Investing in Boost Technology
Of all goods moved from manufacturer to consumer in Africa, 70% pass through an informal retailer across 2.5 million locations. Exceedingly analogue in their business processes, transactions between distributor, wholesaler, and end retailers are reconciled on paper and frequently settled with cash payments. Boost Technology, based in London and operating across half a dozen markets in Africa provides a digital marketplace, across the value chain, enabling more efficient transactions.
Led by Mike Quinn, Boost uses a franchise model, expanding into new and nuanced border-bound markets with local entrepreneurial talent. Offloading the human capital heavy onboarding and operations centers to knowledgeable boots on the ground, Boost Technologies refining the digital tools, attracts multinational partners like fast moving consumer goods (FMCG) manufacturers, and raises equity and debt capital to down lend to franchisees.
I first met Mike in December 2021 and was quickly pulled in by the multi-market data play enabling push/pull abilities with historically disconnected FMCGs and the efficiency of the franchise model. Mike previously founded Zoona, one of the first FinTechs on the continent, and was armed with the lessons (both good and bad) from his time there. While we first approached Mike to understand his debt needs to supercharge Boost’s lending capabilities to both franchisees and directly to retailers through “Stock Boost,” we ultimately settled on bringing the company among our first cohort for IF Ventures.
Among other factors, three make Boost stand out:
Capital Efficiency: It’s an understatement to say the digital marketplace competitive landscape is crowded. There are probably a dozen true competitors and tens more lining up behind them to get a slice of the massive TAM afforded by the segment across 50+ African countries and elsewhere. While TAM is huge, investor capital for the space is quantifiably finite, so while Mike and his team can acquire customers ad nauseum, the music may otherwise stop if the growth capital dries up. He and his team have implemented a GTM and run with a mentality that plays to the finiteness of that capital.
The Three Cs: Communication, credibility, coachability. Mike and his team have all three, their ability to understand a line of questioning beyond the superficialities is impressive and confidence provoking.
Disrupting without Displacing: Boost threads the needle between disrupting a nascent, sleepy, and large market, without displacing any incumbents (except maybe the paper manufacturers?). The length of the value chain can benefit from Boost – FMCG manufacturers, distributors, wholesalers, logistics partners, end retailers, and end consumers. Boost has nicely capitalized on this - FMCG manufacturers provide a multi-country push/pull, deleveraging new markets, and distributors provide high speed end retailer acquisition. Boost can enter the network at multiple points and quickly spin the flywheel with a win-win-win-win-(win?) model.
IF Ventures closed an investment in Boost just after the turn of the new year. While IF Ventures is not an impact investor, Idea Foundry is. The added economic benefits for end retailers and shoppers by having what you need, when you need it, at a fair price is clear, and millions of livelihoods stand to benefit from Boost’s success.
IF Ventures is a Pittsburgh, Pennsylvania based angel investment group; investments are individually directed by the angels.
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