₦airaland Forum

Baba is for babality

Please change baby image from crying to a happy one.

Late last year, one of the largest and most prominent Africa Private Equity funds reached out to me to have a chat. Instead, we ended up having lunch at a swanky central London restaurant. It was great. I was totally seduced. He was so positive, bullish and aggressive. He wanted to invest up to $50m in IROKOtv. Jeez. I was smitten. I didn’t need that much money (yet), but hey, I like these kind of conversations. Uncle continued talking.

This wasn’t the first time. It has happened before. Over the years, Venture Capital and PE firms periodically have reached out to IROKO, with a view to investing. All inbound. Usually we just smile and keep it moving. You know. Face our work. But this was different. We were expecting a strong revenue for Q4 and good y-o-y growth. So even though we weren’t fully ready (IROKOtv is still growing but definitely deep in experimental mode, there isn’t a specific plan to execute mind you) in January we hired a tier1 African investment bank and solicited interest from African investors. This article is from my real world, last few months’ experience. Evangelising and pitching to folks across Cape Town, Abidjan, Lagos and London. All of the above, I probably shouldn’t be saying, as the process is still on-going. But it’s context as to what comes next. And I need to vent small.

By far the most common question was how far is IROKO from cashflow break-even or EBIT profitability. On one hand, I could understand. You know. It was the first few months of 2018. Nothing but bad news for consumer internet companies. It was widely reported that Konga investors had exited in distress, Naspers-owned OLX was shutting down offices across Africa and Wakanow was having Nigerian bank issues. It became clear real quick. Nobody in Africa was interested in funding losses. Everyone loved growth stories. You know, scale stories. Which is strange because pretty much ALL of the big consumer internet listings of recent memory have been losing money hand over fist, pursuing growth. All are big and growing. That has been natural in technology. Forget profits. Grow. Grow. Grow. But they ALL raised hundreds of Millions or Billions of dollars to get there. In Nigeria? Not so much. I have spoken to many others in the Nigerian tech space to see whether this was just me or a wider phenomenon. You know I try to check myself. Ensure I’m not buying into the hype I am most responsible for pumping. After-all, Perhaps IROKO isn’t that hot. Perhaps I need to shake body. Prove myself and all. But look at the graph below. 78% growth isn’t tooooo bad.

Dunno. But we just had our best quarter ever in Q1 2018 and expect to grow both revenue (50%+) and subscribers (150%+) amazingly in 2018. But again. Maybe it’s just me. Oh did I mention that IROKOtv is likely growing back into the largest business unit at IROKO for the first time in three years?

Back to the point.

$148m in losses for Jumia in 2017. One Hundred and Forty Eight Million US Dollahs. Konga, in its entire history, never raised that much money. If you counted the entire venture capital gone into consumer internet companies minus Konga in Nigeria, I doubt it would still reach. We are not mates. That’s an unimaginable amount of money to little me. But here is the craziest part. It grew y-o-y. Whilst revenue increased a mere 11.2%, the losses expanded from €91.3m to €120.1m. How the F&*K is this even allowed? I wish I could block investors like that. That top line GMV growth number is straight up fantasy. Like Disney Land. It’s the most epic vanity number in the world. Revenues. Well 11.2% is the reality. If only my business had such a number. Unfortunately there isn’t one. Dear JUMIA INVESTORS. Notice me. I am here. Bring Dollars. It’s allowed.

Remember. Little me was asked to shake body and show the path to cashflow positivity in the short term and direct clear sight line to rivers of EBIT profits. Let me be fair. And for transparency. IROKO is still losing money and expected on a P&L basis to be negative -$1.7m in 2018. Because we must F&*king survive this will be our last year of losses. Amen? Amen. But at what cost? What’s the opportunity cost of being ‘forced’ to generate cash and profits this early in our journey. Are Nigerian startups thus going to end up structurally smaller?

Jumia has raised $767m from some notable investors including MTN, Millicom. CDC. Axa.

I was discussing my Jumia dilemma with someone and rightly so they said it’s Ecommerce. It’s different. It’s a bigger opportunity. Perhaps. But none of the internet paid content operators are cash positive. They are all, in fact, very negative. But are they massive? Very much so. Very much so. Billionaire Boys.

