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InvestSure: Inspired by the need for investors to manage fraud risks that can be unforeseen – Mbulelo Mpofana

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From left- Ettienne Myburgh (Easy Equities), Mbulelo Mpofana, Carly Barnes (Easy Equities), Shane Curran and Ignatious Nkwinika.

Based in Johannesburg and founded by Shane Curran, Mbulelo Mpofana and Ignatious Nkwinika. InvestSure is a new insurance product that insures listed shares bought on participating trading platforms, against losses arising out of the deceptive or misleading acts of management of the company. The insurance is offered on shares listed on the Johannesburg Stock Exchange (JSE), with plans to insure shares in global markets in future. Investors can insure their shares as they buy them, as well as insure their existing portfolio. This product is a world first innovation, developed in South Africa and supported by global partners. In this interview with  Alaba Ayinuola  of Business Africa Online. Mbulelo Mpofana- Co-Founder & COO at InvestSure talked about the inspiration behind InvestSure, how they got funded and the future for their brand. Excerpt.

 

Alaba: Kindly tell us about InvestSure and the gap it’s filling.

Mbulelo: InvestSure is an insurtech startup that has developed APIs that enable share trading platforms to sell their unique insurance product. InvestSure has developed a world-first insurance product that provides shareholders protection against losses in the share price which are caused by management misleading and deceiving shareholders. The product is currently available on Easy Equities.

In the wake of the Volkswagen (VW) emissions scandal we noticed that the share price had dropped significantly, yet there was no recourse to investors who had invested in the company not knowing that VW weren’t all they made out to be. After that multiple similar events around the world prompted us to think that investors should have some kind of protection for these events.  Management fraud presents a difficult to manage and asses risk for investors (even sophisticated investors). It is often caused by deception on the part of trusted managers who are much closer to the business on a daily basis.

There was simply no accessible, simple and cost effective product to allow investors to protect themselves from the risk of being blindsided by management of the companies they invest in. We also think this product can make investing more accessible by simplifying the decision process and allow people to invest with more confidence, knowing they have this “sleep easy” cover.

On the tech side InvestSure provides a set of APIs that trading platform developers can use to integrate their insurance product seamlessly into their websites and applications. Once InvestSure’s technology is added to a trading platform, it enables users to easily buy insurance on their shares with a single click. The full process from buying to insurance to settling claims is fully automated.

 

Alaba: What was your startup capital and how were you able to raise it? 

Mbulelo: Entrepreneurs often talk about needing a bit of luck; we had our right at the beginning. We were very fortunate to partner with Hannover RE from a very early stage; the Africa region MD liked the product idea from the get go. They agreed to incubate and fund the founding team until we actually launched through their specialist insurance subsidiary Compass Insure. Compass is the insurer behind the product and is now also a shareholder in InvestSure. We also won R1-million at a pitch event run by AlphaCode, Merrill Lynch South Africa and Royal Bafokeng Holdings. The initial funding from Compass formed part of our recently announced R9.6m funding round.

 

Alaba: As a startup, what are the challenges and how are you overcoming them?

Mbulelo: We have been fortunate in many respects to have secured support from a multinational insurance giant at idea stage so our set of challenges are of a different nature than most innovative startups. For us the challenges included:

  1.  Navigating the internal processes of our partner companies; these can result in long delays and take up a lot of the founders’ time.
  2. Linked to the above, the other big challenge was the B-2-B aspect of the business, established companies move much slower than we were able to, especially on the IT and decision making sides, and this created some frustration for us as well as increasing time to market (and cash spent before getting to market).
  3. Managing the at time conflicting objectives of all partners and stakeholder to make the business relationship worthwhile for all parties, especially with a unusually low cost product like ours.  The insurance industry is still used to high distribution cost models.
  4. Client education, we’ve tried to make the product quite simple but there are still misunderstandings we find in terms of people getting what the product does, the value in it and how it’s different to things like put options.
  5. Awareness, spreading awareness of the product on a tight budget is always a challenge!

 

Alaba: What advice would you give potential entrepreneurs who intend to start a business or invest in Africa?

Mbulelo: There is a lot of advice from much smarter and successful people than me out there! I’ll stick to specifically insurtech were I have more experience and less has been said about.

