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Start-Ups and Mobile in Emerging Markets: Insights from the GSMA Ecosystem Accelerator

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Start-Ups and Mobile in Emerging Markets: Insights from the GSMA Ecosystem Accelerator Start-ups and Mobile in Emerging Markets: Insights from the GSMA Ecosystem Accelerator Issue 1, Autumn 2017 © GSM Association 2017 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Ecosystem Accelerator The GSMA represents the interests of mobile operators The GSMA Ecosystem Accelerator programme focuses worldwide, uniting nearly 800 operators with almost 300 on bridging the gap between mobile operators and companies in the broader mobile ecosystem, including start-ups, enabling strong partnerships that foster the handset and device makers, software companies, growth of innovative mobile products and services. Foreword equipment providers and internet companies, as well as These partnerships bring impactful mobile solutions to organisations in adjacent industry sectors. The GSMA the people and places that need them most, generating also produces industry-leading events such as Mobile the greatest socio-economic impact. In particular, the World Congress, Mobile World Congress Shanghai, Mobile programme operates an Innovation Fund which supports World Congress Americas and the Mobile 360 Series of African and Asian start-ups with direct grant funding, conferences. technical assistance, and connections with mobile operators. Back in July 2016 we launched our first publication transformation, especially as they continue to explore more and our Innovation Fund with great enthusiasm, with way of working together. Tech hubs who play a critical For more information, please visit the GSMA corporate Learn more at www.gsma.com/ecosystemaccelerator the aim to promote a seemingly simple idea: start-ups role in local innovation ecosystems, and have the power to website at www.gsma.com or contact us at [email protected] in emerging markets are making breakthroughs using promote ideas and collaboration locally. But also investors, mobile technology, and should therefore consider turning who provide the capital to help projects get off the Follow the GSMA on Twitter: @GSMA Follow GSMA Mobile for Development on Twitter: to mobile operators to partner for scale. Fast forward 15 ground and go to scale. And more broadly to anyone who @GSMAm4d months, and after reviewing close to 1000 applications to recognises start-ups and mobile technology are forces to our Fund, and diving into APIs, mobile operator corporate be reckoned with in addressing the SDGs in a commercially venture capital, and the breadth of possible synergies, we sustainable manner. are ever more convinced that it is the case. Our thanks go to those who kindly contributed to this This process has also been a great opportunity to interact piece, but also to all those who make change happen with hundreds of players in the ecosystem, and get a better on the ground by creating and supporting impactful understanding of the type of content that is most engaging innovation, especially our donors the UK Department and relevant to them. Based on this precious feedback, it for International Development (DFID) and the Australian is our pleasure to share with you the first edition of our Government for their continued efforts to support the ‘Start-ups and Mobile in Emerging Markets’ publication. growth of local innovators. The Ecosystem Accelerator programme is supported by The team has designed this new format to best captures We hope you enjoy reading this publication as much as we the UK Department for International Development (DFID), the evolution of a fast-moving space, and with a wide range enjoyed putting it together. the Australian Government, the GSMA and its members. of stakeholders in mind. Mobile operators and start-ups The views expressed are not necessarily those of DFID or obviously, who are at the core of our work, and who we Your feedback is always welcome! the Australian Government. strongly believe hold the key to large-scale impactful digital Authors: Maxime Bayen — Senior Insights Manager Max Cuvellier Sam Ajadi — Insights Manager Contributors: Martin Karanja – Senior Market Engagement Manager Head of the Ecosystem Gregory Omondi – Market Engagement Manager Accelerator programme, GSMA 2 3 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Contents Start-ups and Mobile Innovation Start-ups and Mobile innovation 5 How start-ups from our Innovation Fund portfolio leverage mobile technology to offer How start-ups from our Innovation Fund portfolio leverage mobile technology to offer relevant and relevant and impactful services impactful services Mobile Operators in the News 19 How mobile operators support local start-up ecosystems to help catalyse mobile innovation Mobile Technologies for the SDGs 24 How start-ups and mobile operators in emerging markets are leveraging USSD technology to address socio-economic challengess 4 5 START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR START-UPS AND MOBILE IN EMERGING MARKETS: INSIGHTS FROM THE GSMA ECOSYSTEM ACCELERATOR Case Study 1 Biscate: connecting the dots in How the service works Mozambique’s informal sector Workers register through their mobile phones by dialling USSD code *777#. Workers input the following information: name, gender, trade, location, level of education and experience, which Founding year 2016 1 is captured using a series of menus, most of which use numerical inputs, which are easier to manage for this low-literacy group. Geography Mozambique Team Frederico P. da Silva – Co-founder and CEO Customers download the native iOS or Android app or visit the Tiago Borges Coelho –Co-founder website and search by trade, location and ratings to select the and Head of Research & Development 2 worker that they need. Erika Rodrigues – Project manager Tweet pitch Biscate is a platform using inclusive technologies such as SMS, USSD and web to connect skilled The customer receives the selected worker’s contact details by SMS and connects with them. workers from the informal sector with customers 3 www.biscate.co.mz The worker performs the requested job and gets paid directly by the customer. In Mozambique, nine in ten people work in the a basic phone using USSD technology. Biscate offers 4 informal economy1, making it one of the highest potential customers access to a register of workers global ratios. Forty-five percent of the population sorted by trade, location and experience level. Once a 2 The customer rates the service provided by the worker in terms owns a mobile phone , although less than 25% has job has been completed, customers can rate workers, of quality, price and time. access to the internet3. further enriching the database. 5 With these statistics in mind, software solutions As of July 2017, the 14 team members at Biscate have start-up UX Information Technologies launched attracted more than 46K workers to the platform, Since its launch, Biscate has been leveraging the Biscate (“odd-job” in Portuguese) in June 2016. This connecting them to more than 28K customers power of mobile technology by offering workers and Biscate optimised for service allows the numerous informal and often through a total of 83K contact requests across customers access to the service through three different uncertified skilled workers located throughout the Mozambique’s 10 provinces. Eighteen different trades mobile channels: a mobile-responsive website, a native feature phones: USSD 2.0 country to register and advertise their services with are available on the platform with the 46K workers mobile app (both on Android and iOS) and a USSD distributed as follows: service. The latter is by far the most popular among workers with an average of 3,000 daily USSD sessions For every session a worker initiates through USSD, the platform is able to show a contextual page FIGURE 1 being recorded on the platform. so that Biscate’s menu is tailored and dynamic Worker distribution on Biscate platform as of July 2017 In order to enable workers and customers to enjoy instead of the usual linear navigation (like a the service either free of charge or at a limited cost, decision tree). This allows Biscate to create an Biscate developed a B2B cross-subsidisation model individual profile for each user based on their Electrician Carpenter 9929 2920 through which it charges external organisations for the mobile phone. The platform is therefore able to following services: remember“ who they are, so that for instance if a Welder 6669 Bricklayer 2895 session times out, users are sent back to the last • Data analysis on Mozambique’s labour market and screen they visited when they reconnect. Similarly, 4282 Painter 1698 Cook informal sector (mainly for institutions), based on Biscate can also personalise the user experience workers’ data by greeting them with the name they registered Hairdresser 4123 Mechanic 1320 • Targeted below-the-line advertising through with and provide other dynamic user experiences. bulk SMS to the workers or customers database Because all this USSD input takes place on the 3991 AC Technician 901 Deliverer (for instance for hardware shops wanting to sell Biscate application, all of the information is tools and material to specific workers in specific available in real time on Biscate’s website and 3440 TV Technician 422 Tailor locations) mobile applications, thus effectively making basic • Talent database subscription allowing companies phone users visible
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