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Alerzo Believes they Can Build Another Lagos in Ibadan

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By Sam Adeoye

At this moment in time, long, hot traffic jams are becoming a thing in Ibadan. The folks who live in that city are half-proud of this congestion because it sorts of presents them with a shared experience with the too-cool-for-school Lagosians. On the other hand, however, they desperately hate it because the whole point of Ibadan is that it’s less insane than Lagos — hustle-wise.

But my point with this article isn’t about the hustle or the bustle. It’s about the likelihood of replicating the vibrant tech ecosystem of Lagos in another Nigerian city. In this case, Ibadan.

You might think I’m only being delusional with this idea, but one brilliant start-up is suggesting that it is indeed possible to build a tech giant from over there. This start-up, ladies and gentlemen, is called Alerzo.

If you’ve never heard of Alerzo, consider yourself forgiven. I myself only knew of it last week when I had a conversation with the serial entrepreneur and start-up mentor known as Opeyemi Awoyemi. As you may recall, Mr Awoyemi has been a cofounder of some tech juggernauts, namely Jobberman, Whogohost, TalentQL, and Moneymie.

In the course of our chat, I asked Opeyemi this question: Now that Lagos has attained this reputation as Africa’s most vibrant start-up hub, is it possible to replicate the success of Lagos elsewhere within Nigeria?

As it turned out, this was a question he’d been giving a lot of thought. So, to me, he immediately said, Well, it depends. “Name a city and let’s talk about it.”

To which I said, “Ibadan.”

“Brilliant,” he said.

See, Ibadan has a lot going for it. One, it is West Africa’s largest city. It is also close to Lagos — just about 120km. Besides, one of Nigeria’s most active universities, as far as tech entrepreneurship is concerned, is only 75km away from Ibadan. I’m talking about the Obafemi Awolowo University, Ile Ife, aka OAU. Some of Nigeria’s best-funded tech companies were founded or cofounded by OAU alumni. Nomba (formerly Kudi), Farmcrowdy, 54Gene, SlimTrader, and PropertyPro are some of those companies.

Two, operating in Ibadan is considerably cheaper than it is Lagos. For instance, a four-room duplex in suburban Ibadan will rent for N1.8 million per year. Take a similar location in Lagos and the same property won’t cost you less than N3 million.

Then, there’s the new rail line that makes it easy to be headquartered in Ibadan and never miss ecosystem meetups and corporate meetings in Lagos. When the Lagos-Ibadan expressway is finally completed, it too should further shorten the distance between the two cities.

In the meantime, no other company is making better use of Ibadan’s remarkable standing than Alerzo.

Founded by Adewale Opaleye in 2018 to help small retailers stock their shops directly from manufacturers, Alerzo has raised more than $20 million in its seed and series A rounds. And it got some pretty savvy investors behind it, too. Big names such as the Africa-focused accelerator, Baobab Network; the Singapore-based Signal Hill; the London-based Nosara Capital; FJ Labs; and several family offices from Europe, Asia, and the US have put major money behind Alerzo, according to reporting by TechCrunch.

Opaleye, who is himself a native Ibadan man and the son of a mom-and-pop shop owner, has said his big idea for Alerzo came from watching his mother’s “many challenges”. The old lady, he said, ran two stores while raising four kids. So, Opaleye told TechCrunch, “I decided to start a business that uniquely catered to the needs of retailers just like her.”

While solving a problem close to home might sound pretty cool, the coolest part of this man’s idea is that it doesn’t even bother to recruit clients from Lagos, at least not yet. Yes, it does have a “Lagos Hub” in Victoria Island, but it has concentrated its business on Ibadan, Abeokuta, Ekiti and other towns like them in Southwest Nigeria. The company refers to these locations as Tier-2 to Tier-4 cities.

In just three years, Alerzo says its customer base has now expanded into about 100,000 small business in these towns. Through Alerzo, these retailers receive supplies from mega consumer goods manufacturers like Dangote, Nestlé, Procter & Gamble, and PZ Cussons.

Isn’t that something? Who would have thought that a billion-dollar tech-enabled logistics and FMCG supply company could spring from slow-paced Ibadan? I mean, for years, if you’d asked any of the thousands of young people relocating from Ibadan why they were hightailing it to Lagos, Nigeria’s most crowded metropolis, their answer was always direct and fast: “there’s no money in that town.”

Now, thankfully, it appears that things can be different. It’s just that for things to actually change, people would have to make them… change.

This is what Opeyemi Awoyemi was talking about. “Each State [of Nigeria] can look at the situation of the economy and decide what they want to be,” he said to me.

That’s indeed true. And pretty straightforward, too. There’s just so much that Lagos can do for Nigerian entrepreneurs. Because its resources are limited, competition for those resources will continue to drive up the cost of starting, and running, a business here. Which then presents an extraordinary opportunity to neighbouring States — for a start, Ogun and Oyo (which has Ibadan as its capital). These States can choose what role they’d like to play in this flourishing tech economy.

