In November, Moniepoint became Africa’s newest unicorn, joining an exclusive group of startups valued at over $1 billion. This milestone is not just a win for Moniepoint but for Africa’s broader startup ecosystem, particularly in a year where funding has been harder to come by.

Moniepoint’s $110 million raise has sparked important discussions about the challenges and strategies of market expansion. Here’s what they had to say about their next steps:

“The opportunities that exist in Nigeria also exist in multiple countries. They are at different scales and levels of development; some countries are 10 to 15 years behind Nigeria, and very few are ahead. We are exploring our options to determine which ones are best for launching into new countries."

This statement perfectly captures a key conversation we’ve been having this year about scaling successfully. For startups looking to expand beyond their home markets, the question isn’t just how to grow, but how to adapt and replicate success across diverse regions. - Olumuyiwa (Writer & Contributor, African Pre-seed Podcast).  

🚀 More Markets, More Opportunities (and Challenges)

So, how can African startups successfully scale into new markets? Is it enough to replicate a winning model, or must they adapt to local conditions in each new region?

As Africa’s startup ecosystem evolves, scaling across borders is increasingly seen as the way forward. Moniepoint’s expansion beyond Nigeria exemplifies the larger conversation on navigating new markets in emerging economies. For any startup looking to scale, the key question is not just how to grow, but where and how to replicate their success in unfamiliar, diverse markets. Understanding each market’s unique complexities—whether launching a super app or a more specialized solution—is crucial for long-term, sustainable growth.

One approach, as Abraham Augustine points out, is to choose between two models: the geocentric model, which involves building a range of complementary products around a core offering (think super apps), or the heliocentric model, which focuses on solving a specific, targeted problem. In Africa’s fragmented markets, the choice between these models depends on how well startups understand local customer needs and market conditions.

🌍 Local Markets Hold the Clues

Scaling isn’t just about selecting the right model—it’s about understanding the nuances of each market. Take Nigeria’s fintech space, for example: though it may seem saturated, countries like Cameroon and Kenya offer fresh opportunities and different challenges. From navigating regulatory hurdles to fine-tuning products for local consumers, each market has its own dynamic.

Consider MDaaS, a Nigerian startup that expanded into Cameroon. By observing local diagnostic centers, MDaaS recognized key differences—slower service, a lack of digital solutions—and quickly adapted its offering to meet these needs. Their success wasn’t about creating a new product, but refining an existing one to address a specific local challenge.

As African startups look beyond their borders, the key to successful expansion lies in how well they tailor their offerings to new markets. Whether building a super app or providing a niche solution, understanding the complexities of each market will determine how well they scale across Africa.

👩🏽‍💻 Juggling Super Apps? Not Always the Best Strategy

One Substack writer weighed in on Moniepoint’s super app ambitions with a lighthearted analogy:

“We’ve seen this playbook before – African fintechs trying to be everything to everyone, building a super app that promises to solve all business problems from payments to inventory management. But history shows that building a multi-product fintech in Africa is like juggling while riding a bike – technically possible, but probably not the best use of your energy.”

📚 What Been Reading

  • Solar Power in South Africa: Recently, solar power has been a game changer in South Africa, helping to alleviate the country’s rolling blackouts. As Africa’s leading renewable energy market, solar provides valuable lessons for startup founders looking at financing models.
  • The Impact of U.S. Tariffs: With Donald Trump’s return to the White House, “tariffs” has been a buzzword in the news. While the U.S. takes the spotlight, other countries are also increasing tariffs on Chinese goods, reshaping global trade dynamics.
  • The Role of Telcos in Africa’s Tech Ecosystem: Africa’s telecom companies have been key drivers in building the continent’s tech ecosystem. Their success (and failure) across diverse markets offers valuable insights for startups trying to navigate the complex African landscape.

💥  Parting shot

What's on your mind? Drop us a note via connect@africanpreseed.com to let us know. Or, tag us on socials using #africanpreseedpodcast, #APSnewsletter or #APSVibeCheck.

That's it for now. See you next month! 😉