Our advice for anyone trying to create a new product is to partner with an established player. This allows you the time to focus on the product design and development, rather than trying to deal with the insurance regulatory mine-field. You can always change direction once the product is established. It also allows you much easier access to flexible capital,  accessing their networks and relationships, instant credibility enhancement and tapping into internal expertise to name a few. I’ve found that more and more companies are seeing value in partnerships with disruptive innovators.

Investors in South Africa are much more profit focused and will look for shorter break even time frames over and above big opportunity. It is therefore important to manage costs down.

 

Alaba: What’s the future for InvestSure and what steps are you taking in achieving them?

Mbulelo: There is a ton of scope for us to grow in South Africa, we are looking to do this by increasing our penetration rate on Easy Equities (our first platform partner) and we are keen on signing up other trading platforms as well which will increase our accessible market.

We are also keen to take advantage of the uniqueness of the product by taking it to other markets; initially we are looking at Australia and the UK as markets with similar regulation and business culture as SA.

Alaba: How is your business contributing to the development of Africa?

Mbulelo: We are embracing the idea of “community” in the startup scene and engaging with many other founders as well as people who are interested. We have also actively sought to use our network to create opportunities for other startups e.g. at least one other startup has secured funding from our shareholders through our initial intro; quite a few others are in talks with them.

 

Alaba: What’s your view on the development of Africa InsurTech ecosystem?

Mbulelo: I think it’s small but high quality even compared to the US and UK. I see a lot of innovation around the intersection of hardware/devices and insurance in Africa and I think we can be a player in that space. I also think it’s growing especially as more corporate become open to collaborating and funding insurtech startups. Insurance has a very bad image and many insurtech’s are creating a fairer and more transparent version of doing things which I think will appeal to consumers more and more over time.

 

Alaba: How do you feel as an African entrepreneur?

Mbulelo: I’ve always wanted to be an entrepreneur so this is a dream for me. From an African perspective, I’m proud we could create something that has surprised even the global executives of a company like Hannover Re and bring a new insurance product to the global insurance market. Africans continue to innovate and create value though new products and business models so it shouldn’t be a surprise to people but for some reason it still is! Hannover Re South Africa itself is seen as the innovation sub for the group which is testament to the unique thinking and creativity in Africa.

 

Alaba: How do you and partners relax and what books do you read?

Mbulelo: Sports is a consistent passion across the team for sports, I more watch than play these days but Shane plays soccer like 2 or 3 times a week. We also like to travel and spend time with family. We tend to read a lot of business related books. I also like to read about politics and historical figures.

 

Alaba: Please teach us one word in your home language and your favorite local dish?

Mbulelo: Nkululeko- which means freedom in isiZulu, Freedom Day in SA is coming up on Saturday 27 April. Can’t pick an outright favorite but will mention two- Putu with Amasi and I also love Biltong.

 

Alaba: What’s your favorite holiday spot in your country?

Mbulelo: It changes over time but current would say rural KZN around the town of Port Shepstone and further down the coast. It’s really beautiful and still quite natural in parts. I also have family around those parts.

Also Read SMEs: Before you sign that deed of guarantee | Morenike Okebu

Bio’s:

Shane Curran- Co-Founder & MD

Shane is a Chartered Accountant (CA(SA)) who originally saw the opportunity to approach Hannover Re Group Africa with an idea for a new insurance product. He believes that investing in shares is crucial to enhancing one’s wealth over the long term, but that certain risks could seriously harm that long term wealth growth. In his personal time he enjoys soccer, reading, holidays and spending time with friends and family.

Mbulelo Mpofana- Co-Founder & COO

Mbulelo teamed up with Shane to develop this unique insurance idea after gaining 6 years insurance experience, covering most technical areas of the industry including actuarial, capital management and risk management. Mbulelo has an enthusiasm for entrepreneurship and loves finding pragmatic and practical solutions to challenging problems.

Ignatious Nkwinika- Co-Founder & CTO

Before designing and building InvestSure’s tech from scratch, Iggy gained over 14 years of experience as an IT Solutions Architect including over 6 years in insurance. He is passionate about technology development and finding innovative solutions within the insurance industry.

