DigsConnect founder Alexandria Procter’s trailblazing journey to shake up student accommodation

When UCT student Alexandria Procter was seeking accommodation or “digs” in student parlance in 2018, she encountered significant challenges. Procter shared with BizNews in an interview that as a member of the university’s Student Representative Council, she discovered she was not alone; in fact, three-quarters of the university’s students were facing similar difficulties. This predicament is reflective of a broader issue across universities in South Africa, where accommodation is only available for a fraction of the student population, typically between 5 and 20%. Faced with this dilemma, Procter conceived what she deemed a simple yet impactful solution: a website and app to connect landlords with students. Over the course of a weekend, she brought this idea to fruition. The app and website quickly gained traction, culminating in the founding of DigsConnect. In 2019, Procter set out to raise R2 million, a standard figure for a South African startup. However, the response exceeded expectations, with investments totalling R12 million. This marked the beginning of DigsConnect’s journey of growth and expansion beyond South Africa’s borders. Procter’s entrepreneurial success also led to notable recognitions and opportunities. She was invited by President Cyril Ramaphosa to join the board of the National Redevelopment Agency and represented South Africa at international forums such as the G20, COP28, and BRICS summits. However, she encountered what Procter describes as a classic founder mistake: The business grew too fast. In response, she made the decision to scale back operations, focusing on the South African and United Kingdom markets while prioritising long-term sustainability and her personal well-being.
Procter’s journey is chronicled in her book titled “Upstart.” – Linda van Tilburg

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Highlights from the interview

Addressing the critical shortage of student accommodation, creating a website in a weekend

00:00:45

I was simply trying to solve my own problem. As a student at UCT and a member of the Student Representatives Council, I had never envisioned myself as a Silicon Valley entrepreneur. Studying Business Science, I encountered a pressing issue: the inability to secure accommodation for myself and my peers. Serving on the SRC, overseeing student housing, I came to the stark realisation that three-quarters of the university’s population faced the same challenge .So, the task on my desk became clear: To help these students facing the same problem — finding a place to stay that was safe, scam-free, and a nice place to stay.

So, the solution was almost pretty obvious and straightforward. It was staring me in the face: there was a line of students outside my door, all asking, ‘How do I find a place to stay?’ With universities failing to provide adequate student housing—only accommodating between 5% and 20% of students across South Africa—the infrastructure simply wasn’t there. Yet, true to the resilient nature of South Africans, the private sector stepped in to fill the void. Private landlords began investing in houses and flats for student accommodation, giving rise to a new sector: PBSA, purpose-built student accommodation. While this is a global industry, it was still in its infancy in South Africa at that time. Now, there’s a plethora of properties available.

Armed with a list of landlords and students, I essentially had a database ready to go, and the website served as the polished exterior. Building the website was relatively straightforward; having completed several semesters of computer science at UCT as part of my science degree, I felt equipped to tackle the task. So, over a single weekend, I developed the website.

Ensuring quality accommodation for students, safety is paramount

00:03:05

In addressing the pressing issue of student accommodation, one paramount concern remains: safety. It’s imperative that we provide a secure environment for students to thrive academically and personally.

Currently, one of our most significant challenges revolves around the high dropout rates among students, particularly those from vulnerable backgrounds, often reliant on NSFAS funding. For these individuals, a university education represents a crucial opportunity to break the cycle of poverty in South Africa. The future prosperity of our nation hinges upon their success, as it not only transforms their own lives but also uplifts entire communities and families.

I firmly believe that there’s a direct correlation between the quality of student housing and academic achievement. A conducive living environment, characterized by safety and comfort, plays a pivotal role in students’ ability to graduate and excel.

Beginning at UCT, Scaling, and Vetting Landlords

00:03:59

Our journey commenced at UCT, where our platform operated on a small scale, exclusively accessible through UCT email addresses. In these early stages, our network primarily comprised landlords known to us personally—individuals who had hosted our friends or ourselves in accommodations situated close to the campus, nestled amidst the familiar terrain of the hillside. This close-knit community served as the foundation of our enterprise.

We firmly believe in the principle of starting small as a precursor to eventual success. Rather than pursuing immediate global expansion, we prioritised refining our operations on a smaller, more manageable scale. However, as our platform grew, we recognized the need for robust tools to maintain quality and excellence. Integration of APIs and various online tools facilitated essential tasks such as identification checks, verification procedures, title checks, and credit assessments, ensuring the integrity of our community.

Moreover, our commitment to quality extends beyond digital mechanisms. We personally visit properties, engage with landlords, and meticulously vet them to uphold our standards. Over the past six years, our platform has accumulated a wealth of data from landlords listing their properties, corroborated by countless student testimonials affirming the legitimacy and desirability of these accommodations. Nonetheless, challenges inevitably arise. When students encounter issues, we proactively engage with landlords to address concerns. While some landlords promptly rectify issues, others may not meet our expectations, prompting their removal from our platform.

