Startups

Andela begins global expansion in 37 countries months after going remote across Africa

Comment

Jeremy Johnson
Image Credits: Andela

More than a year after the pandemic began, remote work shows no signs of going away. While it has its cons, it remains top of mind for potential employees around the world before joining a new company.

But while most people in Africa still go to physical offices despite the pandemic, a few companies have nevertheless embraced this concept. Andela, a New York-based startup that helps tech companies build remote engineering teams from Africa, was one of the first to publicly announce it was going remote on the continent.

Today, it is doubling down on this effort by announcing the global expansion of its engineering talent. Over the past six months, the company has seen a 750% increase in applicants outside Africa. More than 30% of Andela’s inbound engineer applications also came from outside the continent in March alone. Half this number came from Latin America while Africa saw a 500% increase in applications as well.

Andela, which builds engineering teams tapping African talent, goes fully remote and opens to the wider continent

When Andela launched in 2014, it built hubs in Nigeria, Kenya, Rwanda and Uganda to source, vet and train engineers to be part of remote teams for international companies. It also tested satellite models in Egypt and Ghana as substitutes to physical hubs.

The company would issue a call for applications, select a few (less than 1%), pay them a salary for the first six months and provide them with housing and food. It also helped developers improve their skills via training and mentorship. Over 100,000 engineers have taken part in the company’s learning network and community, and, as of 2019, Andela had more than 1,500 engineers on its payroll.

However, after noticing that this model wasn’t sustainable, it began to make changes.

In September 2019, it let go of 420 junior engineers across Kenya, Uganda and Nigeria. Nine months later, citing the pandemic, it laid off 135 employees while introducing salary cuts for senior staff. But despite the layoffs, the pandemic provided some form of clarity to how Andela wanted to operate — which was remote, judging by the success of the satellite models.

“In the very beginning, a developer had to be in Lagos to work with Andela. Then it became living in Nigeria. Then Kenya. Then Uganda, Rwanda,” CEO Jeremy Johnson told TechCrunch. “Before the pandemic, Andela was opening applications in country after country. The pandemic came and changed that as we opened up to the entire continent.”

Shutting down its existing physical campuses and going remote also helped the company focus on getting engineers with more experience to meet its clients’ requirements. That experiment, which the company conducted in less than a year, is also part of its mission to be a global company.

“That went so well and we thought ‘what if we accelerated it now that we’re remote and just enable applicants from anywhere?’ because it was always the plan to become a global company. That was clear, but the timing was the question. We did that and it’s been an amazing experiment,” Johnson added.

What is Andela, the Africa tech talent accelerator?

Now with its global expansion, its clients can tap into regional expertise to support international growth.

According to a statement released by the firm, it currently has engineers from 37 countries across Africa, Asia, Latin America, North America and Europe.

Johnson didn’t go into details about how many of these engineers are getting jobs from Andela or even its total developer count. He’s more interested in helping its clients solve the diversity issues that have plagued many Western corporations.

Andela is currently working with eight companies that have hired its engineers in Latin America and Africa. In addition to the diversity play, the CEO says that means Andela engineers get to prove themselves on a global playing field in a way the company has “always wanted to see.”

Andela serves more than 200 customers, including GitHub, ViacomCBS, Pluralsight, Seismic, Cloudflare, Coursera and InVision. GitHub is one company that seems to be benefitting from Andela’s new offerings. The company’s VP of Engineering, Dana Lawson, in a statement said, “As a business in the developer tool space, a lot of us are trying to enter those areas of the world (Southeast Asia, Latin America and Africa) where the emergent developers are coming so we can better understand their needs. Having a local presence there with amazing talent is super valuable to building a global product.”

Andela
Image Credits: Andela

In its quest to become a global company, going up against competition is unavoidable for the seven-year-old company. But since most of these companies are horizontal marketplaces (providing a wide range of expertise), whereas Andela is vertical, Johnson believes there’s enough market share to be acquired by the company.

