There is a new business model that will rule the 21st century, anchored on the unbounded and unconstrained distribution channel of the internet, delivering near-zero marginal costs with territorial conquering scalable advantages. More than 80% of leading digital technology companies have deployed it.
In this piece, I present the elemental relationship with a video, on Aggregation-Integration Construct, explaining at a deeper level what is going on. The digital empires of the future will be anchored on this Construct.
Looking at the integration part, I make a case that only the integration of customer relationship at scale within platforms can enable new basis of competition. And when new basis of competition is created, the outcome is typically disruptive at scale. The video is below.
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Case Study #1: Flutterwave is winning the fintech space with aggregation and integration. They are signing global deals and using APIs to bring a fintech unification in the continent. Following the announcement of a $250M Series D funding last week, Flutterwave, unveiled a significant re-brand and identity at Flutterwave 3.0, a virtual event held on Friday, 18th February 2022. During the Flutterwave 3.0 event, the brand launched a series of products, including; a Fintech as a Service solution, Capital, Grow, Checkout and Card issuing as well as additional improvements to existing products. Friday’s event sees Flutterwave affirm its commitment to exploring more areas of growth for businesses, startups and individuals.
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A Fintech as a Service (FaaS) solution which helps startups of all sizes quickly become Fintech companies using Flutterwave’s pre-built API and solutions.
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Capital, a technology platform for businesses & consumers to access Buy Now Pay Later (BNPL) & Merchant lending from regulated and certified credit providers.
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Grow, a B2B product that helps entrepreneurs easily incorporate their businesses globally.
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Checkout, a new checkout experience that is 5x faster, reducing drop-off by 60%.
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Card issuing, technology platform to enable businesses to issue both Mastercard virtual and physical debit/prepaid cards to their customers in partnership with Mastercard. These solutions remain subject to regulatory approval.
It plans to become the fintech operating system of Africa.
Case Study 2: From everything, one thing is evident, Flutterwave is using its one oasis (the paytech API) and is capturing value via a multiple play strategy. Yes, this goes beyond a double play strategy.
When you combine One Oasis and Aggregation-Integration Construct, great things happen. Yet, the moments remain as even Flutterwave has not captured much value.
If you use Flutterwave total $16 billion in five years, on average, it is doing $3.2 billion per year. That $3.2 billion covers 34 countries. If we assume that it is doing 50% in Nigeria, the implication is that every year, Flutterwave processes less than $2 billion worth of transactions in Nigeria. (Note: this is average)
So, if you have $301 billion (which might have grown to $320 billion) and the largest firm is doing $2 billion, what does that tell you? Nothing has happened. We can have ten Flutterwaves! Keep building people and Tekedia Capital will be here to support.
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Did I just read Flutterwave is winning the fintech space? Nooo, nobody is winning yet, we are not at that level. The numbers show that anyone can launch and take the lead position, depending on what the new player will be bringing.
There are finer details I will avoid going into, but anyone still building or planning to build should carry on, the space is still virgin, because the frustration remains huge…