African logistics infrastructure has been growing over the past few years with the help of technology and start-ups reinventing the space with innovative models.
“Whether moving resources off the continent or bringing goods and services into its burgeoning economies, Africa’s future growth and development will depend on the quality of its infrastructure and the efficiency of its transport networks,”Klaus-Dieter Ruske, PwC Transportation & Logistics Global Leader.
This has increased interests in Africa’s logistics space. African start-ups like Kobo360’s raised $20 million in Series A round backed by Goldman Sachs and East African logistics and Kenya’s logistic startup, Lori Systems also raised $30 million in a round led by Chinese investors, both last year. The two African companies have improved logistics issues in each other’s markets and broader Africa.
Sendy, A Kenyan logistics start-up founded by Meshack Alloys, Evanson Biwott, Don Okoth, and Malaika Judd in 2015 is the latest logistics company to close a multi-million dollar backing.
According to TechCrunch, the on-demand platform that connects clients to drivers and vehicles for goods delivery — has raised a $20 million Series B led by Atlantica Ventures, Toyota Tsusho Corporation trade and investment arm Mobility 54, Asia Africa Investment, Sunu Capital, Enza Capital, Vested World and Kepple Capital.
Sendy’s platform connects drivers with their own vehicles to delivery points, creating performance metrics and managing payment.
We take a percentage of each transaction. We also facilitate services for drivers like insurance, health insurance, vehicle financing, vehicle servicing and fuel credits, said Alloys.On Sendy’s business and revenue model.
The startup currently has offices in Kenya, Tanzania and Uganda, with 5,000 vehicles on its platform that move all sorts of goods, according to Alloys. Sendy offers services for e-commerce, enterprise, and freight delivery with a client list that includes Unilever, DHL, Maersk, Safaricom and Jumia.
“Getting better operational efficiency is super key, so we’ll invest…in engineering teams and data teams…and deploying talent to improve the services that we give our customers. We’ll look at optimizing the kind of trucks that perform well in this market… they’ll also look at setting up vehicle services centers in partnership with us, said Alloys.The company plans to use its Series B funding for new hires and to upgrade its tech.