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Kenya’s Logistic Platform, Bwala Africa, Closes US$230,000 Debt Financing from CFC Stanbic

Founder360 / Bwala Group

Funding

Kenya’s Logistic Platform, Bwala Africa, Closes US$230,000 Debt Financing from CFC Stanbic

Bwala Africa Group, a last mile logistics marketplace in Kenya has secured US$230,000 debt financing from South African-based bank CFC Stanbic to meet the rising demand for last mile fleet connectivity.

Launched early this year to solve challenges facing fleet owners on a daily basis, Bwala Africa Group has so far recorded over 6000 + deliveries in Nairobi alone.

Using the funding, Bwala Africa is rolling out 8 new trucks from ISUZU East Africa, four directly funded by CFC and the other 4 funded internally by Bwala, bringing the cost of total investment to US$230,000. The terms of the debt financing were not disclosed.

“We have landed 3 major partnerships with Kenya’s top retail stores to power their last mile deliveries. The partners include Copia, Naivas, and Jumia which are by far the biggest retail and e-commerce brands in Kenya,” said Kennedy Nyabwala, Bwala Africa Group founder and CEO.

“We are also doing collections, through BwalaPay, our escrow system. We have so far collected over Kshs 7 Million (US$70,000) for our various last mile customers. BwalaPay allows customers to pay on delivery and the seller on the other will either get cash when the item is sold / return of the package, if not sold. This has solved a big pain on online fraud.”

Read: Kenyan Startup Bamba Group Acquired By UK Based Energy Firm, Maximeyes Group

BwalaPay service will be extended to classifieds and other online business entities who are dealing with skeptical customers who are not sure if they will lose money through online fraud.

The firm is also working on a crowdsourcing logistics marketplace for fleet owners to connect them to auto garages and mechanics around the country.

Launched in Nairobi 9 months ago, Bwala is planning to expand into Uganda, Zambia, Ghana, Zimbabwe and South Africa as well as in Asia, Bangladesh, India, and the Philippines.

“We have managed to cover most parts of Nairobi and are expanding across counties in Kenya. We started with trucks but quickly realized those motorbike deliveries were in high demand due to their speed and efficiency. We, therefore, integrated them,” added Nyabwala.

The firm is currently working on a 12,000 sqm warehouse to consolidate the orders for various retail needs to ease delivery and last mile order fulfilments.

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