Venture Capital and Private Equity in Africa

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Joel

Mobile XL seeks Content Providers and Investors

I recently had the pleasure of speaking with Guy Kamgaing-Kouam, of California-based Mobile XL (http://www.mobile-xl.com/) and VC4Africa member Jenni Chamberlain, of Finch Africa (who sits on Mobil XL's board) about an extremely cool technology very likely headed for widespread use in Africa. Joel


Mobile XL is a fast growing mobile software development company which has created a patent-pending mobile Software as a Service (SaaS) application that provides a browser-like experience on most any SMS capable cellphone. With 100,000 users projected by 3rd quarter 2009 and 1,000,000 projected a year later, the XLBrowser service has a ready market in Africa alone in the hundreds of millions.

All Mobile XL’s services utilize premium SMS texts – premium revenues it splits with operators and then shares with content providers. Each market has unique content needs, especially locally and this brings opportunities for innovative content providers to make money. This unique content and Mobile Xl’s unique delivery mechanism provides a new revenue stream for telecommunication operators already facing lower useage as they reach deeper into the market.

The service is operational in East Africa (Tanzania, Kenya and Uganda) and Dubai. It is scheduled to debut in 2 more markets before year end. Nokia, the world’s #1 handset manufacturer, is now shipping phones with Mobile XL pre-loaded and other venues for loading the software are available at select retail stores, operator venues or via simple over the air (OTA). The easiest way to get the XLBrowser on your phone is to text NXL to 6669 in Kenya, 7197 in Uganda, and 15550 in Tanzania.

CEO Guy Kamgaing-Kouam a Cameroon-born, Paris-and UCLA-educated professional has a passion to do something for Africa. He was personally frustrated with the inefficiencies of constantly having to look for a cyber-café and saw the need to do more with a stable, well known and ubiquitous SMS technology. “Africa is very very far from building adequate data networks,” says Kamgaing-Kouam. “Plus all of Africa is essentially a prepaid market while data plans typically target postpaid consumers”.

How did this start? Kamgaing-Kouam took $250,000 out of pocket to develop the software and start the initial business. Other money followed, including an SBA loan provided through a local bank, then a year ago a May 2008 Series A round of financing from Tech Coast Angels and Finch Africa. That investment put Finch’s Jenni Chamberlin on Mobile XL’s Board of Directors where she became the CEO’s #1 booster; “Guy is the CEO and brains behind this phenomenal technology!”

“We don't usually invest in such early stage companies but I felt that the Value Added Services (VAS) sector would grow exponentially as telecommunications companies compete for market share. Also, with limited access to internet in Africa this seemed like an optimal solution,” says Chamberlain.

As Mobile XL’s growth continues it is constantly looking for strategic partners who can provide either access to relevant local content services or growth capital to facilitate the entry into new markets and join in launching the service with the right local partnerships… or both. There seem no clouds on its horizon -- Mobile-XL will maintain its status as a "company to watch" in the emerging markets sector.

http://www.mobile-xl.com/index.php

http://www.readwriteweb.com/archives/coming_soon_to_africa_xlbrowser_mobile_web_powered_by_sms.php

http://www.mobile-xl.com/pdf/XLBrowserArchDiag.pdf

Tags: content, kenya, prepaid, sms, tanzania, telecom, telecommunications, uganda

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Joel Comment by Joel on July 7, 2009 at 3:47pm
Los Angeles, July 6, 2009 - Mobile-XL is proud to announce today that Peter Trinkl, an international telecommunications and high-tech executive carrying more than 15 years of Board- and C-level experience in mobile & broadband communications, internet and mobile value added services and digital-TV, has agreed to join Mobile-XL’s advisory board.

Guy Kamgaing-Kouam said, “Seeing Peter join the company’s strategic think thank is another considerable milestone for Mobile-XL especially as we are planning a series of operator launches in various markets. Peter brings just the right mix of experience to take the company to another level of growth and maturity. From a corporate standpoint, we will benefit from Peter’s company building expertise at a global level. Even more importantly, he is uniquely positioned to help incorporate our unique value proposition into today’s global operator’s strategic’s portfolio of services.”

