S4E1 Grit & Growth | From Local Startup to Pan-African Success: The Beem Story

Taha Jiwaji's Entrepreneurial Journey

• Taha Jiwaji, founder and CEO of Beam, a Pan-African cloud communication platform, shares his entrepreneurial journey and the challenges of expanding a business beyond national borders.
• Initially, Taha started a small company in the US to send out event reminders via SMS for free pizza, but it didn't take off.
• After graduating, he worked for a large consulting firm in Los Angeles while experimenting with SMS marketing for his parents' computer business in Tanzania.
• Realizing the potential of SMS marketing, Taha quit his corporate job and returned to Tanzania to focus on growing his business.

Beam's Expansion into Africa

• Beam's growth was initially incremental until they received unexpected demand from customers outside Tanzania, prompting them to shift their focus to international expansion.
• Expanding into multiple African countries required Taha to establish relationships with local telecommunications companies and spend time in each market to understand the culture, policies, and nuances.
• Taha achieved Beam's expansion through iteration, leveraging relationships, and being agile and flexible in decision-making based on limited data.
• Taha built relationships on the ground in person to expand the business to Uganda, Burundi, Togo, Benin, and Senegal.
• There was no written strategy, but the goal was to enter as many countries as possible in a short time frame.
• They focused on frontier markets with less competition, avoiding larger markets like Nigeria and Kenya.
• Their differentiator was offering multiple countries to customers at the same time, which only a few companies were doing.
• They targeted solar energy companies and other technology businesses that relied on SMS and WhatsApp for customer service.

Challenges and Lessons Learned

• Only 30% of people in Africa have smartphones, so there is a large potential market for digital services.
• Key lessons for expanding across sub-Saharan Africa include grit, persistence, and faith in critical mass.
• Revenue models and cash flows should be considered from day one, as African businesses are notoriously slow payers.
• Mobile operators have varying payment terms, with some invoicing after six months and others requiring upfront payment.
• Fundraising was initially challenging due to a lack of understanding from investors, but the company decided to focus on organic growth instead.
• Beam found that the traditional VC model didn't work for their B2B sales model due to the time it takes to achieve product-market fit in new markets.
• Technology has become more affordable and accessible, leveling the playing field for small businesses and entrepreneurs.

Beam's Current Strategy and Future Plans

• Beam strategically expands into countries with existing competition, focusing on long-term prospects and regional hubs like Kenya.
• Beam operates with a lean team, registering businesses only when necessary to minimize regulatory burdens.
• As Beam grew and offered more sophisticated services, they realized the need to attract top talent.
• Beam faced significant retention problems, losing about half of their new hires and existing employees.
• To address this, they focused on creating a positive culture, fostering open communication, and providing opportunities for professional growth.
• Beam's strategy involves building a culture that attracts and retains raw talent, helping them develop their skills and advance their careers.