Born and raised in Nigeria, Africa. Chris Folayan is well established successful serial entrepreneur, board advisor, mentor, and speaker with over 25 years of C level role experience in marketing, technology, startups, and corporate acquisitions. In this exclusive interview with Alaba Ayinuola of Business Africa Online, Chris shared his journey into entrepreneurship, how and why he founded Mall for Africa and how he is disputing Africa’s eCommerce and retail space. And his corporate social responsibility strategy. Excerpt.
Alaba: You have launched few startups before Mall for Africa. Kindly tell us about your entrepreneurship journey and the learning curves?
Chris: My entrepreneurial journey started at a very young age. The journey of a serial entrepreneur has not been easy but it is one that has led to a tremendous bounty of amazing learnings you can’t get anywhere else. My journey really started once I left FGCI (Federal Government College Ilorin) a high school in Kwara state, Nigeria. Right after I finished at FGCI I came to America and was captivated by the internet and all things online. It was a whole new world to me.
The ambition, motivation, and sheer dedication to ensure I make something of myself having been given the privilege to come to America for University was a blessing I was dedicated to making the best of it.
One of my first jobs in the US was with a hard drive company. I was fortunate enough to work with many departments from online development to strategic marketing to Mergers and Acquisitions (M&A). All happening before I was 19. Working with the M&A department helped me a great deal understand business development, what companies are looking for before acquisitions, and much more. I was the software guy who came to the meetings and evaluated the product before it was acquired to see if it passed all my tests. I worked on many projects and reviewed many companies over the course of two years.
My first big shot entrepreneurial gig was in a startup music company. I was hired as the CTO working on developing the first ever encoding direct media stream with digital rights platform all in one. From there I learnt about patents, improved my programming skills.and much more. Back then MP3 and RealAudio platforms were the rage. The learning curve was about programing and being at the cutting edge knowing that whatever you build has to have a Unique Selling Proposition (USP) even if you are first in market. You have to set your business and model apart from everyone else. After exiting the company successfully, I started a software and web design company.
For 10 years we developed over 1000 websites in over 60 countries and worked for some of the top Fortune 100 and 500 companies of the world including governments. With this entrepreneurial journey I learnt about contacts, connections, customer service, and the art of pricing appropriately to win. What most people don’t realize when starting a company is reputation is key from day 1. If you start with a bad reputation you will have a higher road to climb. With every business you need to imagine you are climbing a very steep hill.
The key here is to understand what the market wants and needs. Invest time into researching all the core attributes, devising a cost, then doing a cost analysis on development and market value. We did this successfully for many companies we started and sold.
One of the big learnings with “Mall for Africa” was how we legitimize ourselves in the market from the beginning. Everyone in Nigeria is skeptical of every new business. So proving ourselves as legitimate was the biggest hurdle from the start. We accomplished this by placing prime billboards, partnering with banks, and taking out major newspaper and radio adverts. Once we build a reputation for being legitimate we had to work on payments. Learning how to collect payments from a society where many don’t have traditional Visa and Mastercards. We developed a one of a kind platform where people could deposit cash into the platform like a gift card and would be credited the amount so they can buy items from US/UK sites.
This instinctively started and boosted the company into fame as we were able to give the banked and unbanked the ability to shop on US/UK sites. We ended up helping many tap for the first time into eCommerce without any border restrictions. Trust me when I say there were issues but with each one we persevered and never gave up. Being able to pivot has also been key for Mall for Africa. We have tried many new things from auctions to deals of the day sales.
We have also recently launched our white label platform to help businesses in Africa make money off ecommerce. We call this new venture Link Commerce. As you can tell the journey has been long filled with ups and downs, but you morph, and grow as the market moves you so you are always relevant and make money.
Alaba: Mall for Africa is no doubt disrupting the eCommerce and retail
ecosystem in Africa. What inspired this laudable idea?
Chris: Mall for Africa was inspired by friends and family, but not in the way you would think. I simply got tired of packing my suitcases with people’s stuff and with a software background I knew I could do something about it. What broke the camel’s back was really my being declined from boarding a delta flight from San Francisco to Lagos with 10 suitcases. The Delta lady at the checking counter said “You going to Nigeria?” and I said “Yes, I am.” She looked at me snapped her fingers and said “No you are not. Not with all those suitcases.”
