Kennedy Ekezie is the Founder and CEO of Kippa Africa, a fintech startup that’s revolutionizing digital payments for small businesses in Nigeria. In under two years, Kippa has secured over $10 million from global fintech investors, breaking ground in the industry.
But for Ekezie, raising funds is not a measure of success for a startup.
Notwithstanding, he believes startups need funding to scale, and in doing that he is of the view that African startups must de-emphasize foreign funding and look inwards for investments.
In this interview with Nairametrics, the founder of Kippa Africa speaks on the success factors for startups, the dwindling funding, and what tech entrepreneurs need to do to stay afloat in a tough operating environment like Nigeria. Excerpts:
Nairametrics: You are among the youngest founders in Nigeria, What inspired you to embark on this journey at such an early age?
Kennedy Ekezie: Great question. When I was finishing my graduate program in 2020, I was unsure about what to do next. When I returned to Nigeria, I was 21 years old and my brother and I decided to start a company.
I believed that building a company was the best way to apply my skills and potential in a meaningful way.
The journey of making that decision and working to solve problems has led me to where I am today. Being one of the youngest founders is not something I focus on.
I’ve been fortunate to have many opportunities from a young age, thanks to the gift of education and the support of my parents.
I believe it’s about the opportunities you receive and what you do with them. I’ve been lucky to have many opportunities at a young age, and that’s why I embarked on this journey early.
Nairametrics: In two years, your company has raised $10 million, what is the catch for Kippa?
Kennedy Ekezie: Well, firstly, I think it’s important to clarify that fundraising is a milestone, but it doesn’t necessarily define the success or uniqueness of a company.
However, in our case, we are operating in a large market in Nigeria. There is a significant segment of small businesses that form a substantial part of our economy, employing 80% of our workforce and constituting 96% of all businesses.
The potential that exists in this market is immense, and the fact that we have been able to raise $10 million shows the global recognition of this potential.
Startups in Africa are still underfunded compared to the opportunities available, so our ability to raise this amount is significant. The catch for Kippa lies in the market we are building for and the problems we are solving.
Nairametrics: With the recent developments in the global economy, there is this concern that fundraising will slow down for African startups, do you share this concern?
Kennedy Ekezie: There is a global capital meltdown happening right now, and fundraising has slowed down for startups worldwide, including in Africa.
While it may be harder to raise capital in the current market, we are also seeing more local venture capitalists starting to invest in African startups.
So, while external funding might become more challenging, the growth of local investors is a positive trend. Ideally, we want to rely less on outside funding and have more local investors supporting African startups.
Nairametrics: There is this saying that for every 1 successful startup, there are 10 others that are unsuccessful. From your experience building a successful startup, what makes a startup successful, and what could make a startup fail, especially in an environment like Nigeria?
Kennedy Ekezie: It’s challenging to define success for a startup in Nigeria, particularly in terms of exits and IPOs.
However, in the context of the problems we are solving in our communities, we believe successful startups are those that create impact and generate economic prosperity for the people they serve.
To achieve success, a startup needs to find product-market fit, which means aligning the founder’s vision with the market’s needs.
Many factors can lead to failure, such as a lack of market fit, macroeconomic challenges, an inability to charge customers, difficulty in hiring and retaining talent, and more. In the early stages, startups face numerous challenges.
All of those things are working together simultaneously all at once to try to make you feel. So, you’re juggling many balls and none of them have to drop
Nairametrics: Kippa operates in a digital payment landscape with several other players, what is the competition in this space like, and what makes you stand out?
Kennedy Ekezie: I would say that the competition is not as intense as people think. There is still a dearth of players in this space, and more competition is ultimately beneficial for customers and fosters innovation.
What sets us apart is our focus on building excellent software specifically designed for small businesses.
We understand this demographic well and have spent significant time with them to develop software that meets their needs and helps them run their businesses effectively.
While there are other players in this market, we believe we provide a superior solution for micro-businesses in Nigeria.
Nairametrics: What would you consider the challenges of operating in Nigeria for a company like yours and how are you able to navigate through them?
Kennedy Ekezie: The biggest challenges we face are the lack of capital and the scarcity of talent. Capital is essential for business growth, and it can be particularly challenging to secure funding in Nigeria.
Additionally, economic policies and inflation can significantly impact the cost of doing business overnight. Nigerian consumers are incredibly price-sensitive, which makes it crucial for us to offer competitive pricing while ensuring quality.
