[Transcript] #67: Sabi - How the B2B retail platform is providing business services to informal SMB retailers, distributors, suppliers and manufacturers in Nigeria and Africa
Transcript for podcast originally recorded on July 26, 2023
In July 2023, we explored the story of Sabi which is a Nigerian B2B platform that provides informal SMB retailers, distributors, suppliers, and manufacturers with business services and tools to grow their businesses and streamline logistics.
Operating an asset-light model, Sabi offers digital infrastructure that powers the sourcing and distribution of physical goods and commodities. Since its inception in 2020 as a Rensource spinoff, Sabi has onboarded 200,000+ merchants and surpassed $1 billion in annualized GMV.
The platform's services include inventory management, sales tracking, and access to financing, catering to the needs of Africa's informal trade sector.
Companies discussed: Sabi, Rensource, TradeDepot, Twiga Foods, Wasoko (Sokowatch), Omnibiz, Alerzo, & Marketforce
Business concepts discussed: Informal retail penetration, SMB retail OS, B2B Operating systems, Equity carve-outs, Power as a service, Channel margins & Supply chain logistics
Enjoy!
Olumide Ogunsanwo
Personal: Website
Afrobility Podcast: Stories and analyses of African technology companies (Website, Listen: Apple podcasts, Spotify & Google podcasts & Read: Substack Newsletter)
Adamantium Fund: African B2B fund focused on education, health, finance, food and transportation (Website & memo)
Firedom Book: Financial Independence stories of African Immigrants (Website, Substack Newsletter & Buy: Print, eBook or Audiobook)
Transcript starts here
[00:00:00] Olumide Ogunsanwo: Today, we're going to talk about Sabi, the B2B retail and supply chain services platform. We'll explore Sabi's story across five key areas. First, we'll set the stage by looking at the informal retail sector in Africa and Nigeria, which forms the backbone of commerce in the region. Next, we'll delve into how Sabi was founded and its early journey. Then, we'll examine Sabi's product and monetization strategy. Fourth, we'll assess Sabi's position in the market and explore potential exit strategies. Finally, we'll share our perspectives on Sabi's future prospects. This episode was recorded on July 23rd, 2023.
Sabi. Sabi. Sabi.
[00:00:27] Bankole Makanju: I tried to find the domain name. Couldn't find the website. Eventually I found it at sabi.am. I looked up what .am was. And it’s the Armenian top level domain. That's true commitment [Laughter]
[00:00:39] Olumide Ogunsanwo: [Laughter] They got what they could get. Four letter .com domains are hard to find. In corporate speak, Sabi is Africa's leading provider of enabling infrastructure, powering the distribution of goods and services. Hard to parse through all that corporate jargon.
[00:01:02] Bankole Makanju: They are a B2B retail business. They say they're in a different box from TradeDepot and others, but they're definitely competing for the same customers. Let's put it that way. Performing similar jobs to be done for the customers
[00:01:26] Olumide Ogunsanwo: My actual favorite explanation is: Sabi is a B2B asset light retail platform that provides business services and tools to informal SMB retailers, merchants, suppliers, manufacturers in Nigeria to enable them to grow their business and streamline logistics. I like that. Clear and simple, not the earlier corporate speak one.