“We are focused on building digital products, and because of that, we’re able to do more, essentially, for our customers… That’s where our focus is — [building long-term relationships] and around building great digital products,” the CEO said.

The company was founded by Jeremy Johnson, Christina Sass, Nadayar Enegesi, Ian Carnevale, Brice Nkengsa and Iyinoluwa Aboyeji. It has raised more than $180 million (up to Series D) from firms like Chan Zuckerberg Initiative, Generation Investment Management, Google Ventures and Spark Capital, at a valuation of about $700 million.

While announcing the layoffs last year, Andela said it was on an annual revenue run rate of $50 million. But when asked how this number has changed over the past year, Johnson said the company is “growing at a healthier pace as we’ve ever had.”

The future of remote work is global and Johnson believes Andela provides the vital link to talent wherever it is found. The company’s head of talent operations, Martin Chikilian, echoed similar sentiments regarding the expansion.

“We’ve seen exponential growth and interest from engineers from across Africa who want to work with some of the world’s most exciting technology-focused companies,” he said. “Growing our network of talent from Africa to include more markets is a unique proposition and we continue to match talent with opportunity beyond geographical boundaries.”

Andela CEO confirms staff cuts as layoffs hit African tech

More TechCrunch

When Jordan Nathan launched his DTC nontoxic cookware company, Caraway, in 2019, he knew he was not the only founder trying to sell a new brand of pots and pans…

Why being the last company to launch in a category can pay off

Out of an abundance of caution, the car took two minutes to turn a corner.

This humanoid robot can drive cars — sort of

There has been a silly amount of drama in the run-up to Tesla‘s annual shareholder meeting on Thursday. The company is set to hold a vote on “re-ratifying” the $56…

Ahead of Tesla’s big shareholder vote, let’s re-read the judge’s opinion that got us here

To give users more control over the contacts an app can and cannot access, the permissions screen has two stages.

iOS 18 cracks down on apps asking for full address book access

The push to produce a robotic intelligence that can fully leverage the wide breadth of movements opened up by bipedal humanoid design has been a key topic for researchers.

Generative AI takes robots a step closer to general purpose

A TechCrunch review of LinkedIn data found that Ford has built this team up to around 300 employees over the last year.

Ford’s secretive, low-cost EV team is growing with talent from Rivian, Tesla and Apple

The most critical systems of our modern world rely on GPS, from aviation and road networks to emergency and disaster response, from precision farming and power grids to weather forecasting…

Tern AI wants to reduce reliance on GPS with low-cost navigation alternative 

Since fintech startup Brex’s inception in 2017, its two co-founders Henrique Dubugras and Pedro Franceschi have run the company as co-CEOs. But starting today, the pair told TechCrunch in an…

Fintech Brex abandons co-CEO model, talks IPO, cash burn and plans for a secondary sale

Hiya, folks, and welcome to TechCrunch’s regular AI newsletter. This week in AI, Apple stole the spotlight. At the company’s Worldwide Developers Conference (WWDC) in Cupertino, Apple unveiled Apple Intelligence,…

This Week in AI: Apple won’t say how the sausage gets made

India’s largest wealth manager focused on ultra-high-net-worth individuals, 360 One WAM, has agreed to acquire popular Indian mutual fund investment app ET Money for about $44 million. Earlier called IIFL…

India’s 360 One acquires mutual fund app ET Money for $44M

Helen Toner, a former OpenAI board member and the director of strategy at Georgetown’s Center for Security and Emerging Technology, is worried Congress might react in a “knee-jerk” way where…

Helen Toner worries ‘not super functional’ Congress will flub AI policy

Layoffs are tough. This year alone, we’ve already seen 60,000 job cuts across 254 companies according to layoffs.fyi. Looking for ways to grow your network can be even harder during…

Layoffs Got You Down? Get a Half-Price Expo+ Pass at Disrupt 2024

YouTube announced this week the rollout of “Thumbnail Test & Compare,” a new tool for creators to see which thumbnail performs the best. The feature first launched to select creators…

YouTube creators can now test multiple video thumbnails

Waymo has voluntarily issued a software recall to all 672 of its Jaguar I-Pace robotaxis after one of them collided with a telephone pole. This is Waymo’s second recall. The…

Waymo issues second recall after robotaxi hit telephone pole

The hotel guest management technology company’s platform digitizes the hotel guest journey from post-booking through checkout.

