Kenya’s tech start-ups: Too fast, too furious?
Too fast, too furious; overly ambitious mind-set is some of the quotes said about the recent trend of tech start-ups that have either closed shop completely or have scaled down operations in Kenya. Celebrated start-ups such as Kune Foods, Notify Logistics, WeFarm, BRCK, Sendy, and Sky-Garden are among those that have hit a snag, what exactly is going on, and what can be done to change the course of the tech ecosystem in Kenya? Joining CNBC Africa for more is Kamal Budhabhatti, a tech founder and CEO of Little Cabs and Craft Silicon.
Fri, 29 Sep 2023 14:39:43 GMT
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AI Generated Summary
- Founders need to tailor strategies to the African market and avoid 'copy and paste' approaches from the West
- Adaptability and agile strategies are key to responding to market conditions and sustaining growth
- Customization of products and consideration of market demand are essential for long-term success in the region
The tech start-up ecosystem in Kenya has been a topic of discussion lately, with a number of once-promising companies either closing shop or scaling down operations. Celebrated start-ups like Kune Foods, Notify Logistics, WeFarm, BRCK, Sendy, and SkyGarden have all faced challenges that have led to their setbacks. To shed light on this trend, Kamal Budhabhatti, the tech founder and CEO of Little Cabs and Craft Silicon, joined CNBC Africa for an interview. Budhabhatti highlighted some key reasons for the failures seen in the sector, emphasizing the need for a more tailored approach to the African market. One of the main issues identified was the tendency for founders to adopt a 'copy and paste' strategy from the West, which may not always be suitable for the unique conditions in Africa. Lack of market research and the discontinuation of funding at critical stages of growth were also cited as contributing factors. Budhabhatti stressed the importance of adaptability and agile strategies to respond to market conditions effectively. Companies that were able to pivot and adjust their strategies were more successful in navigating challenges. Furthermore, Budhabhatti pointed out that rapid scaling without considering market demand and profitability could lead to unsustainable growth, ultimately resulting in failures. He highlighted the need for founders to thoroughly research and customize their products for the target market to ensure long-term success. Reflecting on his own experience operating in multiple markets, Budhabhatti emphasized the importance of product-market fit and customization. As the tech start-up landscape in Kenya continues to evolve, Budhabhatti urged VCs and investors to reassess their approach to working with African start-ups. He suggested that VCs should adapt their investment strategies to better align with the realities of the African market, recognizing that growth and returns may differ from Western counterparts. In conclusion, while the recent setbacks may have raised concerns among investors, Budhabhatti remains optimistic about the opportunities in the region and encouraged entrepreneurs to approach their ventures with a more nuanced understanding of the local landscape.