After dramatically taking the bow out of the African e-commerce space, Nigeria’s startup Gloo.ng has re-focused and re-emerged as a B2B e-procurement platform with Gloopro as its new moniker.
The Lagos-based firm under the leadership of the “Chief Glootian” threw in the towel on online grocery services on the grounds that e-commerce is yet underdeveloped and will not yield substantial profit even in another ten years. It has now made a significant shift to a product which deals in the supply of materials to large and medium corporates, items from desks to toiletries.
Gloopro’s new platform, according to reports, will generate revenues on a monthly fee structure and a percentage on goods delivered. The firm also believes that the new idea will generate no less than USD 4 Mn by the end of the year. According to the company’s CEO D.O Olusanya, a doctor turned tech entrepreneur, Gloopro is looking to raise funds – a Series A round – to finance its new ambition.
According to Crunchbase, Gloo.ng raised USD 704 K across three rounds and has been funded by four investors. Now in pursuit of perhaps a bigger price tags, the startup contemplates expanding outside Nigeria before the end of 2020.
The new launch comes at a time when Lagos State launches an e-procurement platform to support public governance. Governor Akinwunmi Ambode announced that this at the second edition of the Lagos State Annual Public Procurement Summit held at the Lagos Airport Hotel, Ikeja, Lagos. The coincidence between Gloopro’s launch and that of Nigeria’s highest revenue generating state, according to Olumide Olusanya, is fortunate.
The pivot also comes at a time when the former company’s – Gloo – revenue slowed after the 2016 Nigerian recession. Though, the new launch did not suffice until some of its customers started asking for an e-procurement solution. So, perhaps, Gloopro is an initiative that listens to the people.
Gloo – now Gloopro – takes up operational residence in Nigeria, Africa’s most populous nation, largest economy and an unofficial bellwether for e-commerce development on the continent. While its biggest rival Jumia processes paperwork to get listed on the New York Stock Exchange, Gloopro sees it needful to switch based on the myriad of challenges facing e-commerce in the country.
“Gloopro could reach $100 million over the course of its international expansion into countries like South Africa, Kenya, Morocco, Egypt, and the Ivory Coast”, TechCrunch wrote citing founder Olusanya.