Navigating these challenges requires us to find a balance between running a sustainable business and meeting the price expectations of our customers.
Nairametrics: What is your approach to customer acquisition and retention? How do you attract and retain users in a competitive market?
Kennedy Ekezie: We acquire users through online channels, leveraging platforms like WhatsApp, Instagram, and Facebook, where many small businesses are already active.
We also benefit from a good amount of virality, as our users refer others to our product. However, retention is equally important.
We focus on providing excellent customer service and ensuring prompt responses to any complaints or queries.
We are continuously working on improving our operational capabilities to deliver excellent service even as we scale.
Nairametrics: How do you approach innovation and staying ahead of the curve in the fintech sector? Are there any plans for future product or service expansions?
Kennedy Ekezie: Innovation is at the core of what we do. We spend a lot of time understanding our customers and their evolving needs. We prioritize customer feedback and use it to guide our product development.
We also conduct accessibility tests and gather user feedback before launching new features to ensure we are meeting their expectations.
As for future plans, we have already expanded our product offering beyond the initial bookkeeping app. We are now licensed by the Central Bank as a payment service provider for small businesses.
We now provide payment acceptance solutions, business registration services, and various features to help businesses manage their inventory, suppliers, customers, and more.
We will continue to launch and build products that address the needs of our customers in the coming years.
Nairametrics: What is your assessment of the fintech industry in Nigeria?
Kennedy Ekezie: We’re seeing a lot of fintechs now because we realize there are important problems that can be solved.
I think that on an innovativeness front, honestly, fintechs are a little bit limited in this part of the world because of the price sensitivity of the customers.
We also do not have a sizable middle class in Nigeria that can buy the products that most fintechs are building, so there is a bit of limitation on the sort of products we can build.
Despite these challenges, I believe the fintech industry in Nigeria is poised for further expansion.
Where do you see Kippa in the next 5 years? Are there plans to expand your operations beyond Nigeria?
Kennedy Ekezie: In the next five years, we envision Kippa becoming the leading digital platform for small businesses not only in Nigeria but also expanding our operations to other African countries.
We aim to solidify our position as the go-to solution for micro-businesses, offering comprehensive financial management tools and services. We are building with a pan-African approach.
Our goal is to empower small businesses across the continent, enabling them to thrive and contribute to their respective economies.
While we are focused on Nigeria at the moment, we recognize the potential for expansion and the need to address the financial needs of micro-businesses in other African markets.
Nairametrics: As a young CEO, what leadership principles or strategies do you follow to effectively manage and inspire your team and drive the company’s growth?
Kennedy Ekezie: Firstly, I believe in leading by example and modelling the behaviour and work ethics I want my team to imbibe. I strongly believe in intellectual humility.
This includes being open to feedback, admitting mistakes, and continuously learning and growing. We also try to invest in learning and development, and this is something we can do a better job at.
This is not just for the management but for every single person on the team, including interns. In terms of inspiring them, I think we inspire by doing and not just saying.
I also prioritize clear communication and clarity, ensuring that the team understands the company’s vision and goals. I have learnt over the last 2 years that the best gift a leader can give is clarity
Nairametrics: There are many young Nigerians out there nursing the same ambition of founding their own companies and becoming like you, what is your advice for them?
Kennedy Ekezie: My advice to aspiring young entrepreneurs is to stay true to themselves and their passions. Figure out what it is you’re deeply interested in and what you would be interested in the next 10-20 years.
It is important that you understand what you’re cut out for and what matters to you, as that feeds into what kind of founder you go unto become.
Zeal without knowledge of yourself will make you fall short. Figure out your zone of brilliance, the thing that you like and can do better than most people, and do that.
Don’t focus on what’s hot and trendy because that changes frequently. Identify a problem or opportunity that resonates with you and aligns with your values.
Also, not every company should be a venture-backed company. If you can build a business that’s not venture-backed and grow that meaningfully, try to do that.
Nairametrics: If you knew then what you know now, would you have changed anything about your journey so far?
Kennedy Ekezie: Looking back on my journey, I wouldn’t change a thing. I honestly believe that my journey is destined by God.
The mistakes I made were to allow me to learn more about myself and prepare me for the challenges I would face in the future.
I think my journey so far has been in perfect alignment with God’s will for my life.