Nigerian fintech startup Okra is strategically expanding revenue sources by launching a cloud infrastructure subsidiary, Nebula, aiming to tap into the growing cloud market in West Africa. Okra said the move was part of a broader strategy to ease economic risks and fortify its financial base amid tough economic times.
Nebula is ready to market cloud services that will offer comparisons with global giants such as Amazon Web Services and Microsoft Azure, however, on the basis of affordability and local currency transactions.
Okra CEO Fara Ashiru pointed to the power of local tech solutions. With Okra, the company isn't just offering an alternative to higher-priced foreign services; it's matching the Nigerian government's aim of increasing local cloud adoption. The government's National Cloud Computing Policy encourages state agencies to prefer local providers, and Nebula could find its national promotions to be quite beneficial in gaining public sector contracts.
The cloud services market in Nigeria is gaining momentum as businesses and government operations undergo digital transformation. Unlike most global competitors, Nebula accepts payments in Nigerian Naira because local businesses may be reluctant to use such currencies due to forex constraints. It could also be very important in allowing cloud services to be delivered to a broader range of clients, enabling higher cloud penetration across different domains.
Additionally, Nebula's entry to the market is timely, with heightened awareness and the need for digital agility in the local economy. The startup's ability to offer cost-effective solutions has the potential to disrupt the current market dynamics and disrupt the current existing global market players in the same way since the cloud has become so extensive within the world of business.
As the use of the cloud becomes increasingly integral to the business, Nebula's geographic presence and pricing may position it as a fitting partner for Okra in helping them achieve that revenue goal.
However, Okra has no green light without challenges with its new subsidiary company. Some operational issues cut down operations in the previous financial year, resulting in the termination of these products, highlighting the problem of sustaining operations in the Fintech industry. Nebula's success will also depend on Okra's managerial capacity to adapt and supply its services to the growing market of challenges that are coming with the service's popularity.