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MaxAB, Egyptian e-commerce Startup, Raises $40m in Series A Round

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MaxAB, an Egyptian ecommerce startup, has closed a $40 million Series A investment led by RMBV.

Also participating in the funding round are IFC, Flourish Ventures, Crystal Stream Capital, Rise Capital, Endeavour Catalyst as well as existing investors including Beco Capital and 4DX Ventures.

This takes the total funding raised by the startup to $46.2 million having raised $6.2 million in September 2019.

MaxAB plans to use the latest funds to first expand across every key city in Egypt by the end of the year and then in some new markets across the region. The money will also be used to scale recently launched verticals including new supply chain and embedded finance solutions, said the Egyptian startup in a statement.

Founded in 2018 by Belal El-Megharbel and Mohamed Ben Halim, Maxab helps small retailers in Egypt procure inventory for their stores using its mobile app. It makes procurement easy for retailers by enabling them to order everything from one supplier (Maxab), offering transparent pricing and 24-hour delivery.

Since its launch, the startup has helped over 55,000 retailers in Egypt, fulfilling more than 1 million orders, and creating 1,600 direct jobs in the process, it said in a statement.

Belal El-Megharbel, co-founder and CEO of Maxab, said, “Three years ago we embarked on an ambitious mission to create a more cohesive, transparent and efficient food and grocery supply chain in Egypt.

“This additional capital will allow us to continue to give retailers the economies of scale our platform offers while serving many more new customers. Being backed by a diverse group of renowned and experienced investors will enable us to rapidly scale our operations across the MENA region and developing markets.”

Ahmed Badreldin, Managing Partner at RMBV commented: “The Covid-19 pandemic has highlighted the unique structure of Egypt’s economy, with hundreds of thousands of shopkeepers and small businesses becoming the lifeline of our country at the time of crisis. We are delighted to be backing visionary entrepreneurs that have created a transformative business with impressive growth that is a catalyst for financial inclusion and job creation. We look forward to supporting MaxAB in its next phase of development as they continue delivering on growth and innovation.”

Ameya Upadhyay, Venture Partner at Flourish Ventures, said, “MaxAB is set to play a central role in retailers’ financial lives – it directly boosts retailers’ profits by reducing the hassle and the cost of buying inventory and, with embedded fintech products in its core offering, customers can easily buy more goods and pay for them seamlessly. With its founding team of seasoned operators who have scaled world-class ventures before, MaxAB is pioneering the global trend towards Embedded Finance. We are proud to back MaxAB as our first investment in Egypt and eager to see the next step in their journey.”

The round puts Egypt in line to be one of Africa’s best destinations for start-ups. South Africa, Nigeria and Kenya lead in start-ups investment in the continent.

No Victor No Vanquished: Pentagon Cancels Controversial $10bn JEDI Contract

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The legal tussle, which followed the $10 billion JEDI contract awarded to Microsoft, instigated an unexpected decision by the Pentagon on Tuesday.

After several years of fighting and jockeying for position by the biggest cloud infrastructure companies in the world, the Pentagon finally pulled the plug on the controversial winner-take-all, $10 billion JEDI contract, leaving both Microsoft and Amazon out of the deal. TechCrunch has the story.

“With the shifting technology environment, it has become clear that the JEDI cloud contract, which has long been delayed, no longer meets the requirements to fill the DoD’s capability gaps,” a Pentagon spokesperson stated.

The contract procurement process began in 2018 with a call for RFPs for a $10 billion, decade-long contract to handle the cloud infrastructure strategy for The Pentagon. Pentagon spokesperson Heather Babb told TechCrunch why they were going with the. single-winner approach: “Single award is advantageous because, among other things, it improves security, improves data accessibility and simplifies the Department’s ability to adopt and use cloud services,” she said at the time.

From the start though, companies objected to the single-winner approach, believing that the Pentagon would be better served with a multi-vendor approach. Some companies, particularly Oracle, believed the procurement process was designed to favor Amazon.

