WaystoCap: business model, success factors, and growth strategies

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WaystoCap is a Moroccan startup founded in 2014 by Niama El Bassunie. It operates as a B2B e-commerce platform designed to facilitate trade between businesses across Africa. The company gained notable traction after participating in the Y Combinator accelerator program in 2017, securing $3 million in seed funding.

Business Model

Core Services:

  1. WaystoCap Marketplace: An online platform for buying and selling products between businesses.
  2. WaystoCap Local: Facilitates local transactions, allowing trade in local currency and smaller quantities.
  3. WaystoCap Logistics: Supports the movement of goods, enhancing the supply chain efficiency.

Initially focused on cross-border trade, WaystoCap pivoted in 2020 to emphasize local marketplaces in Morocco, Ivory Coast, and Togo. This shift aimed to address the needs of small and medium-sized businesses by providing localized support and reducing reliance on complex cross-border transactions.

Early Growth Strategies

1. Market Adaptation:

  • Pivot to Local Markets: The transition from cross-border to local marketplaces allowed WaystoCap to better serve small businesses and streamline operations by focusing on local procurement and logistics.

2. User Engagement:

  • Effective Onboarding: Prioritizing user engagement helped build a strong customer base early on, ensuring that businesses were onboarded quickly and effectively.

3. Leveraging Technology:

  • Modernizing Retail: WaystoCap used technology to digitize traditional retail practices, transforming retailers into more efficient superstores and addressing inefficiencies in the retail supply chain.

4. Building Trust:

  • Secure Trading Environment: Creating a secure and verified trading environment addressed the trust issues prevalent in African cross-border trade, differentiating the platform and attracting users.

5. Funding and Support:

  • Y Combinator Participation: The support from Y Combinator provided both funding and access to a network of investors and advisors, which was crucial for accelerating growth and refining the business model.

Summary

WaystoCap’s innovative approach, including its shift to local markets and emphasis on user engagement and technology, has positioned it effectively for growth in the African B2B e-commerce sector. The company’s ability to adapt its business model and leverage external support has been key to its success.

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