Investments in African startups continue to gain momentum. With global support, Africa’s logistics startup has acquired another multi-million dollar round. Kenyan logistics startup, Sendy has raised $20M in Series B funding round. This years’ round was led by foreign investors, Atlantica Ventures and Toyota Tsusho Corporation.
Sendy is a business-to-business (B2B) platform that offers on-demand door-to-door package delivery services. It was founded in 2014 by Don Okoth, Evanson Biwott, Malaika Judd, and Meshack Alloys. Sendy provides a mobile app and web platform that allows individuals and small businesses to connect to Drivers and request on-demand or scheduled package delivery services at any time, any day, 24/7.
Africa’s logistics infrastructure is poor compared to developed economies like the US and China. This difficulty creates a real opportunity for entrepreneurs and innovators with models to improve transport networks and to tap into the industry.
The need for reliable, quality and more efficient logistics models to transport vast premium raw materials such as oil, gas and mineral resources available on the African continent creates a huge market for logistics startups such as Kobo360 and Sendy.
“The problem of logistics is so large that everyone is looking at creating solutions to solve it,” Co-Founder and CFO of Sendy, Malaika Judd said, adding the emergence of e-commerce would further boost demand for the services of firms like Sendy.
“The costs of delivering spare parts from one location to another, or to a customer, has dropped by as much as 35 percent,” said Dennis Awori, the chairman of Toyota in East Africa.
Speaking on the development, the startup co-founder and CEO, Mesh Alloys, explained that the funds will be invested in beefing up the company’s staff strength as well as upgrading its tech. He added that the latest funding will help the startup set a competitive stance in the continents’ logistics space as they plan to expand into West Africa this year.
The rapid growth of online retailing in Sub-Saharan Africa is contributing to the trend of growth in the logistics sector. The African online retail sector was forecast to be worth $50 billion by 2018.