In search of growth and additional options to generate more revenue, businesses expand beyond their country of bases into other territories.
Scaling is a big deal in the African fintech industry, where we have seen different startups expand with various methods. Payment company Paga expanded to Ethiopia and attempted to do so in Mexico; Paystack is now in Ghana and South Africa. Unicorn, Flutterwave, who has scaled its payments products across sub-Saharan Africa, expanded its services up north to Morocco and Egypt and planning expansions into emerging markets such as the Middle East and Latin America.
And it’s not just for fintechs; expansions happen across business genres. In e-commerce, for example, popular internet marketplace Jumia first launched in Nigeria in 2012 and has since expanded to five other countries.
Scaling across borders is very important for businesses, but it has turned out to be an absolute head-scratcher. CEO of Paga Tayo Oviosu has a playbook on scaling, having attempted twice with one successful expansion. He gave tips from this playbook during a session at the Ecobank Fintech Breakfast Series in Lagos in March.