In the end it came down to a pair of finalists — Amazon and Microsoft — and in the end Microsoft won. But Amazon believed that it had superior technology and only lost the deal because of direct interference by the previous president who had open disdain for then-CEO Jeff Bezos (who is also the owner of the Washington Post newspaper).

Amazon decided to fight the decision in court, and after months of delay, the Pentagon made the decision that it was time to move on. In a blog post, Microsoft took a swipe at Amazon for precipitating the delay.

“The 20 months since DoD selected Microsoft as its JEDI partner highlights issues that warrant the attention of policymakers: When one company can delay, for years, critical technology upgrades for those who defend our nation, the protest process needs reform. Amazon filed its protest in November 2019 and its case was expected to take at least another year to litigate and yield a decision, with potential appeals afterward,” Microsoft wrote in its blog post about the end of the deal.

But in a statement of its own, Amazon reiterated its belief that the process was not fairly executed. “We understand and agree with the DoD’s decision. Unfortunately, the contract award was not based on the merits of the proposals and instead was the result of outside influence that has no place in government procurement. Our commitment to supporting our nation’s military and ensuring that our warfighters and defense partners have access to the best technology at the best price is stronger than ever. We look forward to continuing to support the DoD’s modernization efforts and building solutions that help accomplish their critical missions,” a company spokesperson said.

It seems like a fitting end to a project that I felt was doomed from the beginning. From the moment the Pentagon announced this contract with the cutesy twist on the Star Wars name, the procurement process has taken more twists and turns than a TV soap.

In the beginning, there was a lot of sound and fury and it led to a lot of nothing. In the end, it’s a no victor no vanquished tale.

Thank You For Funding the Future By Donating To Tekedia General Scholarship Fund

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Good People, join me to THANK Nnaemeka Anyanwu, MBA, PMP who just made a donation to Tekedia Mini-MBA General Scholarship Fund. Through his generosity, more young people will experience our world-class business education. Thank you Nnaemeka for funding the future!

To learn more about Tekedia Institute, click here.

Netflix Introduces Affordable Mobile Plan for African Market

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Streaming service firms have continued to devise means to grab market shares as competition grows in the untapped African market.

To this end, Netflix, the global movie streaming firm, has introduced a Mobile plan across 43 countries in the sub-Saharan Africa region, including Nigeria. The Mobile plan is a 50-60% reduction in the price of the basic Netflix offering and is available to members in Nigeria from N1,200 per month alongside the other three Netflix plans; namely basic, standard, and premium.

Different people have different entertainment preferences. Some want Ultra HD and the ability to stream on four screens at once. Some only watch movies and shows on their phone. Adding a mobile plan gives consumers more choice no matter what their budget or requirements

Country Currency Mobile Price Basic Price Standard Price Premium Price

  • Nigeria NGN 1,200 2,900 3,600 4,400
  • Kenya KES 300 700 950 1,200
  • South Africa ZAR 49 99 139 169
  • Other SSA Countries USD 3.99 $7.99 $9.99 $11.99

Additionally, Netflix members can now watch titles that are partially downloaded through the Play Partial Download feature on Netflix.

Innovation Village reported that between the Nigerian and South African markets, there will be 475 million people using the mobile internet by 2025. Also, Netflix members within these countries already watch 2x more Netflix on their phones than the rest of the world, therefore in order to ensure a much more enjoyable user experience, Netflix has given its members the Mobile plan as well as eliminated the problem of prohibited access to titles that are not fully downloaded.

According to research done by the streaming platform, the African market is most popular for downloading titles which means that the launch of the Play Partial Download feature is apt for the market. This feature will enable members to save time because they no longer must wait more than 10 minutes for complete downloads before watching their favorite titles. Additionally, it would save cost because members across Africa, have pivoted to using offline viewing after cellular data prices have increased in markets.

Additionally, any member using the Mobile plan still has access to all available Netflix titles. With the Play Partial Download feature, Netflix allows members to watch their favorite titles, like Fatherhood or the next episode of Elite, even if it hasn’t been completely downloaded. Once you’ve regained a strong enough connection, the feature allows you to choose to finish the download and keep watching, avoiding those surprise notices that you’ve gone over your data limits.

