Afrigator: A Killer Start-up in Africa
Case Code: BSTR353
Case Length: 20 Pages
Pub Date: 2009
Teaching Note: Not Available
Organization: Afrigator Internet (Pty) Ltd.
Industry: Social Media
Themes: Business Model, Business Model Innovation, Entrepreneurship
Abstract Case Intro 1 Case Intro 2 Excerpts
Considered as a search engine for blogs, Afrigator aggregated blog content from all over the African continent and allowed users to publish and use content on the Web. It could be used to index blogs, podcasts, and video content and to discover new sites...
The business model of Afrigator was advertising-based with some of the top South African brands sponsoring sections on the site. This business model allowed Afrigator to generate revenues. Across the site, users could find a few well-placed advertising banners...
Acquisition by Naspers
On September 7, 2008, MIH Print Africa (Pty) Ltd , a division of Naspers Limited, acquired a majority stake in Afrigator (Refer to Exhibit III for the income statement of Naspers Limited). The reason behind the acquisition was to help Afrigator reach a wider audience, analysts said...
In Africa, the Internet penetration rate was growing steadily. As per the Internet World Statistics, the Internet penetration rate in Africa was about 6.7% as of June 2009. According to experts, the rise in Internet usage along with an increase in demand for consumer generated content had led to the emergence of many social media sites in Africa...
With content feeds from Nigeria to Uganda, Afrigator provided a platform for African citizens to popularize African content. Because of its ability to aggregate and filter social media sources around the world, Afrigator received international recognition and was compared with some major social media aggregators in the world...
On February 25, 2009, 24.com, one of the largest blogging platforms in Africa, announced its integration with Afrigator. The integration allowed bloggers of 24.com to sign up for Afrigator with a single click and get their blog posts indexed and included in Afrigator...
Experts opined that in the future, Afrigator would evolve into the preferred choice of web users who wanted to get a taste of the social networking scene in the African continent. The company planned to gain market share and leverage its existing user base in the future by making the site more useful to social media users and bloggers...
Exhibit I: Nielsen Online Ranking by Publisher
Exhibit II: A Brief Note on Adgator and Gatorpeeps
Exhibit III: Naspers Limited: Income Statement
Exhibit IV: A Brief Note on Social Media in Africa
Exhibit V: Monthly Traffic Sent to Blogs by Afrigator: 2007-2008
Exhibit VI: Top International Products of 2008
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