Bulls n Bears Entrepreneurship Zone :: Trailblazing online shopping in Rwanda

Bulls n Bears bulls at bulls.co.zw
Tue Jun 12 06:21:40 CAT 2018


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With many people leading a busy lifestyle and lots of infrastructure
development taking place around the cities of Rwanda, 29-year-old Yvette
Uwimpaye realised that it was becoming increasingly difficult for people to
shop at different market places.

For her, the quickest solution to this problem was to create a simplified
online shopping system that would save time and money.


How did this all start?


Inspiration came to Uwimpaye while she was on maternity leave after the
birth of her first child.

“I was looking for a convenient place to shop online but I couldn’t find
one,” Uwimpaye recalls. “I realised that while there has been steady growth
in technology adoption in Rwanda, there is still a gap in using technology
for quick delivery of household essentials. I became interested in how to
combine business and ICT to provide product price information and how to
easily access these products without physically moving around.”

After conducting market research to test its viability, Uwimpaye – who is
also a graduate of Economics from the former National University of Rwanda –
launched Murukali in November 2015 with RWF 1m (US$1,155) in savings from
her previous job as a forex bureau account officer. With this she rented an
office, bought office furniture and paid salaries for the first few months.
She relied on social media advertising to get the word out on Murukali and
offered free items to lure online customers for a return visit to the site
and keep their support.

In the first four months, Murukali had an average of two orders per week
and earned about RWF 15,000 ($17) per month. By the end of 2016, the
business had turned over about RWF 120,000 ($139). The number of orders
started to increase, and the company was able to break even in February
2017.

Today Murukali has a physical store in Kigali City Market B2-88 and an
online shopping service selling home essentials, cosmetics, baby products
and gifts. Customers can place orders via WhatsApp, SMS or by phone, and a
wide range of payments methods are available, including mobile money, bank
transfer, and cash on delivery. It also provides its tech-enabled platform
as a one-stop shop for local producers who lack the means to market their
businesses.

Online shopping requests are processed and delivered in less than three
hours to people living in Kigali, and within seven days to people living
outside of the city.

“My target customers are private companies, the working class, mothers,
single people who lead busy lifestyles and do not have the time to go around
shopping, new residents who do not know where to shop and those living
abroad who need to shop for their families in Rwanda or for themselves,” she
says.


Noted. How did the company grow into the business it is today?


Initially the distance between Murukali’s first office and the market was a
major problem as it was difficult to source products and deliver them to
customers on time. Moving to a physical store overcame this problem as it is
now easily find what customers order and quick access to fresh food for
orders is possible. Customers can also visit the store in person.

Another challenge was a sudden price increase and unavailability of some
products, and currently the company battles with lack of finances, means for
advertising and storage space for perishable goods.

Uwimpaye is keen on growing Murukali into a successful global e-commerce
business. In 2017, she joined the Business Professionals Network (BPN)’s
Rwanda programme which provides entrepreneurs with tools and strategies to
grow their businesses sustainably.

“I partnered with BPN Rwanda and Inkomoko Business Development to help me
become a professional businesswoman. I became more aware of my
responsibilities to keep my customers satisfied and making my business
profitable. Through them, I got a mentor who has been helping me to put my
business on the right track. I also got opportunities to compete and win
prizes.”

In December 2017, Uwimpaye was one of eight entrepreneurs who won the Bank
of Kigali’s inaugural Urumuri Entrepreneurship initiative’s RWF 60m
($69,300) interest free loan. The company also received a loan from AEC
Rwanda, one of the funding arms of Inkomoko Business Development, which has
helped to improve the business and to develop growth plans.

Uwimpaye is convinced that Murukali is on the right track to achieve its
goal of becoming the leading online shopping business in Rwanda. She plans
on opening more physical stores in different parts of Rwanda to serve those
customers in the same short time frame with which they are serving customers
in Kigali. “This will aid our promise of quick delivery to customers,” she
says.


Anything we can learn from her experiences?


Where some people see risk, Uwimpaye sees opportunity. When she was told
she was crazy, she didn’t get discouraged.

“Some friends and family told me that this business model was not possible
in Rwanda, but I persevered,” she says. “I didn’t give up because I believed
that as long as I know what I am doing and I am serving a need for people
living in Rwanda, I am on the right track.”—Howwemadeitinafrica 



Yvette Uwimpaye with some of the Murukali employees.

 

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