In this new era of WFH and remote employment, for example, all barriers to talent location are crashing down. Both TalentQL— the tech staffing recruitment portal, and uLesson — the on-demand tutoring company — have proven that, if you can set up Wi-Fi there, you can situate your software engineers and designers there. It doesn’t matter if it’s the pristine locality of Ile-Ife down in the south or the chilly hills of Jos, near the country’s centre.

And with Alerzo, the eye of the government should open to the truth about enabling environments for tech enterprise. Sometimes all it takes to encourage new ventures is an acceptance of new thinking. That and a transportation system that works, dedicated real estate layouts, and (or) tax breaks. When you make your place conducive for creators, and make sure they hear about it, and they’ll come.

Today, we talk about Nigerian start-ups being Delaware (USA) companies. There’s a reason Delaware became the go-to American state to register new corporations. As Mr Awoyemi said, Delaware decided what it wanted to be and it went straight for it.

Hopefully a Nigerian governor or one of his aides will read this article. Hopefully, it will start a conversation in their cabinet. Hopefully, they will do something life-changing with it.

 

 


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E-Business

Confronting the Google Monolith: Survival Strategies for Online Businesses

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By Reuben Kalu.

In the vast expanse of the digital realm, Google looms large, an omnipresent force shaping the way we navigate, search, and conduct business online.

From its humble beginnings as a search engine to its current status as a multifaceted tech behemoth, Google has entrenched itself deeply into the fabric of the internet.

Its influence is undeniable, its reach unparalleled, and its ubiquity seemingly inescapable. But can you truly run an online business without Google?

The answer, in today’s digital landscape, is a resounding no. You have no choice.

Google’s dominance extends across multiple facets of the online world, making it virtually impossible for businesses to thrive without engaging with its ecosystem.

From search engine optimization (SEO) to online advertising, email services to analytics, Google’s suite of products and services permeates every aspect of the online business landscape.

Attempting to operate without Google is akin to swimming against a relentless tide, fighting an uphill battle fraught with obstacles and limitations.

At the heart of Google’s influence lies its search engine, the gateway through which billions of internet users navigate the vast expanse of online content. .

Google’s search algorithms wield immense power, determining which websites rank prominently in search results and which languish in obscurity.

For businesses seeking to attract organic traffic and expand their online presence, optimizing for Google’s search algorithms is not merely advisable—it’s imperative.

But Google’s influence extends far beyond search. Consider Google Ads, the company’s advertising platform that enables businesses to reach targeted audiences through paid search, display, and video advertising.

With billions of searches conducted on Google each day, Google Ads provides unparalleled reach and visibility, allowing businesses to target potential customers with pinpoint accuracy.

Attempting to compete in the online advertising arena without leveraging Google Ads is akin to entering a battle unarmed—a futile endeavor destined for failure.

 

Moreover, Google’s suite of productivity tools, including Gmail, Google Drive, and Google Workspace, has become indispensable for businesses seeking to streamline their operations and enhance collaboration.

With seamless integration across devices and platforms, Google’s productivity tools offer unparalleled convenience and efficiency, empowering businesses to work smarter, not harder.

Attempting to eschew Google’s productivity suite in favor of alternative solutions is not only impractical but also unwise, depriving businesses of the tools they need to succeed in today’s fast-paced digital landscape.

Furthermore, Google Analytics stands as the gold standard for web analytics, providing businesses with invaluable insights into their online performance and audience behavior.

From tracking website traffic and user engagement to analyzing conversion metrics and customer demographics, Google Analytics offers a comprehensive toolkit for optimizing online marketing strategies and driving business growth.

Attempting to gauge online performance without leveraging Google Analytics is akin to flying blind, devoid of the critical data needed to make informed decisions and drive meaningful results.

But perhaps the most formidable aspect of Google’s influence lies in its role as a gatekeeper of information and access.

With billions of users relying on Google’s platforms and services each day, the company wields immense control over the flow of online traffic and the dissemination of information.

For businesses seeking to connect with customers and expand their reach, Google’s dominance presents both a tremendous opportunity and a formidable challenge.

Attempting to circumvent Google’s influence and establish an online presence independent of its ecosystem is a Herculean task, fraught with uncertainty and risk.

In essence, attempting to run an online business without engaging with Google is akin to swimming against a relentless tide, fighting an uphill battle fraught with obstacles and limitations.

While alternative platforms and solutions exist, none possess the ubiquity, reach, and influence of Google’s ecosystem.

To thrive in today’s digital landscape, businesses must embrace Google’s dominance and leverage its suite of products and services to their advantage. You have no choice.

In conclusion, Google’s pervasive influence permeates every aspect of the online business landscape, making it virtually impossible to escape its grasp.

From search engine optimization to online advertising, productivity tools to web analytics, Google’s ecosystem encompasses a vast array of products and services that have become indispensable for businesses seeking to succeed in the digital age.

While alternative solutions may exist, none possess the ubiquity, reach, and influence of Google’s ecosystem.