 

Visit InvestSure today!

 

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African Diaspora: The face behind the only Black woman founded and led ice cream brand in Amsterdam

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African Diaspora, Nekeia Boone is a senior UX and tech manager turned ice cream entrepreneur. Originally from Harlem, NYC, she created her brand, Tudy’s Kitchen in the midst of a burnout, family tragedies, personal health issues and a pandemic. Named after her Grandma Tudy, she dedicate this brand as a legacy to all that she did for others – and in gratitude to all that she’s done for her. Tudy’s Kitchen is a Black woman founded and led ice cream brand based in Amsterdam. Their flavors are a delightful surprise, turning traditions right side up. Sweet and savory is umami heaven in their book – and often the star of the show in their handmade desserts.

Tudy’s Kitchen is using fresh, locally-sourced ingredients, while creating business opportunities for underrepresented groups. Particularly womxn and people of color, is at the heart of what they do. As such, Tudy’s Kitchen has a strong bias to collaborate with people who come from these groups. And partner with entities who believe in these values, to help them build their brand.

Achievements

In just a few months, they have taken production literally from her kitchen into Kitchen Republic, a startup space aimed at helping food and drink entrepreneurs start and grow their businesses. 

Currently, Tudy’s Kitchen is sold at Sterk Amsterdam, a speciality shop with a host of unique international products. And coming soon, they hope to kickstart their own webshop, along with having their products available on a variety of delivery apps.

The above have already proven useful in helping them scale up production, gain greater brand awareness, and attach new customers. But limited funding has created several roadblocks in helping them fully realize these efforts.

Goals and timeline

In the first six months of launch, they’ve established two key goals:

  • Create brand identity and establish awareness.
  • Tap into opportunities that allow them to scale.

Their approach to scaling this business leverages the small-step philosophy. They are currently doing this by:

  • Setting small, measurable and achievable goals.
  • Quick roll out of product to the market.
  • Gathering data from customers to validate their efforts.
  • Then iterating, improving and rolling out again.

In taking this approach, they envision success at the end of the six-month period to include, but not limited to:

  • Boosting sales, having reached their target audience via multiple platforms (e.g. food delivery apps, new retail locations, Tudy’s Kitchen webshop).
  • Building their social media following to a minimum of 1000 new followers.
  • Increasing number of mentions in publications (e.g. digital or print), influencer pages (e.g. food bloggers), and/or other marketing mediums, creating an uplift in brand awareness and sales.
  • Expanding the team to include support staff (sous chef, cleaning crew, dedicated delivery service), more creatives (designers, writers, stylists), and operations (financial planning/analysis, logistics, strategists).
  • Generating enough data (e.g. via surveys, product reviews/feedback, etc) to establish goals for the following six-month period.
  • Creating financial stability for the brand to cover operational costs (e.g. rent, equipment, etc) and to pay the many volunteers the money they deserve for helping us get this far.

Let’s keep that momentum going strong and help them African Diaspora bring it home! Support her

 

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Margaret Adekunle, Founder of the first Black owned Canadian company with a branded secured credit card

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Margaret Adekunle is the Founder and Chief Executive Officer of City Lending Centers, a credit building solution company. She has worked in the banking industry for 20 years, and her passion for progress and dedication to her community has been universally praised by Friends and Colleagues alike. Margaret has seen the struggles immigrants face and experienced them firsthand. Driving her forward to take action and uplift her community, so that nobody will have to endure their struggles alone. She founded Immigrants Inclusive Credit to tackle the complex struggles with systemic racism and financial insecurities that immigrants are forced to adapt to as they integrate into the Alberta ecosystem.

A Diversity and Inclusion Strategist and the Founder of ATB Black team members Network. The network that advance the Inclusion of Black team members by providing development opportunities and creating diverse talents throughout the organization. Her vision is to create a pathway to leadership for all underrepresented groups.

Margaret Adekunle is committed to bringing Inclusion, Diversity, Human Right and a Sense of belonging to the forefront through education and community initiatives. Teaching and mentoring new immigrants on how to adapt to the Canadian workplace culture is a cause that has been fulfilling for her.

