EMEA Daily: UK Media Regulator Investigates Russian TV Station Over Ukraine Coverage; Payhawk Becomes Bulgaria’s 1st Unicorn After $100M Round

In today’s top Europe, Middle East and Africa news, the U.K.’s broadcasting watchdog is investigating a Russian-backed TV station over alleged bias in its coverage of the Ukraine invasion, while payments platform Payhawk has become Bulgaria’s first unicorn.

Plus, Mastercard and Visa have blocked Russian financial institutions from their global card payment networks, African FinTech startup M-KOPA raised $75 million to expand its financial services for the underbanked, and London-based bank transfer platform Cheddar has purchased open banking technology firm Upside Saving.

UK Media Regulator Investigates Russian TV Station Over Ukraine Coverage

The United Kingdom’s Office of Communications, Ofcom, is investigating the Russian-backed TV station RT over alleged bias in its coverage of the Ukraine invasion.

On Sunday (Feb. 27), the government’s broadcasting regulatory authority said it opened 15 investigations into the lack of fairness of Russia’s news coverage. The agency requires media organizations with a license to broadcast in Britain to be impartial.

Payhawk Becomes Bulgaria’s First Unicorn After $100M Round

Payments and expense platform Payhawk raised an additional $100 million at a valuation of $1 billion in an extended Series B funding round led by Lightspeed Venture Partners, making the startup Bulgaria’s first unicorn.

Also participating in the funding were new investors Sprints Capital, Endeavor Catalyst, HubSpot Ventures and Jigsaw VC, as well as existing backers Greenoaks, QED Partners and Earlybird Digital East. The new funding brings the company’s Series B funding to $215 million.

Visa and Mastercard Ban Russian Banks, Pledge $2M Each in Aid

Both Visa and Mastercard have separately announced they are blocking several Russian financial institutions from their global card payment networks, complying with the sanctions imposed by the West following Russian President Vladimir Putin’s attack on Ukraine.

The payment networks also separately pledged a donation of $2 million apiece for humanitarian aid.

FinTech Investor CommerzVentures Raises $334M

FinTech investor CommerzVentures has closed a €300 million ($334 million) funding round designed to support companies in the FinTech, InsurTech and climate FinTech sectors.

The launch of the fund is expected to see the organization grow its headcount by 50%, “enabling them to strengthen their position in fintech globally, and establish a foothold in new geographies, notably Africa,” according to a company announcement.

Creandum Closes $500M Early-Stage Investment Fund for EU Tech Companies

Stockholm-based venture capital firm Creandum has closed its sixth early-stage fund, valued at €448 million ($500 million), which will be used to help European tech companies build their businesses.

“The early stage is where we have always been most comfortable,” General Partner Simon Schmincke said. “We commit to founders before the world catches on before everyone knows it’s obvious.”

UK Banking Platform Cheddar Acquires Upside Saving

London-based bank transfer platform Cheddar has acquired open banking technology firm Upside Saving, saying that it will use Upside’s technology to bolster the payments process for consumers.

Cheddar provides a free bank account-enabled payments platform, and said it ends inefficiencies in the payment chain for consumers and small businesses. Meanwhile, Upside offers a marketing platform that connects retail brands and consumers by offering personalized cashback.

FinTech M-KOPA Raises $75M to Expand Platform for Underbanked

African FinTech startup M-KOPA raised $75 million in a growth equity round to expand its financial services platform for the underbanked into additional countries beyond its operations in Kenya, Uganda, Nigeria and Ghana.

The capital will also be used to help the Nairobi, Kenya-based company grow beyond asset financing by scaling other products including health insurance, cash loans, and buy now pay later (BNPL) merchant partnerships.

EU Starts to See the Unintended Consequences of Crypto Regulation

The European Union has been praised for its proposed bill to regulate crypto assets, as its Markets in Crypto-assets (MiCA) directive is an ambitious attempt to create a new regulatory framework for all unregulated crypto-assets.

When Europe proposed it in 2020, it was the first of its kind. But almost two years later, it is still waiting for a Parliamentary vote, which was scheduled for last Monday but was delayed.

French FinTech Touts Benefits of Being EU-Regulated Instant Credit Provider

Elements that differentiate Younited Credit from its competition include that it is regulated, instant and there’s no limit on the amount or maturity from BNPL players operating across the region.

“It’s a credit [product] to buy electronics or other goods and it’s always a regulated solution. So, in that sense, we are very different from the BNPL providers which most of the time propose unregulated solutions [to consumers],” Egly told PYMNTS in an interview.

Filling an Expense Management Void for Businesses in the MENA Region

Compared to the United States and Europe, small- to medium-sized businesses in the Middle East and North Africa region have challenges when it comes to digitizing spending management.

“The common theme we noticed across every company was the fact that each one of them would maintain a cash vault at their offices and distribute loose cash to employees on a daily basis,” Mo Aziz, co-founder of UAE-based corporate spend management startup Pluto, told PYMNTS in an interview.

Africa’s VC Ecosystem: Lack Of Seed-Stage Funding, Tough Landscape For Female Tech Founders

A lack investments continues to challenge Africa’s venture capital space despite increasing signs of improvement in recent years. In 2019 and 2020, only 7% of all capital went into seed companies, a figure which grew a year later to about 15% — or $5 billion — last year.

“We are seeing a gradual increase because you need capital at the beginning [stages] so that companies can grow and scale, acquire customers and develop in order to access where the majority of the capital is,” Janade Du Plessis, general partner at pan-African venture capital (VC) fund Launch Africa Ventures, told PYMNTS in an interview.