Gloo.ng Returns as Gloopro, an e-Procurement Platform Aiming to Make $4m Annually
After announcing its withdrawal from the online grocery business, Gloo.ng has pivoted into the business-to-business (B2B) model.
Following years of sliding ecommerce revenue, Gloo.ng announced, and in dramatic fashion, the shutdown of its business-to-consumer model in January. According to its founder, Olumide Olusanya, the ecommerce space is underdeveloped and will not be profitable for another decade.
Today, 11th March 2019, we publicly launch @gloopro, Africa's Premier eProcurement Platform!@gloopro is on a mission to build Africa's largest, indigenous multi-enterprise procurement network and supply-chain trading platform. Check us out at https://t.co/XcEIrkVLdC pic.twitter.com/EHEZn4aQKI— Gloopro (@gloopro) March 11, 2019
Barely two months after this move, Gloo.ng has re-remerged with an eye on the B2B market. The startup will now operate as an e-procurement platform for large and medium scale enterprises.
As it begins life in the B2B market, Gloo.ng has also swiftly rebranded as Gloopro.
“The old brand Gloo.ng, is going to be rested and shut down completely. The corporate name will be PayMente Limited with the brand name Gloopro,” Olusanya said.
As an e-procurement platform, Gloopro allows companies procure goods and make payments online. According to Benjamin Dada, the platform also supports multiple user profiles and access management and spending analysis. It also allows integration to clients’ resource planning tools.
For many firms and even governments, e-procurement serves as a transparent and easy way to order corporate needs. And with a very accountable system, e-procurement could help to curb excesses as well as misappropriation.
According to Olumide, the idea behind Gloopro born way back 2017, when Unilever, then a Gloo.ng client, requested for an e-procurement system.
“We observed that the unit economics of that business was far better than consumer e-commerce,” Olumide says.
Since then, Gloopro appears to have been aggressive with growth.
The new venture aims to expand quickly across the Nigerian market before making an international expansion.
The startup has quietly grown its client base over the last 20 months. Some of its clients now include Uber, Cars45, Coca Cola, Hotels.ng and LaFarge. It is a pretty impressive lineup.
Consumer e-commerce in Nigeria is hard and expensive. Smart move by @Gloo_ng (and kudos to @docolumide & team for having the strength) to pivot away from selling to consumers and move to B2B procurement. Looking forward to what @gloopro will do! https://t.co/EBLapRO2VP— Marcello Schermer (@Marcelloscherme) March 12, 2019
Also, the company believes the new business will bring $4 million in revenue by the end of 2019. It is almost a sensational projection which plays nicely with the company’s plans to raise new funds.
More importantly, the Lagos State government recently announced its desire to go digital with procurement. The government is looking to use e-procurement to cut down on wastes and increase transparency in government spending.
"I'm aware of the Lagos State's decision to rollout e-procurement this month and that happens to be a coincidence with our public launch. However, it may also be a good indication of the fortuitousness of our timing" https://t.co/JuUU859MB5— DO (@docolumide) March 12, 2019
This decision coincides with the launch of Gloopro as a B2B venture. Even though Lagos State government has already inaugurated its own platform, the switch to e-procurement widens the market for Gloopro. The startup can now target both private firms and various government agencies conveniently.
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