Middle East
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VertoFX, an Africa and emerging markets-focused currency trading and payment startup, has raised a $2.1 million seed round, led by Accelerated Digital Ventures.
The London-based company, with a subsidiary in Lagos, Nigeria, has created a platform that allows businesses and banks to exchange and make payments in exotic foreign currencies that don’t often convert or trade conveniently across businesses or banks.
For example, South Africa’s Rand is Africa’s most convertible and traded currency — with lower spreads and transaction costs — while currencies of countries such as Ethiopia or Egypt may be difficult or expensive to trade or transact B2B payments.
“That’s the reason we are utilizing technology to create a marketplace model and price discovery to create liquidity for these currencies,” VertoFX founder Ola Oyetayo told TechCrunch.
There are around 40 global currencies that are considered exotic or illiquid, most of them in frontier markets in Asia, Africa and the Middle-East, according to Oyetayo.
And there’s a revenue opportunity to creating a convenient online marketplace for trading and payments in these currencies.
“Our research says there’s about $400 billion being done by small and medium-scale businesses in Africa alone in transactional volume on an annual basis. If we take 1% of that as a commission or transaction fee, that’s a $4 billion addressable market, just in the continent,” said Oyetayo.
VertoFX was founded in 2017 by Oyetayo and Anthony Oduwole — both ex-global bankers born in Nigeria. The company was part of Y Combinator’s 2019 winter cohort and processed around $7 million in transaction volume last month, according to Oyetayo.
VertoFX is registered as a payment services provider with the U.K.’s Financial Conduct Authority. Current clients include several undisclosed banks and San Francisco-based payment venture Flutterwave.
VertoFX doesn’t release revenue figures, but confirmed it earns a commission, or spread, on each transaction processed on its platform. There are currently 19 currencies on the platform and the ability to settle in 120 countries, including China and the U.S.
VertoFX is also moving into offering market research — toward potential subscription services — on the currencies it trades, according to Oyetayo.
The startup will use the round for platform development, expanding the currencies and gaining licenses in new countries. “We’ll also use the round for hiring, primarily in compliance and regulator type roles,” said Oyetayo. VertoFX already has a developer team in India and is looking at local developer talent for its Africa offices.
ADV’s Ryan Proctor confirmed the VC firm’s lead on the investment round, which also included participation from YC and several local angel investors in Africa, Oyetayo told TechCrunch.
On the possibility of becoming acquired by a big bank, VertoFX isn’t so interested, according to Oyetayo.
“We both come from big banks and if we’d wanted to go down that route we’d have developed this more as a software as a service platform,” he said.
“We’re playing the long game here, and I don’t think acquisition is the end game,” he said.
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Tunisian human rights activist Amira Yahyaoui couldn’t go to college.
Not because she couldn’t afford it; where she comes from, college is virtually free. She lost the opportunity to pursue higher education, to finish high school, even, when she was exiled from Tunisia at age 17, under the repressive regime of the country’s former President, Zine El Abidine Ben Ali.
As part of the Tunisian human rights diaspora, she was inspired to build Al Bawsala, a globally renowned NGO that fights for government accountability, transparency and access to information. Now, Yahyaoui has traveled thousands of miles to San Francisco to fight another battle near and dear to her heart: civic education, or in Silicon Valley terms, edtech.
“I always knew that I wouldn’t allow myself to do anything else before solving the problem in my country and today, Tunisia is the only Arab democracy in the world,” Yahyaoui told TechCrunch.
With that in mind, her focus has shifted to Mos, a tech-enabled platform for students to apply for financial aid. With backing from Uber co-founder Garrett Camp, his startup studio Expa, Kleiner Perkins chairman John Doerr, Base Ventures, Sweet Capital and others, Mos has closed a $4 million seed round and plans to take its recently-launched product to the next level.
The startup seeks to decrease American student debt, which totaled nearly $1.6 trillion in 2018, and digitize the antiquated government systems that deter students from applying for financial aid. For a one-time fee of $149 and about 20 minutes of their time, Mos helps students of all backgrounds maximize their aid awards.
“Our mission is to bridge the gap between citizens and government in a way that works with technology today,” Yahyaoui said.
Yahyaoui is applying what she’s learned building a government-fighting NGO to the startup world, and with the support of top-tier investors, she’s well on her way to proving an “uneducated” immigrant woman of color can write a Silicon Valley success story for the masses.
Mos founder and chief executive officer Amira Yahyaoui.
After being forced out of her home country, Yahyaoui fled to France, where she lived as an illegal immigrant and continued to fight against Tunisia’s authoritarian leadership through her blog and an anti-censorship campaign she started online.
When social media sparked anti-government protests across the Middle East, Yahyaoui, still unable to reenter Tunisia, became a face of what was later called the Arab Spring. Her digital prowess, activist reputation and persistent efforts to highlight the Tunisian administration’s human rights abuses quickly made her a face of the movement.
On January 14, 2011, when the protests succeeded in making Tunisia a pioneer of Arab democracy and ended Ben Ali’s reign, Yahyaoi got her passport back and went home, immediately.