According to Keela Robinson, VP of Product Innovation at Netflix, “We always want to make it easier for members to access their favorite series or movies regardless of language, device, connectivity, or location. So partial downloading is now available on Android phones and tablets.” In addition she stated, “We’ll begin testing on iOS in the coming months. That’s the download on Netflix’s latest improvement for now.”

To access this feature from the download menu on their mobile device or from the continue watching menu. If a member starts watching a title that has not finished downloading, they will be prompted to download the rest of that movie or episode in a series once they’re connected to Wi-Fi or cellular network.

Netflix is committed to ensuring that their best-in-class titles are available at the utmost convenience of their members. Through the Mobile Plan and features like the Partial Play Download, Netflix members can access their favorite titles at a lower cost and comfortably enjoy them with just 5-10% of the title being downloaded.

Interrogating Nigerian Newspapers Presentation of Source Logic in News

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The idea that the media should be free is an extension of democracy. Globally, the belief remains that when the media is free, it would be able to hold leaders and individuals accountable based on their direct and indirect dealings. In the spirit of being freed, we have seen situations, where journalists and other media practitioners abused the privilege, damaging corporate and individual’s reputation through unverified and malicious news reports.

When the reports are pushed out, only a few of their audience has the ability and capacity of interrogating the frames and agendas set in the reports, which requires applying the rudiments of logic. Isn’t it time we needed to be teaching logic right from secondary schools? Or is it better to say our Quantitative and Verbal Reasoning subjects should better be taught with practical/real-life examples? I developed this curiosity some days ago when many Nigerian newspapers (with digital presence) kept reporting that one of Chief Sunday Igboho’s aides who was said to have been killed by the DSS in a “raid” to Igboho’s house in Ìbàdàn, was shot 48 times! One of Chief Igboho’s men was said to have told journalists that number. Thus, this short logical questioning isn’t about the legality of the DSS actions and Igboho’s aides’ counter-actions- the court will decide that. This opinion is therefore about the need for journalists and the citizens they disseminate information to to always question certain points made by news sources. That’s what I called “logical questioning” up there!

Yes, the source said the aide was shot 48 times, but that doesn’t mean the source was right. We, as journalists, shouldn’t just hide under the principle of “sourcing” or the concept of “our source said” to dish us utterances we should have questioned before going to press at all! As a professional, if you are moved by emotions, your intelligence can be rendered questionable. Now, let’s think together: Someone was shot at 48 times; he didn’t die, yet he refused to run away- he relied on charms bá (that’s not my focus here)? Who was counting the times the bullets were shot? We hardly need an expert’s explanation of how our minds work when fright knocks at our doors. The DSS was said to have continued to shoot and attack the house for about an hour (in some quarters, it was a gun duel between the DSS and Igboho’s boys). In that situation, it was expected that nobody would even be thinking straight than to leave or remain in that scene unhurt. Maybe the mind of the person who counted the “48 gunshots” was special that he/she concentrated on the number of shots more than his/her own safety.

Another case where logic should have been used by journalists was when a governor said he ran about one and half kilometres on foot to escape from being assassinated while visiting his farm. Where were his details when he was running (though he later thanked them for repelling the “attack)? Didn’t his security details hold guns to have used to kill the “killers” or to chase the “killers” away, at least? If the Governor ran, who measured the kilometres he told journalists? But, do we question some of these things as journos? Peem, “they (the sources) have said it, and we should publish it!” is traditional journalism practice– in as much as it has been credited or attributed to a source or sources, the rest na story! However, I strongly suggest it is time Nigerian journalists started questioning some utterances from their sources and questioned the logicality of their utterances in matters of great importance. They shouldn’t be interested in attributing questionable headlines to questionable sources just to gain traffic and sell such news. We should all be socially responsible as news producers and consumers!

Additional report by Umar Ajetunmobi