Introduction
Victor Maina, the Founder of Duhqa Ltd, embarked on his entrepreneurial journey in 2021 with a vision to address a critical problem affecting millions of Africans. Through innovation, technology, and a keen understanding of Africa’s distribution inefficiencies, Maina created Duhqa Ltd, a B2B tech platform that connects manufacturers, retailers, and farmers with mass markets.
Inspiration Behind Duhqa Ltd
Victor Maina was inspired to launch Duhqa Ltd by the glaring socioeconomic disparity across Africa. With over 490 million people living under $2 a day, Maina recognized that supply chain inefficiencies were contributing to higher prices of basic goods, further straining consumers. This realization prompted him to find a solution that would reduce the cost of goods sold to the African mass market. The idea for Duhqa stemmed from the need to streamline the distribution of goods by leveraging technology to eliminate inefficiencies in the supply chain, connecting product sources directly to the market.
Business Overview
Duhqa Ltd is a for-profit B2B platform revolutionizing Africa’s distribution management in the agricultural and food manufacturing sectors. The company's mission is to simplify commerce, finance, and logistics for manufacturers, retailers, and individuals. Duhqa envisions transforming the lives of the mass market by making products more accessible and affordable while fostering economic growth. The company’s core values of innovation, ingenuity, and social responsibility guide its operations. By focusing on technology, Duhqa aims to bring efficient solutions to the distribution challenges faced by small retailers, many of whom operate under difficult financial conditions.
Product Offering: Simplifying the Supply Chain
Duhqa’s innovative solution directly addresses the inefficiencies in Africa's supply chain. Middlemen and brokers have long filled the gap between manufacturers and retailers, leading to increased post-harvest losses and inflated prices. Through its platform, Duhqa provides an easy-to-use app where resellers can source products efficiently without the need for intermediaries.
The process is simple:
- App Download: Retailers download the app from the Play Store and sign up quickly.
- Product Selection: The app allows retailers to view real-time product prices and images, making it easy to choose goods.
- Cart and Checkout: Once satisfied, they can add items to their cart and proceed to checkout.
- Payment Options: Retailers can choose between prepay, pay on delivery, or credit options, with financing solutions available.
- Delivery Scheduling: Retailers can select a delivery day and time, with Duhqa delivering products within six hours of booking.
This streamlined process removes the hassle of sourcing products, saving retailers time and allowing them to focus on serving their customers.
Revenue Model: A Multifaceted Approach
Duhqa’s business model is both innovative and sustainable, relying on several revenue streams:
- Product Listing Fees: Manufacturers pay 15-20% to have their products listed on the app.
- Digital Marketing: Manufacturers also pay between $800 and $1,200 per month for targeted digital marketing services.
- Data Analysis: Duhqa analyzes sales data and charges manufacturers 5-10% for these insights, helping them understand market trends.
- Financing SMEs: Financial institutions offering credit through Duhqa’s platform are charged 1-3%.
By creating multiple avenues for revenue, Duhqa not only sustains its operations but also ensures profitability.
Target Market and Customer Demographics
Duhqa primarily serves small retailers who face challenges sourcing goods. These retailers, typically managing 45 customers a day, previously had to close their shops and travel to wholesalers or middlemen, adding to their operational costs. Duhqa’s solution offers convenience, reducing the need for travel and allowing retailers to concentrate on their core business. Most of these retailers are women, with over 66% of Duhqa’s current customer base being female entrepreneurs who benefit from the company's efficient supply chain solutions.
Growth and Key Achievements
Since its inception in 2021, Duhqa has experienced rapid growth. The platform now boasts over 11,000 retailers, each serving an average of 45 customers daily. Duhqa has partnered with 48 major players in Kenya’s fast-moving consumer goods (FMCG) industry and has moved over 200,000 metric tonnes of products. Through its efficient distribution network, Duhqa has successfully lowered the price of goods by up to 10%, making basic consumer products more affordable for millions of Africans.
Overcoming Challenges
Growing a tech-driven platform like Duhqa comes with its own set of challenges. One of the biggest obstacles Maina has faced is ensuring that the technology scales in tandem with business needs. Optimizing costs while raising investment to fuel further growth has also been a challenge. Additionally, the need to build a skilled technical team capable of driving innovation has been crucial to Duhqa’s success. Despite these hurdles, Maina’s leadership and focus on strategic partnerships have enabled the company to thrive.
Embracing Innovation and Staying Ahead
Duhqa places a strong emphasis on continuous innovation. By having a solid technical team in place and backing its product development roadmap with thorough research, the company ensures that it stays ahead of industry trends. Duhqa also listens to the “Voice of Customer” to tailor its solutions to meet the ever-evolving needs of the market.
Social Responsibility and Sustainability
Duhqa is committed to uplifting the communities it serves. Through a partnership with the Kenya National Chamber of Commerce and Industry (KNCCI), Duhqa provides income-generating skills to deserving youth, aiming to empower the next generation of entrepreneurs. The company’s commitment to social responsibility is further reflected in its focus on women-led businesses. Over two-thirds of Duhqa’s retailers are women who benefit from financial management skills provided by the platform, enabling them to grow their businesses sustainably.
Future Vision: Expanding Across Africa
Maina’s long-term vision for Duhqa is ambitious yet achievable. He aims to scale the company across 20 African countries over the next decade, offering finance, logistics, and procurement solutions. With plans to serve over 7 million customers and process 2 million deliveries annually, Duhqa is set to become a key player in Africa’s distribution logistics sector. Maina envisions the company reaching a Gross Merchandise Volume (GMV) of $15 billion, generating an 11% revenue margin.
Advice for Aspiring Entrepreneurs
For aspiring entrepreneurs, Victor Maina’s advice is simple yet profound: “Don’t give up on your dreams, no matter how hard it gets. Be the number one salesperson of your business.” This mindset has been the driving force behind Duhqa’s success and is a testament to the resilience needed to build a successful business in Africa.
