Link Commerce offers a white-label solution for doing digital-sales in emerging markets.
Retailers can plug into the company’s e-commerce platform to create a web-based storefront that manages payments and logistics.
With the investment one of the world’s largest delivery services looks to build a broader client-base globally using a business built in Africa.
Folayan originally founded MallforAfrica, which paved the way for Link Commerce. DHL’s investment in the company — the amount of which is undisclosed — has roots in collaboration with Folayan’s original startup.
MallforAfrica began a partnership with DHL in 2015 and launched DHL Africa eShop in 2019. The sales platform is powered by Link Commerce and has brought more than 200 U.S. and U.K. sellers — from Neiman Marcus to Carters — online to African consumers in 34 countries.
Image Credits: DHL
Similar to MallforAfrica’s model, Africa eShop allows users to purchase goods directly from the websites of any of the app’s partners.
For the global retailers selling on Africa eShop, the hurdles that held back distribution on the continent — payments, currency risk, logistics — are handled by the underlying Link Commerce operating platform.
“That’s what our service does. It takes care of that whole ecosystem to enable global e-commerce to exist, no matter what country you’re in,” Folayan told TechCrunch in 2019.
Link Commerce was built out of Folayan’s startup MallforAfrica.com, which he founded in 2011 after studying and working in the U.S.
A common practice among Africans — that of giving lists of goods to family members abroad to buy and bring home — highlighted a gap between supply and demand for the continent’s consumer markets.
With MallforAfrica Folayan aimed to close that gap by allowing people on the continent to purchase goods from global retailers directly online.
MallforAfrica and Link Commerce founder Chris Folayan, Image Credits: MallforAfrica
The e-commerce site went on to onboard over 250 global retailers and now employs 30 people at order processing facilities in Oregon and the UK.
MallforAfrica’s Africa eShop expansion put it on a footing to compete with Pan African e-commerce leader Jumia — which went public on the NYSE in 2019 — and China’s Alibaba, anticipated to enter online retail on the continent at some point.
The Link Commerce, DHL deal won’t change that, but Folayan has shifted the hirearchy of his businesses to make Link Commerce the lead operation and Africa one market of many.
Image Credits: Link Commerce
“We changed the structure. So now Link Commerce is above MallforAfrica and MallforAfrica is now powered by Link Commerce,” Folayan explained on a recent call.
“Right now the focus is on Africa…but we’re taking this global,” he added.
Folayan and DHL plan to extend the platform to emerging markets around the world, where other companies may look to grow by wrapping an online store, payments, and logistics solution around their core business.
That could include any large entity that wants to launch an international e-commerce site, according to Folayan.
“Link Commerce is focused on banks, mobile companies, shipping companies and partnering with them to expand globally,” he said.
That’s a big leap from Folayan’s original venture, MallforAfrica.com
What began as a startup to sell brand name jeans and sneakers online in Africa, has pivoted to a global e-commerce fulfillment business partially owned by logistics giant DHL.
The economic effects of COVID-19 could delay Africa’s next big IPO — that of Nigerian fintech unicorn Interswitch.
If so, it wouldn’t be the first time the Lagos-based payments company’s plans for going public were postponed; the tech world has been anticipating Interswitch’s stock market debut since 2016.
For the continent’s innovation ecosystem, there’s a lot riding on the digital finance company’s IPO. After e-commerce venture Jumia, it would become only the second listing of a VC-backed African tech company on a major exchange. And Interswitch’s stock market debut — when it occurs — could bring more investor attention and less controversy to the region’s startup scene.
TechCrunch reached out to Interswitch on the window for listing, but the company declined to comment. The tech firm’s path from startup to IPO aspirant traces back to the vision of founder Mitchell Elegbe, a Nigerian electrical engineering graduate whose entire career has pretty much been Interswitch.
Africa’s tech scene is still fairly young, but it does have a timeline with several definitive points. An early one would be the success of mobile money in East Africa, with the launch of Safaricom’s M-Pesa in 2007. Another is the notable wave of VC-backed startups and founders that launched around 2010.
