Is it possible to buy a dual-SIM unlocked GSM modern smartphone without a contract for R1 400 today? Indeed it is, and from a company that has already sold more than a million handsets across Africa. Dubai-based startup Mi-Fone has only been going since April 2008 and is specifically aimed at the African market, according to chief marketing officer Nicolas Regisford.
"We launched in five countries across the continent with a 100% African focus,” he says. "We have a primary focus on the emerging markets – the bottom of the pyramids are those people earning less than $200 per month and we want to connect a good number of those."
Zero to a million units sold in three years is a record most startups would envy and Mi-Fone has achieved this without first coming to South Africa and then using it as a bridge to other countries.
"We`re a mobile devices company that has identified the gaps in the market of the wider continent before coming to South Africa. However, we cannot ignore South Africa. It is the most developed country on the continent and pretty developed when compared to the rest of the world. It makes it a challenging opportunity for us. However, there are a lot of people here who don`t earn that much and we need to understand the territory and find the right partners.
“Lessons learnt in other countries – Kenya, Uganda, Tanzania – have all varied because no two countries are the same. They`re all different. South Africa is the most legislated country but that hasn`t stopped us getting into places like Cellucity and getting some interest from operators."
Regisford says the local landscape, dominated as it is by the operators, has been tricky to navigate.
"The people who are early adopters understand our value proposition. The mass market is confused by it purely because of the mindset that exists because of the operators. They think, `I cannot get a phone without an operator.` That makes it a bit complicated to navigate. But we`ve found in our shopping sprees with customers that they`ve found a place for us in the quality and affordability segment. There`s cheap and nasty, and then there`s quality and affordable, which is in the R500 to R1 500 space."
Mi-Fone has 25 employees in five countries – Mauritius, Kenya, Hong Kong, Dubai, China and now South Africa.
"We`re a lean machine and we work with companies that are dedicated to working 24/7, 365 days a year. There are no holidays when you`re starting in this business. The nature and the competitiveness of the game don`t allow you to sleep. You`ve always got to be thinking three, six, nine months ahead of what you`re doing. The big companies are slow but small companies are quick. That`s how we compete. Of course, as we grow, we will need more people. We`re almost at that tipping point now. After year one, we were profitable. We got 30% growth and then doubled that in the second year."
Mi-Fone`s R1 400 handset is the A300 running Android 2.2. Out of the box, it has a touch-screen, FM radio and a raft of preloaded Internet applications. It`s no iPhone but then it`s not priced like an iPhone.
"Frowning upon a low-end device is like frowning upon the poor," says Regisford. "The poor people in the continent will be connecting to the Internet via low-cost, data-enabled handsets – so frown at your peril."
First published in the Feb 2012 issue of ITWeb Brainstorm magazine.
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