I didn’t realize I had exceeded the maximum number of bags one person could have. 95% of the luggage was for people who had asked me to bring stuff over. There is a need in the market for a solution to help people buy products from US/UK.
My network of friends was not huge yet and I had 10 suitcases. What if we opened an option up to the entire country for people to shop? I could be shipping tons and tons and we could make money. Fast forward many years we have shipped millions of products to people in Nigeria, and across Africa. Helping people buy the products they want to look good, and helping people buy products to start businesses and improve their lives. So who inspired me? Honestly the best people possible. Friends family and the amazing Nigerian people who I adore who have pushed me over the years to improve our platform and help do more.
Alaba: Despite the challenges eCommerce firms are facing in Africa and some shutting down operations,what business model and strategies is sustaining Mall for Africa?
Chris: Ecommerce in Africa is hard, but by 2025 it will be a $300bn industry and Africa has leap frogged in many things. One vital part being telecommunications and mobile phones. We have more cell phones than land lines. Africa will have more growth in new users online than any continent. You take that into consideration you now have to look at how do you make money in such an environment. For MallforAfrica we have faced the challenges other ecommerce platforms have faced.
However, we are very nimble and able to pivot. Our business model has changed over the years. If you asked me 2 years ago how would you expand I would give you a totally different answer than I would today. Today, we are working primarily with partners to expand our business. Now I didn’t say our name I said our business. We are white labeling our platform and providing businesses with the ability to start their own eCommerce companies with the Mall for Africa infrastructure. We have started a business called Link Commerce which is now working on powering eCommerce platforms for banks, mobile operators, ecommerce companies, and shipping companies in emerging markets.
Alaba: What are the worst and best decisions you’ve ever made?
Chris: I don’t see decisions as worst or bad, I see them as learning experiences. I have learnt that decisions form wisdom and there is nothing like bad wisdom. The same goes for best decisions. We have made some great moves as a company and Link Commerce is one of them. But I would urge every entrepreneur and business owner not to see decisions as good and bad and tie themselves up to such terms. But see each decision as a form of building wisdom. I would say my best and worst decisions have been around the people we hire. We have hired some amazing people and we have hired some really bad people. It’s hard to find great people but when you do they are amazing. Uplift the company and ensure we grow. Having a great team is key for our business to succeed and we have a fantastic group of people working for us today. Beyond blessed to have a great team. Hiring in Africa is not easy.
Alaba: What is your advice for African governments faced with the challenges of attracting the right FDI?
Chris: My advice is simply to ensure that all FDI investments are beneficial to the people and locality the funds are applied to. Africa needs funding in 3 key major areas:
- Power / Energy
I am of the mindset if FDI funding is put into any of these 3, it will be money well used and invested. I recommend governments supply investors with key factors in any of these 3 key areas. Once we have this right the ROI for any investor will be 5X to 20X easy. As Africans we are very driven and entrepreneurial. But we are lacking these 3 platforms to display our true selves to the world. Once we are giving the opportunities Africa will rise to the top.
Alaba: How do you feel as an African entrepreneur? Your advice for
aspiring entrepreneurs and Investors looking at Africa as an investment
Chris: I am a very proud African entrepreneur. There are not enough of us out there and I pray more people take the leap of faith and start a company and do something great for the continent. My advice is to be prepared to fall and get back up multiple times. No one finishes the race if they don’t get back up. With any business in Africa you just have to keep your eyes on the prize. Follow all the rules and ensure you have a great team of trusted people around you. For investors I say Africa is your best return on investment in the world. Nothing can get you a better return but be patient with us. We are writing our future as we go and do not have history to dictate our future. If you stay the course and stick by us, you will be dancing to the bank. Maybe not as fast as you want, but eventually when you do… those dancing shoes will be tapping and clapping all the way to the bank. We are the best bang for your buck. Africa stands strong, proud, and 100% the best investment any investor can make.
Alaba: As a responsible corporate organisation, do you have a CSR policy?
What are the key focus areas for projects?
