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Through Crowd-Buying, Nigeria’s QluQlu and DealDey Save You Money. Both are Possible Acquisition Targets from Groupon and LivingSocial

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When Groupon – the U.S. based web behemoth – purchased Twangoo , a South Africa company, we felt that a new phase of M&A is starting in Africa.  Groupon is the undisputed global leader in the crowd-buying business where group of people get discounts for shopping at stipulated time and place. But after rejecting Google’s $6b acquisition offer, it has come through enormous competitions, from copy-cats. LivingSocial which has received good funding from investors is leading this charge.

So, it was not a surprise that Groupon with the massive funds in their disposals were moving global, especially Africa to luck threats. That was when it picked Twangoo – the leader in South Africa in this sector. With South Africa done, it must be Nigeria. That is where Qluqlu and DealDey come into play. Both are still young and expanding. Possibly, if they execute, Groupon or LivingSocial could acquire them. With their offers, you can get a 30-70% discount if you crowd-buy with others!  DeadDey is offering a 40% discount on retail fashion shop, 3stiches – right now.

How it works for QluQlu
1. Every week, we send out 2 or 3 emails with 30 — 70% discount on a service, product or experience in Lagos.
2. If you like it, click GET DEAL without delay to receive the coupon. Pay nothing upfront but act now because time limits apply.
3. Tell your friends about the discount so they can save too. The more friends you tell the better the discounts you get.
4. On a day of your choice, go to the Merchants with the coupon and pay the discounted price.

How it Works (DealDey)
Buy -Buy the deal by simply clicking the “Buy Now!” button. Remember that you have a limited time
Pass It On: Share the deal. Tell your friends “Deal Dey” so that you get the power of group buying. Share the deal via facebook, twitter, email or bb chat!
Experience – Experience the deal. Take your voucher to the business to enjoy your deal.

 

How do they make money? Through commission they share with merchants as they bring more customers to their stores. They are expanding and using the strong incentive-based referral system, these firms could just be bought over. Qluqlu is now covering Cote D’Ivoire, Kenya, Ghana, Senegal, Tanzania, and Uganda besides the home front Nigeria. DealDey is also moving national.  Is that the new phase of going global?

 

The innovation in these firms and why they could become successful is the structure they have implemented. Dealdey has a variety of many interesting payment options – ATM, Bank, Credit card. This is basically solving the key problem that stymies Nigeria’s e-commerce.

 

Tekedia will be covering these firms and we wish them goodluck.

 

 

Google Africa Incubator Project Will Benefit Nigerian Startups – Success in South Africa is The Key

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Google’s pilot incubator program, Umbono (Zulu for “vision” or “idea”) could become the game changer in Africa’s social media and mobile ecosystems, if it succeeds in South Africa. By starting in South Africa, Africa’s largest economy, Google plans to replicate the model in other countries if it succeeds. The most possible second place will be Nigeria considering our population and economy.

Through this program, South African startups will receive seed capital, mentoring and the network Google offers. Also, Google will help connect them to angel investors. To participate in this program, all participants must be legally living in South and Google will not provide much help in that regard if you are not. Unlike Massachusetts Mass Challenge in the United where anyone anywhere can apply and they will help in processing some papers if necessary, Umbono initiators will be not be giving much help in the visa aspect.

So, most Nigerians will properly not make use of this opportunity. However, all we need to hope is that it works in South Africa as Google will replicate this in Nigeria and possibly Kenya in coming months.

Tekedia thinks that Umbono will succeed because they are focusing on building local solutions. The focus is to help the participants transform their ideas into companies. This is also a penetration strategy for Google as everyone works hard to get the best in Africa. It is not just Google, Nokia, Blackberry and the hosts of the MNCs are finding ways to tap into the raw talents of Africans.

The incubator is designed as a 6-month program, in which five startups selected by Google panelists will receive a seed investment of $25,000 – $50,000, free access to office space, bandwidth and access to Google experts.  This is a great opportunity since this will help the participants to conceptualize product design and idea with the necessary resources. Of course, proving internet connectivity is just the beginning of the solution. Many will surely do well just by the fact they have access to the Internet.

Why South Africa?

South Africa is arguably the innovation center of sub-Sahara Africa. The The Cape IT Initiative, a technology non-profit has been lobbying many MNCs including Google to build their incubators centers in Cape Town. This has just paid off. There is indeed a cluster in this city with the likes of Silicon Cape – technology entrepreneurship program and the decade old Bandwidth Barn that actually helped South Africa to separate itself from other African nations in term of bandwidth. Then the biotech firms are all over this cluster. South Africa has a plan and executed.

