrotech.

Adefolarin Ogunsanya, Partner at Development Partners International, also expressed his excitement to contribute to the event of Moniepoint.

“We are delighted to steer this investment round in Moniepoint, one of the vital exciting and fastest growing corporations in Africa. As a profitable company led by a wonderful management team with a transparent strategic vision, Moniepoint is well positioned to proceed its impressive growth trajectory while ensuring financial inclusion for vulnerable businesses and individuals across Africa, Afrotech reports.

Moniepoint officials say they are going to proceed to prioritize Nigeria, however the company plans to expand into other African countries. The company is currently assessing these markets to evaluate how effectively it may well operate meet customer needs.

The successful fintech company has previously received support from QED Investors, British International Investment (BII) and Endeavor Catalyst. Since its founding in 2015, the company has raised over $180 million.


This article was originally published on : www.blackenterprise.com
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