Chris: As our CSR we focus on helping people start companies and build up an online reputation in Africa to sell abroad. We have started a platform called MarketplaceAfrica.com in conjunction with DHL to help people sell into US and UK. This is how we are giving back to society. We provide free lectures, free photo sessions, free online assistance, free pricing guides and help with people who want to get their products online and sold. We are getting Africa ready for eCommerce so ensure we build a sustainable online future for our artisans. We are beyond proud of our efforts to ensure we help our brother and sisters in Africa enjoy the benefits of selling abroad and ensuring that money they get is put to good use in developing their company and building better lives for their family.
Alaba: How do you relax and what kind of books do you read?
Chris: I love to swim and play tennis as my form of physical relaxation. I like reading books on marketing, business, and self help type books. Books that feed off experiences of others. I am currently reading High Performance Habits: How Extraordinary People Become That Way by Burchard, Brendon, Hay House. The previous 2 books were Factfulness: Ten Reasons We’re Wrong About the World–and Why Things Are Better Than You Think.and The New Leadership Literacies: Thriving in a Future of Extreme Disruption and Distributed Everything.
Chris is well established successful serial entrepreneur, board advisor, mentor, and speaker with over 25 years of C level role experience in marketing, technology, startups, and corporate acquisitions. Born and raised in Nigeria, Chris founded his first venture at age 7 recycled tires with a group of friends which he ran for 2.5 years. He migrated to the U.S to attend college in the heart of the Silicon Valley. Coming from Nigeria right into the technology boom era amazed by all he saw around him and the growth of the internet. Chris decided to teach himself various programming, design and software languages which he used as a foundation to catapult himself into various high level advisory roles in fortune 500 companies by age 19 he was working on his first patent, while pursuing a BA degree in marketing. After graduating from San Jose State University, he founded and sold several companies globally, while establishing new companies in Africa, USA, Middle East and Asia. Before Chris founded his current venture, the award-winning Mall for Africa and Mall for the World platforms, Chris was the Founder and CEO of OCFX Inc a multi-million dollar globally recognized silicon valley based, award winning software agency serving and consulting clients such as SONY, LSI, Cisco, HP, EPSON, TYCO, Accenture, CapitalOne, EMC, USA Government and many others in over 60 countries. Chris has a learn as you grow, out of the box thinking philosophy that drives strategy and business growth.
talabat, MENA leading food and grocery delivery app appoints Hadeer Shalaby as Managing Director
Hadeer Shalaby, new Managing Director talabat Egypt (Source: talabat)
talabat, the region’s leading food and grocery delivery app, has appointed Hadeer Shalaby as the new Managing Director of talabat Egypt. She will be replacing Sofiène Marzouki, who has been in the role of interim Managing Director since January 2020, who will be returning to talabat’s Dubai headquarters to take on a challenging new role at regional level.
Shalaby will continue to drive talabat in the Egypt market, placing key emphasis on customer experience, supporting our restaurant partners, q-commerce, as well as working hand-in-hand with the government on many initiatives, including rider safety and the continued digitisation of the food and beverage sector.
Sofiène Marzouki, talabat Egypt’s outgoing MD said, “I’d like to take a moment to appreciate our whole ecosystem; our customers, restaurant partners, riders, our employees, and the Egyptian government. This past year has been challenging for everyone, with the COVID-19 pandemic, and I have been very privileged to steer an organisation which has helped to keep many families safe, who rely on talabat to make a living.”
Shalaby brings a phenomenal record of leading tech companies in Egypt, founding Taxi El Sa7el, the first ride-hailing startup in Egypt back in 2014. In the same year, she then moved on to join Careem as the Founder & GM of Careem Egypt, when they acquired Taxi El Sa7el. Most recently, she had been leading Careem Bus regionally, leading teams in Egypt, UAE and Pakistan.
Speaking about her appointment, Shalaby said, “Firstly, I would like to thank Sofiène for successfully steering the organisation through the COVID-19 pandemic, rebranding Otlob to talabat as well as collaborations with the government around digitisation of the F&B sector, and creating employment opportunities for Egyptian youth.
These are exciting times for talabat, and moving forward, I want to continue to focus on growth particularly with grocery and pharmacy essentials, as well as continue to create an overall seamless experience for our ecosystem – for our customers, riders, government, restaurant partners as well as the communities in which we operate.’
