Wave Transfer Limited, the fintech startup once hailed as a mobile money disruptor, is fast discovering the steep cost of doing business in Uganda.
Newly released financials for 2024 show Wave racked up a staggering net loss of Shs14.33 billion (about $3.78 million), deepening the red ink from the Shs11.18 billion loss it posted in 2023.
This marks a 28% increase in year-on-year losses, despite posting Shs14.68 billion in revenue.
It’s a sobering turn for the Senegal-based firm, which entered Uganda’s mobile money arena with a bold strategy: undercutting giants like MTN and Airtel by offering free deposits and withdrawals and charging just 1% for transfers.
But that disruptive model—so effective in Senegal and Ivory Coast—has yet to pay off here.
Wave’s operational costs have surged. The company’s total expenses nearly matched its revenue in 2024, leaving little room for maneuver.
The result? An operating loss of Shs3.11 billion and an even deeper hole on the balance sheet.
In a statement signed off with an unmodified audit opinion by BDO East Africa, Wave’s directors acknowledged the grim performance but stopped short of announcing any immediate strategic shifts. That said, industry watchers see the writing on the wall.
The deeper losses come on the heels of a turbulent stretch. In late 2022, Wave slashed around 300 Ugandan jobs during a second round of global layoffs.
The company, valued at $1.7 billion after its 2021 fundraising blitz, also hinted at focusing on core markets and cutting dependency on outside capital.
Its Uganda play is now clearly under review.
The challenges are not surprising. Uganda’s mobile money space is among the most mature on the continent. MTN and Airtel boast massive agent networks, strong brand recognition, and years of embedded consumer trust.
Breaking that stronghold requires more than low fees—it demands scale, deep pockets, and time.
For now, Wave lacks all three.
While customers welcomed the cheaper transactions, that goodwill hasn’t converted into sustainable usage levels or revenue growth. With each passing quarter, it becomes clearer: Uganda isn’t a quick win.
Unless Wave recalibrates fast—either by rethinking pricing, improving cost efficiencies, or building stronger local partnerships—its East African experiment risks becoming a cautionary tale for startups chasing scale without solid footing.
