Post by Dr. Alvin Chikamba DBL (UNISA) CA (SA)

Entrepreneur Case Study: One cup of coffee created a R180 billion South African giant! 34 years ago, Adrian Gore asked Barry Swartzberg over a cup of coffee if he would join him in starting a small medical aid company called Discovery Limited. It was not as simple as an overnight success, but from that cup of coffee, the beginnings of a R180 billion insurance giant were born. Swartzberg said that Gore still jokes about it being the most expensive cup of coffee he has ever had, with it kickstarting three decades of work. Discovery’s growth has been meteoric since then, but it has not been plain sailing, with regulatory challenges and intense competition pushing Gore and Swartzberg hard. Gore has more recently overseen the evolution of Discovery into an integrated financial services provider through the launch of a bank and the expansion of Discovery Invest. “It has been 34 years since we founded Discovery, an idea built on a simple but powerful belief: that a business can improve people’s lives while creating lasting value,” Swartzberg said in a social media post. “From our inception, our Core Purpose has been clear: to make people healthier and to enhance and protect their lives.” Swartzberg explained that this informs everything the company does, serving as its North Star. Most importantly, this is the backbone of the Vitality Shared-Value Model. It continues to inform Discovery today, with Swartzberg saying the company is at an inflection point where it is reinventing itself for the future. Gore has spent much time explaining to investors and analysts the “organic growth phase” that Discovery is entering after a decade of major investment in new offerings. The past decade saw Discovery launch its own bank, build out its short-term insurance offering, create an asset management giant, and invest heavily in its global Vitality network. Discovery is now a company straddling every aspect of financial services in South Africa and has its technology deployed in China, the United Kingdom, the United States, and Europe. Valued at around R180 billion on the JSE, the company is now vying with Sanlam to be the most valuable non-banking financial institution in Africa. If Discovery meets Gore’s ambitious targets over the next five years, the company is expected to nearly double in size. Discovery has become so entrenched in the lives of South Africans that it is often forgotten that it was started only 34 years ago. Gore was just 27 years old at the time and had enjoyed a stint working at Liberty, where he was part of the team building its Medical Lifestyle product. While working on this product, Gore had the idea of launching his own health insurance business and reached out to Rand Merchant Bank (RMB) for backing. FirstRand co-founder Laurie Dippenaar was the one who answered Gore’s call and granted him the opportunity to pitch his idea. #entrepreneur https://lnkd.in/dzUcacgW