Pristina, Kosovo – When it comes to rapidly growing tech companies in the Western Balkans, Gjirafa stands out as a prime example. Founded by Mergim Cahani, Gjirafa has emerged as a significant player in the region’s digital landscape, offering a range of services including e-commerce, video streaming, online marketing, cloud computing, and entertainment production.
What began as a startup serving Kosovo has now expanded to Albania and North Macedonia, with plans to enter Montenegro, Serbia, and potentially Bulgaria within the next two years. This growth has been fueled by nearly $10 million in Series A and B funding from Czech Rockaway Capital and notable angel investors like Esther Dyson and Ondrej Bartos.
The Entrepreneurial Journey of Mergim Cahani
Cahani, who lived and studied in the U.S. for 11 years, returned to Kosovo in 2012 driven by a desire to contribute to his homeland’s development. Despite the comfortable life he had in America, he felt unfulfilled and was drawn back to Kosovo by the abundant opportunities in a region underserved by global tech giants like Amazon, PayPal, and Uber.
In an interview with The Recursive two years ago, Cahani shared insights into his entrepreneurial journey, which began at the age of 19. His first major venture was a dating app on Facebook called The Matchbox, which unfortunately failed when Facebook introduced its own friend suggestion feature. This early setback taught Cahani the importance of experience and the need for a leaner, more focused approach to business. Reflecting on those days, he now advises that it’s easier to start a business alone or with just one or two partners to avoid the inefficiencies of having too many voices in decision-making.
Shifting Focus: Profitability Over Fundraising
In a 2022 interview, Cahani outlined Gjirafa’s impressive growth metrics: 9 years in business, $10 million in funding, and a team of over 300 employees. However, by 2024, Gjirafa had scaled down to 240 employees and strategically decided to delay further fundraising. Cahani explained that the market conditions were not favorable for raising capital at the time, with high rates and low valuations. Instead, Gjirafa chose to focus on profitability, becoming 3-4 times more profitable than two years prior. The company is now financing its operations from its own resources while preparing for an IPO, a move that will require additional cash.
Advice for Aspiring Entrepreneurs
Over the years, Cahani has gathered a wealth of knowledge and is passionate about sharing his insights with the next generation of entrepreneurs. He emphasizes the importance of loving the problem you are solving, as passion is crucial to overcoming the inevitable challenges that come with building a business. He also advocates for bootstrapping, advising against fundraising too early unless absolutely necessary. For first-time entrepreneurs, he underscores the need to take risks and commit fully, with no fallback plan.
The Untapped Potential of the Western Balkans
Cahani is optimistic about the startup ecosystem in the Western Balkans, which he describes as an emerging market with significant untapped potential. However, he acknowledges that the region is often overlooked by major tech players who prioritize markets based on GDP and population size. Despite these challenges, Cahani believes that the hunger for success among Balkan entrepreneurs will drive the region forward. He asserts that it is up to local entrepreneurs to build the future of the Balkans, as external entities are unlikely to prioritize the region’s development.
