Nigeria’s Scandium Hits 90% Gross Profit Margin in its First Year

Scandium, a software testing startup founded by Abdulazeez Ogunjobi and Sodeeq Elusoji, has achieved an impressive 90% gross profit margin in its first year of operation. 

The startup, which provides a platform for automated software testing, has already gained traction in the market, with 60 businesses and 800 software testers using its services.

Scandium’s competitive advantage lies in its simplicity. 

Unlike other automation tools like Cypress and Selenium, which require engineers to code the automation, Scandium’s platform allows users to set up automation with zero code. 

Users simply need to perform manual testing, and Scandium will record everything and create code from it. 

This makes software testing easier and more accessible to a wider audience.

Rapid Growth and Revenue: Challenges and Solutions

In its first year, Scandium has already generated $120,000 in revenue, with 25 of the 60 businesses on the platform being paying customers. 

The startup’s gross profit margin stands at an impressive 90%, demonstrating its financial viability and potential for growth.

Despite its success, Scandium faces two major challenges. The first is the lack of understanding and appreciation for software testing in Africa. 

To address this, the founders have been actively educating customers and investors about the importance of pushing bugless products, even at the MVP stage. 

The second challenge is pricing, as the startup aims to balance affordability for smaller companies with the need to generate revenue from larger enterprises. Scandium has adopted a freemium model to address this dilemma.

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Funding and Future Plans

Scandium is currently working to secure investment to fuel its growth. 

The startup has been accepted into the Baobab Network accelerator, which will provide support and resources to help it achieve its goals. 

The founders, who have experience with successful startups like Charistouch Technologies and Fixit45, are selective about the investors they choose, preferring those who understand the software testing market and can provide strategic guidance.

Scandium’s success in its first year, with a 90% gross profit margin and a growing customer base, demonstrates the potential of the software testing market in Africa. 

The startup’s innovative approach to automation and its commitment to education and customer service have positioned it for continued growth and success. 

As Scandium continues to expand, it will play a significant role in shaping the software development landscape in Nigeria and beyond.

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