Interswitch CEO Mitchell Elegbe (Photo Credits: Interswitch)
With Interswtich, Elegbe pre-dated both by a number of years, founding his fintech company back in 2002 to connect Nigeria’s largely disconnected banking system. The firm became a pioneer of the infrastructure to digitize Nigeria’s economy.
Interswitch created the first electronic switch whereby Nigerian financial institutions could communicate and thereby operate ATMs and point of sales operations. The company now provides much of the rails for Nigeria’s online banking system.
In March, the virus gripping the world — COVID-19 — started to spread in Africa. In short order, actors across the continent’s tech ecosystem began to step up to stem the spread.
Early in March, Africa’s COVID-19 cases by country were in the single digits, but by mid-month those numbers had spiked leading the World Health Organization to sound an alarm.
“About 10 days ago we had 5 countries affected, now we’ve got 30,” WHO Regional Director Dr Matshidiso Moeti said at a press conference on March 19. “It has been an extremely rapid…evolution.”
By the World Health Organization’s stats Tuesday there were 3,671 COVID-19 cases in Sub-Saharan Africa and 87 confirmed deaths related to the virus, up from 463 cases and 8 deaths on March 18.
As COVID-19 began to grow in major economies, governments and startups in Africa started measures to shift a greater volume of transactions toward digital payments and away from cash — which the World Health Organization flagged as a conduit for the spread of the coronavirus.
Kenya, Africa’s leader in digital payment adoption, turned to mobile money as a public-health tool.
At the urging of the Central Bank and President Uhuru Kenyatta, the country’s largest telecom, Safaricom, implemented a fee-waiver on East Africa’s leading mobile-money product, M-Pesa, to reduce the physical exchange of currency.
The company announced that all person-to-person (P2P) transactions under 1,000 Kenyan Schillings (≈ $10) would be free for three months.
Kenya has one of the highest rates of digital finance adoption in the world — largely due to the dominance of M-Pesa in the country — with 32 million of its 53 million population subscribed to mobile-money accounts, according to Kenya’s Communications Authority.
On March 20, Ghana’s central bank directed mobile money providers to waive fees on transactions of GH₵100 (≈ $18), with restrictions on transactions to withdraw cash from mobile-wallets.
Ghana’s monetary body also eased KYC requirements on mobile-money, allowing citizens to use existing mobile phone registrations to open accounts with the major digital payment providers, according to a March 18 Bank of Ghana release.
Growth in COVID-19 cases in Nigeria, Africa’s most populous nation of 200 million, prompted one of the country’s largest digital payments startups to act.
Lagos based venture Paga made fee adjustments, allowing merchants to accept payments from Paga customers for free — a measure “aimed to help slow the spread of the coronavirus by reducing cash handling in Nigeria,” according to a company release.
In March, Africa’s largest innovation incubator, CcHub, announced funding and engineering support to tech projects aimed at curbing COVID-19 and its social and economic impact.
The Lagos and Nairobi based organization posted an open application on its website to provide $5,000 to $100,000 funding blocks to companies with COVID-19 related projects.
CcHub’s CEO Bosun Tijani expressed concern for Africa’s ability to combat a coronavirus outbreak. “Quite a number of African countries, if they get to the level of Italy or the UK, I don’t think the system… is resilient enough to provide support to something like that,” Tijani said.
Cape Town based crowdsolving startup Zindi — that uses AI and machine learning to tackle complex problems — opened a challenge to the 12,000 registered engineers on its platform.
The competition, sponsored by AI4D, tasks scientists to create models that can use data to predict the global spread of COVID-19 over the next three months. The challenge is open until April 19, solutions will be evaluated against future numbers and the winner will receive $5,000.
Zindi will also sponsor a hackathon in April to find solutions to coronavirus related problems.
