Hello Amazing One!
Your week is starting on a great note, yes?
A Quick One - Did you know that the popular creator's app, Canva, is an Australian company? Now you do! There is an interesting update about Canva in this NL edition.
Enforcing Old Rules
Last week, the Security Exchange Commission (SEC) released a circular which was targeted at investment management startups in Nigeria. The firms in this category include Bamboo, Trove, Risevest, Chaka, etc. These investment platforms offer foreign stocks like Amazon, Facebook, Tesla, and others to Nigerians looking to spread their investment beyond the local capital market. The circular warned Nigerians from conducting business with these investment firms
The Why
The statement by SEC read "only foreign securities listed on any Exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian public."
The underlying issue - These companies aren't directly registered with the SEC
Against widespread information that the law is a new one, it is not. It appears that an already existing law is against the sale of foreign stocks by unregistered companies in Nigeria.
Though these companies partnered with Capital Market Operators (CMO) in the country to enable them operate, SEC has now directed these CMOs to desist partnership with these firms.
(CMOs are the middleman who facilitates the sale of shares to the public)
Even more,
How have these companies reacted?
A number of the affected companies have released circulars to assure their customers.
Bamboo assured its users that its assets are safe and easily accessible, and they are already in discussions with the SEC and their broker partners to ensure that the interests of their users are fully protected.
Chaka also assured its users that they have taken the necessary steps to ensure they get registered.
What next? We have all got our fingers crossed to see how this unfolds?
9years, $15 billion.
The popular graphic design app, Canva, announced a $71 million raise last week. This raise brought it to a valuation of $15billion, a huge leap from its US$6 billion valuations as of last year.
This makes the Australia-based company one of the fastest-growing software companies ever.
Canva was launched in 2013 and offers online design and publishing tools with templates for presentations, social media graphics, and posters. With Canva, anyone can be a designer.
Canva's Growth in numbers
According to Canva, its business has now surpassed $500 million in annual revenue, which represents a growth of 130% from the previous year.
Also, Canva has amassed a total of 55 million active monthly users.
Canva's co-founder stated that 85% of Fortune 500 companies use Canva
What's next for Canva
With the funding, Canva plans to continue to invest in the product, which means hiring and expansion.
IMF's new forecast
The International Monetary Fund (IMF) has reviewed the earlier projected economic growth of Nigeria from 1.5 percent to 2.5 percent in 2021. The earlier forecast of 1.5 percent was announced in January but is now reviewed upwards.
For Sub-Saharan Africa
The organization also forecasted a 3.4 percent growth for the Sub-Saharan Africa region in 2021. This is up from the 3.2 percent that was forecasted previously
For the World
The IMF expects the world economy to grow by 6% in 2021, up from its 5.5% forecast in January.
But…
According to the IMF, the outcome of this forecast would be determined by how well the respective countries respond to managing the post-lockdown era and on how fast COVID-19 vaccines are adopted in these regions.
Knowledge Bank 📕
Dividend
A dividend is the share of a company's earnings or profit that is paid to its shareholders.
When a company generates profit and accumulates retained earnings, the earnings are either reinvested in the business or paid out to shareholders as a dividend. Dividends may be paid out as cash or in the form of additional stock.
What a company pays out as a dividend is decided by its board of directors.
Have an amazing week!
I’d write to you again in two weeks.