Insight Partners backs Canary Technologies’ mission to elevate hotel guest experiences

The TechCrunch team runs down all of the biggest news from the Apple WWDC 2024 keynote in an easy-to-skim digest.

Here’s everything Apple announced at the WWDC 2024 keynote, including Apple Intelligence, Siri makeover

InScope leverages machine learning and large language models to provide financial reporting and auditing processes for mid-market and enterprises.

Lightspeed Venture Partners leads $4.3M seed in automated financial reporting fintech InScope

Venture fundraising has been a slog over the last few years, even for firms with a strong track record. That’s Foresite Capital’s experience. Despite having 47 IPOs, 28 M&As and…

Foresite Capital raises $900M sixth fund for investing in life sciences companies

A year ago, Databricks acquired MosaicML for $1.3 billion. Now rebranded as Mosaic AI, the platform has become integral to Databricks’ AI solutions. Today, at the company’s Data + AI…

Databricks expands Mosaic AI to help enterprises build with LLMs

RetailReady targets the $40 billion compliance market to help reduce the number of retail compliance losses that shippers incur annually due to incorrectly shipped packages.

YC grad RetailReady raises $3.3M for an AI warehouse app that hopes to save brands billions

Since its launch in 2013, Databricks has relied on its ecosystem of partners, such as Fivetran, Rudderstack, and dbt, to provide tools for data preparation and loading. But now, at…

Databricks launches LakeFlow to help its customers build their data pipelines

A big shoutout to the early-stage founders who missed the application window for the Startup Battlefield 200 (SB 200) at TechCrunch Disrupt. We have exciting news just for you! You…

Bonus: An extra week to apply to Startup Battlefield 200

When one of the co-creators of the popular open source stream-processing framework Apache Flink launches a new startup, it’s worth paying attention. Stephan Ewen was among the founding team of…

Restate raises $7M for its lightweight workflows-as-code platform

With most residential solar panels installed by smaller companies, customer experience can be a mixed bag. To try to address the quality and consistency problem, Civic Renewables is buying small…

Civic Renewables is rolling up residential solar installers to improve quality and grow the market

Small VC firms require deep trust, mutual support and long-term commitment among the partners — a kinship that, in many ways, resembles a family dynamic. Colin Anderson (Palantir’s ex-CFO and…

Friends & Family Capital, a fund founded by ex-Palantir CFO and son of IVP’s founder, unveils third $118M fund

Fisker is issuing the first recall for its all-electric Ocean SUV because of problems with the warning lights, according to new information published by the National Highway Traffic Safety Administration…

Fisker’s troubled Ocean SUV gets its first recall

Gorilla, a Belgian company that serves the energy sector with real-time data and analytics for pricing and forecasting, has raised €23 million ($25 million) in a Series B round led…

Gorilla, a Belgian startup that helps energy providers crunch big data, raises $25M

South Korea’s fabless AI chip industry saw a slew of fundraising events over the last couple of years as demand for hardware to power AI applications skyrocketed, and it seems…

Fabless AI chip makers Rebellions and Sapeon to merge as competition heats up in global AI hardware industry

Here’s a list of third-party apps that were Sherlocked by Apple at this year’s WWDC.

The apps that Apple sherlocked at WWDC 2024

Black Semiconductor, which is developing a chip-connecting technology based on graphene, has raised $273M in a combination of private and public funding. 

Black Semiconductor nabs $273M in Germany to supercharge how chips work together