Sendy, an on-demand delivery services platform operating across Kenya, has completed Series A investment.
The investment round led by DOB Equity alongside CFAO (member of the Toyota Group) and other investors will enable Sendy to increase its services offering, expansion of its team, and operations across East Africa.
According to DOB Equity, a family backed impact investment firm that invests in impactful and innovative businesses in East Africa, the current logistics sector in Kenya worth $10bn – is fragmented, informal and highly inefficient. Poor infrastructure, limited technology and expertise, a high degree of bureaucracy, and potential security risks make transport costs in East Africa among the highest in the world. And Sendy is one of the most advanced new entrants in East Africa, using tech-based logistics business models to solve some these economic inefficiencies.
Founded in 2014, Sendy offers the mobile-based on-demand marketplace, connecting you to delivery service providers (motorcycle riders, drivers of vans and pickup trucks), similar to ride-hailing companies like Uber – but focused packages and goods deliveries rather than passengers.
Meshack Alloys, CEO of Sendy, comments: “When we started Sendy in 2014 we saw the opportunity to fill a gap in the logistic services sector in Nairobi. Ever since we have been able to provide affordable and high-quality services through our Driver partners and expand our client base across sectors and leading corporates. With the support of DOB Equity and CFAO, we look forward to sustaining our high growth and outstanding services to our current and new clients over the coming years.”
Sendy works with Partners to deliver tailor-made, efficient and affordable service using verified, trained drivers and automated order tracking hence reducing inefficiencies in the market primarily by removing friction costs between matching customers and providers.
Brigit van Dijk – van de Reijt, CEO of DOB Equity says: “A well-functioning logistics sector is key to economic development and competitiveness. However, it is often overlooked when analyzing and discussing the impact of investments.”
According to Hayo Afman, Portfolio Manager of DOB Equity, Sendy is targeting a $2bn market in East Africa. Rising consumer demand and increased connectivity, coupled with the rapid growth of e-commerce and demand for more instant deliveries.”
Towards the end of 2017, Sendy raised US$2 million and was among the first recipients of Safaricom Spark Fund where eligible startups receive amounts between $75,000 and $ 250,000. Sendy was chosen among 20 startups to take part in World Bank-backed XL Africa accelerator programme.
Cover Image Credits: VC4A