Author: Gugu Lourie
Vodacom, South Africa’s biggest mobile phone operator in terms of subscribers, continues to make inroads into the insurance space as it attracts more customers. The Vodafone-owned company is pushing into the insurance market by covering life, funeral, device insurance and various short-term insurance services to existing and new customers. The Accenture Disruptability Index 2.0 ranks insurance as the fourth most disrupted sector, the most susceptible to future disruption, and one of the least innovative sectors. Insurance has lagged many other sectors in adopting digital technologies to transform its core, embrace customer-focused experience design, and weave its offering into people’s daily lives and organisations’…
Jeff Bezos announced on Tuesday that he was stepping down as CEO of the e-commerce giant Amazon in the third quarter of 2021. He will retain the title of chairman. The new CEO of the e-commerce giant will be Andy Jassy, currently head of the group’s cloud arm Amazon Web Service (AWS). The company announced the news alongside its financial results with net sales increasing 44% to $125.6 billion (R1.8 trillion) in the fourth quarter of 2020, versus $87.4 billion (R1.2 trillion) in fourth quarter 2019. “I’m excited to announce that this Q3 I’ll transition to Executive Chair of the Amazon Board…
Uber announced on Tuesday that it is buying alcohol delivery service Drizly for $1.1 billion (R16.5 billion) in stock and cash. The US-based on-demand alcohol marketplace is available in more than 1,400 cities across US states. Drizly works with thousands of local merchants to provide consumers with an incredible selection of beer, wine, and spirits with competitive, transparent pricing. After the completion of the transaction, Drizly will become a wholly-owned subsidiary of Uber. The marketplace of Drizly will eventually be integrated with the Uber Eats app while maintaining a separate Drizly app. “Drizly has spent the last 8 years building…
Vodacom Financial Services business continues to attract more customers as it experienced strong growth for the period to end 31 December 2020. Shameel Joosub, Vodacom’s CEO, informed investors that the Financial Services business remains a strong performer having increased revenue by 24.3%, as the business continues to scale. “Our partnership with Alipay will add new dimensions to our Financial Services’ proposition and in particular, VodaPay, which will become our single lifestyle super app.” Vodacom plans to create a ‘super app’ in partnership with digital payment provider Alipay, part of China’s Alibaba group, to allow consumers in South Africa to shop…
Vodacom is providing fibre to more than 110 000 home and business customers in South Africa. The Vodafone-owned company said on Tuesday that its fibre customers more than doubled year-on-year to 110 000 homes and businesses connected. “Also, our owned fibre roll-out continued, and we passed 139 000 homes and businesses as at 31 December 2020, up 39.8%,” the company said in a statement. The company also announced strong growth for its business unit. Vodacom Business service revenue grew 6.1% to R3.9 billion in the quarter ended 31 December 2020, with corporate and university data demand moderating from the elevated levels…
Israeli automotive data firm Otonomo announced on Monday it is to list on Nasdaq through a business combination with Software Acquisition Group Inc. II. The deal gives Otonomo a valuation of $1.4 billion. As part of the transaction, Otonomo will fetch $307 million in cash, including a $172.5 million private investment from investors such as Fidelity Management & Research Co and BNP Paribas Asset Management Energy. The company also said strategic investors Dell Technologies Capital and Hearst Ventures, would provide support of $25 million of cash currently on hand. The company said cash proceeds from the transaction would be used to fund…
Yesterday Mybroadband reported that R219 million was paid to three top executives at struggling Cell C. We note with amusement that this is the same story TechFinancials published three years ago. Original story: R219 Million Paid To Three Top Execs At Cell C in 2017 Yesterday’s Mybroadband story did not make any reference to TechFinancials. Here is their story: Cell C execs paid R219 million while the company burned For more read: Cell C CEO Got A Chunk Of R219 Million Payout, No bonus For Workers and Cell C Move To Terminate Franchisees Stores Backfires However, Financial Mail on the 27 September…
The Cortex Group in South Africa says Artificial Intelligence (AI)-driven platforms can help transform health and financial wellness for everyone. “There is a magnificent opportunity to create a scalable AI-driven platform for health and financial wellness for our people and the rest of the African continent and beyond,” said Dr Jacques Ludik. The founder of both the Cortex Group (and subsidiary Cortex Logic, which is an AI Engine for Business and developer of the AI-driven platforms) and Machine Intelligence Institute of Africa made the remarks on Sunday. Speaking to TechFinancials via Microsoft Teams, Dr Ludik said his Cortex Group had…
