The Nigerian open banking startup, Okra expands the cloud services market with the launch of its new service, Nebula.
With this move, Okra joins the growing ranks of homegrown cloud providers like Nobus, Galaxy, and Layer3, all positioning themselves as affordable alternatives to global giants such as Amazon Web Services (AWS) and Microsoft Azure.
The launch marks a strategic shift for Okra as it seeks to diversify its offerings in response to local economic conditions and the evolving needs of businesses across Africa.
Okra’s CEO, Fara Ashiru, emphasised the importance of supporting local innovation in a recent LinkedIn post.
“For too long, Africa has leaned on imported solutions, paying premiums for software and services,” she wrote, highlighting Nebula’s ability to accept payments in naira, much like its local competitors Nobus and Layer3, which gives it a competitive edge in a country where currency devaluation has hit hard.
The introduction of Nebula comes at a critical time for Nigerian businesses, many of which are increasingly looking to reduce their exposure to US dollars amidst the naira’s depreciation.
Companies across sectors are grappling with higher costs for international cloud services, billed in foreign currency, adding to the financial strain of operating in a challenging macroeconomic environment.
Okra’s entry into the cloud speaks to a larger trend of Nigerian tech firms aiming to capture market share from global providers by promoting homegrown solutions.
Nigeria’s National Cloud Computing Policy, which encourages government agencies to prioritise local cloud service providers, makes these local options even more appealing.
Several local cloud companies have been discussing with state and federal institutions, advocating for increased government support.
The Launch of Nebula is more than s strategic expansion
For Okra, the launch of Nebula is more than just a strategic expansion; it’s a bid to offset potential losses in its core open banking business.
Reports indicate that Okra has discontinued at least three of its original products, signaling possible challenges in sustaining demand. Okra hopes to increase its revenue streams by diversifying into cloud services.
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The timing couldn’t be better. Cloud computing costs have more than doubled in the past year for Nigerian companies that rely on AWS, Azure, and Google Cloud, all of which charge in US dollars.
In April 2020, the Nigerian fintech platform raised a $1 million pre-seed investment from Lagos, Nairobi, and London-based venture capital (VC) firm, TLcom Capital. A year later, the company secured another $3.5 seed investment to expand across Nigeria.
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