Born to Disrupt – Resilience, Risk and Redefining Growth in Africa with Ciku Mugambi

In this compelling episode of Born to Disrupt, hosts Simon Hardie and Grant Niven are joined by Ciku Mugambi, an experienced investor and former startup executive, to explore the challenges and opportunities within Africa’s startup and innovation ecosystem. Ciku shares her unique journey—from her early days in audit and private equity, to leading operations at logistics tech company Kobo360 in Nigeria, and now, her current role managing a family office focused on impact-led investments in Kenya. The conversation offers a candid and personal look at what it means to navigate startup hardship, adapt to changing capital environments, and emerge as a more empathetic and informed investor.

From IFC to Startup Leadership

Ciku began her professional journey in audit before moving into consulting and then private equity, working closely with venture-backed startups in East Africa. Her time with the International Finance Corporation (IFC) gave her deep insight into Africa’s economic landscape and the potential of technology to drive development. It was in this role that she first encountered Kobo360, a logistics tech startup in Nigeria. Inspired by a desire to play an active role in shaping Africa’s future, she transitioned from investor to operator, joining Kobo360 as Chief of Staff and Head of Investor Relations.

The Harsh Reality of Scaling a Startup

At Kobo360, Ciku encountered the realities of building a venture-backed business in Africa. Initially, the startup benefited from abundant VC funding and rapid growth. However, as global markets cooled and the "VC winter" set in, the business was forced to confront its sustainability—or lack thereof.

Kobo360 had struggled to make its product commercially viable and scalable. With investor support dwindling, the company had to pivot rapidly to focus on profitability, cost control, and operational discipline. This included painful layoffs, cutting 174 staff members, and overhauling internal processes to improve margins and cash flow.

Ciku shares how the team focused on high-margin, fast-paying customers and imposed strict automation and compliance processes to run the leaner business. Remarkably, despite the adversity, Kobo360 ended 2023 with 15% year-on-year revenue growth, a 65% reduction in operating expenses, and a 72% improvement in EBITDA margins—without any external funding.

From Operator to Investor: Lessons in Empathy and Discipline

Returning to the investor side, Ciku now brings a much deeper sense of empathy to the table. Her experience navigating Kobo360 through crisis taught her how tough it is to build and monetise a business in volatile markets. As a result, she’s more realistic and pragmatic when evaluating startups—less swayed by shiny projections and more focused on operational viability and founder resilience.

She notes that many businesses, especially during Africa’s startup boom, were structured for growth at any cost, not for sustainability. Her focus now is on backing teams that can balance ambition with sound commercial fundamentals, particularly in the real economy where challenges cannot be solved with tech alone.

Advice for Founders: Hold Your Destiny

Ciku encourages founders to “hold your destiny in your hands”—prioritising commercialisation and sustainability over pure growth, especially in capital-constrained environments. She acknowledges there is still a place for experimental startups, but insists that unless the model is genuinely innovative and unproven (like early Amazon), most founders in Africa today must think like businesspeople first.

What’s Next for Africa’s Innovation Ecosystem?

Despite the challenges, Ciku remains deeply optimistic about Africa’s future. She sees rising intentionality among founders, a maturing investor landscape, and growing political and economic reforms that will create better conditions for sustainable business. She also highlights the growing strength of the youth-driven creative economy, regional integration efforts (particularly in East Africa), and improved technological adoption across sectors.

Her bets for the future include:

• Youth-led innovation

• Creative industries (music, fashion, film)

• Real sector transformation (manufacturing, logistics)

• East Africa as a unified trading bloc model for the continent

Final Reflections

Ciku’s story is a powerful reminder that real disruption is not glamorous—it’s hard, emotional, and demands resilience. But with the right mindset, and an evolving understanding of risk and opportunity, Africa’s founders and investors can build businesses that not only grow but endure. Her journey reflects a broader evolution in the continent’s innovation ecosystem—from high-velocity hype to sustainable, impact-driven growth.