Netflix. $2.5B in negative cashflow in 2017. Today has a market cap of $133B

Spotify. 2017 had losses of -$1,24B. Today has a market cap of $27B

Pandora. 2017 had losses of -$518m, today has a market cap of $1.35B

iQiyi. 2017 had losses of -$574.4m today has a market cap of $13.4B

FuboTV raised $75m yesterday, they launched in 2015 (bringing total investment to $150m). They announced they had passed 100,000 subscribers in October 2017. (IROKOtv has more than that). Granted, I am sure their ARPU’s are considerably higher than IROKOtv’s and they are touting growth figures which reach an annual run rate of $100m by mid 2019. Yet FuboTV offers viewers over 30,000 sporting events per year, 10,000+ titles in its video-on-demand library. Their content costs must be astronomical. And their losses… You guessed it. Equally astronomical. It’s scary just thinking about it.

But if it’s about growth. That is easy. Give me $100m and I will grow baby grow (remember my -$1.7m). But I would also burn baby burn. I was even thinking of introducing an ‘IROKOtv lite’ (free) tier so as to race to 10m+ MAU’s to show the ‘top of the funnel’ vanity metric, like Jumia’s GMV, as investors seem to love that (Dropbox has 500m free users, 11m paid users ~2% base. Investors love the big 500m number though. Love it. Dropbox had-$111.70m and currently boasts a market cap of $11.65B). But cooler heads prevailed. Dean, my CTO rightly, cautioned me that once I opened a free (example 1 free-movie per week plan) it would be almost impossible to control the costs. The dollars it would destroy sends chills down my spine just thinking about it. I wanted an answer to another often asked question, how big is IROKOtv’s market? Is this a niche? I felt perhaps I needed to demonstrate that Nollywood is much much much bigger than everyone thinks.

Most folks seem to see it as a niche. At IROKO, we believe there are at least 50m people globally who are willing to pay. It will just take us a long ass time to get there, and boat loads of cash. Without the boat loads of cash. Man o man. That’s the challenge when dealing with the base of the pyramid. Investors are typically not even there mentally or spiritually. Most people have zero concept of the strength of Nollywood and the impact it has on the masses. To boost my morale, I started listening to the audiobook Slugfest. Inside the Epic 50-year Battle between Marvel and DC. In the 60–70s, Hollywood laughed at comics as they were considered to be for children. Marvel or DC couldn’t even get a film deal. Imagine this. The rights to Blade were sold by Marvel for $25k. Yes. That’s right. Twenty Five Thousands dollars. The Blade Trilogy went on to gross $415m at the box office. Marvel now owns the cinema. Owns it. But 50 years ago it represented nothing.

Back to the point.

The crazy thing is that there is IPO talk for Jumia. IPO talk?! But you know what? I wouldn’t put it pass them. They will probably exit. Sell on the Africa execution risk to the pensioners of Germany (and other smaller European countries) and move onto the next one.

Remember this fella. Why is Konga worth “only” $35m and Jumia $1 billion? He wrote the article and left the same month. Was he pushed?

In Conclusion, building an ecosystem, securing a geographical diversification, leveraging on its strategic investors and having secured consequent access to capital is according to me what explains the huge difference between the current valuations of two biggest e-commerce players. Now, the accuracy of either nominal valuation is still to debate…

Please read Ngozi Dozie’s response. It’s amazing

IROKOtv has done a better job than Jumia in most regards (geographical and diversified revenues — 180 countries people and strategic investors IROKO+ across FSA. We just haven’t been able to establish the bridge to the boatloads of excess to capital ($767m+ for Jumia and $35m for IROKO). But it’s okay. We push on. We outlast. Tactic by tactic.

Where does that leave us? Nigerian-led founders of consumer internet companies. In simple terms. Structurally smaller. Whereas I don’t believe it is a grand conspiracy, I do believe our stories are treated differently to our Non-Nigerian founded market peers (Jumia / Andela / Branch). I believe I can spin stories with the best of them and equally show demonstrated execution and brutal operational abilities. So many outlasted over the years. But it’s like my stories, they are not ‘entering’. As Ngozi mentioned in the past

So what am I saying? Let me spell it out, I don’t think African founders looking to execute on the continent get a fair shake.

