Afrigator: A Killer Start-up in Africa

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Case Details:

Case Code : BSTR353
Case Length : 20 Pages
Period : 2007-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Afrigator Internet (Pty) Ltd.
Industry : Social Media
Countries : Africa

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Afrigator was co-founded by Hartman and Mike Stopforth (Stopforth) on April 6, 2007. Since early 1997, Hartman had been involved with the media and the Internet industry and worked for various well- known national magazines and publications as well as media companies such as Media24, Synaptix (Pty) Ltd, CareerJunction, True Love Magazine, and Finance Week...

Features

Considered as a search engine for blogs, Afrigator aggregated blog content from all over the African continent and allowed users to publish and use content on the Web. It could be used to index blogs, podcasts, and video content and to discover new sites...

Business Model

The business model of Afrigator was advertising-based with some of the top South African brands sponsoring sections on the site. This business model allowed Afrigator to generate revenues. Across the site, users could find a few well-placed advertising banners...

Acquisition by Naspers

On September 7, 2008, MIH Print Africa (Pty) Ltd , a division of Naspers Limited, acquired a majority stake in Afrigator (Refer to Exhibit III for the income statement of Naspers Limited). The reason behind the acquisition was to help Afrigator reach a wider audience, analysts said...

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