iProcure goes into administration

Good day,

Techpoint victory here,

This is what I have for you today:

• iProcure goes into administration
• Moniepoint to block cryptocurrency trading clients’ accounts
• Renda’s $1.9 million pre-seed

iProcure goes into administration

iProcure, a player in Kenya’s agricultural scene, has hit a rough patch recently. They have been in business for about a decade, connecting agricultural suppliers and retailers while providing useful services such as inventory management and credit facilities.

But things took a turn when they were placed into administration on April 26, 2024. That means someone else is calling the shots now and the founders are out of the picture.

iProcure raised more than $17 million in funding over the years. In August 2022, they raised $10.2 million in Series B funding to fuel their expansion plans in East Africa.

It’s a little puzzling why they collapsed, but word on the street is that they were dealing with cash flow problems and burning through money faster than they could generate.

They even received a boost from the United States Agency for International Development (USAID) with a $1.2 million grant in May 2023 to help with food production. But it seems that it was not enough to keep them afloat.

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Moniepoint and Paga to block cryptocurrency trading clients’ accounts

Moniepoint and Paga are warning their customers that their accounts could be blocked if they are caught carrying out any crypto transactions. This comes on the heels of the Central Bank of Nigeria telling some banks, including Moniepoint, to stop accepting new customers.

It is a small U-turn from what the CBN previously announced about lifting the ban on crypto transactions that was implemented in 2021.

In a message sent today, Moniepoint basically said, “Hey, if you play with cryptocurrencies, we will close your account and report it to the authorities.”

Paga also weighed in with an email to customers, reminding them that they are licensed by the CBN and must follow the rules. And according to them, those rules say no to crypto transactions.

Now, the circular Paga referred to dates back to 2017, warning banks about dealing with cryptocurrencies. But there is a newer one from December 2023 that says financial institutions should be open to things related to cryptocurrencies.

But hey, these recent moves by Moniepoint and Paga could hint that the CBN will bring back the ban on cryptocurrencies starting in 2021.

It is all part of the CBN’s efforts to crack down on shady foreign exchange transactions in Nigeria. But it could also drive more people to use cryptocurrencies, flying under the government’s radar.

Zoom Out: The CBN specifically told Moniepoint, one of the actors in this drama, to postpone registering new clients.

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Renda’s $1.9 million pre-seed

Renda, a Nigerian logistics startup, has raised $1.9 million in seed funding to strengthen its services, expand to more cities in Nigeria and Kenya, and expand its partner network.

Ingressive Capital led the $1.3 million equity round and other investors including Techstars Toronto and Golden Palm Investments participated. Additionally, Founders Factory Africa and SeedFi contributed $600,000 in debt financing.

So what is Renda all about? They’re the go-to people for businesses that need help getting their products from A to Z. They have a platform that handles everything from warehousing to deliveries in one place. The best part is that everything is done in real time, allowing you to monitor your inventory and cash flow as it happens.

Renda sets himself apart by addressing the entire delivery puzzle rather than just one aspect. And get this: They don’t even own trucks or warehouses. No, they collaborate with other companies that already have those things, resulting in a win-win situation for everyone involved.

The CEO, Ope Onaboye, spilled the beans and said Renda’s secret ingredient is its network of partners. They have more than 300 storage locations, 3,000 delivery vehicles and 2,000 cash collection points throughout the country. Talk about awesome!

Renda’s clients range from small businesses to big names like Jumia and Dangote, proving that it has something for everyone.

According to the company, revenue increased 450% in just one year, thanks to winning large contracts and maintaining cash flow.

The startup also takes care of its delivery drivers and plans to offer them loans and health insurance. Additionally, they are dabbling in AI to make their entire operation smoother.