The Progressive Blacks in ICT (PBICT), a lobby group, today took a swipe at the ‘elite privileged black consortium’ for its stance in the debate about the licensing process for Wireless Open Access Network (WOAN). Late last year, the Independent Communications Authority of South Africa (ICASA) published an invitation to invest in the country’s planned WOAN, a creation of a private sector-led wholesale operator to compete with Vodacom and MTN. The South African government anticipates the WOAN will eventually lead to lower mobile data retail prices. It is envisaged that WOAN will bring much-needed competition into the services layer of…
The Independent Communications Authority of SA (ICASA) says it will oppose MTN’s court action over the upcoming 5G spectrum auction. MTN filed papers in the high court in Pretoria on Wednesday to declare unlawfully, and to review, correct or set aside two decisions made by ICASA which relate to the spectrum auction process. The mobile phone operator MTN asks the court to declare Icasa’s process for awarding the 3.5GHz spectrum unlawful. In December, Telkom in December filed an urgent court application saying it considers the regulator’s spectrum auction process to be irregular and unlawful. ICASA said in a statement on…
Coinbase, the biggest U.S. crypto exchange, announced yesterday plans to become a publicly-traded company. The company will be the first major crypto exchange to go public. The cryptocurrency exchange was founded in 2012 and allows users to buy and trade decentralized tokens like bitcoin and ethereum. In a blog post, the company said it proposed direct listing of its Class A common stock. Coinbase Global, Inc. previously announced on December 17, 2020, that it had confidentially submitted a draft registration statement on Form S-1 with the SEC. “The Form S-1 is expected to become effective after the SEC completes its…
Horizon Metrics, a South African black youth-owned tech startup, plans to roll out national innovation labs across the townships. Innovation labs, also known as accelerators, business incubators, are business units that employ agile startups’ methods to devise novel ideas that can either disrupt or complement the overall company. Innovation labs are a safe place for organizations to run experiments and iterate on projects or dream up novel ideas. The Rosebank-based Horizon Metrics, founded in 2017, is already reinvesting into the townships nationwide by launching their first of many innovation labs called Technify Me. The innovation labs are aimed at driving…
The High Court in Pretoria has turned down MTN’s application for a declaratory order seeking clarity from the taxman regarding the correct Value Added Tax (VAT) for certain types of pre-paid vouchers or tokens. MTN took the South African Revenue Services (SARS) to court because it was disputing how VAT is attributed to discounted vouchers. The question was whether VAT must be accounted for on the discounted amount paid for a voucher or its stated monetary value when used as payment for goods or services. The dispute dates back to 2017 when MTN requested SARS to issue a ruling confirming…
South Africa’s AI, Data Systems and IoT startup Aizatron is developing future-focused technology. The startup has developed an award-winning facial recognition application, and a facial recognition smart bell. It is also able to iterate and pivot its products rapidly to meet its customer requirements. It also drives digital transformation for its customers and addresses their challenges quickly with technology. As a result, Aizatron has snapped several industry awards for its solutions and service to the enterprise market. The Cape Town-based startup services large enterprises, distributors, global consulting companies & other technology services firms. Aizatron, founded three years ago, is powered…
Revue, a Dutch startup that allows users to publish and monetize email newsletters, has been bought by social media giant Twitter. Twitter is where people go to see and talk about what’s happening in the world. It’s where writers, experts and curators – from individual creators to journalists to publishers themselves – go to share their written work, spark meaningful conversations and build a loyal following. In a blog post, Twitter Product Lead Kayvon Beykpour and VP of Publisher Products Mike Park, said these writers and long-form content curators are a valuable part of the conversation. “It’s critical we offer…
Mohamed Yusuf Khan, a former Cell C employee, is ready to spill the beans about a ‘multi-million rand identity scam’ and the unsavoury goings-on at the struggling mobile phone operator. He also alleges a Cell C staffer accepted cocaine as payment for his part in the alleged fraud. The so-called fraud that occurred between 2018 and 2019 may amount to R100 million. The KwaZulu-Natal ‘scam’ involves bogus customers taking out Cell C cellphone contracts using fraudulent identification card (IDs) with the correct details, unknown ID pictures, fabricated payslips and bank statements victims’ real work and home details. TechFinancials can today…
Retailer Pepkor, previously Steinhoff Africa Retail, said its FinTech segment reported revenue growth of 5.8% for the three months to end-December. The company announced that its FLASH business reported 15.7% growth in revenue boosted by an increased basket of virtual products offered to consumers. The company operates its FinTech division through FLASH and Capfin. The group added that its FLASH business continues to invest in new products, channels and geographies to widen its ecosystem as the growing trader base continues to be an attractive avenue for partners. However, Pepkor said Capfin’s performance was impacted as a result of curtailed credit…
