The Secret to Andela's Success: A Case Study

In 2013, Ian Carnevale, Brice Nkengsa, Nadayar Enegesi and Iyinoluwa Aboyeji started Fora, an edtech startup that provides long-distance learning opportunities for African university students. However, due to regulatory policies and inadequate funding, the co-founders decided to pivot the company. By 2014, the same co-founders, including Christina Sass, founded Andela as a separate company. Shortly after, Fora ceased operations.

Andela’s Learning Programs

Headquartered in Lagos at the time, Andela acquired physical office space and launched operations. The company focused on selecting technical talent and grooming them to work with international tech companies. This selection process was rigorous, and the training period for the Andela Fellowship lasted four years. Selected participants spent six months in training and the rest of the program as employed staff of partner companies. This enabled them to expand their work portfolio.

In 2014, the company hired its first cohort, six software engineers from Nigeria. Subsequently, Andela expanded operations to Kenya in 2014, Uganda in 2015, and Rwanda in 2016. It spread to Tanzania in 2017, Egypt in 2018, South Africa in 2019, Ghana in 2020, Morocco in 2021, and Ethiopia in 2022. The first cohort from the Andela Fellowship in Nigeria graduated in 2018, armed with technical and work experience.

Over time, Andela has expanded its mission to train global talent by curating more learning programs. Industry players like Meta, NVIDIA, CNCF, Google, Microsoft, and Amazon support these initiatives. Some of these programs are free and specialized to suit local tech ecosystems, such as the Andela Technical Leadership Program, an accelerator program supported by the Rwandan government for its software engineers.

Andela’s Talent Pipeline Program

To join Andela’s talent pool, interested individuals sign up and provide the required information. They must have at least four years of technical work experience, not including internships and freelancing. This work experience requirement is strictly in accordance with what alumni from the Andela Fellowship possess.

The three-step screening process follows. Candidates are tested for English proficiency and technical skills and then interviewed live with an Andela staff member. Candidates who pass this stage are considered ready for the hiring process.

With a focus on continuing borderless talent scouting, Andela has streamlined its hiring process using AI and machine learning algorithms. The Andela Talent Cloud is an AI-based tool that matches prospects to available job opportunities based on their experience. It also serves as a public database for job opportunities.

Andela’s Funding

Andela has raised a total of $381 million in funding over nine rounds. In 2021, it clinched unicorn status with a valuation of $1.5 billion. This was achieved by its series E funding round, which was led by SoftBank Vision Fund and raised $200 million.
In 2023, Andela acquired three companies: Codewars, Qualified, and Casana. These have been fully integrated into Andela’s business entities.

Andela’s Strategies for Success

Andela is considered a pioneer in a private marketplace for technical talent. The company based its parent company in the U.S. Iyinoluwa, one of the co-founders, stated that “while it is possible to build a global company from Nigeria is possible, it is very, very difficult. While I have faith that this will improve, Nigeria is still a notoriously difficult place to operate and invest in from a legal point of view. So, since it has always been important to us to change the world than to make a political point, we incorporated Andela in the U.S.”.
Although Andela’s inception and the 2024 Startup Graveyard Report are a decade apart, some facts remain unchanged. Many African startups have reportedly struggled due to government policies and legal and regulatory compliance issues.

In 2019, Andela officially announced the layoff of over 250 junior engineers to hire senior engineers and meet up with market demand. Affected staff were settled with severance packages. While this shift affected several individuals, it helped the company reduce costs spent on education and physical infrastructure. Despite the continued success of its physical classes in various African cities, the company went fully remote in 2020. The business model became scalable, and further expansions into Ghana and Egypt occurred remotely afterwards.

Despite reports about Iyinoluwa’s exit from Andela to focus on Flutterwave, a new venture, the company waxed stronger. The company’s choice to use a remote work model enabled it to offer global talent from several countries equal hiring opportunities. Previously focused on creating employment opportunities for tech talent based in African countries, this broadened its recruitment pool, including the companies it hired for. This placed it far ahead of its competitors, like Decagon Institute and TalentQL.

Andela started out with diversity and inclusion as a priority. Its all-female cohorts have produced global talent over the years. With an emphasis on continuous learning and development, in-house lessons such as accelerator programs and partner programs are provided for accepted candidates. They also have access to wellness programmes and MBA opportunities.

Peer-to-peer support is strongly encouraged, even outside learning circles. Andela has an active alumni community. Beyond being integrated into the tech workforce, it has also produced the Andela Mafia, founders and co-founders across different niches in the African startup ecosystem.

Final Thoughts

Andela’s growth is inspiring. The company’s initial mission to develop African tech talent has given the continent global recognition. By breaking stereotypes associated with the African startup ecosystem, its continued growth shows that African startups can survive and surpass expectations with the right conditions.