Back in Tunisia with newfound freedom, she had an agenda: To hold the governing agency charged with writing a new Tunisian constitution accountable.
Yahyaoui built Al Bawsala, translated as The Compass, an NGO focused on transparency and government accountability. Al Bawsala became one of the largest NGOs in the Middle East, a bona fide success that attracted numerous awards and cemented Yahyaoui’s status as a fearless advocate for human rights, a freedom fighter and one of the most influential Arab women in the world.
“I had to work probably 10 times harder to get to be the self-educated me I am today,” she said. “I saw way too many people getting their education refused and therefore their future ruined.”
Her global standing earned her a seat on the board of the United Nation’s High Commissioner For Refugees Advisory Group on Gender, Forced Displacement, and Protection, as well as the title of Young Global Leader at the World Economic Forum and co-chair of the Davos Conference in 2016, a title she shard with Microsoft’s Satya Nadella and GM’s Mary Barra .
Three years later, with a resume enviable to any dignitary, Yahyaoui is leveraging her unique experience to lure in venture capitalists and use their cash for good.
The Mos dashboard.
Mos is like if Turbo Tax married Typeform and had a baby, Yahyaoui explained. Not dissimilar to Common App, Mos lets students apply to more than 500 federal and state-based aid programs in minutes using a survey that matches them to every grant and scholarship program they qualify for, while simultaneously completing the FAFSA and state aid applications. To ensure every family is getting the most financial support possible, a Mos financial aid advisor reviews each case and negotiates with colleges for higher awards.
“Today, the biggest problem is people think they are not eligible for financial aid just because of how the thing is designed,” Yahyaoui said. “You’re supposed to just go ahead and fill a form that has 200 questions and then send it like a bottle in the sea and wait for months.”
Mos will complete a full-scale launch this summer and eventually tackle other nation’s college financial aid systems thanks to the new infusion of capital and the high-profile relationships Yahyaoui has forged in just one year living in the Bay Area.
Ultimately, it was Yahyaoui’s activism that granted her a ticket into the opaque world of Silicon Valley VC. As it turns out, angel investor Khaled Helioui, a fellow Tunisian immigrant in tech, was familiar with Yahyaoui’s work and when he heard she had relocated to the Bay Area to launch a technology startup, he wanted to know exactly what she was building. Today, he’s a Mos investor and board member and it was his introductions that helped Yahyaoui quickly and skillfully close her seed round.
An early angel investor in Uber, Helioui connected Yahyaoui with his friend Garrett Camp, the very wealthy co-founder and chairman of the ride-hailing giant, who was sold on Mos’s mission right off the bat.
“I think because Garrett is an immigrant, he knows what it is to suffer with bureaucracy,” Yahyaoui said. “He was a huge believer. He actually made it so easy for me because he said, okay, here’s an office, just stay and work.”
She was then introduced to John Doerr, the chairman of the esteemed VC firm Kleiner Perkins, known for his successful bets on companies like Google and Amazon. With Camp and Doerr on board, Mos didn’t struggle to raise additional capital; in fact, Yahyaoui was in an unusual position of being able to reject investors whose values and vision for Mos clearly didn’t align with hers.
Yahyaoui, center, with the Mos team in San Francisco.
Yahyaoui isn’t in the startup business to get rich off students trying to navigate their way through the absorbently expensive process of applying to and attending college. She’s part of a growing class of founders out to prove that you can pair profits with good morals and lead venture-backed values-based businesses.
“I know if I created the same thing as an NGO, I could have already raised $100 million, but I like the accountability of business,” she said. “We can create businesses that are good for people.”
Yahyaoui’s story, from being exiled from her home country at a young age to fighting an authoritarian regime is not one that’s ever been told before in Silicon Valley.
In addition to being a trailblazing human rights advocate, she’s a woman, an immigrant, “uneducated” by Silicon Valley standards and a first-time tech founder that was able to walk into a meeting with John Doerr and walk out with a term sheet.
If she’s successful in building a global edtech business, she’ll be emblematic of the meritocratic culture The Valley has falsely claimed to uphold. Even if she’s not successful, she’ll have torn down barriers for other underrepresented founders and written a success story fitting for this new era of accountability in tech.
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Gartner’s smartphone market share data for the just gone holiday quarter highlights the challenge for device makers going into the world’s biggest mobile trade show, which kicks off in Barcelona next week: The analyst’s data shows global smartphone sales stalled in Q4 2018, with growth of just 0.1 percent over 2017’s holiday quarter, and 408.4 million units shipped.
tl;dr: high-end handset buyers decided not to bother upgrading their shiny slabs of touch-sensitive glass.
Gartner says Apple recorded its worst quarterly decline (11.8 percent) since Q1 2016, though the iPhone maker retained its second place position with 15.8 percent market share behind market leader Samsung (17.3 percent). Last month the company warned investors to expect reduced revenue for its fiscal Q1 — and went on to report iPhone sales down 15 percent year over year.
The South Korean mobile maker also lost share year over year (declining around 5 percent), with Gartner noting that high-end devices such as the Galaxy S9, S9+ and Note 9 struggled to drive growth, even as Chinese rivals ate into its mid-tier share.
