Innovation in startups rarely follows a straight line. In Africa’s dynamic startup landscape, adaptability is not a luxury but a necessity. Many of the continent’s successful ventures owe their survival to timely reinvention – the famed “pivot.” Yet the pivot has also become an overused buzzword, sometimes met with eye-rolls by investors and founders alike. This article makes the case for what a true pivot is (and isn’t), why and when a startup should pivot, and how the term has been misapplied in the African startup ecosystem.
What Pivoting Really Means (and What It Doesn’t)
In startup parlance, a pivot is a deliberate change in strategy aimed at finding a more viable business model without abandoning the overall vision. As Lean Startup founder Eric Ries describes, a pivot happens “when we discover that our experiments have stopped being productive, [and we move] to a new fundamental strategy… without changing our vision”. In other words, you remain committed to solving the core problem, but you change your approach. A pivot might involve targeting a different customer segment, tweaking the product offering, or changing the revenue model – but it is always driven by evidence and learning, not whimsy.
Importantly, pivoting is not a synonym for failure or panic. As one African tech observer noted, a pivot is “not a sign of defeat, but a strategic response to new insights, challenges, or opportunities”. Contrast this with what a pivot does not mean: it’s not a mere rebrand or a wild leap into a trendy new business because things got tough. Startup advisor Ben Yoskovitz warns against “lazy pivots” – like chasing a hot industry buzz (e.g. suddenly adding an AI or crypto angle) or copying a competitor’s model – without any validated learning to justify the shift. Such knee-jerk pivots often amount to flailing, and can be “the final nail in the coffin” for a startup. In short, a genuine pivot is a calculated course-correction based on data and customer feedback, not a desperate shot in the dark.
Why and When Startups Should Pivot
Startups should consider pivoting only when the evidence compels it – ideally before they hit a point of no return in terms of runway or market relevance. Timing is critical: pivot too late and you run out of cash; pivot too early and you may abandon your original idea without enough proof. Several common red flags signal that it might be time to change course:
- Stagnant or Declining Growth: If key metrics – revenue, user acquisition, engagement – flatline or dip quarter after quarter despite your best efforts, the market is telling you something is off. For instance, Nigeria’s Kobo360 faced stalled growth and profitability issues in 2020, prompting a pivot in its business model. In 2018 the logistics startup expanded from pure haulage services to fleet management software and a broader logistics platform, which helped stabilize revenues. As one advisor quipped, “Stunted growth is evidence that your model is not working… a pivot might be what you need to fix it”.
- Customer Feedback Demands It: Persistent user dissatisfaction or requests outside your current scope can indicate a misalignment with market needsingressivecapital.com. In such cases, listening can save the business. A prime example is Gloo.ng, once a pioneering Nigerian online grocery platform. Years of logistical challenges and customer feedback led Gloo.ng to pivot in 2019 into “Gloopro,” a B2B e-procurement service, retaining most of its clients and rescuing the business from near shutdown. As this case shows, pivoting to meet customer needs can transform a struggling B2C venture into a sustainable B2B enterprise.
- Market Shifts or Heavy Competition: Sometimes the ground moves under your feet – new technology, policy changes, or aggressive competitors can quickly make your initial strategy obsolete. Rather than fight unwinnable battles, a strategic pivot can help you seize a new niche. Kenya’s Lori Systems exemplified this by pivoting from a digital trucking marketplace to an integrated logistics solutions provider (with supply-chain analytics and fintech services) when faced with rising competition. This repositioning filled gaps competitors left open and kept Lori ahead in the game.
- Unsustainable Business Model (Financial Strain): If you’re burning cash fast and unable to see a path to profitability, it’s time to rethink the model itself. Crowdyvest (Nigeria) reached such a crossroads in 2021. Originally a crowdfunding platform for agriculture, it struggled with revenue and pivoted to become a digital savings and investment platform. The move broadened its user base and set the company on a more viable financial footing. In essence, if the current model can’t make money, pivot toward one that can – your startup’s survival depends on it.
- Pressure from Investors or Team: Finally, if your early backers or team members lose faith in the current direction, it might be wise to consider a change. Investor feedback often flags deeper issues; ignoring it could be fatal. While pivoting to appease investors alone is risky, outright resistance to change is worse. A pivot that refocuses the vision can also re-energize a demoralized team by showing a credible plan for success.
