Stripe has secured $6.5 billion in its Series I fundraising, with a valuation of $50 billion. The company aims to provide liquidity to its employees and address employee withholding tax obligations related to equity awards. Flutterwave has been granted Electronic Money Issuer and Remittance Licenses to expand operations in East Africa. The move enables Flutterwave to acquire all types of payment instruments in Rwanda and enables $end by Flutterwave to process inbound and outbound cross-border transfers in Rwanda. Chipper Cash is reportedly considering a possible sell-off following the collapse of Silicon Valley Bank. It has denied seeking acquisition in response to various M&A proposals. While the recent events related to FTX and Silicon Valley Bank negatively impacted Chipper Cash, the company has been raising more funds to cushion the current macroeconomic situation. Last year, Chipper Cash announced the acquisition of Zambian fintech company Zoona. The move will add new online services and a new agent network to its offerings.
Experts Advocate for Regulation and Transparency of Digital Banks to Protect Customers’ Deposits
A group of experts in Nigeria has urged the Central Bank of Nigeria (CBN) to regulate and ensure transparency of digital banks to safeguard customers’ deposits. This call comes in light of recent cash shortages in Nigeria, which has resulted in a significant number of Nigerians using digital banks that mostly operate through mobile apps for their banking activities.
Most of the digital banks used by Nigerians operate under the license of Microfinance banks (MFBs), which may pose problems for customers in the long run. This is because many of these digital banks do not have the required licenses to operate in the country. In November 2020, the Central Bank of Nigeria revoked the licenses of 42 MFBs that had been out of operation for some time, emphasizing the need to protect citizens’ deposits.
Although digital banks have been praised for alleviating the plight of citizens, experts have expressed concerns that the high rate of usage of these bank apps may pose a serious challenge in the future. Unlike traditional banks, most digital banks do not have physical buildings where one can make complaints or inquiries, and their customer care lines are often deemed unreliable.
Investors King notes that traditional banks and other financial institutions were the primary providers of financial services before digital banks, such as Kuda Microfinance Bank, Opay, and Vbank, emerged to compete with them. The primary objective of digital banks is to promote financial inclusion using technology to reach the unbanked populace that traditional banks have not yet captured.
While experts laud the operations of these digital banks, they have urged the Central Bank of Nigeria to reassure Nigerians of their operations in the country and to provide information about the people behind these banks. This would help alleviate skepticism about the lack of knowledge surrounding digital banks and their operations.
In conclusion, with the recent cash shortages in Nigeria, it is vital to regulate and ensure transparency in the operations of digital banks to safeguard customers’ deposits. The Central Bank of Nigeria should take the necessary steps to address the concerns raised by experts and reassure Nigerians of the safety and security of their funds in digital banks.
Stripe Raises Over $6.5 Billion in Series I Fundraising
American financial services company Stripe has raised over $6.5 billion in a Series I fundraising round, which has put the company’s valuation at $50 billion. The fundraising round was led by new and existing investors, including General Catalyst, MSD Partners, Andreessen Horowitz, Baillie Gifford, Founders Fund, Thrive Capital, GIC, Goldman Sachs Asset and Wealth Management, and Temasek.
The payment giant revealed that the funds raised would be used to provide liquidity to current and former employees, address employee withholding tax obligations related to equity awards, and offset the issuance of new shares to Series I investors. The company also stated that it does not need this capital to run its business.
Stripe Co-Founder and President John Collison emphasized the opportunities for growth and expansion in the internet economy and the company’s dedication to exploring and creating new solutions. The deal comes at a time of severely depressed funding environment, but Stripe has been able to avoid the negative impacts and has no exposure to collapsed banking partner Silicon Valley Bank.
Investors King reports that Stripe recently collaborated with artificial intelligence company OpenAI to monetize OpenAI’s flagship products and enhance its platform with GPT-4. Seventy-five percent of the leading generative AI companies have signed up with Stripe to bring their products to more users worldwide.