Ultimately, our brand serves as a seal of approval, offering students assurance regarding the quality and reliability of accommodations listed on our platform. Through our unwavering commitment to excellence and community support, we continue to foster an environment conducive to student success and well-being.

Using R12 million as rocket fuel to grow the company

00:06:45

In 2019, our trajectory took an unexpected turn with our inaugural fundraising endeavour that altered the course of our journey significantly. Initially aiming to secure R2 million—a customary sum for South African startups seeking seed funding at the time—we were astounded to amass R12 million rand instead. This influx of capital marked a seismic shift for us, epitomised by its depiction in the opening chapter of my book, a moment when the stakes became undeniably real.

Accepting external investment precipitated a profound transformation. Suddenly, we found ourselves bound by contractual obligations and entrusted with the financial backing of others. As a 24-year-old entrepreneur, managing such a substantial sum was an immense responsibility, one extending far beyond personal interests. Questions loomed large: Why had investors chosen to support us? How could we maximise the impact of this investment? Our paramount objective was clear—to generate and augment value in the world.

Embracing this funding was akin to igniting rocket fuel, propelling our growth trajectory at an unprecedented pace. 2019 unfolded as a whirlwind of activity, characterised by the pursuit of blitz scaling—a strategy I became intimately familiar with. It was a year of mastering diverse facets of entrepreneurship: refining our business model, orchestrating strategic hires, expanding our team and office spaces, navigating legal and financial intricacies, and ushering our product into fruition. Remarkably, our app ascended to the pinnacle of South Africa’s app charts, a testament to our team’s dedication and the market’s receptivity to our vision.

In hindsight, 2019 stands as a testament to the transformative power of strategic investment, relentless dedication, and unwavering vision—a chapter in our company’s evolution that continues to shape our trajectory and inspire our future plans.

Appointment to the board of the National Redevelopment Agency

00:09:57

In 2021, I was appointed to the board of the National Redevelopment Agency by President Cyril Ramaphosa. I received a call one night that marked the beginning of my tenure on the board, and for the last few years, I have been working with the government. This has been an extraordinary chapter of my life, during which I began to get involved in geopolitics. I started representing South Africa at international forums such as the G20, COP28, and BRICS, gaining an understanding of the nuances and levers that operate within the global economic system we are a part of. I’ve been figuring out how to navigate these big global egos and levers in play, to move humanity and civilization forward. However, I understand that there are a lot of entrenched interests in this. It’s definitely been a remarkable ride so far.

Dialling back, prioritising health after a classic founder mistake: growing too fast

00:11:51

We reached a milestone with a couple of hundred thousand users on the platform. Initially, our operations were confined to Cape Town, South Africa. Later, we expanded to other cities within the country. Then came a remarkable global partnership that catapulted us into 400 cities worldwide, spanning 30 countries and offering 1.3 million beds. It was an exhilarating moment. However, in retrospect, I made one of the most classic founder mistakes. I said yes to everything, thinking it was brilliant. The idea of launching in the UK, the US, Canada, Europe, Australia, and Singapore sounded amazing at the time. But truth be told, what did I really know about housing in Singapore? In essence, I stretched myself too thin, chasing a vanity metric. Recognizing this, we made the decision to significantly dial back.

We asked ourselves, “What do we really want to achieve?” The answer was clear: excellence. Our users deserve nothing less than an exceptional experience. Yet, overextending ourselves across unfamiliar markets would only dilute that excellence. I firmly believe that slow, controlled growth, maintaining the quality of our service offering, is the foundation of a successful long-term company. Growth is undoubtedly thrilling, garnering attention and accolades, but sometimes, being a bit more conservative is what’s best for the business. I’m a fan of “boring” businesses, ones that prioritize sustainability over rapid expansion.

So, we scaled back significantly. Currently, we operate in just two countries: the UK and South Africa. This makes sense because I can understand the UK market much more easily than any other. With English as the primary language and a mere two-hour time difference, our teams in South Africa seamlessly collaborate in this market. Additionally, the dual seasonality aligns well with our operational capabilities. I can easily navigate between the two countries, ensuring we maintain excellence before considering further expansion.

Future Plans: Prioritising health and Long-Term Sustainability

00:17:34

My plans entail a shift towards a more sustainable approach. Over the past few years, I’ve been relentlessly pushing myself, but it’s taken a toll on my health. Burning the candle at both ends, constantly on the go, has proven unsustainable, leading to two burnouts. While the journey has been exciting, I’ve realised it’s not conducive to long-term success. I feel like I’ve barely scratched the surface of what I can contribute to the world, and that realisation has prompted me to reassess my priorities.

Moving forward, I’m focused on building for the long term. This involves making lifestyle changes aimed at optimising my well-being— prioritising sleep, nutrition, exercise, and fostering meaningful connections with friends, family, and community. By investing in my health and well-being, I’m laying the groundwork for sustained personal growth and the ability to make a lasting impact on the world.