[kictanet] Dodgy tech reporting - M-Kazi and TechMoran

[Andrea Bohnstedt]

Dear all,

Major eyeroll after reading this piece on Techmoran:

http://techmoran.com/kenyas-m-kazi-closes-shop-over-embezzlement-of-nearly-1-million-raised-from-institutional-investors/#disqus_thread

I just had a quick chat with Lino Carcoforo and a couple of points on what
the real story is are below - Techmoran are just plain unprofessional for
not including any response from the funders.

And I think the real story should certainly be of interest to both the tech
and the VC community. I'm sure Lino (copied) is happy to answer questions
and discuss.

Have a good day,
Andrea




---------- Forwarded message ----------
From: Lino Carcoforo <lino.carcoforo at googlemail.com>
Date: 6 February 2014 12:15
Subject: Mkazi- clarification
To: andrea.bohnstedt at ratio-magazine.com


Andrea,

Mkazi raised a total of 200,000 USD NOT 1 million USD

Main reasons for winding down,

1. Billing issues with Safaricom - Having negotiated rates through craft
silicon to ensure better margins on SMS and USSD, mkazi was not able to
bill safaricom directly due to a lack of a tripartite agreement.
2. Lack of cash flow due to not being able to bill
3. Discrepancy between mkazi system sms sent and safaricom delivery
reports.
4. Failure to close subsequent funding as a result of not showing adequate
growth in user acquisition -again, directly tied to lack of marketing
spend.
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