Kenyan Startup, Sokowatch has closed a US$2 million seed investment led by 4DX Ventures according to a report by Techcrunch.
Founded in 2012 by Daniel Yu, Sokowatch is an on-demand distribution platform that provides multinational companies like Unilever, GlaxoSmithKline, Nestle, Proctor and Gamble and Chandaria Industries with a data-driven distribution network focused on the informal sector of emerging markets.
It enables informal retailers to order and receive free same-day delivery to their store by ordering through SMS or mobile app. This makes it easier for shopkeepers to source goods and helps the multinationals ensure their products are readily available to consumers.
“With both manufacturers and the small shops, we’re becoming the connective layer between them, where previously you had multiple layers of middle-men from distributors, sub-distributors, to wholesalers,” Sokowatch founder and CEO Daniel Yu told TechCrunch.
Village Global, Lynett Capital, Golden Palm Investments, and Outlierz Ventures also joined on this seed round.
Sokowatch operates across Kenya and Tanzania and generates revenues by earning a margin on the goods they deliver to the shopkeeper and to date, they have delivered 100,000 orders to customers according to the founder and CEO, Daniel Yu.
Sokowatch is planning to use the US$2 million to expand to new markets in East Africa.