Toon Gyssels, talabat’s Chief Operating Officer is looking forward to seeing how the organisation will further evolve under Shalaby’s stewardship, and how she will continue to be a role model to aspiring female tech entrepreneurs.
‘We are very excited to continue to attract local top talent to talabat, and we’re proud to say that now, three out of our eight country heads are female. As part of the up-and-coming generation of amazingly talented female entrepreneurs in the private sector in Egypt, we’re looking forward to seeing Hadeer inspire not only our organisation, but continue to provide a guiding light to aspiring young women right throughout the country, and region.’
‘I would also like to thank Sofiène for his great work in Egypt in a year like no other, where he has worked with the team to develop a strong, stable presence for talabat, and we look forward to Hadeer continuing to grow our position in the market.’
Recession: A great time to invest
Recession (Image credit: Skynews)
Following the 2008 global economic crisis, countries around the world put in modalities that have seen post recovery global economic growth that has been positive in the past decade. IMF projections had estimated global growth to rise from 2.9 percent in 2019 to 3.3 percent in 2020 and 3.4 percent in 2021 and these projections are justifiable given the economic fundamentals that existed at the time of estimation. However, the emergence of the COVID-19 pandemic which was unpredicted and hence not factored in estimation as an assumption has negatively impacted growth which is estimated at -4.9 percent in 2020 according to the World Economic Outlook statistics. Other than the health impact that has caused over one million deaths globally, the pandemic has disrupted global supply chains and each continent has seen millions lose employment and livelihoods, business operations have been altered and production reduced.
As a consequence, the Coronavirus has triggered a recession, much deeper than the 2008 financial crisis and worse than the “Great Depression” of the early 1930s. A look at all the happenings of the year acts as a disincentive to would be investors that would view the fragile environment as a ground for breeding losses if they are to invest.
As in any tournament, one’s misfortune is another person’s fortune and as such, the recession period would be a good time for identifying opportunity and exploiting all avenues of profit maximization. But a recession signals the downfalls of many businesses, increased losses and unemployment among other things, why would it be a great time to invest?
Access to cheap labor force
The world has become so competitive such that attracting the most skilled and educated labor force comes at a huge cost. Companies have to incur a huge expense on renumeration in order to retain the best minds or else, competitors would easily snatch them. During a crisis such as a recession, the demand for jobs is higher than the supply because many businesses are closing down and as such, a business may be able to acquire the skilled labor at a cheaper price. Because of the scarcity of jobs, employees would be more than willing to work at a lower wage and therefore, a firm that invests during this time can take advantage of this reduced cost.
Building business resilience
If a business is able to start at a time when the economy is nose diving, it learns techniques and strategies on how to overcome certain challenges and be able to mitigate them in the future. Enduring a fragile environment and navigating through it helps in building resilience that will help overcome future factors. This also helps in building a loyal customer base who are impressed with the fact that the business was able to provide the products and services at a time when many began to close. Because of the trust and belief that customers have in the business, this could lead to an increase in the profitability particularly due to increased referrals and positive world of mouth that’s acts as free advertisement for the firm.
Reduced financing cost
A higher interest cost is often a hindrance to access to finance because it discourages businesses from borrowing. As a response to boost economic activity, many countries around the world have decided to slash the interest costs. Central banks are pursing expansionary fiscal policy despite the rise in inflation but this is all in an attempt to ensure that borrowing costs are reduced and businesses are able to borrow and boost their production. Investing during such a time will and taking advantage of lower financing costs can help a business establish itself quickly and produce to meet the demands of the society. Further, during a recession, governments often give tax incentives to help companies navigate the crisis and so, investing during this period enables the enjoyment of this incentive.
Market penetration opportunity
Most of the product and service markets have been flooded with competition such that it is difficult for new entrants to enter. However, during an economic downturn like a recession both small and large companies struggle to adjust and survive in a crisis and this means that they are vulnerable to new entrants. Further, many new opportunities for new products arise during a crisis that can help a business. For example, the emergency of the COVID-19 created a need for facemasks, sanitizers, remote working and many other needs that have enriched businesses and individuals that took advantage of the opportunities. Identifying opportunity can make a business penetrate the market, outsmart competition and make profits.
