Fresh out of college and brimming with enthusiasm, Alexander Odhiambo embarked on a career in information technology (IT).
He secured a job at a tech company heavily reliant on donor funding, which turned out to be a stepping stone to his entrepreneurial journey.
However, his path was far from smooth, marked by failures, perseverance, and ultimately, triumph.
Here is his story as told by WoK.
Odhiambo’s initial job came with a twist – the company was grappling with funding shortages, and he found himself working unpaid for six months.
Undeterred, he decided to tap into his IT skills and launched a side hustle in web development.
Over time, he managed to accumulate around Ksh100,000, which served as the initial capital for a new venture, but it was a partnership with a friend in the food industry that led to his first major setback.
Teaming up with a chef friend, Odhiambo ventured into the fast food restaurant business in Nairobi.
It seemed promising at first, but high power bills and operational expenses soon turned the endeavor into a financial drain.
Recognizing the mistake, he decided to close down the restaurant after eight months.
This experience, though regrettable, became a vital lesson that would shape his future choices.
Undeterred by failure, Odhiambo decided to give entrepreneurship another shot.
He partnered with another friend and ventured into large-scale watermelon farming.
However, this too proved to be unsustainable due to a lack of market demand and high marketing costs.
Once again, he faced a setback and found himself losing money.
‘It is at this point that my partners and I decided to solely focus on Solutech which we had started while still in employment,” Mr Odhiambo says.
With perseverance and determination, Odhiambo and his partners decided to leverage their IT expertise.
They sought out a neighbor who had a robust network in the IT industry to collaborate with.
This partnership allowed them to divide responsibilities effectively – Odhiambo’s team would handle the technical work, while the neighbor would handle business development.
This collaboration marked a turning point in their journey.
Their big break came when a CEO from a Fast Moving Consumer Goods (FMCG) brand approached them with a challenge.
He needed a solution to monitor his van sales team, and Odhiambo’s team had a related application in their arsenal.
“We had something closer to that but we didn’t have even a single customer so when we heard about the problem of FMCG distribution, we saw an opportunity, convinced him we could do it and that’s how we got our first customer,” recalls Alex.
Solutech’s application revolutionized how companies and merchandisers collected and utilized data for decision-making.
It allowed them to track product availability, expiry, and competitor activities, thereby empowering businesses to make informed choices.
Although the beginning was tough, Odhiambo and his team used each obstacle as a stepping stone, understanding that failure was just a part of the journey.
Odhiambo’s philosophy centered on steady, organic growth.
He aimed to provide exceptional service to a limited number of clients rather than pursuing exponential growth with compromised quality.
This approach paid off as Solutech which started in 2014 grew gradually, accumulating over 80 clients across local and international manufacturers and industries.
“We have grown without fundraising, step by step from one customer in 2014 to over 80 large and small manufacturers, both local and international companies, 4,000 sales in FMCG, pharma and motor industry using our app in nine countries across the continent,” he says.
In terms of revenue, Solutech set its sights on reaching Sh130 million by the end of 2023.
Odhiambo emphasized their preference for bootstrapping over external funding.
They believed in using their revenue and solutions to fuel growth, ensuring they had a solid plan before seeking significant investment.
To prepare for potential external funding, they were already crafting plans on how to absorb and utilize the funds effectively.
A $50,000 grant from the Google Black Founders’ Fund further bolstered their growth, enabling them to expand their team and develop the AI aspect of their business.
One of the hurdles Odhiambo highlighted was the challenge of being a local African company in the tech industry. Trust and respect were hard-earned, as potential clients often questioned their capabilities compared to foreign firms.
However, step by step, Solutech managed to sell value, build trust, and establish themselves as a reputable player in the field.
As Solutech continues to grow, Odhiambo envisions expanding beyond the Kenyan market to other regions in Africa.
He emphasizes partnerships and joint ventures to overcome language barriers and reach a wider audience.
Their ultimate goal is to become Africa’s preferred sales automation partner, serving a significant number of corporate clients and generating substantial annual revenue.
