A busy week for tech entrepreneurs in Kenya

A photo posted by Ciril Jazbec (@ciriljazbec) on


National Geographic photographer Ciril Jazbec was in town capturing the tech entrepreneur feel of Nairobi and surrounds.

I’m about a week late on my post, but thought I’d round up some of the news from the crazy week that ended with the Global Entrepreneurship Summit (GES) in Nairobi. With US President Barrack Obama in town, bringing some of the biggest names in tech and business with him, it was bound to be a circus.

We embraced the madness at the iHub and there were a great many events.

One of the highlights for the week was seeing our very own Judith Owigar, co-founder of Akirachix and long-time iHub member, up on stage seated between President's Uhuru and Obama on the main GES stage.

One of the highlights for the week was seeing our very own Judith Owigar, co-founder of Akirachix and long-time iHub member, up on stage seated between President’s Uhuru and Obama on the main GES stage.

Big things that happened:

Bloomberg came by and did a photo walkthrough of the iHub, featuring Ushahidi and BRCK as well.

There was a good piece in TIME magazine about Obama’s visit and BRCK’s work around education, titled, “Obama Sees Kenya as a Hotbed of Innovation — Not Terror

A timely piece on TechCrunch titled, “The Rise Of Silicon Savannah And Africa’s Tech Movement” came out.

VC funding in African Tech Startups chart

The Next Africa bookThe Next Africa book launched, written by Aubrey Hruby and Jake Bright, we had a session at the iHub to talk through it with some of the subjects, like Just A Band, Dr. Bitange Ndemo and IBM.

We did a Fireside Chat with Brian Chesky, co-founder and CEO of AirBnB, that was one of the best we’ve had.

A piece in Forbes, “Why Kenyan Tech Entrepreneurs Deserve All Obama’s Praise“.

IBM partnered with the iHub to launch the innovation @ iHub space, so we’ll be working a lot closer with them going forward and that means members of the iHub community will get a lot more access to IBM, its partners and its resources.

Jean and Steve Case at the iHub
Jean and Steve Case, AOL Founders and investors, came to the iHub and ran a social impact tech pitching competition. They brought with them other investors, including Jim Sorenson, and Nina Tellegen CEO of the DOEN Foundation. Here’s Jean’s writeup on the week.

Finally, the US Gov’t made a lot of commitments to African entrepreneurs.

While it was a big week, and it served to remind us how far we’ve come and a chance to celebrate it with the world, we still have a long way to go.

BRCK: Also designed in Kenya and made in the USA. We had a little fun at BRCK with the Obama activity... :)

BRCK: Also designed in Kenya and made in the USA. We had a little fun at BRCK with the Obama activity… :)

Sendy: Digitizing Motorcycle Deliveries

Motorcycle couriers in Timau, Kenya

Motorcycle couriers in Timau, Kenya

This year at Pivot East I had my first look at Sendy, which does for motorcycle courier deliveries and customers in Nairobi, what Uber did for taxis and passengers in San Francisco. At its heart, Sendy is about bringing the vast and growing motorcycle courier and delivery network in Africa into the digital and networked world.

Motorcycles in downtown Monrovia, Liberia

Motorcycles in downtown Monrovia, Liberia

This is a big deal, because those of us who live in large African cities know just how inefficient driving a car around the traffic-plagued metropolises can be. With the bad roads, traffic and high cost of fuel, motorcycle deliveries are a natural path.

Indeed, in almost every city, from primary to tertiary throughout the continent, you’ll find thousands of motorcycle guys sitting by the side of the road, ready to courier a package or serve as a taxi. They ride inexpensive $800-$1200 Chinese and Indian motorcycle brands, are generally not trained very well, have little safety equipment and are some of the most reckless riders I know.

