Big Cabal Media secures $2.3m for expansion

The news media landscape has shifted dramatically over the last few decades. Searching for news online has become commonplace, whether through Google, social networking sites, major newspapers, or local media websites. Because smartphones are so widely used, people can get the most up-to-date information from all over the world in real time.

While digital media has connected people in unprecedented ways, allowing users to stay informed and maintain relationships across time and distance, companies in the space have received pitiful funding. In 2021, venture capital invested $115 million in digital media globally, a tenth of the $1.1 billion it invested in 2015. However, little of this money went to Africa. With a few exceptions, digital newsrooms in Africa are more likely to receive story grants than business funding.

Big Cabal Media (BCM), a leading African digital media company, announced a $2.3 million Seed funding round today, emphasizing its commitment to continue building exciting and authoritative media products and brands. Existing investors Unicorn Capital Partners and Future Africa participated in the new investment round. Mac Venture Capital and Luminate Capital Partners were among the new investors who took part.

Prior to this funding, BCM had raised just over $600,000 in funding and had grown to become one of Africa’s most exciting media and technology businesses. Its two major publications, TechCabal and Zikoko, reach over 30 million people monthly across platforms, have over 170,000 newsletter subscribers, and are expected to grow at a 225 percent compound annual growth rate (CAGR) between 2018 and 2021.

TechCabal was founded in 2013 by Bankole Oluwafemi as a deliberate effort to cover the burgeoning Nigerian tech ecosystem. While the publication began by focusing solely on the Nigerian startup scene, it quickly expanded its coverage to include all of Africa. The publication covers startup fundraises, product launches, expansions, regulatory squabbles, and the stories of various digital economy players.

Seyi Taylor joined TechCabal as co-founder and CEO a year after its inception, while Oluwafemi remained as Editor-in-Chief. They continued to broaden TechCabal’s reach and scale its operations. With the launch of Zikoko, a publication many compared to Buzzfeed at the time, the duo decided to try something new in 2016.

Zikoko has evolved from primarily publishing listicles and quizzes to sharing important stories about every aspect of Nigerians’ lives, earning it the moniker “Nigeria’s most viral publisher.”

Tomiwa Aladekomo joined Zikoko two years after its launch and took over as CEO. Aladekomo is a seasoned media and marketing professional who has worked in a variety of industries in both North America and Africa.

Aladekomo spent the next four years focusing on diversifying the company’s revenue streams. BCM’s revenue was primarily derived from native advertising, but Aladekomo oversaw the development of a comprehensive suite of advertising products across publications.

The company established a sizable events business; established the Cabal Creative content studio, which has served multiple Fortune 500 clients ranging from Google to Coca-Cola; and established TC Insights, a digital economy consultancy firm.

Under Aladekomo’s leadership, BCM has also embarked on ambitious projects such as Jollof Road, an 80-day adventurous road trip across all mainland West African countries, and Tech Women Lagos, a multi-sensory exhibition of 50 women from various backgrounds in the Lagos technology ecosystem.

“When I joined BCM in 2018, I brought on some really talented people, and we immediately began a period of experimentation,” Aladekomo explained. “Our experiments included editorial content and approaches, as well as monetisation and even company culture.”

BCM, which began as a tech blog nine years ago, has evolved into a media powerhouse. Its two publications, TechCabal and Zikoko, are masters of creating content that strikes a cultural nerve. They go beyond behind-the-scenes reporting to develop agenda-setting editorial content, projects, and events. Cabal Creative and TC Insights are also assisting hundreds of African businesses.

Odunayo Eweniyi, CEO and co-founder of Fintech startup Piggyvest and First Check, a female-led, female-focused, angel fund and investor community; Osarumen Osamuyi, Partner Manager at Meta; Jola Ayeye, scriptwriter and co-host of the I Said What I Said (ISWIS) podcast—one of Africa’s most listened to podcasts—and a host of others are among the company’s An indication of the company’s investment in its employees.

“Based on documented reports and experience, very few people who work for media organizations are offered competitive salaries, and we’d like to be the exception,” Aladekomo said. “The BCM model has been tried and tested.” We quadrupled our 2020 revenue in 2021, and our CAGR over the last four years is 225 percent.”

BCM intends to use the new funds to expand its product offering, staff, and audience. “We’re expanding our video production by looking into docuseries and short films,” Aladekomo explained. “We will be transforming our studio into a creative community hub, as well as introducing three new tech products, including the Zikoko app and Zikoko Memes 2.0, which will debut in 2020.” We will also be expanding our audience while maintaining competitive wages.”

Some notable fundraises by African digital media companies in the last five years include Nigerian media company Stears Business’ $600,000 seed round in 2020 and Ghana’s OMG Digital’s $1.1m seed funding in 2017. BCM’s growth over the years, as well as its recent fundraise, are notable examples of the possibilities and opportunities in Africa’s digital media sector.

Digital media companies are one of many sectors that have traditionally been overlooked in the conversation of tangible ventures. Of the reported $4.3–$5 billion raised by African startups in 2021, with fintech receiving 53–63 percent of the volume, digital media companies are one of many sectors that have traditionally been overlooked in the conversation of tangible ventures.

“We’re excited to embark on this journey with Big Cabal Media because we fully believe in its massive potential for continued success, scale, and global impact,” said Marlon Nichols, co-Founder and Managing General Partner at MaC Venture Capital. “Investing in Africa’s thriving digital media sector is perfectly aligned with MaC’s mission of assisting exceptional entrepreneurs in building valuable technology companies that capitalize on shifts in cultural trends and behaviors.” I have no doubt that BCM will seize this once-in-a-lifetime opportunity to continue leading cultural conversations and assisting digital consumers in accessing the information that is most important to them.”