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Bolt Rescind Decision Not to Layoff Staff, Sacks 20 Staff in Its Nigerian Operations

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Bolt-Investors King

Mobility company Bolt has rescinded its decision not to lay off any member of its workforce after it recently sacked 20 of its staff members in its Nigerian operations.

Reports disclose that the layoff was communicated to the affected staff by the company’s regional manager for West and North Africa and ROW, Ire Obatoki, during an all-hands meeting of the Nigerian operations teams which was held on Monday.

Following the recent layoff, a source familiar with the incident revealed that a lot of Junior staff were negatively impacted, which came after Bolt had promised not to lay off any of its workforces, rather it stated that spending of the company would be slashed. The announcement was followed by one-on-one exit chats with the affected staff members.

Also, Bolt’s recent layoff is coming days after the company unveiled its expansion plan in Africa. It would be recalled that Investors King on the 18th of February 2023, reported that the e-hailing firm plans to expand its operation in Africa, to create thousands of opportunities for drivers on the continent.

Bolt plans to invest €500 million in Africa over the next two years, noting that the funds will be used to create opportunities for over 300,000 new drivers and couriers to join the platform in 2023, as well as the establishment of new offices.

Meanwhile, in a third round of layoffs since May last year, Bolt sacked 50 of its employees last month, which has seen its headcount shrink by more than half under a year. The first round of layoff which occurred last year, impacted about 250 of its employees, coming just months after Bolt raised $355 million at a valuation of $11 billion.

It is however interesting to note that Bolt has surpassed 1 billion rides in Africa, in just seven years, and expects the number of drivers on its platform to hit over 1 million in the next six months. Following its funding round in January 2022, which saw it raise $709 million, the company disclosed that it will be using the funds to continue expanding to new geographies and to bring more consumers and partners to its super app.

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African Startup Funding Shrinks to from $1.8bn to $780m in H1 2024

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Start-up - Investors King

Funding to African startups contracted to $780 million in the first half of 2024 from the $1.8 billion recorded during the same period in 2023.

Despite the overall downturn, Nigeria emerged as a beacon of resilience, managing to sustain its funding inflows amidst the widespread decline.

According to Africa: The Big Deal, a platform that tracks startup funding, Nigeria has maintained a steady flow of investment, setting it apart from its counterparts.

By mid-2024, startup investments across Africa had surpassed the $1 billion mark, buoyed by two major deals: d.light’s new $176 million securitization facility and MNT-Halan’s $157.5 million raise to fuel their expansion.

These significant transactions, along with NALA’s $40 million Series A in July, contributed to making July 2024 the most successful month for African startup fundraising in over a year, exceeding the total raised in the entire second quarter of 2024.

The “big four” economies—Nigeria, Egypt, Kenya, and South Africa—typically attract the highest funding on the continent.

However, this trend shifted in the first half of 2024, with Nigeria being the only country among them to maintain its funding levels.

Max Cuvellier Giacomelli, a presenter during the Africa Startup Funding Round-Up 2024 mid-year edition, highlighted this anomaly.

He noted that while funding to Kenya, Egypt, and South Africa saw significant reductions, Nigeria held steady, showcasing its strong investment appeal amidst global economic challenges.

“There has been significant shrinkage in the amount of funding invested on the continent, affecting mostly three of the big four—Kenya, Egypt, and South Africa. Nigeria, however, is holding steady,” Giacomelli said.

He further pointed out the growing share of funding raised in Western Africa, outside of Nigeria, indicating a broader regional resilience.

In terms of sector performance, logistics and transport led the way, capturing 28% of total funding and surpassing the historically dominant fintech sector, which accounted for 23%.

This shift was driven by notable deals such as Moove’s $100 million investment by Uber, propelling its valuation to $750 million.

Energy and water followed, securing 17% of the funding, with agriculture and food receiving just below 10%.

Maxime Bayen, another expert during the review, provided further insights into the funding landscape.

He projected that total funding for African startups by the end of 2024 would range between $1.5 billion and $2 billion, significantly below the levels seen in 2023 and far from the $3.2 billion raised by mid-2022.

