Adia Sowho: Leading Thrive Agric Through the Pandemic

Nigeria’s Startup Ecosystem: Evolution and Lessons Learned

Nigeria’s relatively young startup ecosystem, less than two decades old, is experiencing rapid development. Despite the influx of funding and positive attention, significant learning is still required for successful startup operations.

Founders in Nigeria consistently demonstrate remarkable resilience and ingenuity given the challenging market conditions they face. Their achievements are certainly deserving of recognition. Nevertheless, certain practices warrant careful consideration.

Challenges Faced by Nigerian Startups

There are situations where founders, recognizing their company’s decline, prefer to fail rather than cede leadership to others. Alternatively, some founders hesitate to hire a seasoned CEO for rapid scaling, opting instead for more modest growth.

Instances of startups taking decisive action to save or scale their businesses remain infrequent.

Adia Sowho’s Journey Through the Ecosystem

Adia Sowho, a prominent figure in the regional tech landscape, has had the opportunity to witness and participate in a significant turnaround. Last year, she assumed the role of CEO at Thrive Agric, an agriculture fintech company, successfully navigating it through a crisis triggered by the COVID-19 pandemic.

Prior to Thrive Agric, she served as VP of Growth and Managing Director, Nigeria, at fintech platform Migo. Outside of the startup world, she held the position of Director of Digital Business at telecom operator 9mobile and currently serves as the Chief Marketing Officer of MTN Nigeria, a leading mobile telecoms company.

TechCrunch interviewed Sowho to discuss her experiences transitioning between telecom executive roles and operational positions at Thrive Agric and Migo. The conversation covered her perspectives on collaboration between operators and founders, her decision to leave the startup environment, and how her current role aligns with her long-term goals.

Early Career in Telecom

What was your career like before becoming an operator in tech?

My career began with an extended period within the mobile telecom sector, culminating in a role responsible for digital business. This involved interfacing with third parties, often startups offering innovative products beyond the telco’s existing portfolio, to benefit customers.

I established and grew this department at 9mobile, generating $100 million in revenue. This involved launching various platforms, including music apps, gaming services, and content platforms ranging from short-form videos to longer-form content.

We also explored mobile advertising, the Internet of Things, and financial services. However, the telecom industry is characterized by its massive scale and outdated infrastructure, making adaptation to the internet economy challenging. Seeking a new direction, and having been inspired by the startup environment within 9mobile, I desired a more dynamic and stimulating experience.

Joining Migo: A Focus on Financial Services

So, why Migo, since a lot of startups existed at the time? I mean, we’re talking early 2018 here.

After 9mobile, I chose Migo because I believed financial services were crucial for a robust financial system, encompassing savings, credit, insurance, and payments.

Within the Nigerian tech scene at the time, some progress was being made in savings, but I didn’t consider it a priority given the country’s relatively low GDP per capita. Payments were also just beginning to gain traction with the emergence of Flutterwave and Paystack.

However, credit remained largely inaccessible. Obtaining a loan typically required affiliation with a company known to the bank and with transparent financial records. Recognizing this gap, I joined Migo, believing that addressing financial services was fundamental to broader economic development, as it serves as the underlying infrastructure for all other sectors.

Experience at the Fintech Startup

How was your experience at the fintech startup?

When I joined, the team was small enough to fit in a single conference room. I then focused on building the Nigeria business as the managing director, hiring a team to deliver products through partnerships and expanding the user base to over a million users before my departure. It was a challenging yet rewarding experience, providing valuable insights into building and leading a startup in emerging markets.

Departure from Migo

Did anything transpire within the startup that led to you leaving?

I simply sought a new opportunity. The COVID-19 pandemic significantly impacted many businesses, and navigating a startup requires adaptability. Migo shifted its focus to embedded finance, necessitating organizational changes. It felt like a natural time for me to move on, and I was admittedly somewhat exhausted.

Joining Thrive Agric

But you joined Thrive Agric four months after leaving?