To thrive in today’s digital landscape, businesses must embrace Google’s dominance and leverage its suite of products and services to their advantage.

You have no choice.


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Hydrogen Hosts Catalyst Workshop, Highlights Resilient Business Models for Fintech Startups

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As part of its mission to empower African businesses with tools needed to thrive, garner admiration, and foster global acclaim, leading payment solution company, Hydrogen Payment Services Company Limited (Hydrogen), recently partnered with the Co Creation Hub (CcHub), to host the latest edition of the Catalyst workshop in Lagos.

The discourse addressed the potential risks and opportunities for startups and saw experts advise participants on the need to develop resilient business models that would scale across different economic climes.

Moderated by Miracle Ezechi, Digital Marketing Manager, Hydrogen, the panel session addressed dominant issues about the theme: ‘Adapting Fintech Business Models to Economic Climes: Flexibility, Agility and Customer-centricity’.

Mr. Emeka Awagu, Chief Technology Officer, Hydrogen, who spoke as a panellist, addressed the issue of customer-centricity, which according to him, is key to Fintech growth.

He advised startups to listen to customer demands and understand their needs in order to develop the right solutions that will lead to long term market viability.

“Innovation is key for startup growth. However, understanding customers’ needs and change in behaviour will help any startup to innovate better.

“Startups must be flexible and agile to develop solutions with high interoperability and processing speed, and they must be ready to learn from startups that have failed,” Awagu said.

With an estimated 61.07 percent of startups failing, the participants stressed the need for prudence.

“Statistically, a staggering number of startups fail, often due to financial mismanagement. Hence, founders must prioritise understanding and maintaining a healthy the Cost-to-Earnings ratio.

“It is not just a number, but a pivotal indicator of a company’s financial health as well as being a key attractiveness determinant for investors,” Awagu added.

On his part, Ina Alogwu, the Group Director, Digital Transformation, ARM HOLDCO, who also spoke as a panellist at the session, stressed the need for startups to develop sustainable products and solutions that will help them remain competitive in an environment that is faced with harsh economic realities.

“Many startup businesses fail within their first five years, however upcoming startups should not be discouraged, rather develop a culture that will encourage them to understand the reasons for failure and learn from mistakes.

“Startups should not be too rigid with their solutions and should be ready to accept changes that will drive innovation,” Alogwu stated.

Hydrogen will be deepening its economic impact series with a webinar planned for Thursday, April 25, even as businesses across Africa continue to face an array of challenges, ranging from inflation and currency fluctuations to rising operating costs.

Themed ‘Navigating Economic Challenges: Strategies for Sustainable Growth,’ the webinar will delve into key areas critical for businesses to not only survive but thrive in the face of economic adversity. Register using this link – https://bit.ly/Hydrogenwebinar.

Esteemed panellists for this event include Taofik Odukoya, CEO, Vanguard Pharmacy, and Okechukwu Odimgbe, Chief Financial Officer, Hydrogen. The session will be moderated by Nnenna Sam-Obioha, Ecosystem Orchestrator, Hydrogen.

 


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Dexude Secures Funding to Revolutionize Education in Nigeria, Beyond

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Dexude, a leading edtech platform with operations in Nigeria, has announced that it has been awarded the prestigious Business Finland TEMPO funding.

Dexude Secures Funding to Revolutionize Education in Nigeria, Beyond

Charles Emembolu, founder of Dexude,

This significant funding injection marks a pivotal moment in Dexude’s journey towards transforming education through its AI-powered, live-first, expert-led, and community-driven platform.

The Business Finland TEMPO funding is specifically designed to support startups and SMEs aiming for international growth by building their expertise and solutions into international success stories in innovative ways.

Dexude’s commitment to innovation, coupled with its vision to enable a billion learners worldwide, aligns perfectly with the objectives of the TEMPO funding.

Commenting on this milestone achievement, Charles Emembolu, founder of Dexude, remarked, “We are incredibly honored and excited to receive the Business Finland TEMPO funding. This funding is not only a validation of Dexude’s mission to reinvent education but also a testament to the hard work and dedication of our team. With this support, we are poised to accelerate our efforts in democratizing access to quality education and empowering learners across Nigeria and beyond.”

L-r; Kelvin Chikezie, co-founder of Dexude; Kashifu Inuwa Abdullahi, Director-General/CEO of the National Information Technology Development Agency (NITDA); and Charles Emembolu, founder of Dexude

Kelvin Chikezie, co-founder of Dexude, added, “Securing the Business Finland TEMPO funding is a significant milestone for Dexude. It underscores our commitment to leveraging technology and innovation to revolutionize the way people learn and grow. We are grateful to Business Finland for believing in our vision, and we are excited to embark on this next chapter of Dexude’s journey.”

Dexude is on a mission to redefine education by providing learners with access to influential experts and thought leaders, live interactions, and a vibrant community-driven learning experience.

Through its platform, Dexude aims to break down barriers to learning and empower individuals to pursue their passions and unlock their full potential.

 

 

 

 


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