In Nigeria, the Software as a Service (SaaS or SAS) tech industry has shown promising growth, signalling a vibrant future as businesses continue to embrace digital transformation. According to Statista, the SaaS sector in Nigeria is expected to reach a revenue growth of $241.90m in 2024 with a Compound Annual Growth Rate (CAGR) of 17.28% between 2024-2028.

The sector undoubtedly holds many promises and many stakeholders and observers attribute this boom to the 2020 COVID-19 pandemic which saw many businesses pivot into the use of technology for various purposes. However, while the growth rate has remained consistent since 2020, this sector faces significant infrastructure challenges that could hinder its potential unless addressed promptly and effectively.

One of the biggest hurdles for SaaS users and providers alike is scaling infrastructure to accommodate increasing user bases and data volumes. Traditional on-premise infrastructure often struggles to keep pace, leading to performance issues and outages. On this note, we engaged Kehinde Ogundare, Country Manager at Zoho Corps in Nigeria, for a comprehensive discussion of the multifaceted challenges and opportunities facing the SaaS landscape in Nigeria’s evolving technology space.

Kehinde Ogundare, Country Manager, Zoho Corp

Here’s a breakdown of the vital themes addressed during our 35-minute-long discussion.

Kehinde Ogundare: Leading Zoho's Mission in Nigeria

Kehinde Ogundare’s ascent to the role of Country Manager for Zoho in Nigeria is a story of commitment and foresight. Ogundare has been instrumental in steering the company’s operations towards enhancing employee experiences and nurturing a workplace that is conducive to innovation and growth. His leadership style emphasizes empathy, proactive problem-solving, and a deep understanding of the nuances of Nigeria’s tech industry.

Addressing Infrastructure Challenges in the SAS Tech Industry

The SAS (Software as a Service) tech industry in Nigeria faces significant hurdles, primarily due to infrastructural deficiencies like inconsistent internet connectivity, power supply instability and data and privacy concerns.

Zoho, under Ogundare’s guidance, is actively working to mitigate these issues by offering cloud-based solutions that are less reliant on heavy physical infrastructure. This approach not only makes it easier for startups to adopt and implement Zoho’s products but also ensures that businesses can operate more reliably.

Speaking on this issue, Kehinde Ogundare revealed how Zoho’s product can reduce these infrastructural issues: “

So I can tell you at least more than 60% of Nigerians have smartphones and they browse the internet daily. And we all know the cost of the various internet facilities that exist. So where does Zoho come in? So we come in the angle of providing the software at affordable rates while at the same time educating people on the importance of migrating to a cloud-based service. Because cloud-based means that you can access our software, on your laptop and on the go with your smartphones and tablets - that way, customers have the flexibility to run their businesses at any point in time. 

You have to understand that there is a peculiar way of doing business in Nigeria, given that people don't want to spend much money. Also, because you're trying to encourage people to move from a paper-based way of doing business to doing business through cloud-based software applications, asking them to pay heavily would scare them away. In that light, Zoho offers more than 45 applications, that cut across sales, marketing, human resource, finance, project management, workplace and collaboration with productivity - all of which can be accessed at an affordable price system.”

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Promoting Financial Inclusion Through Affordability

One of Zoho’s key strategies in Nigeria is to enhance financial inclusion by making its products more accessible and affordable to SMEs. By pricing their services in local currency, Zoho removes the formidable barrier of foreign exchange costs that many startups face. This policy democratises access to premium technological tools, enabling smaller businesses to compete on a more level playing field.

According to the Country Manager, Zoho, In 2020 introduced a policy called Transnational Localism which was targeted at bringing Zoho services across the world to the local and indigenous people by establishing local facilities. The Transactional Localism helps optimise reach for Zoho across boards and thereby promotes financial inclusion in the Nigerian economy.

Zoho Products

Kehinde further added that removing the barriers caused by the unstable exchange market makes it easier for businesses to leverage Zoho’s premium products as customers are billed for services they need in Nigeria’s local currency, The Naira (₦).

Commitment to Data Security and Privacy

Data security and privacy are paramount in today’s digital age, more so in the tech industry where breaches can have catastrophic impacts. Zoho has placed these principles at the core of its operations, implementing robust security measures to protect its clients' data. This commitment builds trust and reliability, encouraging more businesses to transition to digital and cloud-based solutions without fear of compromising sensitive information.

On the issue of data security and privacy, Kehinde revealed that Zoho is very big on data security and privacy for its customers. Speaking, he disclosed:

“I always say that when you think of Zoho, you think of privacy and security. This is at the core of what we believe at Zoho - Privacy and security. From our end, we have put all the necessary measures in place to make sure that your data remains your data. No third party and no unauthorized access to your data. 

We are very compliant with all the regulations that concern data and privacy from the government and various other outlets that exist. However, when it comes to individual products that we are selling to our clients as well, we have incorporated privacy and security measures as well. So if you're using our CRM, for example, to do your sales pipeline and everything, we have something called Roles and Profiles - which is when you control individual access to specific data.”

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The Future of Work: The Role of Emerging Technologies

The discussions also touched on the transformative potential of AI, automation, and the Internet of Things (IoT). Both speakers highlighted how these technologies could revolutionise industries by enhancing business operations and creating new opportunities for innovation and efficiency. The focus was on the need for startups to identify the right technological solutions that specifically address their unique business challenges. Reflecting a global shift towards more flexible, technology-driven work environments, Kehinde is positive that the future of work in Nigeria will be shrouded in technological advancements like AI and remote working models.

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In Nigeria, where mobility can sometimes be an issue, remote work opens up a plethora of opportunities for talent and business operations. AI and automation are seen as key enablers that help streamline processes and reduce the burden of repetitive tasks, allowing human talent to focus on more strategic activities.

“I believe that we are adjusting to the reality of today's work. People are now very flexible with their jobs working remotely and leveraging the power of AI to do remarkable things. Even at Zoho, we are also on this terrain where you can have meetings from the comfort of your house using Zoho Meetings, you can collaborate on a document with someone who is miles and miles apart from you and all of this is as a result of the advancement that has happened over the past few years.

I think it’s blissful to know that this is where we are now and more technological advancements are coming.”

Our discussion with Kehinde offered insightful perspectives on the landscape surrounding Zoho's operations and its strategic efforts to support and empower startups in Nigeria. With a focus on accessibility, innovation, and security, it seems that Zoho is not just contributing to the technological advancement of the region but is also instrumental in fostering a more inclusive and efficient business environment.

This interview is part of Enrich Africa's special feature. This interview has also been edited for length and clarity.