Social commerce is a rapidly growing sector, especially on the African continent. on me 384 million Africans use social mediaAnd there is more than that 281 million online shoppers on the continent. The market is expected to grow 70.3% annually to reach USD 8 billion in 2022 and register a compound annual growth rate of 55.2% between 2022-2028, according to Q1 2022 Social Trade Survey.
One startup that is benefiting from the social commerce boom is Nigerian social commerce company, Bomba. Founded in 2021 by Kelvin Omichoko And the Adetunji OpayeleBumpa was created after the duo worked together HostCabalWebsite hosting company.
As internet use spreads across the continent, the attractiveness of social commerce is increasing, especially for small and medium enterprises (SMEs) across Africa. Media such as Facebook, Whatsapp and Instagram help these small businesses attract customers easily and with minimal overhead costs. to me 44 million SMEs spread across AfricaSocial media platforms have changed the way they interact with customers.
Umechukwu and Opayele gained a deep understanding of the social commerce space in Africa as they created dedicated e-commerce websites for entrepreneurs using HostCabal, and with the advent of the shutdown and the consequent slowdown in business for SMEs around the world, the demand for the product has grown rapidly. . This demand prompted them to build a company.
that company –Bomba—It has now raised an initial $4 million round led by Base10 Partners, with participation from Plug & Play Ventures, SHL Capital, Magic Fund, Jedar Capital, DFS Labs, FirstCheck Africa Angel Program, E62 Ventures, Club 14 and Fast Forward Ventures.
Umechukwu said that in this initial round, Bumpa selected investors interested in e-commerce and retail automation in Africa.
In a call with TechCabal, Kelvin OmichokoCo-founder and CEO of Bumpa, said Bumpa has more than 50,000 small businesses on its platform. Umechukwu also shared that these companies went on to register more than 200,000 orders and trades with a total merchandise value of $20 million. He added that his proudest achievement with Bumpa came when the user exceeded 10,000 requests on Bumpa and grew from 15 requests per week to 200 requests per week.
Bumpa initially started by helping companies manage inventory, engage their customers, and record sales. But now they want to go ahead and help these small businesses connect everything, according to Umechuku. “With Bumpa, we help business owners organize all the commerce that happens on their social media. They can see their best customers. They can see how much they are earning on each of these social media platforms, like Instagram. They can collect all the records, and they can sell faster. Through direct messages (DMs) and request payments because we brought all the tools of the trade there for them in the DMS while chatting with a customer.” Umechoko added that Bamba currently estimates that it can help its users save 25 hours each week.
Bumpa uses a commission and subscription business model. The startup charges commissions on every online transaction and released a subscription product after merging with Meta in August. Users can still access Bumpa for free, but they will be limited to only 25 products and 50 orders per month.
The social commerce startup space in Nigeria has seen a lot of activity lately, with Fintech companies like Paystack and Flutterwave launching storefronts for small businesses, and startups like Catlog and Simpu providing solutions for small and medium businesses that want to sell their products online. Bumpa’s competitive advantage, according to Umechukwu, stems from its focus on retail automation and data and inventory optimization for its customers. . added Bumpa integration with Meta in August And the upcoming integration with Google Business in November will also help separate Bumpa from the rest.
talking about raising, Lucy FonsecaPrincipal at Base10 Partners, said: “Bumpa is building a mission we love and are excited about, enabling e-commerce and reducing friction for millions of small and medium businesses. The more time we spent with Kelvin and Teejay, we saw that they are two very distinguished founders with a strong mission to build the ultimate e-commerce platform. in Nigeria and across Africa.”
George DamouniPartner at Plug and Play Ventures added, “With a mobile first intuitive user experience, Bumpa goes beyond how small merchants engage and provide a meaningful customer experience. Kelvin and Teejay have built a consistent product and we are excited to support the team in their mission to reinvent commerce for merchants across the globe. Africa “.