Across Nigeria, the once-promising landscape of education technology (edtech) is facing a harsh economic reality. Startups that once envisioned revolutionizing learning are now grappling with mounting pressures, with some, like the highly-touted Edukoya, succumbing to market headwinds. Yet, amidst this turbulence, one venture, Gradely, is charting a different course, placing its hopes on its international market and an unlikely figure: a former top tutor who has now risen to the rank of Deputy CEO.
The news from Gradely arrived with a burst of internal enthusiasm. Adebayo Alomaja, whose journey with the e-learning platform began as one of its earliest educators, has been appointed to the newly created role. His trajectory is compelling: from a tutor who first broke the N1 million earnings mark on the platform in 2021, to the leader who spearheaded Gradely’s international tutoring arm from a zero revenue base to a “high six-figure” annual recurring revenue (ARR) by 2024. This promotion is not merely a feel-good story; it represents a strategic pivot for Gradely as it navigates the choppy waters of Nigeria’s edtech sector.
The struggles are real and increasingly visible. Last month, Edukoya, a Lagos-based startup that garnered significant attention by raising a substantial $3.5 million pre-seed funding round in 2021 — the largest of its kind in Africa at the time — announced its closure. In a candid statement, founder Honey Ogundeyi cited “insurmountable challenges in market readiness and macroeconomic conditions” as the reasons behind the decision to return capital to investors, just shy of the company’s third anniversary. Ogundeyi, a respected figure in Nigeria’s tech ecosystem with a background in e-commerce, banking, and even a stint at Google, had aimed to bridge the quality gap in education by providing digital content and tutoring for K-12 students. Her vision, fueled by personal experiences within the Nigerian education system, resonated with investors initially. However, the ambitious goals ultimately clashed with the on-ground realities of the Nigerian market.
Edukoya’s demise is not an isolated incident. Reports have also emerged about Decagon, a tech training institute, shifting its core focus away from software engineering education. Founded in 2018, Decagon offered intensive, paid training programs with the promise of job placements. While successful in securing employment for its graduates, the company faced significant challenges with loan defaults. Many students, who often relied on loans from partner institutions to cover the hefty tuition fees (ranging from $4,000 to $6,000), failed to repay these debts despite securing jobs. This, coupled with Nigeria’s rising inflation and increasing benchmark lending rates, which made loan repayments more burdensome and deterred new enrollments, ultimately forced a change in strategy. Decagon will now reportedly concentrate on assisting learners in gaining admission to master’s programs abroad, a move that signals a significant departure from its initial mission of bolstering local tech talent.
Against this backdrop of closures and strategic pivots, Gradely’s decision to elevate Adebayo Alomaja appears as a calculated bet on internal expertise, international market and a deep understanding of its user base. Gradely operates an e-learning platform that leverages artificial intelligence to personalize learning for students. By analyzing data from assessments, the platform provides tailored resources like video lessons and practice exercises, enabling parents and schools to identify and address learning gaps in numeracy, literacy, and science. The company’s mission is ambitious: to improve these fundamental skills for 10 million African children by 2035.
What sets Gradely apart from some of the struggling edtech giants in Nigeria is its relatively modest funding. Having raised just over $100,000 since its inception from a mix of accelerators and angel investors, Gradely has seemingly operated with a leaner approach compared to Edukoya’s multi-million dollar war chest. This frugality might prove to be an advantage in the current economic climate, fostering a culture of resourcefulness and sustainability.
Now, as Deputy CEO, Adebayo Alomaja will be tasked with driving strategic innovations and empowering Gradely’s team of 18 employees and over 150 tutors who serve more than 150,000 students globally. His deep understanding of the platform’s operations, the needs of its tutors, and the challenges faced by students could be invaluable in navigating the current economic headwinds. Whether this strategy will be enough for the edtech startup to not only survive but thrive in a challenging market like Nigeria ‘s remains to be seen.