Bulls n Bears Entrepreneurship Zone :: Chris Folayan: How I built an online platform to help retailers reach Africa’s consumers

[Bulls n Bears]

 <mailto:info at bulls.co.zw> 

 

 

In 2013, I was a successful California-based entrepreneur, who had already
built and sold multiple high-tech startups, when I tried to raise money for
a promising new online retail business.

But this time there was a catch. My startup was targeting consumers in
sub-Saharan Africa, which, despite rapid economic growth, is still not well
understood by many US investors and is still not very familiar to even those
US retail chains eyeing global expansion.

It was almost impossible to raise money. I pitched the business to 35
venture capitalists. They all gave me their verbal blessing, but they were
all unwilling to invest.

As someone who was born in Nigeria and travels back frequently to visit
family and friends, I understood the strong demand for a service that would
enable Africa’s growing middle class to shop from western retail stores.
While African consumers can access major online retail sites, they cannot
order from them directly since most don’t accept local currencies or ship to
Africa.

Every time I flew back to Nigeria I would come carrying items that people
had asked me to bring. Once I was stopped at the airport checking counter
attempting to check 10 pieces of luggage. Denied a boarding pass due to my
excessive luggage, I rode back home and began conceptually building an
interface that would connect US retailers with African shoppers.

Today Mall for Africa is helping consumers in Nigeria, Kenya, South Africa
and 12 other African countries buy merchandise from 263 western retailers
including Amazon, eBay, Macy’s and Walmart. Each week, we ship about four to
six tonnes of merchandise including apparel, school supplies and equipment
for small businesses such as hospitals, hotels, restaurants and hair salons.
We’re growing rapidly and expanding into more countries, but the process of
building a business for consumers in Africa was unlike anything I had done
before and required overcoming several challenges.

Financing: After being turned down by so many US investors, we were finally
successful in raising money from Helios Investment Partners, one of the few
independent pan-African private equity firms that was founded and managed by
Africans, and brings a deep understanding of Africa’s economic landscape and
the opportunity it presents for investors. Helios raised investment capital
from the Overseas Private Investment Corporation (OPIC), the US Government’s
development finance institution, which invests in emerging markets around
the world and is also an active investor in Africa. OPIC has more than one
quarter of its global portfolio invested in Africa.

Secure payments: Since major retailers don’t offer shipments to Africa and
most don’t accept local currencies or credit cards, Mall for Africa has to
connect the dots. Our platform enables shoppers to identify what they want
to buy and then pay us in their local currency, and local payment platforms.
Once payment is secured, we complete the purchase.

A shipping solution: Some of the other challenges African shoppers often
face are a lack of options and steep, arbitrary markups among items that are
available locally. Mall for Africa operates two warehouses in Portland,
Oregon in the United States; and London where merchandise purchased is
shipped and verified before being shipped to customers. Initially we would
wait to have enough merchandise to ship in a cost effective manner but
orders have grown to the point that we are able to ship daily through DHL
and other shipping partners. As our volumes grow, we continue to negotiate
lower shipping rates and pass the savings to our customers. While we do ship
to some homes, we typically deliver to designated pickup locations in the
host country.

Africa’s population is young, growing rapidly, increasingly living in urban
areas, and increasingly earning disposable income. All this makes it an
exciting time for retail in Africa. Retail sales in Nigeria and Ghana are
projected to more than triple in 2019 from 2009 levels, and to more than
double in Kenya. Internet access is also growing rapidly, making online
retail a logical solution. In Kenya and Nigeria, our two main markets, close
to half the population has internet access and as the cost to get online
decreases, we expect more people to be connected and e-commerce to become
more prevalent.

Before African consumers could shop online they had very limited selection
and even if they could find a store selling a desired item of apparel, they
often could not find it in the right size or color. Mall for Africa has
changed that, enabling African consumers to shop the same way Americans do.
It has been rewarding to provide such a valued service. Along with helping
Africans make discretionary purchases, we’re helping businesses and schools
access essential supplies, state-of-the-art equipment and of entrepreneurs.—
Howwemadeitinafrica


<https://www.howwemadeitinafrica.com/mall-africa-thriving-business-linking-s
hoppers-western-retailers/53881/chris-folayan-600x300/> 

Chris Folayan, founder and CEO, MallforAfrica

PRESS OFFICE: OPIC

 

 

Invest Wisely!

Bulls n Bears 

 

Telephone:    <tel:%2B263%204%202927658> +263 4 2927658

Cellphone:      <tel:%2B263%2077%20344%201674> +263 77 344 1674

Alt. Email:    <mailto:info at bulls.co.zw> info at bulls.co.zw  

Website:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw&sa=D&sntz=1&usg=AF
QjCNH8LYgdY55h-XKseuM8Kpr-JKdfhQ> www.bulls.co.zw 

Blog:
<http://www.google.com/url?q=http%3A%2F%2Fwww.bulls.co.zw%2Fblog&sa=D&sntz=1
&usg=AFQjCNFoIy6F9IXAiYnSoPSgWDYsr8Sqtw> www.bulls.co.zw/blog

Twitter:                  @bullsbears2010

LinkedIn:               Bulls n Bears Zimbabwe

Facebook:
<http://www.google.com/url?q=http%3A%2F%2Fwww.facebook.com%2FBullsBearsZimba
bwe&sa=D&sntz=1&usg=AFQjCNGhb_A5rp4biV1dGHbgiAhUxQqBXA>
www.facebook.com/BullsBearsZimbabwe

Skype:         Bulls.Bears 



 

-------------- next part --------------
A non-text attachment was scrubbed...
Name: winmail.dat
Type: application/ms-tnef
Size: 89300 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20180410/30600335/attachment-0001.bin>