If Nigeria wants to create really really big (as in Billionaire Boys big), we need a scenario where investors are ready and willing to fund those losses. Because to grow big, I haven’t seen many examples of in consumer internet without boat loads of cash.

So to reiterate. Jumia has raised $767m from some notable investors including MTN, Millicom, CDC and Axa. They are burning this money and showing modest growth. As a Nigerian I think this one has entered a spiritual realm. I have been suspecting this of this Oliver fella for some time now. Walk with me. He makes crazy announcements ‘Jumia is a proven winner’, ‘IPO this year, ‘113% y-o-y growth’ etc. etc. Think about it. Who else in Nigeria talks like that? Nigerian billionaire business men. Always making pay dirt whilst their company is burning or distressed. Oliver and Jumia is out-Nigeria-ing us local Nigerians.
In summary Oliver and Jumia, are either using Jazz or washing money?

I literally don’t understand nor have a scientific explanation on how they are getting that boat-load of money in Africa. FYI — I don’t believe they are washing money. So they must be entering forest.

Source: [url]www.medium.com/@jasonnjoku/is-jumia-using-jazz-21511d1a854f[/url]

Let me know when she threatens to sue

..

Congrats and hope you perform beyond expectations!

Keep gaining. Don't stop biko

Awesome boost!

Agriculture....the lost but found gold.

Awesome stride!

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Governor Akinwunmi Ambode of Lagos State on Thursday said his administration would remain focused on all its development plans and programmes in the state in spite of the coming elections.

Mr. Ambode stated this while declaring open a three-day retreat for members of the state Executive Council and Body of Permanent Secretaries with the theme “Effective Strategic Planning for an Emerging Smart City” in Epe.

The governor, who is spending his first term in office, is still eligible to seek another term in 2019, and primary elections of political parties for the coming elections are to hold this year.

He said though people believed governance would slow down this year because of the next elections, his administration would remain focused and ensure steady progress is achieved in the state.

The governor said both local and international development indices reflect that steady progress had been recorded in the task of making the state one of the foremost commercial and social hubs in Africa.

He, however, acknowledged that the government reforms had not been without challenges.

“Some of our reforms remain challenging because of institutional difficulties and corruption. We presently experience this in some of our on-going reforms,” Mr. Ambode said.

He reiterated his commitment to the people-oriented style of governance in spite of the challenges being faced.

Mr. Ambode said the theme of the retreat was apt, but that the constraint was how to effectively and strategically plan to actualise the vision, considering the state’s peculiar challenges.

The governor commended the participants for the successes so far recorded, but said a lot still needed to be done.

He urged them to put forward ideas and suggestions that could further enhance the status of Lagos.

According to him, the state, with their cooperation, will become as a globally competitive Smart City.

He charged them to continue with “Strategic planning Template’’ which was working for the state, and to let their institutions, Ministries or Agencies speak for them.

“To plan effectively and strategically requires us to think, not just outside the box, but to think globally and act locally. We must look beyond our borders for ideas but consider all our local situation.

“We must do things differently, be ready to be called names and to encounter resistance.

“However, we must remain steadfast and let posterity judge our actions and intentions; someday, the resistance will become support and endorsement,’’ he said.

(NAN)

Source: https://www.premiumtimesng.com/regional/ssouth-west/256672-i-remain-focused-spite-coming-elections-gov-ambode.html

cc: Mynd44

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President Muhammadu Buhari will Friday depart for Addis Ababa, Ethiopia to participate in the 30th Ordinary Session of the Assembly of Heads of State and Government of the African Union, AU.

A press statement by his spokesperson, Femi Adesina, on Thursday says the highlight of the president’s engagements during the visit will be his statement under the historic theme for the AU Summit, namely: “Winning the Fight against Corruption: A Sustainable Path to Africa’s Transformation.”

“This is the first time in the 54-year history of the AU that anti-corruption will be made a theme of the gathering of the regional leaders,” the statement said.

