Meet Osinachi Ukomadu an African tech entrepreneur revolutionizing logistics
Osinachi Ukomadu is one of many entrepreneurs using technology to revolutionize the logistics industry in Africa and Nigeria, taking last-mile delivery by storm through innovative solutions.
He is the founder of Heroshe, a platform that allows Nigerians to buy products from any trusted U.S. online store.
Through Heroshe, Ukomadu has been able to solve the problem of access to global commerce outside Nigeria for businesses and individuals who want products that are not locally available.
Under his leadership, Heroshe has evolved from assisting family and friends in Nigeria to shopping for and shipping goods from stores in the United States to becoming a fast-growing startup with more than 40,000 customers that deploys cutting-edge solutions to facilitate cross-border e-commerce transactions, last-mile delivery and payments for goods and services.
In a recent interview, the leading tech entrepreneur and businessman described his experiences in corporate America and as a businessman.
Heroshe, according to Ukomadu, has been built to last through a network of strong relationships with its first-leg, last-mile logistics and payment partners, allowing the startup to overcome challenges in its operating environment.
— Can you tell us about your upbringing in Nigeria and the United States? What it was like growing up in the United States, and how did your education shape your business outlook?
I was born and raised in Abia state. I grew up around different parts of Nigeria. I lived shortly in Port Harcourt, moved to Kano, and then to Lagos where I finished my high school education. I did JSS 1-3 in Adebayo Mukuolu College Ogba before leaving the country with my family to the United States. I finished my high school and university education there.
My upbringing in Nigeria, as you can see, was punctuated with a lot of changes. We moved around a bit. My father, who worked in the bank, was transferred very often to different parts of the country. It was always interesting to experience different cultures and languages. This is one of the many advantages of moving around the country. I look forward to doing more of this in the future.
Emigrating to the United States as a teenager was quite an experience. I initially struggled to adapt to the new culture. It took me a while to settle into the rhythm of life here. Schooling in the United States brought me to the reality of my otherness. It was hard relating to the other kids, who have formed strong bonds through years of doing school together. The Nigerian kids in school did not want to associate with me, because they wanted to protect their reputation from mingling with a Nigerian who still had a thick Nigerian accent. It wasn’t until new students came from Nigeria to the school that I began to feel a sense of belonging. I learned to adapt to these changing experiences.
This is one thing that has shaped my life and approach to business today. Adaptability was embedded into my core. With each move, my parents would register us in the school, and we were left to navigate the rest of the transition ourselves. I never valued those experiences back then. Looking back now, I see how those experiences have shaped the man that I am today. The adaptability and resilience that came through those experiences have shown in my approach to life in general and business specifically.
— What was it like to build your first startup, and how did you get the funding to get started?
The first company I ran was a home health services company. This came about as a result of life circumstances. My mom, who was a nurse, was thinking about leaving her full-time work to start a home health service and at that time I had just lost my first job right out of college. She shared the idea with me, and it made sense to be a part of it. I was young, fresh out of college, and looking to have an adventure. This was an opportunity. I didn’t think much about it. I jumped right on it. Being very inexperienced, I made every mistake you could possibly think of. However, the learning was immensely valuable.
The company was bootstrapped. We depended on the revenue from operations to run the business. This meant that we had to make consistent revenue every week to keep the business running. Without access to credit, this proved to be a daunting task, especially when we would not get reimbursement or the reimbursement was short. I remember times I would have to call a meeting on a Friday evening to tell employees that there were not enough funds to make payroll that week. This happened a few times.
The most painful part of this experience was looking at the faces of these men and women who have trusted us, working diligently for weeks, only to be told there was no money to pay them. It was a painful experience. I could only imagine what they had to tell their families. One thing we had going for us was the culture we built. It was such an empathetic place to work. I was surprised when Monday rolled around, seeing them all still trooping into work while waiting patiently for the funds to be sorted. This taught me a great lesson on culture. The company went on to do millions of dollars in revenue over time. I exited to pursue other interests while the company continued to operate successfully.
— Can you share with us the key milestones you achieved in terms of strategic partnerships, customer base, and revenue in the recently concluded fiscal year compared to the first year of Heroshe’s operation as a business?
We grew our customers to 40,000. We deployed our mobile app. We grew revenue by 24 percent month-on-month in the fourth quarter. We did more than 100,000 in tonnage.
– Heroshe takes pride in delivering value to customers through its operations, which are linked to the company’s commitment to solving e-commerce logistics, access and payments challenges in Nigeria. How has the company been able to deliver on this promise, particularly with payments and the country’s recent transportation and logistics rigidities?