Yes, a few months later. I was drawn to Thrive Agric because of its focus on financial services and, more importantly, food security. Millions of smallholder farmers in Nigeria rely on companies like Thrive Agric to consolidate their output and connect with local buyers. This is vital for Nigeria’s future.

Even while seeking rest, I couldn’t ignore the opportunity to help Thrive Agric overcome its challenges and prevent its failure. It felt like a civic duty.

Navigating the Crisis at Thrive Agric

I remember it was a rough period for the company. How challenging was it, as it was a new experience for you?

It was incredibly difficult. I’ve apologized more during that period than at any other point in my life. Confronting the anger of thousands of people simultaneously was a unique and unpleasant experience. However, everyone was under immense pressure.

The anger was understandable and justified. While many companies worldwide suffered during the pandemic, Thrive Agric could have handled the situation more effectively, which is why I joined. It was a tough job balancing customer satisfaction and protecting the founders from extreme reactions, but we ultimately navigated the crisis.

Resolving the Crisis

In a nutshell, how did you bring the company out of the crisis it was facing?

My initial focus was on addressing the immediate problem. I prioritized meeting with the core teams and allocating resources to find a solution. Once a plan was in place, I broadened my focus to address the systemic issues that contributed to the crisis. In a startup, chronic problems are always rooted in underlying systemic weaknesses.

Let’s talk about the problem. What exactly happened?

The core issue was timing. Thrive Agric supports farmers throughout the agricultural cycle, providing seeds and fertilizer, assisting with harvesting, and connecting them with buyers. The COVID-19 lockdown disrupted every stage of this process.

Farmers couldn’t access their farms, we couldn’t reach the markets, and we couldn’t collect the harvest. The company’s ability to generate revenue was severely compromised. This was an unprecedented situation, and the team lacked a clear response plan, leading to delays in communicating the challenges to subscribers. Ultimately, we honored our obligations, albeit with delays, and the business model remains viable.

Founders and Leadership Transitions

Your case with Thrive Agric is quite unique because you were brought as someone with managerial experience to help the company. That’s not the case generally within the ecosystem. Some founders rarely want to relinquish their position even if the company is going downhill. Why do you think this is so?

I think part of it stems from the Silicon Valley origins of startup culture, which often favors less-experienced individuals initially. Experience and innovation can sometimes be at odds, as experience often leads to reliance on proven methods, while innovation requires challenging the status quo.

However, African founders must adapt this model to the local context. Furthermore, experienced operators can offer valuable insights and prevent past mistakes. I’m encouraged by the growing willingness of startups to embrace experienced leadership, although it can be challenging for individuals accustomed to the dynamic startup environment.

Thrive Agric’s Current Status

How would you say Thrive Agric is faring now?

I believe they are on a stronger footing due to the systemic approach we took to address the challenges. The founders and senior team are now better equipped to anticipate and manage risks. I continue to serve as an advisor to ensure the company’s continued success, driven by the importance of food security.

Thrive Agric is one of only three companies supported by the Central Bank of Nigeria to promote food security nationwide, indicating significant growth potential. This year alone, they are aggregating output from 100,000 farmers.

Lessons Learned and Future Outlook

So, in all this, what does your experience at Thrive tell you about startups and the Nigerian tech ecosystem in general?

Startup life is challenging even in countries with robust infrastructure. It’s even more difficult in infrastructure-light environments like Nigeria, forcing startups to build essential infrastructure themselves. However, the opportunities here are immense.

I’m excited about the potential to create a new economic landscape by leveraging the internet and connectivity. I believe there are opportunities to support startups more effectively, focusing on building better products and running more sustainable businesses based on shared knowledge.

Returning to the Corporate World

How will you do that now that you’ve left the startup scene and gone back to the corporate world with MTN?

My return to MTN is strategic. A telco partnership is crucial for the success of future unicorns. This requires empathy and collaboration on both sides. I’ve been advocating for this for years, seeking ways to improve these relationships.

MTN recognized my experience and commitment to fostering these partnerships, and I’m eager to leverage my knowledge to drive growth and innovation at scale.