Ajua Acquires Wayawaya: Expanding SME Solutions in Africa

Ajua Acquires WayaWaya to Enhance Consumer Experience in Africa

Ajua, a Kenyan consumer experience platform focused on businesses operating across Africa, has announced the acquisition of WayaWaya, a Kenya-based company specializing in AI and ML-powered messaging and payment solutions.

WayaWaya’s Client Base and Services

WayaWaya boasts a diverse clientele, including prominent institutions such as I&M Bank, Interswitch, and MTN. The company provides a comprehensive suite of services, encompassing digital banking solutions, payment processing, financial services APIs, and automated payment bots.

Focus on Janja: WayaWaya’s Payments Bot System

The acquisition is strategically centered around WayaWaya’s innovative payments bot system, known as Janja. This platform facilitates seamless, borderless banking and payment transactions across various applications and social media platforms, serving customers like Airtel, Ezee Money, and Housing Finance Company of Kenya (HF Group).

Teddy Ogallo, the founder of WayaWaya, will assume the role of VP of Product APIs and Integrations within Ajua.

Acquisition Details and Financial Implications

According to Crunchbase data, WayaWaya recently secured $75,000 in funding. While the precise financial terms of the acquisition remain undisclosed, it is anticipated that Ajua paid approximately ten times WayaWaya’s total funding amount.

Ajua’s Mission and Founding

Ajua, previously known as mSurvey, was established in 2012 by Kenfield Griffith. The company addresses a critical need for African businesses by providing consumer data insights to improve understanding and drive growth.

Griffith emphasized the importance of understanding consumer behavior, stating, “Imagine if we knew what drove consumer habits for businesses. I mean, that’s a huge exponential curve for African businesses.”

Addressing the SME Market in Africa

The Nigerian SME market alone represents a substantial $220 billion annual value. While larger enterprises typically have access to sophisticated customer communication tools, a significant portion of small businesses are underserved.

Ajua aims to bridge this gap by leveraging data and analytics to connect companies with their customers in real-time. Griffith explained, “We’ve taken what makes enterprise customers successful, and we’re capturing it in a simple format so SMEs can have the same tools.”

USSD Codes and Offline Consumer Behavior

Recognizing that much consumer activity for SMEs occurs offline, Ajua provides businesses with unique USSD codes to facilitate payments, gather feedback, and offer discounts. This is one of several products Ajua has developed to collect customer feedback at the point of service, reaching a cumulative customer base exceeding 45 million.

Ajua’s partnerships extend to major organizations including Coca-Cola, FBNQuest, GoodLife Pharmacy, Java House, Safaricom, Standard Chartered, and Total.

Janja’s Role in Automating Customer Interactions

Janja functions as an intelligent messaging bot, enabling individuals and businesses to automate customer support and conduct cross-border payments via WhatsApp, Facebook Messenger, and Telegram.

Integrating Janja into Ajua’s product suite will enhance the customer experience by automating responses and delivering personalized solutions.

Recent Partnership with MTN Nigeria

This acquisition follows Ajua’s recent partnership with MTN Nigeria to launch MTN EnGauge, a customer management product tailored for Nigerian businesses utilizing the MTN network. This product shares features with Ajua and is expected to generate valuable data for the company’s user base, with plans for future upgrades incorporating Janja and other services.

Strategic Rationale Behind the Acquisition

While Ajua could have potentially developed a product similar to Janja internally, Griffith highlighted two key reasons for pursuing an acquisition: the time savings and Ogallo’s deep understanding of Janja’s business and operations.

Griffith stated, “Teddy was going the same direction we’re going. We just thought to acquire WayaWaya instead and make a really good company out of both products attempting to solve the same problem.”

Ogallo’s Perspective on the Acquisition

Ogallo expressed his enthusiasm for the acquisition, citing Ajua’s ability to scale customer service and experience as a key factor. He added, “Seeing how WayaWaya’s technology can complement Ajua’s innovative products and services… is an exciting opportunity for us.”

Acquisition as a Growth Strategy

Griffith views acquisitions and consolidation as crucial strategies for accelerating market entry and expanding channels in Africa.

He believes, “There’s a huge opportunity in Africa if you want to solve complex problems by acquisition.”

Growing Trend of Local Acquisitions in Africa

The past three years have witnessed an increase in local acquisitions across Africa, both within single countries and between nations. Examples include Jobberman’s acquisition of NGCareers in Nigeria, CcHub’s acquisition of iHub, Apposit’s sale to Paga, and MFS Africa’s acquisition of Beyonic.

A common characteristic of these acquisitions is the non-disclosure of financial details, with regulatory considerations cited as a reason by Ajua.

Future Outlook for Ajua

Having raised $3.5 million to date, Ajua may consider additional fundraising to support its expansion into Nigeria and other African markets, particularly given its partnership with MTN and the potential of the recent acquisition.