Image Credits: Sam Masikini via Zindi
On the digital retail front, Pan-African e-commerce company Jumia announced measures it would take on its network to curb the spread of COVID-19.
The Nigeria headquartered operation — with online goods and services verticals in 11 African countries — said it would donate certified face masks to health ministries in Kenya, Ivory Coast, Morocco, Nigeria and Uganda, drawing on its supply networks outside Africa.
The company has also offered African governments use of of its last-mile delivery network for distribution of supplies to healthcare facilities and workers.
Jumia is reviewing additional assets it can offer the public sector. “If governments find it helpful we’re willing to do it,” CEO Sacha Poignonnec told TechCrunch.
More Africa-related stories @TechCrunch
African tech around the ‘net
Since its inception, Cape Town based crowdsolving startup Zindi has been building a database of data scientists across Africa.
It now has 12,000 registered on its its platform that uses AI and machine learning to tackle complex problems and will offer them cash-prizes to find solutions to curb COVID-19.
Zindi has an open challenge focused on stemming the spread and havoc of coronavirus and will introduce a hackathon in April. The current competition, sponsored by AI4D, tasks scientists to create models that can use data to predict the global spread of COVID-19 over the next three months.
The challenge is open until April 19, solutions will be evaluated against future numbers and the winner will receive $5000.
The competition fits with Zindi’s business model of building a platform that can aggregate pressing private or public-sector challenges and match the solution seekers to problem solvers.
Founded in 2018, the early-stage venture allows companies, NGOs or government institutions to host online competitions around data oriented issues.
Zindi’s model has gained the attention of some notable corporate names in and outside of Africa. Those who have hosted competitions include Microsoft, IBM and Liquid Telecom. Public sector actors — such as the government of South Africa and UNICEF — have also tapped Zindi for challenges as varied as traffic safety and disruptions in agriculture.
Image Credits: Zindi
The startup’s CEO didn’t imagine a COVID-19 situation precisely, but sees it as one of the reasons she co-founded Zindi with South African Megan Yates and Ghanaian Ekow Duker.
The ability to apply Africa’s data science expertise, to solve problems around a complex health crisis such as COVID-19 is what Zindi was meant for, Lee explained to TechCrunch on a call from Cape Town.
“As an online platform, Zindi is well-positioned to mobilize data scientists at scale, across Africa and around the world, from the safety of their homes,” she said.
Lee explained that perception leads many to believe Africa is the victim or source of epidemics and disease. “We wanted to show Africa can actually also contribute to the solution for the globe.”
With COVID-19, Zindi is being employed to alleviate a problem that is also impacting its founder, staff and the world.
Lee spoke to TechCrunch while sheltering in place in Cape Town, as South Africa went into lockdown Friday due to coronavirus. Zindi’s founder explained she also has in-laws in New York and family in San Francisco living under similar circumstances due to the global spread of COVID-19.
Lee believes the startup’s competitions can produce solutions that nations in Africa could tap as the coronavirus spreads. “The government of Kenya just started a task force where they’re including companies from the ICT sector. So I think there could be interest,” she said.
Starting April, Zindi will launch six weekend hackathons focused on COVID-19.
That could be timely given the trend of COVID-19 in Africa. The continent’s cases by country were in the single digits in early March, but those numbers spiked last week — prompting the World Health Organization’s Regional Director Dr Matshidiso Moeti to sound an alarm on the rapid evolution of the virus on the continent.
By the WHO’s stats Wednesday there were 1691 COVID-19 cases in Sub-Saharan Africa and 29 confirmed deaths related to the virus — up from 463 cases and 10 deaths last Wednesday.
The trajectory of the coronavirus in Africa has prompted countries and startups, such as Zindi, to include the continent’s tech sector as part of a broader response. Central banks and fintech companies in Ghana, Nigeria, and Kenya have employed measures to encourage more mobile-money usage, vs. cash — which the World Health Organization flagged as a conduit for the spread of the virus.