On July 4, 2017 during the 29th Session of the AU, African leaders unanimously endorsed Mr. Buhari to champion the fight against corruption on the continent.

“ The endorsement was in recognition of his personal commitment and widely acclaimed anti-graft drive at the domestic level,” Mr. Adesina said.

On July 25, 2017, the president in a letter to President Alpha Conde of Guinea, who is also the out-going AU Chairperson, formally accepted his nomination to lead members of the AU on this crucial crusade against a veritable socio-economic vice that is anti-development.

While thanking his colleagues for the honour, he reiterated his “commitment to contribute towards our collective efforts to strengthen good governance and development on the continent.”

Apart from anti-corruption, other issues lined for consideration by African leaders and their delegations include, peace and security (transnational terrorism); institutional reforms of the continental body; free movement of persons; climate change; trade; aviation; education; gender and development.

President Buhari will also hold bilateral meetings with some of his colleagues on issues of common interests.

Source: https://www.premiumtimesng.com/news/top-news/256643-buhari-champion-anti-corruption-campaign-au-summit.html

cc: Mynd44

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The American company Amazon has launched a store that does not require you to stand in a checkout line or someone to process your payment.

You simply need an app on a mobile device, such as a smartphone. People with the app can enter the store, choose the products they want and then leave the store with them.

The company opened its first Amazon Go store this week in the state of Washington, after more than a year of testing.

You first need to download the Amazon Go app -- a computer program that helps you gain entry to the store. Once inside, hundreds of cameras and electronic sensors follow people’s movements and record all the products chosen.

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The products are then placed in the app’s virtual shopping cart. In other words, the app remembers everything chosen by the customer. If you decide against buying one or more products before leaving the store, the software automatically removes those items from its memory.

The system is powered by artificial intelligence or AI technology.

At the end of the visit, the customer just walks out of the store with all the desired products. Payment is made automatically through the app, which is linked to the buyer’s credit card.

The first Amazon Go is a small food market, selling mainly ready-to-eat products and drinks. It sits on the first floor of Amazon’s headquarters in Seattle.

“It’s such a weird experience,” shopper Lisa Doyle told the Associated Press after trying out the new store. “Because you feel like you’re stealing when you go out the door.”

Another visitor, Paul Fan, said he tested the technology by turning off his smartphone, taking some products and then putting them where they did not belong. He said the app was not fooled and still recognized all the correct items.

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Peter Gray told the Associated Press he usually makes purchases online to avoid store crowds. Gray said he was pleased with the new shopping experience. “Just being able to walk out and not interact with anyone was amazing,” he said.

Even though there is no need for cashiers to take payments, Amazon Go does employ workers. Some prepare food, while others refill product supplies and assist customers.

Gianna Puerini is vice president of Amazon Go. She told Reuters it is the first time this kind of computer technology has been used in a store setting.

https://gdb.voanews.com/DC47CA6D-12D1-42BE-96DA-3587DB826710_w650_r1_s.jpg

“If you look at these products, you can see they’re super similar,” she said of two nearly exact Starbucks coffee drinks sitting next to each other. One had light cream added, while the other was coffee with no cream or sugar. But the technology learned to tell them apart.

Amazon has yet to announce plans for additional Go stores. Last year, the online marketer bought U.S.-based Whole Foods Market, giving the company 470 stores. But Amazon said it has no immediate plans to add the same technology to the larger and more complex Whole Foods markets.

Other companies are also working to create artificial intelligence-powered stores.

One of them is Standard Cognition, a startup company in California. The company has developed technology that works like that of Amazon Go. It uses machine vision cameras to follow customers’ movements.

The goal is the same – to let shoppers walk into a store, choose desired goods, and leave without going through a checkout line. But Standard Cognition seeks to sell its artificial intelligence system to businesses for use in their own stores.

Aipoly is another California startup developing camera-powered computer vision technology. Aipoly’s website says its products can create “fully autonomous markets.” The system “combines the understanding of human activity in real-time with the movement and interaction of objects,” the site said.

https://youtu.be/WyMgv2-lxvQ

In addition to providing customers a checkout-free experience, the technology can also follow the movement of all company products. Aipoly says the AI data can help businesses – both big and small – continuously follow their full inventory of products.

