Nigerian startup FoodCourt suspends operations amid mounting debts

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FoodCourt, the Nigerian cloud kitchen startup backed by Y Combinator, has suspended operations after months of mounting financial pressure left it unable to pay staff and suppliers, according to word on the street. The company’s final operating location paused activities in April 2026, weeks after a strike by kitchen workers over unpaid salaries disrupted order fulfilment. Internal messages seen by TechCabal show management temporarily shut down operations across its branches in Lekki, Obanikoro, and Abuja as it sought fresh funding and tried to prevent its financial situation from worsening.

The operational pause underscores the increasingly difficult environment facing Nigeria’s food-tech sector, where startups continue to battle rising operating costs, weaker consumer spending, inflation and a prolonged funding slowdown. Cloud kitchens depend on high order volumes and efficient logistics to remain profitable, but thinner margins and declining investor appetite have made it harder for many businesses to sustain operations. FoodCourt’s struggles also highlight the human cost of the downturn, with salary delays and unpaid vendor invoices eventually disrupting day-to-day operations.

FoodCourt’s problems became visible in early March 2026, when kitchen employees stopped work over outstanding wages. On March 2, the company’s head chef reportedly advised management to suspend orders temporarily to avoid customer complaints while the dispute was resolved. By March 4, customers opening the app were greeted with a notice stating that orders could no longer be processed. Despite attempts to resolve the crisis, the startup’s financial position continued to deteriorate, ultimately leading management to suspend operations across all locations while exploring new financing options.

The startup’s difficulties mirror broader trends across Africa’s technology ecosystem. After the record funding years of 2021 and 2022, venture capital became more selective as investors prioritised profitability over rapid expansion. Startups have increasingly responded through restructuring, mergers, acquisitions and, in some cases, operational shutdowns. According to TechCabal Insights, African startups raised $1.44 billion in the first half of 2026, but the number of disclosed deals fell sharply while more than 1,000 layoffs were recorded across the continent during the same period, reflecting continued pressure on startup finances.

FoodCourt’s suspension, therefore, represents more than the challenges of a single company. It illustrates the harsh realities confronting consumer-focused startups operating in low-margin sectors that require constant capital to scale. Whether the company secures fresh investment and resumes operations remains uncertain, but its experience reinforces a broader shift in African tech: investors are increasingly demanding sustainable business models, while founders are being forced to balance growth ambitions with financial discipline in one of the ecosystem’s toughest operating climates.

SEC adds two new crypto companies to ARIP

If you’ve been wondering why Nigeria keeps “approving” crypto companies without actually giving them full licences, you’re not alone. The latest announcement from the Securities and Exchange Commission (SEC) has left many asking what these approvals really mean and whether the companies can legally operate. The short answer? Yes, but only under the regulator’s watch.

Last week, the SEC admitted GIGX Technologies and KuCoin Nigeria Limited into its Accelerated Regulatory Incubation Programme (ARIP), granting both companies Approval-in-Principle (AIP). The move came just a day after seven other fintech and digital asset firms were admitted to the same programme, signalling that the regulator is accelerating efforts to bring Nigeria’s fast-growing crypto industry under formal oversight rather than leaving it in a legal grey area.

Think of ARIP as a probation period for crypto companies. Instead of issuing permanent licences immediately, the SEC allows firms to operate in a supervised environment, while it evaluates how they manage customer funds, comply with anti-money laundering rules, protect users, and handle operational risks. Approval-in-Principle is simply the first checkpoint. It means a company has met the SEC’s initial requirements, but it has not yet earned a full licence. To get there, it must continue meeting the regulator’s standards throughout the incubation programme.

The approach reflects how quickly the digital asset industry is evolving. New products, business models and technologies are emerging all the time, making it difficult for regulators to rely on traditional licensing models. By using ARIP, the SEC gets to observe companies in action before granting unrestricted approval, while legitimate businesses gain a clearer path to operating legally. It’s a middle ground that aims to encourage innovation without compromising consumer protection or financial stability.

For Nigeria’s crypto ecosystem, the message is becoming clearer: regulation is no longer a question of if, but how. As more firms enter ARIP, the country is gradually building a structured framework for digital assets that could shape the industry’s future. Want to understand what this means for crypto companies, investors and the wider fintech ecosystem? Find out more in Delight’s latest.

Kenya’s ISPs may soon charge by the data used

Kenya could soon change the way millions of people pay for home internet. A proposal before Parliament, the Kenya Information and Communications (Amendment) Bill, 2025, would require Internet Service Providers (ISPs) to charge customers based on the amount of data they consume rather than today’s fixed monthly packages. If passed, the law would compel providers to deploy metered billing systems that track usage and generate bills based on actual consumption, potentially reshaping Kenya’s fast-growing broadband market.