The investors in Welkom Yizani have accepted the Media24’s cash offer to buy out all the shares in the black economic empowerment share scheme. Welkom Yizani holds a 15% stake in Media24; a print media dominated operation within the Naspers stable. Media24 is one of the largest media companies in the country with massive exposure to the struggling print media. Its assets include well-known titles like City Press, Daily Sun, Beeld, Rapport and a host of knock and drops and magazines and printing assets. The media group has proposed to pay R15.70 per Welkom Yizani ordinary share. “We appreciate the…
Facebook is taking a giant leap on how it works with the media industry as it launches its first Facebook News in the UK. This is Facebook’s first market outside of the U.S. for its dedicated, curated news portal. The portal will launch with a number of new partners, including Channel 4 News, Daily Mail Group, DC Thomson, Financial Times, Sky News and Telegraph Media Group. These are in addition to outlets already announced including The Economist, The Guardian, The Independent, STV and hundreds of local news sites from Archant, Iliffe, JPI Media, Midlands News Association and Reach as well as…
A 44-year-old former IT manager for mobile network service provider Cell C was arrested by the Hawks in connection with an alleged tender scam amounting to R64 million Mohamed Ismail Adamjee appeared in the Palm Ridge Commercial Crimes Court on Friday facing charges of fraud and corruption. The case was postponed to January 26 for a bail application. More arrests are expected. The National Head of the Directorate for Priority Crime Investigation, Lieutenant General Godfrey Lebeya commended the team for the arrest and looks forward to seeing all those involved have their day in court. “The suspect was an Information…
South African retailer Mr Price uses cellular handsets and accessories to drive footfall traffic into its stores and online platforms. Driving in-store traffic is the daily mission for every brick-and-mortar retail business. Catching the customer’s eyes and attracting them to a store and the cash register has always been a challenge for retailers. However, Mr Price’s footfall tactic of positioning cellular handsets and accessories as a strategic offering is paying off for the retailer. On Friday, the JSE-listed retailer reported a 5.8% rise in total retail sales for the 13 weeks ended 26 December 2020 and attributed this growth to cellular…
Ovex, a Cape Town-based cryptocurrency exchange, announced on Wednesday a strategic investment from quantitative cryptocurrency trading firm Alameda Research, developer of the 5th largest crypto derivatives exchange in the world by trading volume, FTX. Founded in February of 2019, Ovex is a South African cryptocurrency exchange platform, specializing in OTC trading and arbitrage, offering South Africa’s largest selection of digital asset markets. The company is dedicated to improving the efficiency of the crypto market in South Africa and improving financial market inclusivity. Ovex has partnered with several leading cryptocurrency companies and firms, including Invictus Capital, Hyperion, and TrueUSD. With $270…
The SABC has called for an inquiry to determine licence conditions and tariff structure for digital sound broadcasting (DSB) services. “The Authority must conduct an inquiry to determine the licence conditions, obligations, and tariff structure for signal distribution including the regulatory regime for multi-channel distribution services and convergence,” the public broadcaster said in a submission to ICASA. The Independent Communications Authority of South Africa (ICASA) will be holding (virtual) public hearings on the draft DSB Regulations, 2020 on 20 and 21 January 2021. On 13 November 2020, the Authority published a Draft DSB Regulations 1, and the deadline for written…
In a submission to the country’s communications watchdog ICASA, broadcaster Primedia has recommended that the regulator ensures final Digital Sound Broadcasting (DSB) regulations make no mention of the switch-off of analogue sound broadcasting services. The Independent Communications Authority (ICASA) will be holding (virtual) public hearings on the draft DSB Regulations, 2020 on 20 and 21 January 2021. On 13 November 2020, the Authority published a Draft DSB Regulations 1, and the deadline for written representations thereon was 29 December 2020, which was subsequently extended by notice to 8 January 2021. By the closing date, ICASA had received fifteen written submissions…
Naspers announced on Wednesday a R250 million ($17 million) investment in AgriTech business Aerobotics. The Series B round that was oversubscribed was led by Naspers, one of the world’s most powerful and lowest-flying investment firms, with significant participation from Platform Investment Partners, FMO: Entrepreneurial Development Bank and Cathay AfricInvest Innovation. Last May, Naspers invested a R100 million investment in Aerobotics, through its earlystage business funding initiative Naspers Foundry. Aerobotics is a subscription-based artificial intelligence (AI) company that provides intelligent tools for the agricultural industry to manage its crops. Aerobotics, founded by James Paterson and Benji Meltzer in 2014, is a…