Huawei was one of the Android rivals causing a headache for Samsung. It bucked the declining share trend of major vendors to close the gap on Apple from its third-placed slot — selling more than 60 million smartphones in the holiday quarter and expanding its share from 10.8 percent in Q4 2017 to 14.8 percent.
Gartner has dubbed 2018 “the year of Huawei,” saying it achieved the top growth of the top five global smartphone vendors and grew throughout the year.
This growth was not just in Huawei “strongholds” of China and Europe, but also in Asia/Pacific, Latin America and the Middle East, via continued investment in those regions, the analyst noted. Its expanded mid-tier Honor series helped the company exploit growth opportunities in the second half of the year, “especially in emerging markets.”
By contrast, Apple’s double-digit decline made it the worst performer of the holiday quarter among the top five global smartphone vendors, with Gartner saying iPhone demand weakened in most regions, except North America and mature Asia/Pacific.
It said iPhone sales declined most in Greater China, where it found Apple’s market share dropped to 8.8 percent in Q4 (down from 14.6 percent in the corresponding quarter of 2017). For 2018 as a whole iPhone sales were down 2.7 percent, to just over 209 million units, it added.
“Apple has to deal not only with buyers delaying upgrades as they wait for more innovative smartphones. It also continues to face compelling high-price and midprice smartphone alternatives from Chinese vendors. Both these challenges limit Apple’s unit sales growth prospects,” said Gartner’s Anshul Gupta, senior research director, in a statement.
“Demand for entry-level and midprice smartphones remained strong across markets, but demand for high-end smartphones continued to slow in the fourth quarter of 2018. Slowing incremental innovation at the high end, coupled with price increases, deterred replacement decisions for high-end smartphones,” he added.
Further down the smartphone leaderboard, Chinese OEM, Oppo, grew its global smartphone market share in Q4 to bump Chinese upstart, Xiaomi, and bag fourth place — taking 7.7 percent versus Xiaomi’s 6.8 percent for the holiday quarter.

The latter had a generally flat Q4, with just a slight decline in units shipped, according to Gartner’s data — underlining Xiaomi’s motivations for teasing a dual folding smartphone.
Because, well, with eye-catching innovation stalled among the usual suspects (who’re nonetheless raising high-end handset prices), there’s at least an opportunity for buccaneering underdogs to smash through, grab attention and poach bored consumers.
Or that’s the theory. Consumer interest in “foldables” very much remains to be tested.
In 2018 as a whole, the analyst says global sales of smartphones to end users grew by 1.2 percent year over year, with 1.6 billion units shipped.
The worst declines of the year were in North America, mature Asia/Pacific and Greater China (6.8 percent, 3.4 percent and 3.0 percent, respectively), it added.
“In mature markets, demand for smartphones largely relies on the appeal of flagship smartphones from the top three brands — Samsung, Apple and Huawei — and two of them recorded declines in 2018,” noted Gupta.
Overall, smartphone market leader Samsung took 19.0 percent market share in 2018, down from 20.9 percent in 2017; second-placed Apple took 13.4 percent (down from 14.0 percent in 2017); third-placed Huawei took 13.0 percent (up from 9.8 percent the year before); while Xiaomi, in fourth, took a 7.9 percent share (up from 5.8 percent); and Oppo came in fifth with 7.6 percent (up from 7.3 percent).

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Microsoft today announced its plans for a major expansion of the Microsoft Cloud with the launch of its first cloud regions in the Middle East. These new regions, which are scheduled to go online in 2019, will be located in Abu Dhabi and Dubai and will host the company’s usual Azure, Office 365 and Dynamics 365 services.
“Microsoft has been present in the Middle East for more than two decades and is deeply invested in the region in many ways,” said Sayed Hashish, regional general manager, Microsoft Gulf, in today’s announcement. “Driven by strong customer demand for cloud computing, local data centers were the logical next step given the enormous opportunity that the cloud presents. In areas like digital transformation, and the development of new intelligent services, our ambition is for the Microsoft Cloud to form a strategic part of the backbone for regional economic development.”

The region of the Middle East is relatively late in adopting cloud computing, but that also means that it has a lot of room left to grow. Microsoft is clearly trying to get ahead of this trend.
It’s worth noting that Amazon, too, has already announced its plans for a region in Bahrain, which will open in about a year, while Google has not announced any plans to enter this market yet.
In addition to the new Middle East regions, Microsoft also today announced its first region in Switzerland (with data centers around Geneva and Zürich), which is scheduled to go online in 2019. In Germany, the company is launching an additional cloud region and in France, the Microsoft Cloud is now generally available.
In total, Microsoft now offers 50 regions around the globe, with plans for 12 new regions in the works.
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Founding a startup is difficult anywhere in the world, but it’s especially hard in Gaza. Since the war one year ago, Gaza has been nominally peaceful — but the norm is Gaza is not easy: six hours of electricity, and therefore six hours of Internet, a day; a 43 percent unemployment rate, with youth unemployment at 60 percent according to the World Bank; an embargo from Israel… Read More
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