There are three mutually supportive ways in which an organization can grow; it can grow through acquisition, through cutting costs and through creating demand top-line growth. The advantage of top-line, demand-led growth is that it is unlimited and replicable.
Tangazoletu was established in 2007 to take advantage of an increasing demand for convenience in the financial sector space, culminating in the development of the now ubiquitous Safaricom Limited’s “Lipa Na M-PESA” within the M-PESA stable of services, rising to one of the top Fintech companies in Kenya.
The company has a staff complement of 41 people and plays in the financial ICT and mobile market space (Banks, MFIs, Saccos and Insurance) and Telcos (MSPs) segments on a B2B basis, with its commercial model broken down into four key revenue streams:
- Selling software to the financial sector
- Revenue per transaction fees.
- Charging set up fees for software installations;
- Support/ maintenance fees
The company’s offerings include mobile banking, custom software, PRSP, ICT consultancy and money transfer on credit card solutions that deliver efficiency and reliability to clients, while providing flexibility and convenience of transacting to its clients’ consumers. Although most of TL’s solutions are homegrown, its Sacco core banking system is built off ‘Microsoft Navision Platform’, while its mobile solutions rely on Safaricom’s mobile money.
A review was done in 2017 revealing market changes that rendered certain aspects of our last strategic plan irrelevant, e.g. mobile banking becoming free. The business changed its focus, explored new markets and products and changed its business model. The firm has seriously focused on revamping its sales curve to drive growth and profitability in a very competitive marketplace.
Tangazoletu’s ambition sees the company as a scaled-up organization seamlessly connecting the world using ICT & Mobile Solutions. The mobile finance sector is set to keep growing; technology, in general will continue to play its part in helping businesses achieve efficiency and productivity, while reducing the cost of operations. Strong digital solutions will continue to empower customers to achieve efficiency, productivity and convenience for their consumers. Added to this is that hunger for credit, especially by the millennial consumer has attracted a plethora of new mobile lending offerings in the market.
The aforementioned market changes have led to the development of this strategic plan, firstly by understanding the key issues, by thinking through how superior value can be built into the organization and finally conceptualizing how to deliver superior performance through a better strategy – A strategy that focuses on key vertical segments, delivering a superior service experience and founded on a highly skilled workforce and ‘Agile’ methodology to deliver quick turnaround of continuous product innovation and improvement, while collaborating with our strategic partners.
“Leveraging Agility To Drive Rapid Growth Strategic Plan 2018 – 2020” is our plan to achieve annual revenue of Kshs 2.6 billion by 2020.
The technology industry is very competitive, the Fintech business, specifically has competitors undercutting on prices and large prospective customers, especially in government and quasi-government lacking integrity in their dealings. We will have to be smarter as we tackle a difficult market with huge opportunities in Kenya, the region and the rest of Africa.
I appreciate the work that has been done by my management team, and their ambitious targets as we endeavor to grow our business both in terms of revenue and profitability, to enable us reach out to our chosen markets. I am also grateful for the support I have received personally from the company’s board, giving me the latitude to do whatever it takes to drive growth as we offer these services to our customers. I look forward to their continued support as we implement this strategic plan.