Our primary focus is to link Africans to global commerce. Logistics, access and payments are the mechanisms by which we accomplish this. We are not immune to the global logistics challenges everyone is facing. However, we have been very strategic in making sure to build the right partnerships to enable us to deliver delight consistently. We have built a set of robust relationships with our first-leg, last-mile logistics and payment partners enabling us to overcome these challenges.
We spend time building and maintaining these relationships that ensure our delivery is assured. There are so many challenges to be solved in Africa that you can’t build fast enough to solve all of them, so working with the best of breed in each space to leverage existing infrastructure helps us to further our mission. Our goal is to continue to nurture these relationships to enable us to build towards our mission.
— The supply chain was strained in 2021 due to growing consumer demands and capacity-related issues that crystallized key discussions in the industry in 2021. With the structural difficulties in Nigeria, can you tell us how Heroshe has been able to manage some of these issues competitively, while turning challenges into strategic opportunities?
We’ve been affected by the global supply chain challenges everybody is facing. However, our volume has continued to grow. Nigerian logistics may have some structural challenges; however, there are a few players who have done a great job solving these challenges. We seek them out and selectively partner with them to deliver on our promise.
We are taking advantage of our growth to strike the right partnerships that drive better value for our customers. We make sure to only work with first-leg and last-mile partners who are aligned with our culture of delight. Increased volume gives us so many options when it comes to partner selection. Choosing the right partner has been the game-changer in the continuous delivery of a delightful experience to our customers.
— According to some supply chain experts, the COVID-19 pandemic created more opportunities for companies in the logistics industry than it caused. What are your thoughts on this, and how did it affect Heroshe’s performance during the two pandemic years?
I agree that COVID-19 has had a significant impact on the industry. We saw unprecedented growth in the last year as a result of increased demand for e-commerce. Prior to COVID-19, people would travel out of the country to shop. Since COVID-19, people have depended more on shopping online. More people have gotten accustomed to shopping online. People got used to shopping online locally as a result of social distancing, this also translated to shopping online outside the country.
The fear of shopping online has been broken by several people. There is no going back now. We see this trend continuing into the future. Not only will more people shop online locally, but they will also shop online globally as the barriers between countries shrink due to the impact of technology.
— What are the key strategic inputs you brought to Heroshe from your extensive experience with iconic brands and organizations such as Apple, Hasbro, ExxonMobil and T-Mobile, and how did this translate into company growth?
Working at these iconic brands gave me the opportunity to see execution at a different level. I found one thing consistent among the top-performing companies where I worked — they knew their core competencies and focused on them. Everything else was de-emphasized or completely ignored. I brought this strategy to Heroshe. I know that for us to stay alive and grow, we had to do very few things that we were very good at doing and were core to our DNA.
We learned to be laser-focused from the onset. We learned to experiment quickly, take what is working and discard what is not working. This level of ruthless execution helped us immensely in our beginning days. We were met with so many options to pursue. My constant refrain was “focus.” Focus, in the beginning, looked like we were missing so many opportunities however, in the end, it became what has kept us delivering consistently.
— Is Heroshe planning a capital raise to scale the operation in light of the recent growth in the logistics industry? If so, where do you intend to invest this capital in your business?
Yes, Heroshe is looking to raise capital to grow its product and reach more customers. We have spent the last couple of years figuring out the customer, market, and product. We are at a place where we have a high level of confidence in the product roadmap. We will invest significantly in the product.
We will focus on building products that solve for specific segments of users. We have built out our core logistics infrastructure which is broadly serving the market. The next set of products would build on top of this logistics infrastructure to enable more tailored services to our various customer segments whose use cases are unique.
— What’s next for Osinachi Ukomadu and Heroshe? Are you setting your sights on expanding into other countries in Africa?
Eventually, we will expand to other African countries. Our current focus is solving deeply for the Nigerian market. When we have solved cross-border e-commerce access, logistics and payments deeply in Nigeria, we will set our eyes on another anglophone West African country before venturing to other parts of Africa. We want to facilitate the opening up of markets across Africa and the world.
— Do you have any words of advice for young Africans who are afraid to start something?
Your youth is a gift. You still have time to make mistakes, learn and iterate. This is the best time to get started. It becomes more difficult when you have more responsibilities. Acquire a skill that is currently in high demand. While using that skill to build your career, find time to also use that skill to build your future.
Someone once reminded me of the “food crop” and “cash crop” strategy, which we were taught in the agriculture class. Our forefathers employed this strategy, and it worked for them. Your career is your food crop, since it provides for your daily living; however, your side hustle can become your cash crop that pays for your future. You can’t afford to grow one at the expense of the other. What is your current food crop? What is your cash crop? How much time are you dedicating to each?