#116 Kimoyo: Is This African Startup Venture Backable?
Aug 30, 2023
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Former product design lead at Netflix, Mariam Braimah, founder of Kimoyo Insights, discusses the challenges of conducting user research in Africa and her goal to convince investors of the potential of the African market for data-driven products. The podcast also covers topics such as tech hubs in Africa, payment for research studies, and the dynamics of running a small business. In addition, Mariam provides an update on her fundraising decision, shares her experience with market sizing, and expresses optimism for the future of data in Africa.
Camoio aims to leverage its platform to help companies build better products for the African market by automating participant recruitment and qualification, addressing a key challenge in the region.
Camoio differentiates itself by using technology to reach participants faster and provide more efficient analysis of research data compared to traditional research agencies.
Deep dives
Challenging VC Funding for African Market
Mariam Brima, founder of Camoio, is up against the challenge of pitching a business that doesn't fit the venture mold and convincing investors about the potential of the African market. Camoio is a research analytics platform focused on gathering feedback from African consumers for global companies. They have created a platform that automates participant recruitment and qualification, addressing the problem of participant recruitment in African countries. Camoio has generated $115,000 in revenue, attracting clients like Microsoft and FlutterWave. They are currently raising a $1 million pre-seed round to automate the entire research workflow.
Market Potential and Expansion
Africa is a market experiencing rapid growth, with projections showing that by 2050, one out of every five internet users will be from Africa. It is home to one-third of the global population of youth. Camoio targets tech hubs in Nigeria, Kenya, Ghana, Rwanda, and South Africa, but plans to expand to consumer packaged goods as well. The retail spend in Africa is estimated at $1.4 trillion, with two-thirds of that being consumer packaged goods. Profitability margins in Africa are higher than in other regions. Camoio aims to leverage its platform to help companies build better products for the African market.
Revenue Model and Competitor Differentiation
Camoio charges $100 to $150 per participant for research studies, yielding a 70% profit margin. They have a revenue stream that allows companies to use their own participants for research, providing value beyond participant recruitment. Camoio's competitors are traditional research agencies that partner with smaller agencies on the ground, but these agencies are not using tech to automate participant recruitment. Camoio is differentiating itself by using technology to reach participants faster and provide more efficient analysis of research data.
Evaluation and Investor Feedback
Investors had difficulty evaluating Camoio's business model. They questioned the scalability and defensibility of a business that relies on renting people for research studies. Some investors expressed concerns about the valuation and potential return on investment in a project-based consulting type business. However, Mariam received interest from African investors and has raised an additional $37,000, valuing the company around $550,000. She plans to focus on revenue growth and product offerings that cater to customer demand and differentiation from competitors.
When Mariam Braimah led product design at Netflix she struggled to find participants in Africa to test new products. So she started Kimoyo Insights, a research analytics platform that helps companies like Microsoft & Flutterwave gather feedback from African consumers. But Kimoyo doesn’t quite fit the venture mold. Can Mariam convince investors to make a bet on user research in the data desert of Africa?