About City Lending Centers (CLC)

City Lending Centers (CLC) is a custom credit building solutions that help you take control of your finances. And helps you get a good credit score, and a high score means better loan terms and lower interest rates on lending facilities such as loans, mortgages, and lines of credit. CLC helps build new credit, improve existing credit scores and fix damaged credit.

With over 21 years of experience helping customers rebuild damaged credit, build new credit, get out of debt, and save more. A company of former bankers with branch management experience and equipped to advise on all areas of money management. They understand how credit scores work, and can help you improve your credit scores faster. Also, they understand that financial strain could impact mental health. Therefore, provide free credit counseling and mental health evaluations through their partners.

They offer a secured credit card that works like any other card that helps build credit. CLC’s secure credit card helps customers create new credit or rebuild damaged credit. The only difference between CLC’s credit card and regular credit card is that clients pay an upfront deposit to secure their credit limit. CLC reports all payments to credit bureaus similar to the bank’s process. Clients are be expected to make their monthly payments promptly.

 

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Shalom Lloyd: Building A Skincare Company on Valuing Healthy, Ethical and Sustainable Living

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Shalom Ijeoma Lloyd is an award-winning, senior business professional, with over 25 year’s experience in the pharmaceutical industry. Shalom is the Founder of Naturally Tribal Skincare, a natural chemical-free skincare company built on valuing healthy, ethical and sustainable living whilst empowering African women. She holds several NED positions on the Milton Keynes Chamber of Commerce and SEMLEP boards. Alaba Ayinuola had an amazing opportunity to ask Shalom a few questions. Time to discover Naturally Tribal.

 

Alaba: Hi Shalom, could you briefly tell us about your journey into entrepreneurship?

Shalom: In 2014, after four cycles of IVF, I gave birth to my twins, Joshua and Amara. My son Joshua was covered in eczema. As a pharmacist I understand the value of medicines in our life, but I tapped into my African roots. After experimenting and mixing in my kitchen, I stumbled across the right formulation. Three days later Joshua’s skin cleared and this was the birth of my company Naturally Tribal Skincare.

With Shea Butter being my main ingredient, this journey led me to build a Shea Butter processing facility in Niger State, Nigeria, where we employ and empower our women. In addition to being a supplier of proudly made in Nigeria Shea Butter, I source my ingredients ethically from there, and then bring them into the UK to manufacture, formulate, test and distribute the finished products.

Today, Naturally Tribal Skincare is stocked in Harrods Beauty. So, if you are looking for quality unrefined Shea butter and great natural skincare products, Naturally Tribal Nigeria is able to supply that.

Naturally Tribal Skincare Products Group Shot

I am also one of the directors of JE Oils, a state of the art Shea processing facility based in Gwagwalada, Abuja!

In 2018 I co-founded another amazing company called Emerging Markets Quality Trials. Although black people represent about 17% of the world’s population, less than 3% of us are involved in clinical trials, so this company, eMQT, focuses on bringing diversity into clinical trials. It gives African patients access to medicines and African healthcare professionals the opportunity to be part of global trials. It also gives pharmaceutical companies access to a great patient population.

So all roads in my entrepreneurial journey seem to lead back to Africa, which makes me proud of my British African heritage.

Alaba: What are your offerings and the problem you are solving?

Shalom: Our offerings and solutions are;

The Nature lover: Our products speak to the nature lover who is passionate about plant-based power. These are the natural skincare lovers, the vegan and cruelty free skincare lover who is passionate about our environment and planet. 

The luxury skincare and beauty lover: We speak to and cater for the results driven and luxury skincare lover who appreciates our use of ingredients with the power to battle wrinkles and tighten the skin naturally.

For skin conditions: With around 900 million people in the world suffering with a skin condition, skin diseases remain a major cause of disability worldwide. We are changing the narrative and will be the leading global natural skincare brand for customers with skin conditions as well as customers who want to maintain their skin as nature intended. From consumers with skin conditions to those undergoing medical interventions that will impact the skin.

Alaba: What is your main product and its pivot story from founding to the current state?