This forecast underscores the ongoing economic adjustments and the cautious approach of investors in the current climate.

Despite the overall decline, there were positive signs. The number of startups raising over $1 million remained comparable to previous years, excluding the exceptional 2022 figures.

Also, there was a notable increase in the share of debt raised by startups, reflecting a shift in financing strategies amidst tighter equity markets.

The African startup ecosystem, while facing significant funding challenges, continues to adapt and evolve. With Nigeria leading the charge, there is cautious optimism that targeted investments and strategic innovations will help navigate these turbulent times and lay the groundwork for future growth and stability.

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Google Leads $250 Million Funding Round for Glance

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A logo is pictured at Google's European Engineering Center in Zurich

Google is leading a $250 million funding round for Glance, a mobile content provider.

This infusion of capital aims to expand Glance’s reach and solidify its market position amidst growing competition.

Glance, a subsidiary of InMobi Group, offers a unique service that delivers news, entertainment, and other content directly to users’ mobile screens without unlocking their devices.

With a user base exceeding 300 million across India, the US, Japan, and Indonesia, the startup has gained significant traction since its inception in 2019.

The funding round, expected to close in the coming weeks, marks a continued partnership between Google and Glance.

Google initially invested in the company in 2020, and this latest round will further enhance Glance’s capabilities to innovate and reach new audiences.

This investment reflects Google’s strategic interest in India, the world’s most populous nation, where it competes with tech giants like Microsoft, Meta, and Amazon.

With India’s rapidly growing middle class and increasing smartphone adoption, the market presents vast opportunities for digital expansion.

The support from Google comes on the heels of a previous $200 million investment by Mukesh Ambani, Asia’s wealthiest individual, which valued Glance at over $1 billion.

The startup’s largest stakeholder, InMobi, continues to thrive as a pioneer in mobile advertising, with Glance benefiting from its expertise and resources.

As Glance prepares for this new phase of growth, it stands poised to redefine how content is consumed on mobile devices worldwide.

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Former Konga CEO Nick Imudia Dies by Suicide in Lagos Home

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Nick Imudia

The Nigerian business community was rocked by tragedy as Nick Imudia, former CEO of e-commerce giant Konga and current CEO of solar energy solutions innovator D.light, died by suicide in his Lekki apartment.

Imudia’s death, confirmed on the night of Tuesday, June 25, has left friends, family, and colleagues in a state of shock and sorrow.

According to sources, Imudia reportedly took his own life by jumping from the balcony of his home. In the moments leading up to the tragic incident, he made a series of distressing phone calls.

He reached out to his brother in the United States, giving detailed instructions on how to distribute his wealth should anything happen to him.

Imudia also spoke to his young daughter from a previous relationship, offering her comforting words and telling her to look to the sky to see him.

Imudia’s sudden death has raised many questions among those who knew him. Described by colleagues as a visionary leader, Imudia was instrumental in the growth of Konga, one of Nigeria’s largest e-commerce platforms.

After his tenure at Konga, he continued to make significant contributions to the tech industry as the CEO of D.light, a company known for its innovative residential solar energy solutions.

Imudia hailed from Ika South Local Government Area of Delta State and had a young daughter from a previous marriage that ended due to irreconcilable differences.

Despite the end of his marriage, those close to him said he maintained a strong bond with his daughter, often expressing his deep affection for her.

The reasons behind Imudia’s decision to end his life remain unclear. As news of his death spread, messages of condolence and tributes poured in from friends, family, and business associates.

Many have expressed their profound sadness and confusion as Imudia was widely seen as a successful and driven individual.

“Nick was a brilliant mind and a compassionate leader,” said a former colleague. “His death is a huge loss to the tech community in Nigeria and beyond. We are all struggling to understand why this happened.”

Authorities are investigating the circumstances surrounding Imudia’s death. Meanwhile, his family has asked for privacy as they navigate this difficult time.

Nick Imudia’s death is a stark reminder of the unseen struggles many face, even those who appear successful and accomplished.

His passing has sparked conversations about mental health awareness, urging individuals to seek help and support when needed.

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