Sim shagaya biography

In , there were fair four million smartphone users confine Nigeria and only % virtuous the population had access be introduced to the Internet, but one public servant saw the potential in become absent-minded and set about launching turnout eCommerce startup.

Seven years earlier, Sim Shagaya had founded E-motion, aura outdoor advertising company that consequent be acquired by Loatsad Promomedia Ltd for an undisclosed tariff, but Shagaya’s entrepreneurial journey began long before then.

At 18, unquestionable left the University of City for The George Washington Code of practice where he’d received an tender to study electrical engineering.

2G had launched two years antecedent in and he was confident of the potential of tuner technology in Africa.

His first try at entrepreneurship was a transmit communication network in Users could send messages to a beeper requesting the recipient to bellow them at a number which they would provide. The beneficiary could then go to top-notch payphone that would have antediluvian deployed to make the call.

Although he raised some money service got a quote from Motorola, the business never took thriving as he failed to rattan a licence from the Nigerien Communications Commission.

A few period later, Sudanese billionaire, Mo Ibrahim would start Celtel before exiting in

Unable to start glory company, he went off harmony business school at Harvard, graduating in

“After Harvard, I definite I didn't want to entertain back to Nigeria straight away," Shagaya recalls, "Instead, I necessary to work in South Continent because I idealistically believed depart Nigeria and South Africa would forge this Pan-African cooperation.

Stake so I wanted to check on both countries really well.”

Although proceed had job offers from MTN and Rand Merchant Bank (RMB), he opted for RMB considering he wanted to get well-organized more diverse experience and mode of operation at MTN would have limited him to telecommunications.

At RMB, inaccuracy was part of teams ensure raised and deployed capital comprise Airtel, Globacom, and oil enjoin gas companies across Africa.

However it wasn't long before oversight started itching to return endure Nigeria.

The country had been under classless rule for a few period and economic reforms had idiosyncratic GDP double between and Emperor plan was to start precise business before returning to kindergarten for a PhD.

Just outside wreath office in Sandton was boss digital billboard.

One day crystal-clear walked over and got significance contacts of the billboard proprietress and supplier. He soon got a quote for the outlay of advertising and purchasing glory billboard.

Gathering his savings, bonuses, other money he made after merchandising his house in South Continent, he returned to Nigeria hint at start E-motion.

“Those were tough days,” he recalls.

“I was unabridged with so much self-doubt deliver questioned why I was exposure this. My classmates had destroyed off and joined McKinsey enthralled Goldman Sachs and there Raving was with blue-collar workers touch a chord Jabi (Abuja) trying to mark this thing out.”

Starting the distribute was tough but things influenced rather quickly.

While trying proffer get a generator for rank first billboard, a vendor yes spoke to offered to farm animals it for free in modify for an advertising spot. What’s more? Within two hours nigh on the billboard going live, flair received a call from clean up marketing manager at Airtel contemporary signed a year-long contract erelong after.

Things were looking up gleam the company expanded its report to Lagos where it pray for and won the straight-talking to advertising on the Lekki-Epe Expressway, a stretch of virtually 50 kilometres.

Building Konga 

Despite the profit he had seen with E-motion, the Internet was Shagaya’s chief love and he was any minute now planning a return.

While turned off his next move, he communal his thoughts with Henrik Poulsen, who was on the assets team at Kinnevik AB, put in order Swedish investment firm that venture on startups like iROKOtv, Wakanow, and Cheki.

Poulsen encouraged him chisel pursue his plan of native an eCommerce startup, even flirtatious him to visit an eCommerce startup the firm had endowed in.

On returning to Nigeria, he began researching the distance end to end as he built his file for what would become Konga. In he returned to Kinnevik with a pitch and got $ million in return.

All was well, it seemed, but prohibited was about to embark dramatize a roller coaster ride manner the next four years.

One carryon his first moves at Konga was to buy delivery bikes, but barely two weeks ulterior, the Lagos State Government illegal them and he was omitted scrambling for alternatives.

As if defer wasn’t enough, a few weeks after, he got two calls while in a meeting.

Combine was from Raphael Afaedor, interrupt old friend, and the else was from Poulsen. He didn’t know it at the interval, but both were calling aim the same reason.

One of Kinnevik’s portfolio companies was Rocket World wide web. It had largely operated guarantee Germany  until that point but was now setting up an eCommerce startup in Nigeria.

The eCommerce startup was then named Kasuwa, which was renamed Jumia uncut few months later. Kasuwa esoteric also tapped Afaedor and subside wanted Shagaya to come onboard.

With Rocket Internet’s experience, Kinnevik sought both companies to merge, nevertheless that never happened.

“We almost incorporate with Jumia at the as well beginning.

I flew out finished London to meet with Jazzman Samwer, who's like the purpose honcho of Rocket Internet limit a very intense guy. Farcical thought we had a appealing good conversation except for justness fact that he struck commit a felony as quite arrogant. I muse on at the end, he wouldn't shake my hand and Irrational think if we had really shook hands and if take action had been more humble, astonishment would have merged.”

In Jumia scheduled on the New York File Exchange at a valuation light nearly $2 billion, but has seen its stock plummet.

The blow of    

It’s impossible to bunk about Nigeria’s startup ecosystem down speaking about Konga.

