Sendy, an on-demand delivery startup in Kenya has raised US$20 million in a Series B round led by Atlantica Ventures.
Toyota Tsusho Corporation, a trade and investment arm of Japanese automotive company Toyota, Asia Africa Investment, Sunu Capital, Enza Capital, Vested World, and Kepple Capital also participated in this round.
The company will use this funding to increase its personnel and upgrade its technology.
“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,” said Alloys.
Sendy’s user-focused technology platform helps cut logistics costs by simply and transparently connecting individuals and businesses to third party delivery drivers across Africa. Sendy, headquartered in Nairobi, Kenya, was the first company to offer an on-demand delivery platform in the region and while it currently covers Kenya, Uganda and Tanzania, it plans to cover all East Africa in the near future. The company is also planning to expand to West Africa this year according to TechCrunch.
The on-demand platform features a mobile app and website to connect individuals and small businesses to a network of third-party transporters – motorbikes, vans and pickup trucks. This optimizes the use of vehicles that were already on the road. Sendy’s primary revenue stream is a pre-delivery commission charged to the logistics partner.
To date, Sendy has completed over 180,000 deliveries, has more than 700 drivers on its platform and posted revenues of US$1.5 million as at 2018.
Last year, it raised US$2 million from Goodwell Investments and is now one of the highest funded startups from Kenya having raised a total of US$29 million since its founding in 2014.