When Alloys Meshack, Sendy’s CEO, stepped onto stage for his 7-minute pitch, I was hooked. It sounded like the right team, a good business plan, and one that could scale well beyond Nairobi. I met with him again this month, and got into a lot more details around the business, and this encouraged my thoughts on both him and his team, as well as the broader scope of the business that they are building. It is truly impressive.

How it Works

Sendy delivery - Android app screenshot

Sendy delivery – Android app screenshot

I also signed up for the service, and then used it.

It’s as simple as this:

  1. Download the Android app, or sign-in to the web app at Sendy.co.ke
  2. Click the button that you have a delivery (or pickup) to be made.
  3. You can see the map for where the rider is – my wait was approx 5 minutes for the courier to arrive
  4. Give him the package and directions

There is a GPS transponder on the motorcycle, and you get an SMS update when the delivery rider gets withing 50m of the delivery zone. Once the package is delivered, there is another confirmation that the rider sends to Sendy, that comes to you as well. Payment is then made automatically by either credit card or Mpesa.

My delivery took about 25 minutes, from first Android app entry, to delivery about 5km away. At the end, you can rate your delivery rider, so that the best are known and get more business. I found my particular rider courteous and patient. He also told me that he makes about 5-6 deliveries a day with Sendy, and loves the service.

Challenges and Opportunities

The Sendy opportunity in eCommerce

The Sendy opportunity in eCommerce

With Africa’s growing need for logistics around eCommerce, Sendy presents a natural option for everyone from Jumia to your local supermarket. Motorcycles are already an accepted means of delivery for non-traditional business and large enterprises alike. The idea of capturing a large portion of this, without all the baggage of a normal courier company setup, is good for both Sendy and the everyday bodaboda/courier guy.

There are a couple hurdles to overcome to make this a simple process to onboard new customers, receive payment and then send payment to the courier riders. Unlike the US or EU, not everyone has a credit card, and the mobile payment options don’t allow for “pull” billing (instead, the customer has to “push” a payment to your service), which is clunky.

Sendy has corporate accounts (which is now used by both BRCK and Ushahidi), and for businesses, finding a good payment process isn’t a problem. However, there will need to be some creative thinking for individuals and small businesses in order to make Sendy as painless as it promises to be.

The service verifies the courier riders, keeping their records on file, and providing the necessary technology for both tracking of motorcycle and communications with the rider. This means that qualified riders are picked, lessening the chance of getting robbed, and the ability to rate a courier creates a system that builds trust over time.

The opportunities that Sendy represents are staggering. I encouraged Meshack to get Nairobi right quickly, then scale up and move beyond into other major cities in the region.

Sendy is raising a seed round of investment. If this opportunity is interesting to you, you should reach out to them.

The Ground is Barely Scratched: Pivot East 2012


(Thanks to @zulusafari for the images today)

“The ground is barely scratched”, quipped Rebecca Wanjiku, a local tech infrastructure entrepreneur and iHub advisory board member, on stage today at Pivot East. And she’s right, there are a wealth of opportunities in the region. When asked “Why are there so many apps being built in Kenya?”, Kenya’s Permanent Secretary for Info and Comms Bitange Ndemo said, “Because we have so many problems to solve.”

While the iHub might be about innovation, Pivot East is about finding the tech startups with high-growth potential in the region and putting them on stage in front of investors, media and businesses. It’s about finding “what’s next” in East Africa’s vibrant mobile tech scene. Chances are, the best of these startups are providing highly innovative and disruptive solutions.

The startup scene in East Africa has moved wildly beyond where it was even two years ago when the iHub started. Those trying to raise funds for a new company have all of the resources they need at their disposal, including spaces to work with fast bandwidth, mentors and investors that cover the funding spectrum. If the last couple years was about building the ecosystem, this year is about the startups proving themselves and building products.