According to Peter Trinkl, “When I was first introduced to Mobile-XL, some two years back in Senegal, and he introduced the XLBrowser to me, I was immediately taken away by this idea. The African market and all emerging mobile markets have been desperately waiting for such a service which takes the words “bridging the digital divide” literally. In markets where access to advanced technology like UMTS or DSL is not widely available, Mobile-XL will support the natural information requirement of people. I am excited and honored to be able to follow and support such a great business idea to bring information and entertainment to all people in emerging countries”

Currently, Mr. Trinkl is Senior Partner at Sebastian & Partner AG, a boutique strategic management consultancy and interims management firm based in Switzerland and sits on various Board of Directors for start-up and mature companies. Prior to that he was Chief Strategy Officer at Swisscom Mobile Ltd. and Swisscom Participations Ltd., where he was in charge of mergers & acquisitions and business development for the extended mobile value chain. A board member and Executive Director at the portfolio companies, he handled major corporate responsibilities including the successful turnaround of an international IT company and also held the position of CEO of an international company in the mobile content business industry. Before Swisscom, he was on the executive board of Orange Communications SA in Lausanne, responsible for Corporate Development. One of his key accomplishments was managing France Telecom initiatives NExT for all Swiss affiliates as well as acting as CEO of Orange Liechtenstein. Prior to Orange, he successfully led business development of Cablecom Group where he transitioned the company from a CATV provider to a full telecommunications provider. Mr. Trinkl studied electrical engineering and technical informatics at the Technical University Munich.
Joel Comment by Joel on July 1, 2009 at 4:01am
Mobile-XL Opens Office in Paris and Launches French Version Of Website

LOS ANGELES, June 30, 2009 – Mobile-XL, a mobile technology company, today announced that it continues its expansion with the opening of its first European-based office and the launch of its French-language website.

The new Mobile-XL office, located in Paris, France, provides the company with a strategic hub to support the company’s global growth. The Paris office will focus on managing both existing and new accounts in the Middle East and Africa (with a heavy concentration on French speaking territories), working closer with strategic partners with shared market interests, providing some immediate support to local operations and facilitating financing activities. Mobile-XL’s California Office will remain the company’s corporate headquarters, where it will continue to handle R&D and the management of global content partnerships.

After experiencing significant gains resulting from opening the Nairobi office in June 2008, the company also plans to add two regional offices in key markets before the end of the year.

At the same time, Mobile-XL is pleased to release its website in French, the first of many languages to come. The French website reinforces the company’s expansion into numerous French-speaking territories in the target regions.

About Mobile-XL: Mobile-XL is a California-based technology company focused on building value added services to mobile users worldwide. Mobile-XL’s mission is to connect families, friends, communities and businesses by harnessing ubiquitous SMS technology. Mobile-XL products are revolutionary in offering connectivity and informational tools to areas with limited or expensive internet access. Mobile-XL allows mobile phone users to text message, chat, and access internet-based information from virtually anywhere. The company has a solid team of IT specialists including developers; computer science professionals; and network and systems engineers, most of which have come from developing countries. For more information, please visit www.mobile-xl.com.
Vesa Jaakkola Comment by Vesa Jaakkola on June 16, 2009 at 4:06pm
This is very interesting. Would like to hear more from you and see what kind of joint opportunities we might have in Africa. We have worked many years in Africa with scandinavian technology companies and formed very good relations with content providers (media houses, content aggregators) and mobile operators. Currently we are having offices in Nairobi and in Johannesburg. In Middle East we operate from Abu Dhabi. Head Office is in Helsinki - close to Nokia ;-)...

If interested for further discussions, please contact vesa.jaakkola(at)cyrrgroup.com

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