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A new Revolut-ion
Today: Egypt’s February inflation eases by nearly half.
Emmanuel Nwosu
March 11, 2025
Good morning ☀️️
In 2024, Africa saw a slowdown in equity funding deals to Series A (503 deals) and Series B startups (413), with few deals going to tech-heavy players. Growth-stage and seed-stage startups received a combined greater deal flow (1,322) in the same year, which puts a poser on whether later-stage startups are being de-prioritised: are VCs skewed toward early-stage startups?
VC firms like Capria have answered plainly. After successes like Mono, Autochek, Carry1st, and BFree, Capria will back two additional African startups with $2–6 million, as it expands its Africa portfolio.
TechCabal’s venture capital reporter Muktar Oladunmade caught up with Mobola da Silva, Capria's Africa partner, to talk about the firm's strategy and outlook for the continent.
Companies
Revolut is reportedly making an entry into South Africa
Revolut, a global fintech giant with £250 billion ($300 million as of 2023) in total payments volume, is reportedly eyeing a move to South Africa, according to a report by local publication TechCentral. If this plan follows through, it will be the fintech’s first entry into Africa, and its sixth continent.
While the fintech giant told the publication that it is still “evaluating” the South Africa expansion and is “quite early in the process,” the move appears to be part of Revolut's aggressive market expansion efforts. In October 2024, it announced plans to secure a Colombian banking licence to extend its footprint in South America and has also made advanced plans to enter Singapore, its first move into Southeast Asia, hiring key executives to lead the operations.
Due to its wide range of products, a Revolut expansion would put South Africa's biggest fintech players on their toes. The fintech offers multi-currency savings accounts, remittances, FX, cryptocurrency trading, web-based payment processing, and stock and commodity trading services—many of which overlap with fintechs like unicorn TymeBank, Stitch (payment gateway), Yoco, Ozow, Aza Finance, and crypto asset service providers (CASPs) like VALR and Luno, which were licenced in April 2024.
However, South Africa is a complex market with strict financial regulations. Revolut will likely launch with a stripped-down version of its app to secure a regulatory foothold, as it did in countries like Mexico before applying for a banking licence. The fintech could choose to focus on basic services like digital wallets and remittances before gradually expanding to other products like crypto trading and stock investments. It could offer its services as a SaaS tech company without establishing a local subsidiary. This phased approach would help it find a workaround to secure e-money or payments licences while testing the market.
BEE (Black Economic Empowerment) rules could also be a challenge. Many foreign fintechs choose to partner with local companies to improve compliance, and Revolut could take a similar path—working with South African banks or fintech firms to avoid full ownership and equity requirements.
But even with a cautious entry, Revolut faces stiff competition from well-established digital banks and payment providers. South Africans are already loyal to platforms like TymeBank, Capitec, and Standard Bank’s digital services. Convincing users to switch—especially with limited local brand awareness—won’t be easy. Yet, with Revolut's global might, if the expansion goes through, it will be a test of resilience for South African fintechs.
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Internet
Starlink doubles subscribers in Nigeria, nears top ISP spot
Starlink has rapidly ascended to become Nigeria’s second-largest internet service provider (ISP), surpassing FiberOne Broadband Limited by the end of 2024. According to the Nigerian Communications Commission (NCC), Starlink’s subscriber base more than doubled within a year, reaching 65,564 users. Despite its premium pricing, the satellite internet provider's high-speed connectivity—offering speeds of up to 250 Mbps—continues to attract customers frustrated with the inconsistent performance of local ISPs and mobile network operators.
Starlink initially planned to double its monthly subscription fees from ₦38,000 to ₦75,000 for existing users by January 27, 2025. However, as demand surged, the company postponed the tariff increase. This isn’t the first time Starlink has faced pricing challenges in Nigeria; a previous attempt to raise tariffs in 2024 was blocked by the NCC, though it later approved adjustments for telecom operators in February 2024.
As Starlink gains ground, its main competitor, Spectranet, has seen a decline in subscribers, dropping from 113,869 in late 2023 to 105,441 in Q3 2024. Unlike fiber-based ISPs, Starlink’s satellite technology allows it to provide internet access without geographical restrictions, making it an attractive option for users in underserved areas.
Despite its rapid expansion, Starlink still faces challenges, including regulatory scrutiny and the current lack of mobile connectivity. As demand for reliable internet grows in Nigeria, Starlink’s continued success will depend on how it navigates pricing, regulation, and service improvements.
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Economy
Egypt’s inflation slows by 1,120 basis points in February
Egypt’s inflation rate tempered in February, easing pressure on consumers and businesses after two years of rising prices.
The data shows that urban consumer prices rose 12.8% last month, down from 24% in January—the lowest level since March 2022, when the country’s financial crisis took hold.
This sharp decline comes as the impact of last year’s foreign currency crunch fades. The shortage of dollars had fueled a booming black market and sent prices soaring, making basic goods increasingly unaffordable. The easing pressure on its currency likely impacted the inflation slowdown, offering relief to Egyptians struggling with the high cost of living.
While prices are still rising, they’re doing so at a much slower pace. That means household budgets might feel a little less squeezed, and businesses could find it easier to manage costs. The Central Bank of Egypt (CBE) now has more flexibility to adjust interest rates, which could influence borrowing, investment, and economic growth.
The government has been battling inflation through currency devaluations, International Monetary Fund (IMF)-backed reforms. A continued slowdown in price increases could boost confidence in these policies and encourage further economic stabilisation. This could increase investor confidence in the market as the decline points to a more predictable economic environment with consumers having more disposable income to engage businesses, bringing new opportunities for trade and development.
However, challenges still exist. Egypt’s economy is still vulnerable to external shocks, such as global commodity price swings and shifts in investor sentiment. Some central banks, like the South African Reserve Bank (SARB)—which cut interest rates by 25 basis points to 7.5% in January despite inflation quickening—have also expressed this uncertainty. But for now, this decline in inflation marks a rare moment of relief for Egypt after years of financial strain.
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CRYPTO TRACKER
The World Wide Web3
Source:
Coin Name | Current Value | Day | Month |
|---|---|---|---|
 Bitcoin | $79,734 | - 3.05% | - 18.02% |
| Ether | $1,869 | - 9.81% | - 30.08% |
| Ripple | $2.07 | - 5.41% | - 16.82% |
| Solana | $121.01 | - 5.56% | - 31.30% |
* Data as of 06:15 AM WAT, March 11, 2025.
Opportunities
- Lagos Innovates (LSETF) is offering workspace vouchers to startups in Lagos to ease rising operational costs. Startups can access subsidised coworking spaces with reliable internet, power, and a supportive entrepreneurial community. The program is open to Lagos-based startups looking to reduce overheads and focus on growth. Apply now.
- After successes like Jamit, Pokecoin, and Tomachain, Lisk and CV Labs are back inviting African Web3 startups to apply for Batch 2 of the Lisk Blockchain Incubation Hub. The six-month program offers up to $20,000 in grants per project, mentorship, and access to additional funding of up to $100,000. Applications close on April 12, 2025, with the cohort starting on May 19, 2025.Apply here.
Written by: Emmanuel Nwosu and Frank Eleanya
Edited by: Faith Omoniyi
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