Why Wabona failed and the staggered growth hack

Wabona, an African content video streaming startup, hailed as the Netflix of Africa ceased operations in July 2015. The company, co-founded by Simbarashe Mabasha and Simukayi Mukuna, attributed the closure to an inability to secure additional funding and the challenging landscape of the African video-on-demand (VoD) market.

The duo announced the platform's closure in late July 2015, followed by a website shutdown and customer refunds. In a statement, they expressed their disappointment but maintained their belief in the potential of African content.

Mabasha elaborated on the challenges, citing a competitive VoD market struggling to find sustainable business models. Despite the setback, he remained optimistic about the future of African video content and began developing a new project.

Previously, Mabasha shared insights on African startups and their challenges in an exclusive guest post for Disrupt Africa.

What could have been done differently?

Staggered growth: This is a rarely practiced growth strategy because, on the outside, it appears counterintuitive. It entails breaking your product into component parts and using relatively lower tech solutions to solve customer pain points to gain trust, build a community, and achieve widespread customer adoption. Companies that successfully implement this model usually become industry leaders. Ironically, Netflix implement this growth model.

Netflix began in 1997 as a DVD rental service. Although it started as a DVD rental service, its cofounders had a unique vision to offer a curated and personalized catalogue of movies to their customers. So to them, it didn't matter the means they used to achieve this. 

As technology improved, their vision also underwent transformation until it became a video streaming service in 2007. And the rest, we know is history (or posterity).

Key takeaway: Formulate a core offering, be flexible about its implementation, and be adaptable to innovative technology to ensure continued relevance and industry wide dominance.

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