In this interview, we sit down with Oghenetega (Tega) Iortim, the founder and CEO of Figorr, a Nigerian technology company tackling cold chain logistics challenges across Africa. Under Iortim's leadership, Figorr has successfully raised $1.5 million in seed funding, which has allowed the company to expand its services throughout the continent and develop a risk management platform specifically designed for perishable goods. With an impressive track record of tracking over 110 million items and saving customers more than $200 million in potential losses, Figorr's impact is substantial. Tega discusses their recent partnership with Gavi, the Vaccine Alliance, as an INFUSE Pacesetter aimed at enhancing vaccine cold chain management, along with the company's future plans.

1. Kindly share with our audience Figorr’s business model. What business are you in and how do you make money?
   
   Figorr provides monitoring services for businesses handling cold chain products, such as vaccines requiring storage between 2-8 degrees, meat needing specific refrigeration, and flowers during transport. Our platform enables product owners to monitor the location and temperature conditions of their goods in real time, helping them take action to prevent potential losses.
   
   For example, flowers can be damaged by prolonged exposure to unfavorable conditions, even if the effects are not immediate. When we detect such exposure, we alert the business owner promptly, allowing them to take preventive action and reduce future losses.
   
   Our primary revenue model is a software subscription. Customers subscribe to our platform to monitor their products, using sensors placed alongside the goods. In flower shipments, for instance, a sensor is packed with the flowers, transmitting real-time data to a dashboard where clients can track conditions and act to prevent losses.
   
   Additionally, we have introduced an insurance product that supports insurance companies in underwriting risks associated with product shipments. We earn commissions on each insurance policy purchased through our platform. While this is a key focus area, we are actively exploring further opportunities in this space.
2. What type of clients does your business primarily focus on? Are you mainly working with SMEs or large companies, and how diverse are your clients across sectors?
   
   I like to describe our business as a supply chain technology company that operates across multiple sectors, such as healthcare and agriculture. We work with businesses of all sizes, from small enterprises to large corporations, as well as government and non-governmental organizations. For example, in Nigeria, we collaborate with the National Primary Healthcare Development Agency to track most of the vaccines distributed across the country.
   
   In the private sector, we work with major distribution companies like Laborex in Kenya and Tanzania—a prominent medical distributor owned by CFAO, serving the East African and Nigerian regions.
   
   Additionally, we support exporters, particularly in agriculture. For example, we work with rural farms in Kenya that export flowers globally. We also have clients in Rwanda, such as Uzima Chickens. This broad range of clients reflects our ability to provide comprehensive services across diverse industries.
3. How did you come up with this idea? You have not always worked in this field, so what led you to start your company?
   
   The inspiration to start the company came from a personal experience I had in basic agriculture. I invested in farming, where I would harvest crops and sell them. However, we encountered challenges when we did not sell the products quickly enough, resulting in significant losses. I was motivated to find a solution to this problem.
   
   Initially, we considered building cold storage facilities to preserve the products. However, we realized that establishing cold storage is expensive and requires substantial capital, which we did not have. Consequently, we pivoted our approach to create a sustainable business model that would be both affordable for us and accessible for our customers, enabling them to prevent losses effectively.
   
   This journey has led us to establish a market fit, and that is how we transitioned to where we are today.
4. Congratulations on being selected for Gavi’s 2024 INFUSE Pacesetters program. I would like to learn more about what this means for Figorr and why it is a significant milestone for the company.
   
   Gavi, the Global Vaccine Alliance, aims to reduce the number of zero-dose children—those without access to vaccines. The INFUSE program, which stands for Innovation for Uptake Scale and Equity in Immunization, identifies ten technology businesses addressing immunization challenges. This year's theme focuses on climate change and its impact on immunization, particularly as rising temperatures in sub-Saharan Africa affect vaccine distribution.
   
   The program seeks to enhance resilience in immunization efforts through innovative technology. Gavi works with 57 countries, providing Figorr an opportunity to partner with these nations to strengthen their immunization programs. Countries identify specific challenges and connect with Figorr when they believe our solutions can help.
   
   Funding for these initiatives comes from Gavi. In many developing countries, healthcare funding relies on donor organizations. When a country shows demand for Figorr's solutions, Gavi commits to funding for the first two years, allowing governments to focus on implementation. After achieving positive outcomes, governments are expected to sustain the programs.
   
   This partnership increases our reach and collaboration with governments dedicated to improving immunization distribution.
   
   
   
   Image: How the INFUSE programme leverages private sector innovation to save lives (Credit: Gavi website)
5. You have iterated on your product and shifted from offering solar-powered storage boxes to focusing on an IoT-centric model. Could you elaborate on this core shift?
   
   Initially, we aimed to address cold storage needs by building facilities, which proved capital-intensive. Constructing a solar-powered cold room costs around $10,000, while a cold box can range from $400 to $500—prices that are often unaffordable for many users, including ourselves. This model also presented scalability challenges; expanding from Nigeria to Kenya with large cold storage facilities requires significant capital investment.
   