Shalom: YARA Body Food is the product that started Naturally Tribal Skincare so I guess you can call this our ‘hero’ product. YARA is special because it worked for my baby and gave me the confidence to start the company. Hence, the name YARA which in Hausa means children. It depicts love, care, protection; making it amazing for the most sensitive skin. Made with high quality unrefined Shea butter, our YARA is packed with natural goodness. It annoys me when we sometimes turn our noses at the scent of the liquid gold that is Shea Butter not realising the jewel we have.

Alaba: How have you attracted users and grown your company from the start?

Shalom: When customers see us, they can see themselves as part of our journey because it’s not about the glitz and glamour but more about the substance. The value one brings to the table and the impact we have on skin, on our planet and on people’s lives.

Hard work, tenacity, resilience; these are not just words! We have a long way to go but having the right people with the right mindset and who share my passion has helped the company grow. When you do something that solves a problem, impacts lives, and have fun in the process, that is a winning formula. On the business side, understanding my numbers (which does not come naturally). Defining my supply chain and knowing one’s position in a crazy, beautiful saturated market helps a lot.

Today, Naturally Tribal Skincare is a proud United Kingdom Department of International Trade Export Champion!

Alaba: What are the challenges and achievements since you launched?

Shalom: Finance was of course the main challenge. I had to remortgage my home to start this business but it has been worth it. Building the factory in Essan required investment and I am honoured to be working with investors who are also colleagues and friends. I wish I had mastered communication and people skills earlier in life. Involving and working with the right people from the start would have saved me a lot of pain. But going through this process throughout my journey has taught me some valuable life lessons.

Shalom and the NTN Essan Team

The greatest achievement is seeing the proud look on my husband and children’s faces. That feeling that the sacrifice has been worth it. 2021 is the year our products launched in Harrods and that is such a big deal for me and my amazing team. We are exporting more, and have been able to complete the formulation of our facial and hair care products.

Alaba: Why are you so passionate about Nigeria and Africa at large?

Shalom: Naturally Tribal Shea butter supply chain is an impressive demonstration of my love and passion for Africa. It has been a journey of ‘Ethical Sourcing and Empowerment’ Pillar. The Shea industry supports and provides income to over 16 million women across the African continent.  My research into potential supply sources led us to Niger state, Nigeria and an introduction to the King of Essan. I fell in love with the Kingdom of Essan and today, the Naturally Tribal group has a Shea Processing facility (with creche and worship rooms) that harvests and processes the shea directly in the region, employing about 22 rural women with plans to employ up to 70 in the future.

JE Oils Gwagwalada

Our JE Oils shea processing facility boasts of the fact that all our supervisors are women which is a big deal in Nigeria. Having a facility that produces 400 metric tons of shea butter is no joke! This has created an ecologically sound and sustainable infrastructure, jobs, training and more commercial co-operative opportunities to market and sell shea butter.

Essan Nut Collection

Alaba: Can you share 3 things that most excite you about the modern beauty and wellness industry?

Shalom: We are more aware of the impact we have on our planet, more aware of consumerism. So the modern beauty industry is on a journey to impact the 120 billion units of unrecyclable plastic we put out annually. Of course, making money is important, we run businesses after all however, It’s not just about making money it’s also about purpose and impact. We no longer look at wellness as a separate topic, we have made beauty, particularly skincare part of one’s holistic wellness – don’t forget that your internal wellness can manifest on your skin.

Alaba: Where do you see yourself and Naturally Tribal in the next 5 years?

Shalom: Our pipeline is exciting, and we are currently working on our facial and hair care products, using innovative and unique ingredients. We are building even stronger relationships with our current stockists. Looking to grow and expand into the Hospitality industry, partner with great luxury SPAs and make great inroads into being stocked in airline duty free luxury goods.

In 5 years time, I see myself, taking a bit of a back seat and overseeing others running my companies. Enjoying the fruits of my labour with my family and friends.

Alaba: Finally, what is your advice to female entrepreneurs in the beauty industry or first-time startup founders?

Shalom: The journey is tough so do something you are passionate about. NEVER let the lack of finance stop you. Align with the right type of people, be genuine, surround yourself with a great team (no one knows it all). Most of all, ENJOY the ride, bumps and all. The beauty industry is so saturated, so be unique. Let your passion shine and come through. Know your numbers and know the value you bring – never sell yourself or your products short. If you are going to do it, do it well and don’t cut corners.

 

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