Taking African Products To The Global Market With TradeHub

STARTUP MONDAY

Editor’s Note

Welcome to StartUp Mondays!

You may be familiar with popular e-commerce giants such as Alibaba and Amazon. In recent times, Shein has joined these giants and has gained immense popularity worldwide, becoming a global phenomenon.

These companies are global e-commerce behemoths with billions in valuations. But they did not start as such. Alibaba was founded in 1999 by Jack Ma from his apartment with 17 friends and students. Amazon was founded in 1994 by Jeff Bezos from his garage, initially selling books. Shein, originally named ZZKKO, was founded in China in 2008 by entrepreneur and search engine optimization (SEO) marketing specialist Chris Xu (Xu Yangtian).

What do these three companies have in common?

They are global e-commerce marketplaces.

They sell products predominantly manufactured in Asian, Western and European countries.

Now this begs the question, “Where does Africa fit in this picture?”

There has to come a time in the narrative of Africa, when entrepreneurs actively participate in global economics, not as consumers but as exporters, manufacturers, producers and service providers. That time is now!

Today for our StartUp Monday we have featured a startup actively working to put Africa and African traders and manufacturers on the global map.

Meet Egyptian startup TradeHub.

Be inspired and happy hustlin’

STARTUP OF THE WEEK: TRADEHUB

Startup Spotlight

TradeHub is a digital platform that promotes exports, facilitates trade operations, and assists local manufacturers in accessing local and global markets.

Founded in Egypt, the company works to connect manufacturers with local and global buyers for seamless B2B trade.

TradeHub’s dedicated platform works to showcase manufacturers in the local and global markets by providing factory pages where they can display their factory and product details through images. This makes it easier for potential buyers to search and discover local manufacturers.

Additionally, the platform allows buyers to request price quotes, create tenders, and communicate with manufacturers through the available chat feature.

Core Offerings on the TradeHub digital platform:

Business Profiles: Traders can showcase their businesses and products to local and global buyers.

AI-Powered RFQs: The procurement process is simplified and transformed with intelligent RFQ tools.

Growth Opportunities: TradeHub helps businesses increase sales and reach new markets with ease.

Connection: Searching and connecting with manufacturers who have the skills and resources to produce what you're looking for.

Founder Spotlight

TradeHub was co-founded by Ahmed Gaber and Ahmed Atef, the latter being a former software engineer at Meta. Gaber has previously succeeded in establishing startups such as Bosta.

Ahmed Gaber

Gaber co-founded the Egyptian courier service Bosta after dropping out of college. Bosta is an on-demand shipping company in Egypt that helps people and businesses send anything to anywhere in their city with a push of a button. Gaber oversaw the process of scaling the technology and product at Bosta, managing a team of more than 50 engineers, product managers, and designers. Before setting up Bosta, Gaber co-founded a P2P file-sharing application for smartphones called “Join.” In 2021 Gaber was listed as part of the Forbes 30 Under 30 Middle East. He also holds a Bachelor’s degree in Computer and Systems Engineering from Alexandria University, Egypt.

Ahmed Atef

Atef is an experienced Software Engineer with a demonstrated history of working in different segments. He is skilled in Ruby on Rails, JavaScript, Node.js, Java, Python and Vue.js. Strong in Git, Linux, and DevOps. He also has vast experience in product and team management. After graduating with a Bachelor of Engineering (B.E.) Computer and Communication from Alexandria University, Ahmed went on to intern at Google and Amazon. He further excelled in software engineering roles at Meta and Bloomberg.

Our Analysis

Business model

 From our analysis, TradeHub’s business model is based on both a commission and subscription-based revenue model. The platform appears to charge a commission on each transaction made through the platform. The platform also offers a subscription-based model for manufacturers who want to access additional features such as analytics and insights.

Prospects

TradeHub has a promising future as it aims to empower 10,000 manufacturing companies by the end of 2024. The platform has already gained traction in the Egyptian market and has received positive feedback from users. Judging from the exponential growth trajectories of marketplaces such as Alibaba and Made-In-China, TradeHub is strategically poised for success.

Opinion

TradeHub has a unique value proposition that addresses the challenges faced by manufacturers and buyers in the trade industry. The platform’s focus on local manufacturers and its ability to connect them with potential buyers is a key differentiator that sets it apart from other platforms.

Lessons that African Hustlers can learn from TradeHub

TradeHub didn't reinvent the wheel; it addressed a critical gap in Egypt and Africa’s e-commerce infrastructure. Their success hinges on understanding the specific challenges faced by local businesses and tailoring their solution accordingly. Here are some key lessons and takeaways for the savvy entrepreneur seeking to derive lessons from TradeHub.

• Focus on Local but think Global (Local Roots, Global Vision)

• Seek to address local problems

• Identify a pressing pain point and work to offer a solution

• Create a revenue model that aligns with your objectives and goals.

• Continuously innovate and improve your offerings to stay ahead of the competition.

• Create a sustainable future for yourself and your community.

• Build Trust Through Innovation

• Seek to go beyond your core offering by becoming a one-stop shop and fostering an entrepreneurial ecosystem

   

AND THAT’S A WRAP