What if the best startups in emerging markets don’t win by dominating, but by collaborating? What if the real path to success isn’t about getting acquired in five years but about building something that lasts?
If you’re building a startup in MENAP, you’ve probably been told that scaling fast, raising big, and chasing an exit is the ultimate goal. After all, that’s what the Silicon Valley playbook teaches, right?
But here’s the thing—this model was designed for economies with deep capital markets, stable infrastructure, and well-defined regulations. It’s a game where one winner takes all, and everyone else gets left behind.
But is that really how success works in emerging markets?
Let’s challenge this idea.
Why the “Winner-Takes-All” Model Falls Apart in Emerging Markets
1. Fragmented Markets Don’t Reward Solo Players
Unlike the U.S. or Europe, where logistics, payments, and infrastructure are standardized, emerging markets are a puzzle of inefficiencies. No single startup can fix everything alone.
Think about e-commerce in Pakistan. Instead of one company controlling the supply chain, multiple startups—Jugnu, Dastgyr, Bazaar, and Retailo—operate in complementary roles. One tackles inventory management, another focuses on distribution, and together, they’re solving a problem no single player could handle alone.
Now, compare that to the Uber vs. Lyft battle in the U.S., where the only way to win was to wipe out the competition. See the difference?
2. Regulations Can Change the Game Overnight
Let’s be real—scaling a startup in emerging markets isn’t just about market demand. It’s about navigating unpredictable regulations.
Take fintech in Pakistan. One day, a startup is thriving; the next, the State Bank introduces new licensing requirements that force a pivot. Or look at ride-hailing in Egypt—Uber and Careem had to work with regulators instead of fighting a zero-sum war.
In markets where rules shift constantly, the fastest-scaling startup doesn’t always win. The most adaptive and collaborative one does.
3. Funding Isn’t Endless—Sustainability Matters
Silicon Valley startups are fueled by aggressive venture capital, often burning millions before turning a profit. But in emerging markets? Investors are more cautious.
Take Khazna (Egypt) or Abhi (Pakistan)—instead of scaling at breakneck speed, they focus on gradual growth and profitability. They know that in regions where capital isn’t infinite, cash flow is king.
If you’re a founder in MENA or South Asia, ask yourself: Would you rather build a sustainable company that lasts or a hyper-scaled startup that crashes the moment funding dries up?
A New Way of Thinking – What If Startups in Emerging Markets Played a Different Game?
So, what’s the alternative? If the Silicon Valley model doesn’t quite fit, how should founders in emerging markets rethink success?
The Power of Collaboration Over Competition One of the biggest myths in tech is that only one company can win. Uber fought Lyft, Facebook crushed MySpace, and Amazon dominates e-commerce. The narrative is always about a single victor standing at the top.
But in emerging markets, startups don’t win by eliminating competition—they win by collaborating and coexisting.
Take e-commerce in Pakistan as an example. Instead of one company controlling the supply chain, multiple startups—Jugnu, Dastgyr, Bazaar, and Retailo—operate in complementary spaces. They don’t compete in a zero-sum game; they work together to solve different pieces of the same problem.
Or look at fintech in Africa. Instead of trying to replace traditional banks, startups like Flutterwave and Paystack partner with them to expand financial services.
This collaborative approach doesn’t just make sense—it’s often the only way to succeed in fragmented markets where no single company can solve every problem alone.
1. Tech-Enabled Businesses, Not Just “Tech Startups”
Instead of trying to build the next billion-dollar “disruptor,” what if we focused on tech-enabled solutions that improve existing industries?
For example, Tajir (Pakistan) and Chari (Morocco) aren’t trying to replace mom-and-pop shops; they’re digitizing them. They’re not creating new markets—they’re making existing ones work better.
Or take Wasoko (Africa)—it doesn’t aim to eliminate small retailers but to empower them with better logistics and inventory management.
The question isn’t: “How do we disrupt everything?” It’s: “How do we use tech to solve real problems?”
2. SME Empowerment Over Market Domination
SMEs are the lifeblood of emerging economies. Instead of seeing them as competition, startups should see them as partners.
Look at Gojek (Indonesia)—it didn’t just build a ride-hailing app. It created a whole ecosystem with payments (GoPay), logistics (GoSend), and food delivery (GoFood), helping small businesses thrive.
Or consider Yoco (South Africa)—a fintech company that provides affordable card payment solutions for small businesses that were previously excluded from digital payments.
For emerging market founders, success isn’t about killing the competition—it’s about bringing more businesses into the fold.
3. Ecosystem Thinking Over Zero-Sum Competition
What if success wasn’t about being “the next Uber” but about creating interconnected value?
In Africa, fintech startups partner with telcos and banks instead of trying to replace them. This approach has expanded financial access faster than any single company could alone.
A great example? Wave (Senegal). Instead of competing head-on with banks, it built a mobile money solution that integrates with existing financial infrastructure, making payments more accessible.
The most successful startups aren’t fighting for 100% market share—they’re collaborating to grow the market for everyone.
The Long Game – Building for Resilience, Not Just Valuation
The problem with the Silicon Valley model is that it assumes endless growth. But emerging markets don’t work that way.
If you’re a founder in MENA or South Asia, you know that:
- Growth isn’t linear—it’s volatile.
- Capital isn’t unlimited—it’s selective.
- Regulations aren’t predictable—they’re constantly shifting.
This means long-term resilience matters more than quick valuation spikes.
Take Careem—instead of aiming for a fast exit, it built deep regional expertise, adapted to local needs, and became an integral part of MENA’s mobility ecosystem. Even when Uber acquired it, it retained its brand and operations.
Or consider Fawry (Egypt)—it didn’t raise massive VC rounds to scale at all costs. Instead, it spent over a decade building a profitable, cash-flow-positive business, eventually becoming one of Egypt’s first unicorns.
So, if you’re building a startup in an emerging market, here’s the real question:
Are you chasing a headline-grabbing valuation, or are you building a company that can withstand market shifts and regulatory changes?
Final Thought – Rethinking Success for Startups in Emerging Markets
The truth is, there is no one-size-fits-all startup model. The Silicon Valley playbook isn’t inherently bad—it’s just not always the right fit for emerging markets.
If you’re a founder in MENA or South Asia, you don’t have to follow a script that wasn’t written for you. You have the opportunity to define success on your own terms—by building businesses that are collaborative, sustainable, and impactful.
Maybe startup success in emerging markets isn’t about getting to a billion-dollar valuation in record time. Maybe it’s about solving real problems, creating lasting impact, and empowering entire ecosystems.
So, what’s your take? Should founders in emerging markets rethink their approach, or is Silicon Valley still the best model to follow? Let’s discuss.