Co-Founder Conflict behind Pivo's Sudden Shutdown?
Pivo had successfully raised $2 million in seed funding, backed by Y Combinator and other Investors.
Happy Monday!
Here’s what’s in the lineup today:
Pivo's Shutdown: The Fallout of Cofounder Disagreements
Meta could face trial in Kenya for firing content moderators
Xero Acquires South African Analytics Platform Syft in $70M Deal
Pivo's Shutdown: The Fallout of Cofounder Disagreements.
Pivo Technology Inc., a promising Nigerian fintech startup, abruptly shut its doors in December 2023. The company had achieved remarkable success, disbursing $3 million in credit loans and $4 million through Pivo Business by 2022. Its seed funding round in 2022 garnered $2 million from prominent investors. So, what might have gone wrong?
Despite its rapid growth and plans for expansion across Nigeria and East Africa, insider reports suggest that a co-founder conflict may have triggered the company's shutdown. Once friends turned business partners, the fallout between CEO Nkiru Amadi-Emina and COO Ijeoma Akwiwu allegedly disrupted Pivo’s internal dynamics and caused the company to close its doors.
Curious about the full story? Read it on our blog.
Meta could face trial in Kenya for firing content moderators
Meta, the parent company of Facebook, WhatsApp, and Instagram, has lost an appeal in Kenya, allowing 187 former content moderators to sue the company for unfair dismissal. The moderators claim they were fired after attempting to form a union while working for Meta’s content moderation con, Sama. Kenya’s Court of Appeal upheld a ruling that Meta can be sued in Kenya, despite its argument that it’s a foreign company.
The moderators, seeking $1.6 billion in compensation, argue that they were unjustly terminated and exposed to disturbing content, including violent and graphic imagery, for which they were inadequately compensated. Sama dismissed them following their unionization efforts, although it publicly claimed to support employee representation. Since then, Sama has exited the content moderation business, and Majorel, another Meta partner, laid off 200 employees after losing Meta’s contract.
This is the second lawsuit Meta faces in Kenya, as another former moderator, is suing over the mental toll of handling traumatic content. The case will proceed to trial unless a settlement is reached, which has potentially wide-reaching implications for labour practices involving foreign tech companies in Africa.
Xero Acquires South African Analytics Platform Syft in $70M Deal
Xero, a global accounting software firm, has acquired Syft Analytics, a South African-based cloud reporting and analytics platform, for up to $70 million. This move, set to finalize by early 2025, marks a significant milestone in Xero’s efforts to enhance reporting and insights capabilities for small businesses and accountants.
Founded in 2016 in Johannesburg, Syft gained traction during the COVID-19 pandemic as demand for cloud-based solutions surged. Today, it serves thousands of customers across 80 countries and is the most widely used reporting app in Xero’s marketplace.
While Syft will continue operating independently, Xero plans to integrate its powerful reporting tools into its platform, empowering businesses with real-time insights and enhanced forecasting capabilities. This acquisition strengthens Xero’s position in key markets, including the US, UK, and Australia.
Did you know?
Despite being in its early stages, open banking is gaining momentum in Africa. Startup Graveyard highlights the top 5 countries driving this revolution: South Africa, Nigeria, Kenya, Ghana, and Egypt.
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Join CHANCEN International in Kigali as an Administration and Logistics Associate or People and Culture Officer
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Cheers to a productive and successful week ahead!
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