🗺️ SA's Hidden R200bn Grocery Market
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Real-life Transformers? They’re still pretty small, but the US’s M4 robot, which was an attempt at a bot morphing from driving to flying and back again, has just been replaced by all-new ATMO, doing the same thing, just much more reliably. Just imagine the applications…
In this Open Letter:
Big insights: Mapping SA’s township economy, Pokémon GO-style.
ZA’s upcycled recycler, local learning leaders & Elon’s return to Mars.
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TRENDING NOW
Mapping the Invisible Economy, Pokémon GO-Style
This Tuesday deep dive, we explore SA’s R200bn data blindspot, the informal/township grocery economy, and introduce you to a startup that’s mapping it, Pokémon GO-style...
There’s no shortage of hustle in SA’s townships… From the corner spaza to the auntie selling fresh veggies from a crate, and the guy doing fade cuts in his garage. But try searching for any of them on Google Maps.
We’ll wait…
Despite South Africa’s informal grocery sector alone generating nearly R200 billion annually, almost 95% of it in cold hard cash, nearly all of it happens in a data blind spot. With over 11 million people relying on some 150’000 (known) spaza shops, it goes mostly unbanked, unmapped, and untapped by traditional investment.
This lack of visibility isn’t just a research issue. It’s a real barrier to better services, smarter investment, and more meaningful support for the people and businesses driving this sector.
SA’s R200 billion blindspot
A Woolworth’s in the suburbs can tell you exactly how many oat milks were sold before 10 AM last Tuesday. But no one even knows how many spaza shops there are in Khayelitsha or Umlazi — let alone who bought what, when.
It’s not for lack of interest: Retailers want access. FMCG brands want reach. Banks want to onboard new customers. And informal customers are apparently extremely loyal:
51% of customers visit the same local spaza shop every day
Enabling the whole sector to employ 20% of SA’s workforce
The issue isn’t value. It’s visibility. And one local startup is out to change that, Pokémon Go-style.
The startup gamifying township economy data collection
Meet Timbuk2, a Cape Town-based startup that’s building the insight layer for underserved markets. They’re building a crowdsourced, gamified data collection platform called Foona (derived from the Zulu word for “search”).
Instead of hunting virtual monsters, Foona users (or “gamers” as Timbuk2 calls them) roam their local areas, capturing real-world data: spotting SMMEs, spaza shops, shebeens, tuck shops, veggie stalls, and more, then uploading location info, photos, and context.
The incentive? Points, competition, and yes, even cash.
Clients (think retailers, advertisers, distributors, even insurance companies looking for B2B leads) then subscribe to Timbuk2’s insights platform to make smarter decisions. Whether it’s identifying where to open a new store, how to price for that area, or even where to paint an ad mural, the data now exists, and it’s real-time, verified and dynamic.
Spaza shops and informal traders get looped in (often earning revenue from ad campaigns powered by that very same data), while Timbuk2 tracks 3 million mobile devices across the country, letting them overlay footfall and movement data to power deeper insights.
When we recently chatted to Timbuk2 Co-Founder Matimba, they found that up to 80% of spazas in some townships aren’t on Google, but despite this, they’re moving real money.
With AI-powered startups making an impact for all players in the township economy, you KNOW we’re watching this space.
YOUR NEXT MOVE?
Work at One of SA’s Fastest-Growing Startups
For the longest time, few startups have focused on building tech products for blue-collar workers, which is surprising considering how big the market is.
It’s no surprise then that Jem, who is building WhatsApp's first payroll solutions, is growing at an incredible pace with more than 150’000 blue-collar workers already using their product.
Jem is currently hiring, and here are five reasons you would wanna apply.
1. High Impact, Real Users
Jem serves over 150,000 frontline employees, giving them access to payslips, wage advances, and benefits, often for the first time. What you build matters.
2. Everyone Leads
You’ll get ownership early, with the support to move fast. The pace is real, the expectations are high, and the work is yours to drive.
3. AI-First, Always
Monthly AI reviews, regular hackathons, and space to experiment. We don’t just use AI, we build with it at the core.
4. In-Person, On Purpose
We believe in real connection. From strategy sessions to padel matches, we show up, with energy and intent.
5. Not for Everyone
But if you’re ambitious, curious, and ready to grow faster than ever. Jem will stretch and support you like nowhere else.
