Koko runs out of gas

It's been over a month since school children in Oyo State, Nigeria, were kidnapped, sparking a wave of kidnappings that left Nigerians wondering: why couldn't security agencies track these elements? The answer lies in the complexities of identity and technology. As TechCabal delved deeper into the story, we discovered that the NIN-SIM linkage, touted as a solution to identification and tracking, was not the panacea many thought it to be.

Koko Networks, a startup that was once touted as a promising player in the African fintech space, is now on the lookout for buyers. The news comes as a shock to many, given the startup's early success in Kenya and its plans to expand into other African markets. But what went wrong? The answer lies in the startup's struggles to scale and adapt to the ever-changing fintech landscape.

In Côte d'Ivoire, 44% of adults have no formal financial account. This is a staggering statistic, especially when compared to the country's growing middle class. Djamo, a fintech founded in 2020 by Hassan Bourgi and Régis Bamba, has found success in this market by offering bank-backed credit cards, mobile loans, and current accounts. With over two million users, Djamo has become one of Francophone West Africa's most important fintechs.

Djamo's success can be attributed to its ability to adapt to the needs of the market. In a region where mobile money is common but broader financial products remain scarce, Djamo has filled the gap by offering a range of financial services. Its valuation now hovers between $100 million and $500 million, making it one of the few homegrown African fintechs to reach that scale.

As Djamo continues to expand its presence across Francophone West Africa, it's clear that the fintech landscape is changing rapidly. With the rise of mobile money and digital financial services, startups like Djamo are poised to revolutionize the way people access financial services. But as Koko Networks' struggles demonstrate, success is not guaranteed, and the road ahead is fraught with challenges.

• Djamo has over two million users in Francophone West Africa
• The fintech's valuation hovers between $100 million and $500 million
• Djamo is seeking to raise $40 million in a Series C round to deepen its presence across Francophone West Africa
• The fintech was founded in 2020 by Hassan Bourgi and Régis Bamba

As a writer, I've always been fascinated by the stories of African startups that have managed to scale and adapt to the ever-changing fintech landscape. Djamo's success is evidence of the potential of African fintechs, and its rise to prominence is a story that needs to be told. With the rise of digital financial services, it's clear that the future of fintech in Africa is bright, but it's also clear that the road ahead will be fraught with challenges. As Djamo continues to expand its presence across Francophone West Africa, it's clear that the startup's success will be closely watched by many.