The continent’s largest incubator, CcHub, launched a fund and open call for tech projects aimed at curbing COVID-19 and its social and economic impact.
Pan-African e-commerce company Jumia has offered African governments use of its last-mile delivery network for distribution of supplies to healthcare facilities and workers.
Zindi’s CEO Celina Lee anticipates the startup’s COVID-19 related competitions can provide additional means for policy-makers to combat the spread of the virus.
“The one that’s open right now should hopefully go into informing governments to be able to anticipate the spread of the disease and to more accurately predict the high risk areas in a country,” she said.
Pan-African e-commerce company Jumia is adapting its digital retail network to curb the spread of COVID-19.
The Nigeria headquartered operation — with online goods and services verticals in 11 African countries — announced a series of measures on Friday. Jumia will donate certified face masks to health ministries in Kenya, Ivory Coast, Morocco, Nigeria and Uganda, drawing on its supply networks outside Africa.
The company has offered African governments use of of its last mile delivery network for distribution of supplies to healthcare facilities and workers. Jumia will also reduce fees on its JumiaPay finance product to encourage digital payments over cash, which can be a conduit for the spread of coronavirus.
Governments in Jumia’s operating countries have started to engage the private sector on a possible COVID-19 outbreak on the continent, according to Jumia CEO Sacha Poignonnec .
“I don’t have a crystal ball and no one knows what’s gonna happen,” he told TechCrunch on a call. But in the event the virus spreads rapidly on the continent, Jumia is reviewing additional assets it can offer the public sector. “If governments find it helpful we’re willing to do it,” Poignonnec said.
Africa’s COVID-19 cases by country were in the single digits until recently, but those numbers spiked last week leading the World Health Organization to sound an alarm. “About 10 days ago we had 5 countries affected, now we’ve got 30,” WHO Regional Director Dr Matshidiso Moeti said at a press conference Thursday. “It’s has been an extremely rapid…evolution.”
By the World Health Organization’s latest stats Monday there were 1321 COVID-19 cases in Africa and 34 confirmed deaths related to the virus — up from 463 cases and 10 deaths last Wednesday.
Dr. Moeti noted that many socioeconomic factors in Africa — from housing to access to running water — make common measures to curb COVID-19, such as social-distancing or frequent hand washing, challenging. She went on to explain that the World Health Organization is looking for solutions that are adoptable to Africa’s circumstances, including working with partners and governments to get sanitizing materials to hospitals and families.
As coronavirus cases and related deaths grow, governments in Africa are responding. South Africa, which has the second highest COVID-19 numbers on the continent, declared a national disaster last week, banned public gatherings and announced travel restrictions on the U.S.
Across Africa’s tech ecosystem — which has seen significant growth in startups and now receives $2 billion in VC annually — a number of actors are stepping up.
Image Credit: Jumia
In addition to offering its logistics and supply-chain network, Jumia is collaborating with health ministries in several countries to use its website and mobile platforms to share COVID-19 related public service messages.
Heeding President Kenyatta’s call, last week Kenya’s largest telecom Safaricom waived fees on its M-Pesa mobile-money product (with over 20 million users) to increase digital payments use and lower the risk of spreading the COVID-19 through handling of cash.
Africa’s largest innovation incubator CcHub announced funding and a call for tech projects aimed at reducing COVID-19 and its social and economic impact.
A looming question for Africa’s tech scene is how startups in major markets such as Nigeria, Kenya and South Africa will weather major drops in revenue that could occur from a wider coronavirus outbreak.
Jumia is well capitalized, after going public in a 2019 IPO on the New York stock exchange, but still has losses exceeding its 2019 revenue of €160 million.
On managing business through a possible COVID-19 Africa downturn, “We’re very long-term oriented so it’s about doing what’s right with the governments and thinking about how we can help,” said Jumia’s CEO Sacha Poignonnec .
“Revenue wise, it’s really to early to tell. We do believe that e-commerce in Africa is a trend that goes beyond this particular situation.”