ICT

Kenyan logistics startup to embark on second round of fundraising

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Malaika Judd, the Chief Operating Officer of Sendy, a Kenyan tech startup which operates an app linking delivery drivers with customers, said the company is embarking on a second round of fundraising to expand in East Africa.

Send which was founded four years ago is used by about 4,000 businesses and 50,000 individuals. So far, the tech startup has managed to raise $3 million.

Failing to provide a target amount, Judd said “we will be doing a series B investment round hopefully before the end of the year. We don’t want to be a small family logistics business, we want to be a tech platform that can solve logistics challenges across the world”.

Sendy’s investors include local telecoms operator Safaricom, Toyota East Africa and Dutch investor DOB Equity. In a region with challenges ranging from bad roads to heavy traffic, Judd attributed the interest from both local and overseas investors to Sendy’s role in forging transport solutions for firms engaged in retail or fast-moving consumer goods.

Judd said “the problem of logistics is so large that everyone is looking at creating solutions to solve it”. She noted that the emergence of e-commerce would further boost demand for the services of firms like Sendy.

Toyota admitted that its use of Sendy has boosted efficiency. The chairman of Toyota in East Africa, Dennis Awori said “the costs of delivering spare parts from one location to another, or to a customer, has dropped by as much as 35 percent”.

Sendy has four founders and employs about 60 people, half of them in engineering.

Judd revealed that the most realistic exit for her team would be an acquisition by another large logistics company keen to modernise Sendy’s operations. She said “if we cash out in five years I will be very happy”.

 

 

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