FairMoney, a Nigerian fintech company, has reported a remarkable revenue growth of $78 million in 2024, driven by its strategic shift towards deposit-led lending. According to the company's financial report, this growth is a significant improvement from its previous year's performance, with profit margins increasing from 1% to 4.79%.

The fintech company's success can be attributed to its decision to stop relying on commercial papers to finance its loan book. Instead, it has opted to use customer deposits, which have grown significantly from ₦2.9 billion ($1.9 million) to ₦72.9 billion ($46 million). This shift has enabled FairMoney to finance over 55% of its loan book, resulting in improved profit margins and profitability.

FairMoney's business model involves lending to Nigerians at a 10% monthly interest rate, generating revenue from the interest paid by its customers. While this approach may seem healthy, it also raises concerns about the potential risks of loan defaults. The company's loan impairments have increased by 30%, which it attributes to its accounting approach, treating a loan as impaired immediately upon its issuance and until it is repaid.

Despite these challenges, FairMoney's financial report suggests that its model is working effectively on the continent. The company's net interest margin stands at 64.72%, and its profit has increased to ₦7.9 billion ($5 million) from ₦780 million ($490,000) in the previous year. FairMoney's growth is a testament to the potential of fintech companies in Africa, particularly in Nigeria, where there is a significant demand for financial services.

In other news, MTN Group, Africa's largest homegrown telecom operator, has announced plans to sell 11% of its shareholding in its Nigerian subsidiary, MTN Nigeria. The company currently holds 76% of shares in its Nigerian business and will sell down to 65%. The sale is expected to take place after MTN Nigeria returns to profitability.

Amazon's Project Kuiper, a low-earth orbit (LEO) project aiming to launch over 3,200 satellites into space to provide cheap and fast internet to rural areas worldwide, has faced a setback due to bad weather. The launch of its first 27 satellites was shut down by clouds and strong winds on April 9. The project has partnered with Vodacom, a South African telecom company, to launch the satellites in the country.

Finally, the funding tracker for the week reveals that Kenya's Umba, a pan-African digital bank, has secured a $5 million debt facility from Star Strong Capital. Morocco-based fintech startup PayTic has also raised $4.4 million in a new funding round led by AfricInvest, with backing from Axian Venture Lab, Mistral VC, and existing investors.