Another company has taken the self-service shopping idea one step further – by making the stores autonomous and movable. Wheelys, a Swedish company, sells movable coffee stands worldwide. It also invented Moby Mart, a small market on wheels.

The AI-powered Moby Mart is about the size of a small bus. It offers products found in 24-hour markets, such as milk, fruits and medicine. People gain entry to the store through an app. It also uses cameras to observe the movements of people and products.

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The developers say they created Moby Mart to be a self-driving vehicle that can be called to certain areas through an app. The vehicle has its own solar panels to power the electrical engine. The service has already been tested in China. And the company says on its website it plans to launch Moby II sometime in 2018.

Source: https://learningenglish.voanews.com/a/amazon-go-store-opens-in-seattle-no-cash-lines-checkout/4222120.html

cc: Lalasticlala dominique

Lol. You are up to mischief.
Ma Monday news you dry show us

2019 will solve everything, I keep telling people.

Happy birthday, Timi Dakolo!

Great vocals!

Melodious!

I like the Atilogwu dancers inclusion.
Plus his Isiagu attire styling
Rich!!

Awesome, if true.

Whistle blower policy loading..

No time!

You meant African Wrestling Championship

'copped this

Our maiguard just came back from a trip to his hometown somewhere in the North.
He regaled me with tales of how fertiliser is now half the price they used to buy it. He further went on to say oga, those people wey dey buy 10 bags before baa? Dem don dey fit buy 20bags. Some even 40bags

And I smiled. Its PMB/PYO on the beats!!
Kudos to the team!

Pepsi may buy it....
as an inclusion to their long throat campaign

Hope we'll start seeing 'Project of the Month' soon!

this hommie almost be looking like Nnamdi Kanu
abi is my eyes ni?

Keep it up.
You'll get better as you get on with 'em tuts!

Breaking: FG to sell DisCos to new investors- Mohammed

By Emma Ujah, Abuja Bureau Chief & Emmanuel Elebeke

The federal government has commenced negotiations with operators of the Electricity Distribution Companies (DisCos) with a view to ceding some of their shares to accommodate new investors who would bring in more funds to increase their service delivery.

The Minister of State for Budget and National Planning, Mrs. Zainab Mohammed, disclosed this at the end of the Nigeria Economic Summit 23#, in Abuja, Thursday.

Discos have been recognised as obstacles to the nation’s quest for efficient electricity sector.

Her words, “ The Power sector has been privatized and every Nigerian knows that the privatization has not worked well. Things we sought to achieve in the power sector have not yet happened. And we have now come to the point where investors in the power sector must come together and decide to cede some of their holdings to enable new investors with expertise come in to enable us grow the power sector at the pace we want. It involves negotiating with existing owners and also government.

“No new investor will be interested to come in with the level of tariff obtainable now.  There will be an impact  on tariff. Starting point will be Discos.

“The power sector will be opened up to new investment, it is very clear that no new investor will be coming without having a satisfaction from the tariff that will be obtainable in the industry.

“That is a discussion that must be held. It is very clear to us now that the level of tariff we have now is not obtainable. It will be a subject of negotiation between government, the existing investors and new investors as well as consumers.

“We will try to attain to optimal level that will make an impact on the tariff.  The starting point will be the Discos.”

Details soon…

www.vanguardngr.com/2017/10/breaking-fg-sell-discos-new-investors-mohammed/

BluStreak:
Indisputable FACT.

For really?

isidiwent:
It is known that the bride price for mbaise girls is high. Why is it so costly? Are the girls too intelligent or what?


https://www.youtube.com/watch?v=NGIlSJ-Fejo&list=RDNGIlSJ-Fejo

And to think I've been listening to this Flavour's track since last week.
Them suppose give Flavour one chieftaincy title. Major props he gave them on this one.

To the topic, there is this widely-known notion that they are resourceful, fruitful and bringers of fortune to their spouses.

alfanio:
So you agree this will be very tasty, Nna

ighota go!

Good Morning, Senator Abaribe