Oct 31, 2024

By  |  October 31, 2024 Originally slated to unfold at Moonshot 2024 , where “Building for the World” headlined discussions, my conversation with Maya Horgan-Famodu, Founder and Managing Director of Ingressive Capital which has seeded some of Africa’s most successful startups, continued despite a clash of schedules. As it turned out, the timing couldn’t have been more relevant: African founders are increasingly looking beyond their home continent, eyeing global markets for growth, sustainability, and competitive edge. *** For African tech founders, breaking out of local markets and going global has gone from aspirational to essential. While expanding internationally is not without challenges, the benefits of tapping into a broader market can be transformative. “The data is clear,” Maya tells WT. “Our portfolio companies that expanded globally are raising significantly more capital and growing nearly twice as fast as those focused solely on local markets.” Maya’s Ingressive Capital, through its USD 10 M Fund I and USD 50 M Fund II, has backed leading startups such as Paystack , which was acquired by fintech heavyweight Stripe for over USD 200 M, as well as fast-growing businesses like Mono ( Series A led by Tiger Global and Y Combinator alum), Carry1st ( Series A led by Andreessen Horowitz , Google, Riot Games & AET), among others. The allure of global reach: Why founders are looking abroad From Moove and Flutterwave to Kuda , Asaak , and Bamboo, which today announced expansion to Canada , Africa’s most ambitious tech companies are increasingly eyeing international markets. Their leaders have recognised that global demand offers greater potential than remaining within local boundaries. Maya points to companies like Paystack, whose early strategic focus on infrastructure laid the groundwork for international success and made them attractive for international acquisition. “Their initial 18 months were dedicated to building a strong local foundation, achieving a 95% success rate in local payment processing before expanding abroad.” “Paystack’s global ambitions and execution made them attractive for international acquisition while maintaining strong local market leadership,” she adds. Several African founders have followed a similar blueprint, including Andela ’s co-founder Iyin Aboyeji, whose developer training platform began in Nigeria before becoming a talent hub for global companies like Microsoft and Google. Aboyeji’s experience echoes the evolving landscape: while local success is critical, it often serves as a stepping stone for greater reach. The real potential, he and other African founders have found, lies in building products with universal appeal rather than limiting scope to the complexities of African markets. But there are barriers to going global Despite the compelling success stories, building for the world isn’t without its unique obstacles. Customer acquisition costs in developed markets can be three to five times higher than those in African markets, Maya observes. Additionally, African founders face challenges around establishing international networks and securing working capital for global expansion. “Most African founders are still building their international networks,” says Maya, adding that these founders often lack access to the resources that Silicon Valley counterparts may take for granted. Furthermore, Victor Asemota, a notable Nigerian tech veteran and thought leader, believes that “building for Africa is hard” due to the continent’s diverse languages, cultural divides, and underdeveloped, fractured markets. Asemota’s advice? “Don’t build for Africa, think global.” He argues in a somewhat prescient 2018 musing that founders should prioritise creating products that transcend geographic and cultural boundaries. African diversity, while often a celebrated strength, can complicate scaling efforts, Asemota opines. He figures building for global markets can help African startups avoid being restricted by regional constraints and appeal to a much broader audience. “I believe that the African opportunity is not in Africa. It is more about what Africa can do for the world and not what the world or Africans can sell to Africa,” he writes. Building the foundations locally—And why that matters Maya and other investors urge a balanced approach: develop a strong base locally but plan and prepare for global expansion from day one. Companies like Flutterwave and Chipper Cash embody this “glocal” strategy. Both brands first gained traction by solving specific local payment problems, then scaled internationally by applying their operational insights to global markets. Flutterwave, for instance, facilitated USD 16 B in transactions by 2022 and now serves markets beyond Africa, proving that African companies can thrive both at home and abroad. Maya emphasises the importance of using Africa as a proving ground, a place to refine solutions in challenging environments. “Africa’s digital economy is projected to reach USD 712 B by 2050,” she says, “but founders don’t need to choose between local and global markets.” Rather, a foundation of operational excellence locally can be a launchpad for global competitiveness. Local focus meets global ambition Balancing global aspirations with local relevance can be tricky. African startups, especially those in fintech and asset finance, often encounter different regulations, consumer behaviours, and infrastructure in global markets. This is often a drag but could also be advantageous sometimes. Asaak, an asset financing startup from Uganda, expanded into Mexico last year, where they found that credit demand and lending interest rates paralleled Africa’s needs, but local regulations and infrastructure were more conducive to scaling their business. On its part, Nigerian-born Moove, a vehicle financing startup for ride-hailing, has found greener pastures in Asia and the UK and recently entered the US and Mexico, having soared but also suffered on the homefront where it faced economic and operational difficulties . According to Maya, a winning approach lies in maintaining a high standard of core functionality that addresses local needs while adding global layers. This “layered” strategy, she notes, involves “using local success as a proof of concept for global expansion” and adapting business models to meet diverse market demands. Andela’s initial model is another case in point: by training African software developers for global clients, they not only addressed local employment needs but also eventually met worldwide demand for highly skilled professionals, as Andela ultimately morphed into a global marketplace for tech talent hiring. From local Champions to global players: The playbook As the founder of Nigeria’s first female-owned tech fund and one of the youngest to launch a venture capital (VC) fund in Sub-Saharan Africa, Maya says her mission centres on guiding African founders to balance local impact with global expansion. Her work spans multiple initiatives: Ingressive for Good, a nonprofit focused on cultivating technical talent for African startups, and Ingressive Advisory, a firm that has helped over 50 international companies enter African markets. This approach has attracted international capital, with 80% of Ingressive Capital’s limited partners managing their own later-stage funds. She also tells WT that the VC fund has achieved a Distributed to Paid-In (DPI) ratio greater than 1x, implying the fund has returned more money to investors than they originally invested. “Our approach combines deep local understanding with a global perspective,” Maya explains. “We’ve created thousands of jobs across Africa, achieved notable exits, and maintained strong portfolio performance. But what really matters is helping founders navigate both local realities and global opportunities.” This balance of strong local roots and global bridges, she notes, allows Ingressive to connect authentically with young founders, fostering innovative solutions that resonate locally and globally. Maya recommends that to set themselves up for global success, African startups need a careful mix of adaptability, resilience, and resourcefulness. Maya identifies three critical areas: World-Class Execution: Companies must focus on delivering exceptional product quality, customer experience, and robust operational systems. Strategic Market Entry: Maya advises founders to prioritise partnerships with local experts when entering new markets. “Founders who understand customer needs and establish local partnerships have a competitive advantage,” she explains. Clear Unit Economics and Transparency: International investors are increasingly interested in African startups but require operational transparency and strong unit economics to build trust. “The most successful capital raises we’ve seen share a common approach,” Maya says, “founders invest significant time in building relationships with investors before actually raising capital.” Building for the World As African startups continue to grow in ambition and capability, their journey is inspiring a new generation of founders who see the value in building globally. In Maya’s words, “It’s not a matter of choosing between local and global; it’s about building solutions that can thrive in both.” Her advice rings especially true in light of recent successes which demonstrate how an “Africa-first” mindset is no longer a constraint but an advantage when combined with global thinking. While building for the world may present unique hurdles, African tech’s impact is expanding, taking homegrown ideas to new markets and showing that solutions created on the continent can meet demands well beyond its borders. Most Read