   To overcome these challenges, we pivoted to an IoT-centric solution that involves using sensors in boxes. This approach is more affordable and scalable, allowing us to provide a viable cold storage alternative without the need for extensive capital.
6. At one point, you wanted to launch a risk management platform. Could you tell us about it and identify the users of this platform?
   
   We are currently rolling out a unique product tailored for poultry and other sectors, such as livestock. While progress is slower than anticipated, our goal is to analyze risk factors like temperature, humidity, and location for various agricultural and healthcare products. We aim to leverage the data we capture to assist organizations in accessing insurance and help insurance companies underwrite and validate claims effectively.
   
   The primary users of this platform are smallholder farmers. For instance, we place sensors in poultry pens, monitoring wind temperatures. When temperatures rise too high, we send notifications to farmers in their local dialect, advising them to open the pen windows for ventilation. This action helps lower temperatures, which is critical because high heat can lead to decreased feeding, weight loss in birds, and even death due to heat stress. This proactive approach allows farmers to take necessary measures to prevent losses.
   
   The second user group is insurance companies. If birds die from heat stress, we provide insurance firms with detailed reports analyzing both atmospheric and internal temperature conditions. Our data includes information about local feed prices, enabling insurance companies to understand the farmer's potential losses better. By correlating temperature data with feed consumption, we can adjust payouts, ensuring that farmers receive fair compensation while allowing insurance companies to underwrite more accurately. This methodology can be applied to various products, including vaccines, ensuring that insurance providers can accurately assess and manage risk.
7. I would like to discuss your fundraising experience, as entrepreneurs have varying stories. What was your experience like?
   
   Unlike some entrepreneurs who close funding rounds in 30 days, my experience was quite different. Raising capital took almost a year, which was particularly challenging since it was my first fundraising effort. The process was new to me and involved significant learning. It was also time-consuming, as I had to manage numerous investor demands, including sending documents, assembling due diligence folders, and addressing forecasting issues during meetings.
   
   One key lesson from this experience is the importance of having a strong finance team. As we prepare to fundraise again, I recognize that it was a mistake not to invest adequately in a finance team from the start. Moving forward, I plan to hire a CFO to ensure proper financial management well in advance of any fundraising efforts. There are always lessons learned along the way.
   
   
8. Could you share more about what your last round helped you achieve?
   
   The $1.5 million we raised was allocated for specific initiatives that have significantly advanced our operations. Before securing this funding, we were not present in Kenya, but we have successfully expanded into both Kenya and South Africa since then. A primary focus of the funds has been on scaling into these new markets, which has allowed us to establish a foothold in regions with growing demand for our services.
   
   Additionally, we have made substantial progress in developing our insurance product, enhancing our offerings to better serve our customers and meet their needs. This product is now in active development, and we are optimistic about its potential impact on our business.
   
   Furthermore, we aimed to strengthen our team by bringing on senior members who can drive business growth and improve our operational efficiency. This investment in talent has been crucial for our expansion strategy. Another significant goal was to obtain certification from the World Health Organization, which we anticipate achieving in about two months. This certification will further validate our solutions and enhance our credibility in the healthcare sector.
   
   Overall, the funding has enabled us to strategically position ourselves for growth and innovation in new markets while reinforcing our operational capabilities.
9. I can imagine that though you are the founder of the business, it has likely evolved beyond what you initially envisioned. How do you adapt your leadership style or keep growing personally to be the leader that the company needs?
   
   I prioritize continuous learning by reading extensively and seeking insights from other successful founders. However, I have learned that a strong senior team is essential for scaling the business. Every founder has shortcomings, and it is crucial to recognize that one cannot do everything alone. I strive to bring in leaders who offer diverse perspectives and possess more experience, which enhances our collective capabilities. I have previously tried to manage alone and realized the importance of building a complementary team that addresses my weaknesses. This approach is vital for guiding the business to its desired growth.
10. Could you tell me more about your senior team and the strengths you are looking for to complement your own?
    
    I believe it is crucial to have a well-rounded team. For example, I need someone strong in operations to manage daily activities effectively. A solid finance team is essential for handling financial planning and risk management, along with legal support as we navigate the complexities of our industry. Since we are in the technology sector, technical expertise is necessary, especially when developing our insurance product. This means seeking out skilled actuaries who can provide the right insights.
    
    However, I also have to consider our resource constraints. We must think strategically about what we can afford and who we can bring on board. As we grow, it becomes clear that the people who helped us reach certain milestones may not be the ones who can take us further. As the CEO, I realize I cannot be the smartest person in the room; I need to surround myself with talented individuals who can drive the business forward. This mindset shift has been crucial for our continued success.
    
    
    
    Image: Members of Figorr’s team
11. Looking ahead, what are your long-term goals for Figorr, and how do you envision the company's evolution over the next few years?
    
    That is a great question, and to be honest, the future is somewhat uncertain. As we secure partnerships, I realize the importance of identifying what we excel at and where to focus our efforts. We are on that journey now. There are various paths the business can take, but ultimately, I believe in having a clear goal. For me, that goal is an exit—whether that means selling the entire business or part of it.
    
    When I consider our exit strategy, I focus on areas of growth that offer the greatest potential for a successful exit. That's likely where we will concentrate our resources and energy moving forward.

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