Ramani - Iain Usiri

Introduction

In the bustling markets and neighborhoods of Africa, a network of distributors forms the backbone of countless businesses, providing essential goods to communities far and wide. These unsung heroes ensure that everyday products find their way into the hands of consumers. However, behind the scenes, these distributors often face operational challenges that can hinder their growth and sustainability.

Enter Ramani, a pioneering company that has set out to revolutionize the way distributors operate in Africa. With its cutting-edge supply chain management tool, Ramani not only helps distributors manage their inventory efficiently but also empowers them to create meaningful data that unlocks access to crucial financing solutions. This innovative approach is changing the game for distributors across the continent, allowing them to scale their businesses, replenish inventory, and, in turn, contribute to the economic growth of their communities.

In today’s exclusive interview, we had the privilege to sit down with Iain Usiri, the pioneer at the helm of Ramani leading Africa’s infrastructure transformation.

What motivated you to start this company, and what were the gaps that you saw in the market that you aimed to address when you started? 

I was born and raised here in Tanzania, and my dream had always been to come back and make a positive impact.

In fact, my college essay was about returning home and building infrastructure for my community. After experiencing world-class education at Stanford and being a part of a remarkable institution like Salesforce, I felt self-actualized. I wanted to provide that feeling and opportunity to people from my home who could also go to institutions like Stanford or work at places like Salesforce. I understood the profound impact a great institution can have on a community, society, and individuals' lives. So, I set out to build an infrastructure here at home and create a great institution.

Luckily, my brother, who is one of my co-founders and a close friend, shared a similar vision. We had discussions about the risks and the potential rewards of giving up our immigration status in the U.S. and returning home to Tanzania. We realized that even if we failed, the impact of success here would be far more meaningful than any success we could achieve in the U.S. That conviction led us to book a one-way flight back home in 2019.

Once we returned, we were determined to build this institution and address local problems. We asked ourselves, "What problems have the most significant impact on the lives of people here in Africa?" Our focus quickly turned to the retail sector, particularly consumer packaged goods, because it touches the lives of everyday Africans.

We delved into the consumer packaged goods space, examining inefficiencies and talking to stakeholders to understand the problems better. We went through three different iterations of our company, including starting as a distributor of consumer packaged goods. We also ventured into offering SaaS software to help third-party distributors improve their operations. Finally, we decided to provide SaaS and credit services.

Our motivation has always been to return home and build an institution that can make a meaningful difference in the lives of people in Africa.

Q. What strategies did you employ to secure funding for your startup, and what advice do you have for other entrepreneurs seeking investment?

To secure funding for our startup, my brother and I leveraged our considerable savings, which we had accumulated from our previous work. We adopted a frugal lifestyle and set aside money as our seed capital. This financial cushion provided us with confidence when we returned home to Tanzania. It's essential for entrepreneurs to enter the battle prepared, not just for the possibility of failure, but to endure the various challenges and uncertainties that come your way. Whether it's having savings or a partner who can support you, having a financial backup is critical.

We were the first investors in Ramani, utilizing our savings as the initial capital. Our next step was always to join an accelerator program. The plan was to return home, identify a problem, generate traction, gain acceptance into an accelerator program, and then kick-start our journey. This part of our plan worked nearly as intended. We came back with initial capital, which we primarily used to fund our living expenses and experiments. As we gained traction, we used this traction as a stepping stone to secure a spot in Y Combinator (YC).

In terms of fundraising advice, the core principle I follow is "traction, traction, traction." It's essential, particularly in emerging markets. You want to dazzle investors with your growth trajectory, outpacing any other deals they might be considering worldwide. Concentrate on executing your business and gaining traction; the capital will follow because undeniable traction is a compelling argument. That's my fundraising strategy, focused on the tangible proof of success rather than elaborate storytelling or pitching.

You mentioned that you always intended to join an accelerator. What motivated that choice, and do you recommend this path to aspiring entrepreneurs?

Yes, I'm a big fan of accelerators. We're members of Y Combinator and StartX, the Stanford accelerator program community. The StartX program don't take equity or provide capital, but the value lies in the community. You become an alumni with access to a vast knowledge base. It also lends credibility and connections. As a founder, it can be a lonely journey, and being part of these communities, especially top ones like YC, can make a world of difference.