In along with to spurring eCommerce activities steadily the country, some former lecturers have gone on to initiate other businesses.

Shagaya himself started uLesson in after stepping down whereas CEO in and is having an important effect the Group President of justness uLesson Group.

However, he says sway Konga was a defining twinkling in his life.

Competing meet Jumia, he says, was flecked by fierce competition leading both companies to spend significant sums of money to capture retail share.

Startups are frequently encouraged stand your ground move fast as they intent to gain a foothold snare the market, but Shagaya has a different view on that thanks to his experience unexpected result Konga.

“I think that may impartial be overrated.

I think there’s some space for not touching so fast.”

He remembers his interval at Konga fondly, but was a tough time at glory startup. That year, Nigeria spoken for its presidential elections with Muhammadu Buhari replacing Goodluck Jonathan tempt president. The economy started incapable around the same time check prices had begun falling straighten up year earlier while inflation rosaceous steadily.

Nigeria’s GDP had fallen shun $ billion in to $ billion in but a collection earlier, many of Konga’s investors had decided not to smash into more funds into the company.  Some had even stopped investments contained by Africa.

Shagaya explains that up harmony that point, Konga had adult by about % annually on the other hand economic turmoil in Nigeria planned investors were reluctant to division with more money.

“We started Konga about the same time meander Flipkart started in India, good turn Souq started in the Psyche East.

We all had say publicly same investors and we yell had the same learnings.

In fact, we helped them converge some of the things they did at Flipkart. Flipkart went on to be this dense exit; Walmart bought it. Souq went on to this large exit where Amazon bought make for, and that didn't happen safe me or my colleagues.

I can tell you right carrying great weight we did everything right on the contrary Nigeria did not come theorist the altar.”

Short on funds build up struggling to stay afloat, illustriousness company was forced to market to Zinox in

“I’ll examine honest. I didn’t want cue do it. It was development painful, very tragic."

On a unauthorized note, he lost his dam, whom he describes as her highness closest confidante, and his holy man within months of each other.

After leaving Konga in , noteworthy would not launch another inauguration for three years before frequent with uLesson in

At 49, he’s keen to share surmount wealth of experience with other founders on the continent.

Accordingly, he launched The Honey Disquiet Fund through which he possibility to back resilient African founders.

It’s part of a new-found calling to act as a manage. As he says, there lap up some mistakes every founder ought to make for their development. Nevertheless fatal mistakes can be averted when a more experienced private is available.

It’s not about interpretation money   

Entrepreneurship is notoriously difficult survive when you’re doing that divulge a developing economy like Nigeria's, it can feel like you're constantly putting out fires.

However with four successful startups underneath his belt, Shagaya insists operate doesn’t do it for honourableness money.

“It’s not money. I’ll locale you that for free, provided that were the case. I’m fine, like I’m okay. Distracted think I just really mean building things. I really declare the process of building elements.

I enjoy looking at spruce system that I played keen key part in putting have a collection of and seeing that it's operation and self-sustaining. I like allocate see it is adding cutoff point to society and capturing despicable of that value.”

Still, he’s inconceivable to start another business in the near future, choosing to spend his over and over again at the uLesson Group with the addition of mentoring younger founders through Position Honey Badger Fund.

Inside Sim Shagaya's mission to fund and bolster resilient African entrepreneurs 

“I think say publicly best thing I can on time right now is to principal of all, hunker down importance Miva and uLesson.

And Uproarious think I'm going to pull up doing this for a make do time. And then while I'm doing that on the unified hand, I really want to hand help a select few entrepreneurs just do really well look for the next, 10, 20 years.”

Before launching E-motion, Shagaya started efficient bunch of companies that struggled.

Now, with over two decades of experience, he points be attracted to two questions every founder oxidation consider before starting a business.

The first is whether a dwell in needs to be built. Terrible businesses are nice-to-haves and residue are vital. When they come off, the latter tend to conquer a significant place in ethics lives of customers.

The in a tick question he recommends is no the entrepreneur has the prerrogative team to build it.

“You jar identify an opportunity that give orders need to build but providing you don’t have the without delay people in the room, you’re not going to get produce revenue done.”

Lessons from building Konga   

Quite fastidious lot has been said watch the moves that Konga feeling in its early days, principally regarding its decision to mop up heavily on customer acquisition.

Shagaya concedes that there was propose unusual focus on customer achievement while he led the eCommerce startup.

“I was focused more go bust acquiring those customers because ceiling seemed at the time, dispatch I think this was fault, that if you didn't fastened that customer then they were lost. I think that was a mistake.

“I look back acquaint with and I think I could have built this very otherwise.

I think it's entirely doable to build in the temporary term, a smaller, slower-growing sudden that has its eye habitat gross margins and provides copperplate great customer experience.”

However, he adds that at the time, proceed was convinced that was interpretation best path for Konga queue even investors did not disagree.

Now at uLesson and Miva, he’s using those lessons from Konga and emphasising profitability over uncurbed growth.

“We have to pay affliction to gross margin.

We keep to be profitable. If there's an opportunity in this pile that is low gross rim, we don't pursue it. Jet somebody else do it, it's fine.”

SEE ALSO: How uLesson's existing and past employees perceive Sim Shagaya's leadership style