Lunga Momoza – Empowering Local Entrepreneurs through E-Commerce Innovation
Lunga Momoza’s entrepreneurial journey began in high school when he started selling thrifted clothing to his classmates. This early experience ignited a passion for business and innovation that would eventually lead him to establish his own tech start up, Basket E-commerce, around 2017. Lunga’s story is one of resilience, creativity, and a commitment to uplifting his community through technology.
Lunga’s interest in entrepreneurship was further fuelled when a representative from a university programme visited his school, introducing him to the Launch Lab incubator. This encounter left a lasting impression, and Lunga knew that he wanted to pursue a career in tech. However, the journey was not without its challenges, securing initial funding was a significant hurdle, but Lunga and his team were determined to overcome it. By participating in UVU Africa’s hackathons, they not only gained valuable experience but also secured their first funding a R10, 000 cheque that allowed them to start building their business.
Growing Tech Landscape in Cape Town
Lunga has witnessed first-hand the growth of Cape Town’s tech landscape. He highlights events like UVU Africa’s hackathons and the Global Start-up Awards, noting the impressive turnout and increasing interest from young entrepreneurs. For Lunga, the growth of the tech industry in Cape Town is more than just a trend; it’s a movement that is transforming communities and creating opportunities for many.
One of the key milestones for Basket E-commerce was onboarding their first 250 customers/merchants within just six months. This achievement was particularly significant given that Lunga and his team were still students at the time, balancing academics with the demands of running a start-up. The early success in Stellenbosch’s Khayamandi and Khayelitsha townships validated their vision and underscored the potential of their business model.
Influence of Community and Partnerships
Attending entrepreneurship events and networking with like-minded individuals has been instrumental in Lunga’s journey. These experiences not only deepened his passion for tech but also motivated him to pursue his dream of launching a tech start-up. Partnerships have also played a crucial role in Basket E-commerce’s growth, recently, the company collaborated with a micro-financing start-up, which aligns perfectly with their business model. This partnership addresses a significant challenge faced by informal merchants in Cape Town, access to quick credit or capital, which traditional banks often do not provide.
To stay ahead of technological trends, Lunga and his team adopted a chatbot system two years ago, well before the AI boom. This decision not only kept them competitive but also helped streamline their operations. Looking ahead, they are exploring further AI applications, particularly in the micro-financing sector, to continue enhancing their services.
Like any entrepreneur, Lunga has faced setbacks. In 2023, after months of discussions with an angel investor, the deal fell through just days before payroll. This unexpected turn forced the company to downsize and rethink its strategy. Despite this setback, Lunga remains committed to his vision and continues to push forward.
Future Goals
Lunga’s immediate goal is to expand Basket E-commerce’s services to other townships in the Cape Town region. In the long term, he aims to scale the business to Johannesburg and eventually to countries like Botswana and Namibia, he also emphasises the importance of attracting the right tech talent to support this growth.
Lunga attributes much of his success to mentorship, which he likens to “building a plane while it is flying”. “Having a mentor who understands your journey and aligns with your goals is invaluable in navigating the complexities of entrepreneurship.” He advises fellow entrepreneurs to seek grant funding in the early stages, as it provides the flexibility to refine their business model and set a clear direction.
Opportunities in Cape Town’s Tech Sector
Lunga sees immense potential for tech entrepreneurs in Cape Town, particularly in sectors like health tech and logistics. He believes that innovative solutions in these areas can address significant challenges and create successful ventures.
Lunga’s journey is a testament to the power of perseverance, innovation, and community support. His work with Basket E-commerce is not only helping to build a successful business but also paving the way for future generations of entrepreneurs in Cape Town.