Founders are a unique group, especially those who stick it out for years. Joining accelerator programs was always our plan, although I've seen African startups succeed without them. It's a personal choice, but it's something I always aspired to do.

So startups often encounter scalability challenges as they grow. What obstacles did you guys specifically encounter while scaling up and how did you address them? 

The most significant obstacle we encountered while scaling up was the challenge of finding the right talent. It wasn't about intelligence or hard work, as smart and hardworking individuals are everywhere. The real need was for people who had the experience of seeing and managing fast growth startups. In environments that hadn't previously seen such rapid growth, this kind of tribal knowledge was missing.

In the early stages, a small, nimble team with skilled founders can get the job done, especially when you've found product-market fit. However, as you scale and grow quickly, you require individuals who know how to run and manage a growing organization, understand the various stages of growth, and can consistently deliver results. In mature markets, there are people with experience in smaller businesses or large, slow-growing corporations, but they lack the expertise in hypergrowth.

Identifying and sourcing this kind of talent has proven to be a challenging task. The availability of capital for scaling is generally there, although not always at the desired price. The real question becomes whether you can recruit the right talent for your company. This talent acquisition challenge has been a significant hurdle for us during our scaling journey.

As a leader, what strategies do you employ to keep your team motivated and engaged?

To keep the team motivated, I prioritize:

1. Personal Connection: I make an effort to be highly accessible, sit and eat with employees, and build personal relationships.

2. Employee Well-being: We focus on details and ensure everyone, from guards to senior staff, feels comfortable. We inquire about their needs and show we care.

3. Rituals: Regular rituals like monthly all-hands meetings and CEO office hours help build trust and buy-in. These rituals convey our vision and motivate the team.

Can you share an instance where a decision you made as a C-level executive had unexpected negative consequences? What did you learn from that experience?

Not all my decisions have resulted in the desired outcomes. One recent example is when we transitioned from a flexible remote work culture to a more rigid "back to the office" policy. Our company had embraced a very flexible work environment, allowing people to work remotely as long as they met their targets and contributed to their teams. This approach had led to incredible growth.

However, I made the executive decision to return everyone to the office, setting fixed hours from nine to five, and this shift was made to optimize collaboration, enhance information flow, and ensure that people have the resources they need. It was also about making our employees more accessible to each other, which is vital for a growing organization.

This decision faced more pushback than I had anticipated, as it felt like we were taking something away from our employees after giving them two and a half years of flexible work. Time will tell whether it was the right choice and the impact it had on our culture and our ability to attract and retain talent. This is an instance where an unexpected negative consequence emerged from a decision I made, and it's a learning experience for us as a company. Only time will tell whether I made the right decision or not.

Startups often evolve their products and services based off of user feedback. Can you share an example of how you guys incorporated customer feedback to enhance your offerings? Or how you guys are constantly evolving your product mix? 

One prominent example of how we've evolved our offerings based on customer feedback is our shift toward a mobile focus. Initially, we provided a web dashboard for owners to access sales and receipt data. The mobile experience was designed primarily for salespeople and inventory managers. Following feedback from our customers (Owners) we learned that there was a need for a more robust mobile experience.

However, building a dedicated app presented challenges, such as app downloads and competing for device memory. To address this, we innovated by creating a WhatsApp interface. Owners could interact with us through WhatsApp, receiving procurement data and sales reports conveniently. This transformation stemmed directly from user feedback.

Moreover, we expanded on this idea by using WhatsApp as a gateway to our web portal. Users initiate a chat bot conversation on WhatsApp, select menu options, and seamlessly transition to a mobile web experience. This change significantly enhanced customer engagement, and it was entirely driven by the valuable feedback we received from our users.

Q. How do you manage the delicate balance between pursuing innovation and maintaining financial stability in a startup environment?

Managing the balance between innovation and financial stability in a startup environment is largely based on intuition. As Amazon describes, great leaders have strong intuition and are often right. My co-founders and I have developed a good sense of when the company is ready to experiment or when it should focus on fundamentals.

