We help African migrants to cover the basic needs of their families while controlling their expenses
About
Applicant name: Baluwo
Innovation Name: Baluwo cash-to-goods
Innovation Type: Serive
Website: www.baluwo.com
Mission: We help African migrants to cover the basic needs of their families while controlling their expenses
Innovation Description:
● How does your innovation work?
African migrants buy basic needs at MTOs where they pay cash. Our platform sends a SMS with a PIN to the beneficiary in Africa. With that PIN the beneficiary goes to the store to pick up the food. This way the beneficiary does not receive cash but goods. The storekeeper collects his/her money from a local forex bureau who is also integrated in our system.
● What does it do?
The Baluwo payment platform integrates real time MTOs from the first world with stores in Africa as well as utility companies (electricity, mobile carriers) and payers (Forex Bureau). Transaction happens instantly. We have digitized the last mile; we have digitized a bag of rice.
● How did you put it together?
The gear is complex. We negotiate and reach agreements with store owners in Africa to sell their products in our e-commerce for free. Then we reach agreements with MTOs to work together in B2B system. Finally, we gain buyer’s trust through different strategies and traditional methods. The great success is to make the system simple for buyers, MTOS, stores, etc.: easy to understand and easy to use.
Innovation Inspiration:
● How did you spot the need?
In the beginning, Baluwo was oriented solely to immigrants without intermediaries. But we soon noticed that many of migrants preferred to buy through his/her MT agent.
● Why did you decide to act?
We wanted to help migrant frictions and familiar conflicts due to constant request for sending money. Migrants want some way, have more control over their money. We also aimed to provide with comfort and safety. Sending real time a PIN to be typed on the electricity meter is very straight forward and comfortable.
● What problem(s) does your innovation solve?
Lack of control on the money sent and delays in receiving the cash.
● Who do you aim to solve this problem for?
We provide migrants with control, MTOs enhance their offering adding higher margins and beneficiaries are more comfortable. Payers reduce cost of processing by minimizing number of transactions.
● How does your innovation solve this problem?
We use the technology to give control to the sender, higher margins to MTOs, more comfort to beneficiaries and lower operative costs for payers. All, in a better user experience for all players in the process.
● What are the advantages?
Speed, security, lower transaction cost, better user experience, more comfort
Who benefits from the innovation most?
● Remitters? Senders? MTOs? Regulators? Technology companies?
Senders
● Consider both who the audience is of your innovation and possible partners
The audience is meanly senders and our perfect partners are MTOs
● If a particular region of the world is important, highlight this
From the senders and partners side, Europe and the United States of America are key. From a social impact vision, West Africa is priority
What are you most proud of about your innovation?
● Include any key figures we should know
In our market, both senders and beneficiaries are usually people with low resources. Putting on the market a system that allows them to have full control over these resources is of paramount importance.
Our innovation has a very important social impact. Our customers constantly remind us that being able to buy a bag of rice to be delivered to their family in Africa is perfect.
We do not operate with store chains neither importers. We only partner with local store owners to reinforce the local economy. We have made a great effort to setup store in rural areas.
● Were there any challenges you overcame? How did you solve them?
We faced several challenges:
a) lack of reading / writing skills from the storekeeper
b) lack of Internet in the rural areas where many of the stores are located
c) lack of confidence on a new company
We managed to bring customers at no extra cost
We implemented a dual technology system Internet / SMS communication
● What makes your innovation different than what’s out there in the market place?
We have digitized a bag of rice. Now, anyone can buy a bag of rice real time from anywhere in the world to be picked it up from a store in Africa
Status of Innovation: In-market
Innovation Active Since: In July 19th 2017 we launched Gambia as a pilot. The full service was launched October 16th 2017 in Gambia, in Senegal and Nigeria.
Applicant Type: Private Company
Headquarter City: Barcelona
Headquarter Country: Spain
Year Founded: 2016
Main Category
Main Category Choice: Innovation for Africa
Why do you think you should win this category?:
● Why is your innovation relevant to this category?
We have made a change in the way African migrants help their families back home. We have digitized a bag of rice from a rural store in the middle of nowhere.
● What problems do you solve in this category?
We reduce familiar conflicts, frustrations, misunderstandings, etc.
● What is the market size or impact of your innovation?
The SSA corridor is over 40B$/year. It is foreseen around 20% of remittances to be done cash-to-goods (with control) by 2030.
● Do you have case study results?
We have satisfaction surveys and internal performance metrics
● What is your team experience with this problem?
We are proud of helping African migrants
● What makes you different?
Our commitment with the poorest drove us to operate in 12 countries in West-Africa to produce smiles to thousands of people.
Secondary Category
Secondary Category Choice: Remittance Synergies
Why do you think you should win this category?
● Why is your innovation relevant to this category?
We get African people into a digital system. Something absolutely innovative to them. Thanks to the Baluwo cash-to-goods system, MTOs enhance their offering adding higher margins.
● What problems do you solve in this category?
Control, we give African senders a total control of their expenses in safe and fast ecommerce platform. additionally, we do not compete with MTOs, we partner with them.
● What is the market size or impact of your innovation?
The SSA corridor is over 40B$/year. It is foreseen around 20% of remittances to be done cash-to-goods (with control) by 2030.
● Do you have case study results?
We have satisfaction surveys and internal performance metrics
● What is your team experience with this problem?
We are proud of helping African migrants
● What makes you different?
Our commitment with the poorest drove us to operate in 12 countries in West-Africa to produce smiles to thousands of people.
Team Members
Full Name: Sally Balde
Role: CMO
Linkedin: https://es.linkedin.com/in/sallybalde
Full Name: Joseph Arroyo
Role: CEO
Link: https://es.linkedin.com/in/joseparroyo
Full Name: Eba Solange Avognan
Role: Customer Service
Link: https://www.linkedin.com/in/eba-solange-avognan-134182159/
Full Name: Ignacio Ortiz de Zevallos
Role: COO
Link: https://es.linkedin.com/in/ignacio-ortiz-de-zevallos
Supporting Links
One-pager: https://docdro.id/xOALSow