The proposal has implications well beyond Kenya. Across Africa, broadband providers have increasingly competed by offering unlimited or high-capacity fibre packages as demand for remote work, online learning, streaming, and gaming has grown. Companies such as Safaricom, Zuku, Faiba, Airtel Africa, and newer entrants like Savanna Fibre are all expanding fibre services in Kenya, while similar competition is playing out in markets such as Nigeria, South Africa and Ghana. If Kenya adopts mandatory usage-based billing, other African regulators could watch closely to see whether the model improves consumer protection or discourages broadband adoption.

The timing is notable because Kenya’s fixed broadband market is expanding rapidly. Per the Communications Authority of Kenya, the country had about 2.66 million fixed Internet subscriptions by the third quarter of the 2025/26 financial year after adding nearly 196,000 new connections in just three months. At the same time, ISPs have been engaged in fierce competition, with providers rolling out faster speeds, wider coverage and lower-priced fibre packages to attract households. Rather than competing on data limits, companies have largely focused on offering more value for the same monthly fee, making the proposed shift to metered billing a significant departure from current market trends.

The proposal itself is not entirely new. The Bill, sponsored by Aldai MP Marianne Jebet Kitany, was introduced in 2025 as part of broader amendments to Kenya’s communications law. Its stated objective is to protect consumers from unfair billing practices by ensuring users pay for what they actually consume, in line with constitutional consumer rights. However, critics argue that the Bill does not clearly explain what problems exist with the current pricing model or whether mandatory metered billing is necessary. It also leaves key questions unanswered, including whether unlimited fibre plans would disappear, how billing disputes would be resolved, and whether businesses and households with heavy internet usage would end up paying significantly more.

For now, the proposal remains a Bill and must still pass through Parliament before becoming law. But the debate highlights a broader conversation taking place across Africa as Internet access becomes an essential utility; governments are increasingly weighing how best to balance affordability, consumer protection and investment in broadband infrastructure. Whether Kenya ultimately retains its unlimited fibre model or shifts toward pay-as-you-use internet, the outcome could influence future broadband policy discussions across the continent.

Pick n Pay’s digital grocery push pays off

Pick n Pay’s online grocery business is growing rapidly, even as the South African retailer continues to navigate broader financial challenges. In its annual report for the year ended March 1, 2026, the retailer said turnover from its Asap! on-demand delivery service and Pick n Pay Groceries on Mr D jumped 37.6% year on year. Overall, online sales rose 32.7%, driven by continued investment in digital capabilities, the rollout of a redesigned Asap! app, and the expansion of its delivery network to more than 620 stores supported by over 2,500 drivers across South Africa.

The numbers show that online grocery shopping is becoming an increasingly important battleground in South Africa’s retail sector. While traditional supermarkets still account for most grocery sales, retailers are investing heavily in apps, logistics and artificial intelligence to win customers who increasingly expect groceries to arrive within minutes. Pick n Pay operates primarily in South Africa but also has a retail presence in Botswana, Eswatini, Lesotho, Namibia, Zambia, and Zimbabwe through various store formats and partnerships, making its digital strategy one to watch across the region.

The latest growth comes after several years of sustained investment in digital commerce. Pick n Pay launched its Asap! delivery service in 2020 before expanding its partnership with Mr D, the on-demand delivery platform owned by the Takealot Group. In April 2025, the retailer introduced a next-generation version of the Asap! app with integrated Smart Shopper rewards, improved search, scheduled deliveries and a redesigned user experience. More recently, it expanded the app to include Pick n Pay Clothing, allowing shoppers to order apparel alongside groceries, while also unveiling an AI-powered shopping assistant called Penny to make ordering more conversational.

The progress is particularly significant because it comes as Pick n Pay continues a difficult turnaround. The retailer has spent the past two years restructuring after losing market share to rivals such as Shoprite’s Checkers Sixty60. Although the group’s supermarket business still posted a trading loss of R953 million in the latest financial year, its digital operations have become one of its strongest-performing divisions. Rival retailers are also investing aggressively: Checkers has expanded Sixty60 to hundreds of additional stores while introducing AI-powered shopping features, intensifying competition in South Africa’s rapidly evolving online grocery market.

For the rest of Africa, Pick n Pay’s performance reflects a broader shift in retail. As smartphone adoption rises, digital payments become more common, and consumers increasingly value convenience, supermarkets are evolving into technology companies as much as they are retailers. Success is no longer determined solely by store footprint or shelf space, but also by the quality of mobile apps, delivery networks, customer data and AI-driven shopping experiences. Pick n Pay’s strong online growth suggests that, despite ongoing financial pressures, retailers that continue investing in digital channels are likely to be better positioned for the next phase of Africa’s e-commerce evolution.

Victoria Fakiya for Techpoint Africa