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Day one of Pivot East is over, and we’ve had a lot more fun than we should be allowed to have. How to find out more and follow for day two tomorrow:

Overall Thoughts

It’s interesting to see how this Pivot East is different than last year’s Pivot 25 (by the way, we changed it to Pivot East so that our friends in South and West Africa could use the brand to do their own events). It seems like the bar has risen, that the pitches are better delivered, that the ideas are a little more sound and business plans are more thought through.

This makes sense, as there has been an influx in pitching and hacking competitions over the last year and people have seen the bar from last year and want to do better themselves. On top of that, the startups in East Africa have had a lot more face-time with investors, who provide pressure to think more deeply about the important questions related to running a business, not just building a cool product.

My friend Michael Duarte, of Duarte Design – the team behind some of the most impressive presentation designs in the world, spent 3 days with the Pivot East finalists last week helping them to hone their decks and tell a story that would resonate with the audience. It’s worked wonders in the way the decks look, as well as the confidence that the startups have when they pitch.

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This year we’ve put the investors into the same area as the judges, allowing both to ask questions and grill the startups. This has turned out surprisingly well, allowing the people with the most interest to ask pointed and meaningful questions.

We’ve had some fantastic pitches thus far, but it’s only day one, so we’ll have 10 more hit the big stage tomorrow. Exciting times!

Fireside Chats

Intermixed between the pitches are “fireside chats”, our fancy term for panels of real movers in different parts of the industry. We try to keep them lively by bringing a good moderator in, and this year TV personality Eric Latiff from KTN has proved to be an outstanding one, making sure we’ve got some lively commentary and tough questions being asked.

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One of my favorite panels was when we had Bob Collymore, CEO of Kenya’s Safaricom on the same stage with Hakim Moi, the CEO of Zain South Sudan. It was a real treat to hear the difference in the way an incumbent mobile operator speaks about their market versus a new one in Africa’s newest country. There’s a lot of opportunity in both countries, but they come from completely different edges of the spectrum.

A particularly interesting challenge was voiced by Bob Collymore on the difficulties of large mobile operator’s on the innovation front. He’s interested in having a “Director of Innovation” in the organization, someone that comes from the outside and on the edge, who can work directly with him to ensure that not only Safaricom, but the rest of the people and organizations within their sphere are thinking broadly about disruption and creating ways for new, small and innovative companies to better interact with each other.

Pivot East: East Africa’s Startup Pitching Competition

Mark your calendars, buy your tickets, submit your applications!

We’re ramping up to the Pivot East pitching competition, where the best startups in East Africa come to show what they have, pitch their startup to investors, media and the judges for a chance to win the prize money.

Pivot East will be held at Ole Sereni Hotel in Nairobi, June 5th and 6th. Last year we had over 100 applications for the 25 slots, and we’re expecting even more after seeing how well Pivot25 did last year (writeups by TIME Magazine and CNN). Last year we saw startups from Kenya, Uganda, Rwanda and Tanzania, and this year we’re hoping to see some from South Sudan and Somalia as well.

WERE2011_PIVOT25-1610

Categories

As last year there are five categories, each of which will have five startups that will pitching in them. If you think you have a prototype, a deck and a business plan to wow everyone with, let’s see it. Applications are open.

  1. Financial Services
  2. Business and Resource Management
  3. Entertainment
  4. Mobile Society
  5. Utilities

Getting more information

Pivot East is put on by the m:lab East Africa, an incubator for startups in the mobile apps and services space. All profits go to support the facility. This year support comes from Samsung, and we’ll be announcing a few more big names in the coming weeks. If you’d like to be one of them, contact us.

If you have any questions, we’re having a meeting a Baraza at the iHub on Monday the 6th of February from 2.30pm to 3.30pm. If you’re a startup wanting to know more, or are media or an investor, come by and talk to the organizing team.

[Note: for more on last year’s here is my blog post retrospective.]

UPDATE:
The Pivot East Team will be coming to Uganda on the 20th February 2011 at Makerere. You can book your tickets for the event on the link below:

http://pivotuganda.eventbrite.com/