EMEA Daily: Zambia-Based Union54 Raises $12M; Francois Pinault, I2PO Buy Deezer for Over $1B

In today’s top Europe, Middle East and Africa news, the Zambian card-issuing company Union54 raised $12 million in seed funding. Plus, music-streaming platform Deezer may be going public as part of a $1 billion acquisition by Francois Pinault and I2PO.

Streaming Subscriptions Decline in UK as Inflation Mounts

In the U.K., Netflix, Amazon, Disney+ and similar services’ subscriptions fell in the first quarter of 2022, as inflation is pushing consumers to reevaluate their budgets.

Additionally, the number of U.K. homes that have at least one subscription streaming service dropped by 215,000 in the first quarter.

Zambian Card Issuer Union54 Raises $12M

Card-issuing startup Union54 raised $12 million in an extended seed funding round led by Tiger Global, Vibe VC and new investors Earl Grey Capital and Not Boring Capital.

This funding follows the Zambia-based startup’s earlier $3 million seed round, which was also led by Tiger Global. The company is working to offer a homegrown alternative to global card issuers like Mastercard and Visa.

Report: UK Encryption Startup Arqit Overstates Its Outlook

Arqit, an encryption startup based in the U.K., was optimistic toward investors regarding future revenue and the workability of its system, but that optimism was reportedly overstated.

When the company went public last year via a special purpose acquisition company, Arqit’s founder and CEO David Williams told investors at the time that his company, Arqit Quantum Inc., was sitting on a pile of revenue. However, The Wall Street Journal, citing unnamed sources, reported that Arqit may not be living up to its hype anytime soon.

Billionaire Francois Pinault, Partners to Buy Deezer for $1.1B

Billionaire Francois Pinault and the other founders of I2PO are buying music-streaming platform Deezer for €1.075 billion ($1.16 billion) and plan to take it public. The deal is expected to close around July.

Deezer competes with Spotify, Apple Music and other music-streaming platforms. While its biggest markets are France, Brazil and Germany, it wants to also expand across the U.S. and the U.K.