Chooya, an Aba-based startup, receives $950k in funding from EWC to digitize word-of-mouth marketing
Chooya, an Aba-based startup, receives $950k in funding from EWC to digitize word-of-mouth marketing
Chooya, an eCommerce startup based in Aba, Nigeria, that digitizes word-of-mouth marketing for African businesses and consumers, has announced the completion of a $950,000 funding round led by Entrepreneurship World Cup.
In a competition with more than 200,000 applicants from 200 countries, the startup was selected as one of the top 100 EWC finalists. Among the awards given to the startup were a $100,000 national prize and a $850,000 global prize from the EWC, the Global Entrepreneurship Network (GEN), and other world-class partners.
Chooya's involvement with the Global Entrepreneurship Network (GEN) has piqued the interest of its President, Jonathan Ortmans, who spoke about the funds and support programs. The startup will also have access to GEN Accelerates' training platform, as well as global connections, year-round opportunities for additional support and visibility, and GEN Accelerates' networking events.
"Chooya has been selected as one of the top 100 EWC finalists from among 200,000 applicants from 200 countries, and we are delighted to have her as a member of this group of promising entrepreneurs. Through the Club, GEN Starters make global connections with experienced entrepreneurs, mentors, and investors from the Global Entrepreneurship Network and our partners, including the World Economic Forum "He went on to explain.
The use of technology is transforming word-of-mouth marketing into something more effective.
Founded in 2019 by Igwe Uguru (CEO) and Peter Akwa, Chooya is a mobile payments platform. Starting out as a search engine for traditional African markets, the company has grown into much more.
After helping his 72-year-old father with his local business, the CEO, who is also a computer science graduate from Abia State Polytechnic in Aba, said he was inspired to expand the startup's focus to include digitisation of word-of-mouth marketing.
While marketing is necessary for any company seeking new customers and increasing sales, the startup claims that the currently available channels do not provide an easy or cost-effective way to automate word-of-mouth marketing, which according to research is the most effective type of marketing.
Chooya has responded to the situation by developing a mobile solution called "addds" to address the problem. According to the CEO, this solution enables businesses to convert satisfied customers into brand ambassadors who will promote their services and assist them in generating additional sales opportunities.
"Intriguingly, businesses can track every word-of-mouth action their customers take about their business, even when they are not using our platform, through a simple dashboard where they can also thank or reward them," Igwe explained.
The eCommerce company intends to target 5,000 businesses with this solution by Q3, 2022, and assist them in tripling their sales. Over 1,000 businesses are currently registered on the eCommerce platform.
According to Igwe, the startup earns money by charging its premium clients an annual subscription fee. He also stated that the team will soon launch a new business model centered on User Generated Content (UGC) in order to empower users to monetize their experience and the content they share on ReVues, the company's new product for happy customers.
Chooya has operated on a shoestring budget since its inception. However, the CEO indicates that this is about to change as the company plans to raise funds soon from early-stage investors who will assist in generating additional value.
In terms of expansion, he stated that being a technology platform enables the startup to scale easily. As a result, the company is considering expanding into new cities such as Lagos. Currently, the plan is to accomplish this through strategic partnerships with marketing firms located in the target cities.
Chooya has previously been honored and recognized by Alibaba Business School and African Leadership University (2020). Igwe Uguru, the company's CEO and co-founder, is also the co-founder of RAD5 Tech Hub, a venture-building innovation hub.