Keen to join Jem? Check out these roles they are hiring for right now.
IN SHORT
Try a few headlines to keep the convo flowing…
🏃Hit the ground running. Applications for the sixth edition of the G20 TechSprint are open for global participants building solutions aligned with this year’s theme: trust and integrity in scalable and open finance. Stipends of $5’000 per shortlisted entry and $30’000 for each winning solution are up for grabs. Nice one — get those entries in by 20 June 2025.
♻️ Trash to cash. Local recycling startup Regenize has landed an undisclosed funding amount from E Squared Investments to help expand its network of decentralised recycling hubs, provide free recycling services to over 26,000 households, and create over 180 new jobs. One man’s trash is indeed another’s treasure.
🚀 Red planet loading. Now that Elon Musk’s DOGE contract with the US government has ended, he’s turning his attention back to Mars, with the first Starship flight set to launch late next year. If all goes well, the mission will reach Mars somewhere around mid-2027, with Musk giving the team a 50-50 chance of reaching the launch window. Very, very interesting…
🎓 Grand Graduates. The World’s top 500 universities include 3 South African institutions, including the University of Cape Town, coming in at 275th, Wits coming in at 292nd, and Stellenbosch University at 458th. The University of KwaZulu-Natal narrowly missed out, coming in at 505th.
🛵 On yer bike. Uber is piloting its Moto service in Johannesburg, offering motorcycle-based rides. They’re already seeing heavy usage amongst students, and riders needing a short trip from home to a taxi rank. At least trying to make small talk is no longer the most awkies thing with your Uber driver.
😎 The Stack. Founders need tools and suppliers they can trust. Check out our Founder’s Stack with full-funnel tech performance marketing by Stream, 90% off your first 6 months’ accounting with Xero, plus loads more vital startup tools & services.
FOUNDER’S CORNER
3 Tips for Business Builders
Brought to you by Lula — Fast, simple business funding
Want to build a startup YC-style (high-growth, venture-scale model)? Sam Altman, former president at YC and currently CEO of OpenAI, put together a startup playbook. Word of caution, it’s for the American market, so always think about how it applies locally. That said, some good food for thought in here.
Thinking about raising funding? Watch the legal Do’s and Don’ts of Early Stage fundraising with Jacques Stemmet from Dommisse Attorneys. In it, he discusses funding instruments, types of shares and term sheets. It was recorded live on LinkedIn a week ago. Go watch it here.
E-Commerce and Beyond: How to Leverage Digital Innovation for SME Growth. Join this Wednesday for “E-Commerce and Beyond”, a webinar exploring how South African SMEs can leverage digital innovation for growth. Our own Renier Kriel joins Lula Head of Product Clinton Thomas to unpack the rise of e-commerce, challenges in digital transformation, and how to scale sustainably in SA’s evolving business landscape.
BUILDING TOGETHER
Happening over at The Open Collab
6 June 12:000 — Dev Hiring Masterclass: The team from SA’s largest dataset and hiring platform, Offerzen, is here to share the latest in technical team hiring and trends.
13 June 12:00 — The Art of Strategy Masterclass: How high-growth founders think & win: Cut through complexity and create a scalable strategy for profitable growth with Jason Goldberg, Art of Scale author and co-founder of Edge Growth.
20 June 12:00 — Operationalising AI Masterclass: Learn how to deploy AI to power productivity across multiple layers of your business, with OfferZen’s VP of Product, Stephen van der Heijden.
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WHAT YOU SAID
Jobs for Africa…
Last Friday, we asked about an SA startup that helps the youth land jobs, internships and bursaries, and here’s how we fared…
🟨🟨🟨⬜️⬜️⬜️ 🎓 Pathwise.ZA (24%)
⬜️⬜️⬜️⬜️⬜️⬜️ 🧠 ikhono-intwasahlobo (6%)
🟩🟩🟩🟩⬜️⬜️ 💼 Nasi Ispani (29%)
🟨🟨🟨🟨🟨🟨 🔗 WorkLink (41%)
Actually, the real startup was SA’s mobile-first youth work empowerment platform, Nasi Ispani.
HOW DID WE DO?
BEFORE YOU GO
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Until next time,
Elvorne, Renier & Jason