In all cases, the decision to pivot should be driven by data and clear-eyed analysis, not just gut feeling. As Startup Genome’s research found, startups that pivot once or twice tend to perform better – they raised 2.5× more money, had 3.6× higher user growth, and were 52% less likely to scale prematurely than startups that never pivot (or pivoted too many times)chargebee.com. The takeaway: a well-timed pivot can be a lifeline, but pivoting repeatedly or aimlessly is a red flag.
Pivoting in the African Startup Scene
Africa’s startup ecosystem has seen its share of both smart pivots and dubious ones. On the positive side, several African startups have leveraged pivots to unlock major growth. Flutterwave, for example, began with a focus on facilitating B2C remittances but soon pivoted to building B2B payments infrastructure, serving merchants and banks. Today it’s one of Africa’s most valuable fintechs, operating in 30+ countries. Kenyan agritech Twiga Foods similarly expanded its model: initially just a digital marketplace linking farmers to vendors, Twiga pivoted to own the supply chain – sourcing produce and selling directly to urban retailers – which attracted significant investment and scaled up operations. Another oft-cited pivot success is Andela. This Pan-African developer training company was originally based on in-person fellowship programs; it later pivoted to a fully remote talent marketplace, connecting African software engineers with global companies. The shift dramatically expanded Andela’s reach (helping it secure $200 million in funding and unicorn status). These cases underscore that pivoting, when grounded in a clear opportunity, can propel African startups to world-class status.
However, not every change of direction is a triumph – and this is where the abuse of the term “pivot” comes in. In some quarters of the African tech scene, “pivot” has been used to sugarcoat failure or to justify knee-jerk strategy flips. Founders under pressure sometimes announce a grand pivot that is essentially a completely new business, unrelated to their original – a move better termed a restart than a pivot. Rwanda’s on-demand moto-taxi startup SafeMotos offers a cautionary tale. After a few years of operations, it rebranded as CanGo and attempted to broaden into a “super-app” for Central Africa. But when fresh funding didn’t materialize, the founders were left with a stark choice: “fire everyone and bootstrap with a brand new pivot, or close”. They attempted a last-ditch shift in Rwanda, but lacking investor buy-in, ultimately had to shut down. The lesson? A pivot executed from a position of desperation – without resources or stakeholder support – is unlikely to succeed. Calling it a pivot doesn’t change that reality.
The term pivot has also been thrown around to ride hype cycles. During the fintech and crypto booms, for instance, some African startups with shaky core businesses claimed to “pivot into fintech” or blockchain, hoping to attract investors. Such moves, absent a logical link to the startup’s strengths or customers, fit Yoskovitz’s definition of “pivoting into a big trend” – essentially a leap onto the bandwagon. More often than not, these opportunistic pivots fail to gain traction (and can erode credibility). True pivoting is not about chasing fads, but about aligning your company with a sustainable opportunity revealed by research or by your users.
Pivot with Purpose, Not as a Buzzword
Ultimately, the case for a pivot is a case for strategic adaptability. In the African context, where market conditions can change rapidly and initial assumptions often don’t hold, the ability to pivot can mean the difference between joining the startup graveyard or surviving to scale. Data shows that pivoting prudently – once or twice, based on evidence – is linked to stronger outcomes. We’ve seen startups like Flutterwave, Twiga, M-KOPA and others turn well-timed pivots into platforms for growth. On the flip side, the pivot mantra should never be an excuse for lack of focus or constant U-turns. As one founder-focused group put it, it takes humility and courage to pivot, because you must admit your current path isn’t working and boldly chart a new course.
For entrepreneurs and innovators, the key is to pivot with purpose. That means pivot only when you have actionable insight – when users, data, and market signals all point to a better way forward. A pivot, done right, is not about quitting your vision; it’s about executing that vision through a smarter strategy. In the words of startup experts, “Pivoting isn’t failure – it’s evolution.” It’s how good ideas find their winning incarnation. In Africa’s vibrant startup ecosystem, where resilience is prized, a well-calibrated pivot can transform a faltering venture into an industry trailblazer – and that is the true power behind the buzzword
