Data is the key to success, and one startup has figured out how to help brands source the data critical to their growth.
TechCrunch reports that Rwazi, an African market research startup, has raised $4 million in seed funding. Backed by Bonfire Ventures, the round also received investment from Newfund Capital and Alumni Ventures. The money will support the startup, founded by Eric Sewankambo and Joseph Rutakangwa, with expansion and planned product launches.
So what does Rwazi do? Using an app, the startup collects data directly from users by logging all their purchases. After a verification process, users are then paid. The data is based on customer needs, from product usage to household budgets and income. The two founders started the company after trying to gain timely market insights in their previous jobs. It helped them understand how frustrating the process could get and, more importantly, how valuable this information could be.
To date, the app is available in 40 African countries as well as in South Asia and Latin America. Language barriers can be addressed with the new funding, according to Rutakangwa. “We are introducing new products this year that support different languages as this has been a barrier to our growth in these regions,” said the founder.
Currently, Rwazi has 50,000 consumers, including more than 15 multinational companies across multiple industries. While that may look impressive, Rutakangwa said there is still more work to be done.
“Looking back at 2022, it was indeed a difficult year for investing in emerging markets as many of these markets were hit by widespread inflation and supply chain disruptions,” the CEO told Grit Daily.
“However, many analysts are optimistic that 2023 will be a better year for investing in emerging markets,” he added. “This is due to several factors, including expectations that central banks in developed markets will ease monetary policy, which could ease some of the tensions emerging market currencies are experiencing.”