Andries Smit, head of new ventures inDrive, Nigeria, has said the startup’s new venture, merger, and acquisition arm aims to invest in local startups primed for global expansion.
inDrive launched a venture capital arm in December 2023 and plans to invest up to $100 million in startups in the country. BusinessDay spoke to Smit, who shared how the firm intends to achieve its goal.
He said the new venture arm would prioritise investment in solutions that have become product-market fit.
“We specifically target local market startups capable of global expansion, especially those in the post-seed/pre-series A phase exhibiting a proven product-market fit, rapid organic growth, robust economic performance, and favorable cash flow,” he said.
He noted that these companies will benefit from inDrive’s global customer base across 45+ markets and access to its go-to-market know-how and technology.
Commenting on how the new venture arms will foster a thriving startup ecosystem in Nigeria, Smit said, “We plan to closely engage with local entrepreneurs and facilitate knowledge-sharing through community-building initiatives such as networking events and workshops.”
According to him, the company’s collaboration with government bodies will help it advocate for more startup-friendly policies.
He highlighted, “Promoting technology transfer, advocating for infrastructure development, integrating social responsibility, and ensuring continuous engagement and adaptation are key strategies for contributing positively to the evolving business landscape in Nigeria.”
On how the new venture intends to achieve a competitive edge, Smit explained that navigating the Nigerian market involves striking a balance between fostering innovation and managing risks through a comprehensive strategy.
“This approach begins with a thorough market analysis, understanding local dynamics, consumer behavior, and regulations to identify opportunities and challenges.
“Localised innovation tailors products to meet the specific needs of the Nigerian market, enhancing competitiveness and demonstrating a commitment to local requirements,” he stated.
He stressed that an agile mindset enables quick adaptation to market changes, while collaboration with local stakeholders ensures alignment with community interests and regulations.
“Adapting robust risk mitigation strategies, including contingency plans, safeguard ventures, and investing in team capacity building enhances the company’s ability to execute innovative projects,” Smit added.
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