Currently, our priority is becoming cash flow positive, which means hyper-focusing on our industry and go-to-market strategy. This isn't the time for experiments. We'll open up to more experimentation when the company is in a stronger financial position.

We consider factors like our balance sheet, runway, and the marginal cost of experiments, but ultimately, it comes down to gut feeling and the cost-benefit analysis we make as leaders. There's no fixed formula for this delicate balance.

Q. Can you discuss a specific project or achievement that you're particularly proud of at Ramani?

I'm particularly proud of our national camera network, as it represents the high-tech infrastructure that Ramani has always dreamt about creating. This project involves installing Ramani cameras in the warehouses of every distributor and customer, allowing for real-time inventory tracking. Achieving 99% uptime for this system was a significant accomplishment. The setup and maintenance are cost-effective because CCTV cameras are designed for reliability. 

We're also in the process of adding an AI layer on top of this infrastructure, which captures and processes passive data for collateral management. This innovation enables real-time inventory tracking and the detection of discrepancies, enhancing our ability to manage collateral effectively. It's an exciting and innovative project that truly sets us apart.

Q. What were your biggest hardships and obstacles to getting to where you are now?

The most significant obstacle we've faced is fundraising. Raising substantial capital as an early-stage company in an emerging market, even with a business model that is well-established in countries like Korea and the United States but less proven in our region, has been a challenging journey. Building investor trust and convincing them to commit their capital at scale was not easy, but we managed to overcome this obstacle.

Q. What advice can you offer for entrepreneurs aiming to start a business in Africa and or bringing in a company from overseas and expanding to the Africa's market

For entrepreneurs looking to start a business in Africa or expand a foreign company into the African market, I have two key pieces of advice tailored for this continent:

1. Understand Local Market Economics: It's crucial to thoroughly comprehend the economic dynamics of the market you're targeting. In emerging markets like Africa, labor costs are exceptionally low, often significantly lower than in more developed regions. This impacts your business model, value proposition, sales cycles, customer acquisition costs (CAC), customer retention, and pricing strategy. You must consider the implicit assumptions built into your product or service offering and whether they hold in the new market.

2. Leverage Proven Business Models: Investors tend to favor business models that have worked elsewhere. While it might not be the most exciting approach, adapting a successful business model to the African context can be a smart move. This approach can instill confidence in investors as they are already familiar with the model's potential for success. It reduces the complexity of introducing a new business model in a market unfamiliar with it, which is often a challenging undertaking.

When you look into the future, what legacy do you hope Ramani will leave, and how do you measure the company's impact beyond financial success?

I aspire for Ramani to leave a legacy in Tanzania, similar to what Samsung represents for South Korea. Samsung, accounting for around 20% of South Korea's GDP, is not just a business but a transformative force in the country's development. It's a part of the story of how businesses contributed to the economic transformation of a society.

For Ramani, the goal is to replicate this impact in Tanzania. We aim for young Tanzanians to find opportunities for growth, self-actualization, and the creation of value. We want to instill the right values and empower individuals economically. Furthermore, we aim for Ramani's success to place Tanzania on the world stage as a significant player, creating value not only within Tanzania but also in other African countries.

In essence, Ramani's legacy is about driving societal transformation and economic empowerment while also contributing to Tanzania's global recognition as a value creator across the African continent. The ultimate impact of our company goes beyond financial success and seeks to uplift our society and nation.

Q. Looking back, what piece of advice would you give to your younger self when you were just starting out as a C-level executive in a startup?

The most valuable advice I would offer my younger self when starting out as a C-level executive in a startup is to remember that a business is essentially a collection of people working toward a shared goal. As an engineer, my initial instinct was to focus on systems and processes, looking at how these individuals function as parts in a larger machine.

However, it's crucial to understand that organizations are fundamentally composed of people with their unique incentives, strengths, weaknesses, and experiences, including past traumas. 

The key takeaway is the significance of choosing the right individuals to embark on this journey with. In the end, it all comes down to the quality of the people you surround yourself with. So, the primary piece of advice is to prioritize people and their well-being, as they are the foundation of any successful organization.