Stripe’s enterprise user base has grown since 2019, and it now includes some of the largest global enterprises such as BMW, Amazon, Maersk, Ford, and Salesforce. Over 100 businesses handle more than $1 billion on Stripe every year, and 75% of these global businesses use Stripe for more than just payments. Over 70% use Stripe to manage operations across multiple countries.
Flutterwave Secures Two New Licenses from the National Bank of Rwanda
Flutterwave, Africa’s most capitalized startup, has obtained two new licenses from the National Bank of Rwanda to deepen payments and broaden operations. The licenses will enable Flutterwave to expand its operations in Rwanda and provide digital payment solutions to customers in the country.
Flutterwave’s expansion aligns with the Rwandan government’s vision to create a cashless economy and promote the use of digital financial services. The company has expanded to several African countries, including Ghana, South Africa, and Kenya, and plans to expand to more African countries in the coming years.
In conclusion, Stripe’s recent fundraising round and collaboration with OpenAI highlight the company’s growth and potential for future expansion. Flutterwave’s new licenses demonstrate its commitment to providing digital payment solutions and contributing to the development of a cashless economy in Rwanda.
Flutterwave Obtains Electronic Money Issuer and Remittance Licenses in Rwanda
Flutterwave, a fintech company, has been granted Electronic Money Issuer and Remittance Licenses to expand operations in East Africa, according to a press release obtained by Investors King. The licenses will enable Flutterwave to offer money deposit and withdrawal, electronic funds transfer, inbound and outbound cross-border transfers, and all types of payment instruments in Rwanda. With these licenses, Flutterwave can now provide its services to the 13.46 million people living and working in Rwanda.
Flutterwave’s CEO, Olugbenga “GB’ Agboola, stated that the company is committed to its vision of connecting Africa through payments and connecting Africa to the world. He expressed delight in being granted these licenses and emphasized Flutterwave’s commitment to supporting the expansion drive of global and Rwandan businesses.
Leah Uwihoreye, Flutterwave’s East Africa Regional Lead, Regulatory and Government Affairs, also commented on the licenses and said that they would enable the company to provide safe, secure, and seamless payment services for individuals and businesses in Rwanda. She added that Flutterwave’s innovation and use of digital technology would support businesses and stimulate economic growth in countries where the company operates.
Chipper Cash Reportedly Considers Possible Sell-Off
According to reports, African cross-border payments startup Chipper Cash is considering a possible sell-off amid the collapse of Silicon Valley Bank (SVB), which had served as a strong banking partner for numerous start-ups and their venture backers. However, the startup has denied seeking to be acquired.
Following the shutdown of FTX last year, Chipper Cash saw its valuation slashed from $2 billion to $1.25 billion. Despite facing some recent challenges, the company has remained resilient and has continued to expand its services to different African countries.
In conclusion, Flutterwave’s new licenses demonstrate its commitment to providing digital payment solutions and contributing to the development of a cashless economy in Rwanda. Chipper Cash’s possible sell-off highlights the negative impact of the collapse of SVB on African start-ups, but the company remains focused on its mission to provide cross-border payment solutions in Africa.
African cross-border payments startup, Chipper Cash, is reportedly considering a possible sell-off following the collapse of Silicon Valley Bank (SVB). However, the startup has clarified that it has never sought to be acquired, despite receiving various proposals from different parties. Chipper Cash CEO, Ham Serunjogi, also noted that SVB’s collapse had an insignificant effect on the payments company. Last year, Chipper Cash raised $250 million in a round led by SVB and FTX, and its valuation reached $2 billion at that time. However, following FTX’s shutdown last year, Chipper Cash’s valuation dropped from $2 billion to $1.25 billion. Despite the setbacks, the company has continued to establish itself as a prominent player in payments, with a self-reported user count of 5 million. Last year November, Chipper Cash announced its acquisition of Zambian fintech company Zoona to expand into the Southern African country.
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