This is business and not charity. Google will be looking at discovering opportunities and if the pilot program works, we will see more of this. That they started in South Africa is a testament of the nation’s infrastructure and its ICT startup success. The land Mandela built has established Yola – a website creator- that has raised $25 million and Twangoo – the crowd buying club firm – that Groupon recently purchased (qluqlu Nigeria should be next for Groupon in Africa?).  And of course, the big one, MXit, that has about 27m subscribers and counting. There is another one from my friend and pal, Marlon Parker, who I spent time last year in Amsterdam during TEDxAmsterdam, Jamixx – from his Rlabs. We discussed bringing that to Nigeria, but I passed it because of my lack of understanding the business of social media and networks.

Umbono Program Structure

6 Months

The Umbono program lasts for 6 months—enough time for your team to get your idea formally off the ground or to prepare your existing business for its next round of funding. By the end of the program, you’ll be pitch-ready and have a business plan in place.

Seed Capital

Teams should expect to receive a minimum of $25,000 and a maximum of $50,000. Capital from Angel investors will be exchanged for equity (10%) and will be governed by standard terms of investment (the same terms for each team). Funding will be disbursed around milestones; a customized schedule will be drafted with each team upon program induction, based on your anticipated development schedule. It is up to you to decide how to use the funds.

The Space

We provide the furnished office space and bandwidth for the duration of the program. This is a collaborative space for all Teams in the program, providing a forum for mutual support, idea sharing and tech talks.

Business Skills Training

Umbono Teams will have access to the Bandwidth Barn’s VeloCITI program. This program covers all business topics relevant to an emerging business, from business model definition to market segmentation and pricing strategies. The 10 business modules and 4 additional financial modules are led by external topic experts and business leaders. The sessions will take place on a rolling basis and Teams can participate in all modules or only those areas where they would like to build up more skills specific to the stage of their product development and enterprise.

The Mentor Base

For the duration of the Umbono Program, Teams will have regular access to our extensive network of business and technology experts, many of whom are Googlers. Umbono’s Mentor Base is extensive, so we are confident that we can connect you with an expert for any coaching needs, be it marketing, finance or product development-related. (See our People page for some examples of our mentors). In addition to that, each team will be paired with a Google Power Mentor, someone from our Product Management team, you will be in regular weekly contact with them throughout the 6-month program for hands-on guidance.

Visibility

All great stories need a platform for advertising their success. Association with the Umbono brand and resulting awareness at our networking events, blog posts, and press releases will provide Teams with reach to additional funding.

Google Nigeria Elections 2011 – Jonathan Has The Buzz

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Google now has a portal to track Nigeria Election 2011 in real time. It also has information on the polling stations. Unfortunately,  the number of politicians it is tracking is not much – just a few.

From the stats, Jonathan is badly beating the opponents under the metric Google used.

What do the numbers on the graph mean?

As expected, Google is also providing feeds from news sources in the portal. This is largely not the best Google can do. It is lazily done and the value it is adding is minimal. Hope time will come when Google will invest time and resources in Nigeria. It is even unable to list all the presidential candidates.  I do not know the value Google has created here.  Hiring few economists and students, Google can put more data and statistics in this portal and people will be armed with information to actually make voting decisions. That does not exist in this portal. Next time, Google must do better.

Tekedia Recorded 500+ Views Today, Five Days After Debut

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Notepad Pencil and Computer Laptop keyboard

The jury is back. After 5 days of media operation, we moved from 276 views in our debut day, Monday April 4, 2011 to 512 views today ( 1 hr, 30 minutes to go). We might have done better if not that our site had little hosting issues this afternoon. But we fixed them after about an hour – permanent fixed.

We promise to provide quality and real time technology news to Nigerians and possibly Africans. After the feedback we received from many of you, we added the Featured Posts so that you can pick the major posts since the frequency of our posts is pretty high. Please let us know how we can make this site yours and keep you engaged. Email us and we will surely listen. Again, our email is tekedia@fasmicro.com

Next week with bring interviews – one is a lady technology evangelist with some tech belts. You will hear from the Dean of a top engineering school in Nigeria. You will read some case studies on technology in Nigeria.

We will be here tomorrow – to help you connect the elections from the technology angle. Please keep coming!

Tekedia Will Attend Tech4Africa in ‘Burg, South Africa – Oct 2011

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Details are sketchy but Tekedia will attend Tech4Africa. The 2010 site is here. This means that Tekedia fans will get live coverage of this program. We will also be speaking in this conference in South Africa. More in coming weeks…

Benefits of the conference

  • Gain from global experience
  • Meet and interact with likeminded people
  • Learn what industry leading Africans are doing
  • Discuss global web and technology opportunities
  • Understand what technologies are making the biggest impact
  • Thrash out how the new web can play a positive role in Africa