During a recession, the country’s currency often depreciates due to lower production not earning foreign among other factors. But this works to the advantage of firms that export because a depreciation entails that their products are relatively cheaper compared to other countries and because the recession is affecting many countries, it provides a chance for increased demand for the products and hence the profitability of the firm increases. This can help companies to penetrate foreign market by taking advantage of deficit products and producing them.
However, it is not all investments and businesses that can be undertaken during a crisis and an error to embark on them can lead to serious consequences. The focus therefore should not be on short-term benefits of having to launch the business in a recession but also balancing this with post crisis planning on how you want the business to succeed. Some gains may be temporal and business may not be sustained over a longer period of time and as such serious scrutiny of the business must be undertaken to plan for the long-term objectives of the business. To the would-be investor, it is important that you are not profit driven by rather seen to provide what people need during and post-recession and this will help establish the company quickly and provide prospects of future growth and resilience. Don’t miss the opportunity, invest now!
Author: Nchimunya Muvwende (Economist)
OPIO, Egypt’s leading women’s clothing and lifestyle brand raises USD 300,000 seed round
OPIO, Egypt’s leading DTC (Direct to Consumer) everyday women’s wear brand has raised USD 300,000 investment in a seed round from AUC Angels, local and regional angel investors along with follow-on funding from Flat6labs Cairo.
Launched in 2017, Opio started as a digital native vertical, capitalizing on the long-abandoned Egyptian apparel industry and the surge in online shopping demand. OPIO commissions white label and toll manufacturing women’s wear apparel to different manufacturers and offers it to it’s ever growing customer base at affordable, competitive pricing through its digital platform www.opioshop.com
OPIO caters to people’s desire for simplicity. They seek to eliminate the hassle of researching brands and choosing from numerous options, to make the shopping experience more effortless. The company develops strong ties with local manufacturers, markets, and distributes their own products without using middlemen, which enables them to reduce costs, interact directly with consumers, and provide a seamless start-to-finish buyer’s experience.
“What I see in this market is a huge supply-demand imbalance.” said Shady Mokhtar the co-founder and CEO of OPIO, adding “Egypt has thousands of manufacturers with exceptional manufacturing capabilities yet, a total lack of modern day customers requirements, up to date fashion trends and marketing know-how, specifically in digital marketing practices.”
“On the other hand we’ve witnessed some jaw dropping internet penetration in Egypt the past 10 years, a hyper exposed gen Z, with very limited online offerings.”
“We’ve proven that we can develop a value proposition that can easily compete with international brands, Egypt is full of design and creative talent. Backing this up by relentless focus on customer experience we are confident that we can easily add a strong mark on the local and regional online fashion market.”
Added Reem Abdellaftif OPIO’s Co-founder, Creative Director and Designer-in-Chief.
Over the past couple of years, OPIO’s focus was in developing strong supply chain capabilities and bring onboard a team with a diverse caliber, from digital marketing specialists, to tech experts, as well as fashion design and creative teams. The company acquired talents from reputable e-commerce companies to gain a deeper insight into scaling.
Yaser El Khereji CEO of Albasateen trading company and one of OPIO’s lead investors, says, “We were impressed with Opio’s unique value proposition, We are planning on providing OPIO with the logistical infrastructure they need to set up a strong foothold in the GCC region. With a special attention to localizing the brand to further appeal to the target demographic.”
Mariam Kamel from AUC Angels said, “OPIO has been very responsive to market trends, both in terms of how it interacts with its clientele, and how it reacts to changes induced by the recent developments in the digitalization of the shopping experience. They’ve revised their business plan when they’ve needed to, and established key partnerships where it was beneficial. Shady and his team move fast, and always have news to share on what’s coming next.”
Opio addresses a unique market opportunity that manifested itself with the outbreak of Covid-19 and the major shift by Egyptians towards on-line transactions, the highest of which being in fashion (as highlighted by a MasterCard survey) and an strong team that share a passion for the fashion industry,
strong belief in the creative talent in Egypt, and the operational knowhow needed to deliver an a-class customer experience.
Flat6Labs is a true believer of the OPIO brand and the team behind it and is a proud partner and investor. “We stand behind the team as they take the business beyond borders and scale into a regional and an international brand”, commented Marie-Therese Fam, Managing Partner of Flat6Labs Cairo.
Issued by AUC Angels