OPay Halts Some Business Units Amid COVID-19 Pandemic
Opay, a seamless mobile money service provider, has announced it would be putting some of its business units on hold as COVID-19 pandemic bites.
In a statement released by the Chinese owned mobile money start-up on its official twitter page @OPay_NG, the company said “We can confirm that some of our business units including the ride-hailing services, ORide, OCar as well as our logistics service OExpress will be put on pause.”
This, it said was largely due to the tough business environment brought about by COVID-19 pandemic, the lockdown and government ban of motorbikes in Lagos.
The statement read “Globally, ride-sharing businesses have been heavily impacted by the pandemic. But several months ago, foreseeing this issue, OPay had already taken preemptive steps to restructure our business focus away from rides. It is worth to note that this final restructuring has minimal impact on OPay as a whole business.”
“It is important to clarify that ride-sharing had always been only one part, and not a major part of OPay’s diversified business in Nigeria. In fact, OPay had been investing more and seeing accelerated growth in its commitment to Nigeria’s financial and technology inclusion.
“During the pandemic, we have seen continued demand for our offline mobile money agency, and online digital payment, which remains the core of our business.
“From January to April 2020 for example, we witnessed a 44% growth of offline and online transaction value even in the midst of pandemic and lockdown. This is a testament to the high demand for flexible and easy financial services by Nigerians. OPay remains one of the most well-funded and profitable mobile money platforms in Nigeria, and we will continue to do more for our customers.”
Below is the company’s official statement as published on Twitter.
FinTech Investments in Q3 2020 Drop by 16% Quarter-over-Quarter to $12.15 Billion
The total value of fintech investments worldwide fell by 16% quarter-over-quarter (QoQ) to $12.15 billion in Q3 2020. However, deal volume grew by 26% to 716 deals.
According to the research data analyzed and published by Comprar Acciones, the United States accounted for 64.7% of the total deal value, with 340 deals worth $7.85 billion.
Also, there were 25 mega-rounds during the period, accounting for 60% of the total funding value. Compared to Q2 2020, the total mega-rounds value increased by 64% to $6.4 billion, as non-mega rounds fell by 16%.
Payment Industry Deals Soar by 41% to $6.22B as InsurTech Grows by 63% to $2.5B
Payment industry deals took center stage, totaling $6.22 billion according to Global Data, marking a 41.9% QoQ increase.
The top five deals in the segment accounted for 58.4% of the total. Klarna bank had the highest raise, at $650 million at a post-money valuation of $10.65 billion. It made it the highest valued private fintech in Europe and the fourth highest globally.
Klarna, which is a buy now, pay later app, had 12 million monthly active users and 55,000 daily downloads. In H1 2020, its global transaction volume shot up by 44% YoY to $22 billion as revenue soared by 36% YoY to $466 million.
On the other hand, the insurtech sector raised $2.5 billion globally across 104 deals according to Willis Tower Watson. It marked a 63% increase in funding value and a 41% growth in deal volume. The number of mega-round deals in the segment increased by 50% QoQ.
Six mega-rounds drove 69% of the total insurtech funding. Top on the list was Bright Health with $500 million and another $500 million by Ki. Early stage companies in the sector grew by 57% QoQ during the period, compared to a record low of 42% in Q2 2020.
World’s Richest Man Jeff Bezos Backed African Fintech Startup, Chipper Cash
The world’s richest man, Jeff Bezos, has invested in an African fintech start-up, Chipper Cash, according to the latest report from Tech Crunch.
Chipper Cash, a startup that helps facilitate money transfer across Africa and beyond, raised a $30 million Series B funding round led by Ribbit Capital with participation from Bezos Expeditions, a personal VC fund of Jeff Bezos, the founder and CEO of Amazon Inc.
Chipper Cash currently has 3 million users on its platform and processes an average of 80,000 transactions per day. The startup operates in the following seven African countries; Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya.
According to Ham Serunjogi, the Chief Executive Officer, Chipper Cash, the company attained a monthly payments value of $100 million in June 2020.
As part of efforts to grow beyond its current market, Chipper Cash plans to expand its product and geographical reach. In terms of product, the company plans to add cryptocurrency trading options and investment services.
“We’ll always be a P2P financial transfer platform at our core. But we’ve had demand from our users to offer other value services…like purchasing cryptocurrency assets and making investments in stocks,” Serunjogi stated on the phone.The fintech company recently added beta dropdowns to its website and mobile application to enable customers to buy and sell Bitcoin and even invest in United States stocks from Africa. It partners DriveWealth, a U.S financial services company, to allow stock trading.
“We’ll launch [the stock product] in Nigeria first so Nigerians have the option to buy fractional stocks — Tesla shares, Apple shares or Amazon shares and others — through our app. We’ll expand into other countries thereafter,” said Serunjogi.
On the financial service side, Chipper Cash plans to offer more API payments solutions. “We’ve been getting a lot of requests from people on our P2P platform, who also have business enterprises, to be able to collect payments for sale of goods,” explained Serunjogi.
Top Four Social Networks Boast 8 Billion Active Users in Q3 2020
In Q3 2020, Facebook inched closer to becoming the first social network with 3 billion users. Based on the research data analyzed and published by Comprar Acciones, it had 2.74 billion monthly active users at the end of September 2020, up by 12% year-over-year (YoY).
Facebook was the most popular social networking platform. YouTube and WhatsApp followed with 2 billion users each, while Messenger was third with 1.3 billion. In total, the four had a cumulative 8 billion users.
Facebook Family User Base Grows to 3.21 Billion in Q3 2020
During the period, Facebook also had a 12% quarter-over-quarter (QoQ) increase in the total number of its daily active users (DAUs), to reach 1.82 billion. Asia Pacific led in DAUs, going from 699 million in Q2 to 727 million in Q3 2020. Europe remained flat at 305 million, while the US & Canada dropped from 198 million to 196 million.
In terms of monthly active users (MAUs), Asia Pacific was also the top market with 1.17 billion users. Europe followed with 413 million, while the US & Canada had 255 million.
In the same period, the Facebook family of apps had a total of 3.21 billion users globally. Of its messaging platforms, WhatsApp was the most popular with 2 billion monthly users in October 2020. Facebook Messenger was second with 1.3 billion monthly users.
On the other hand, YouTube reported that its Premium and Music services had 30 million paid subscribers in Q3 2020. The number had doubled in less than 18 months as it only had 15 million paid subscribers in May 2019.
According to Sensor Tower, Youtube was the second highest grossing mobile app in Q3 2020 across both Google Play Store and Apple App Store. During the period, its revenue increased by 59% YoY. On the other hand, Facebook came in second on the list of top mobile apps by downloads, in spite of a 2% YoY drop.
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