Sendy Limited, East Africa’s on-demand delivery services platform closes Series A. The investment will be used to broaden Sendy’s service offering, expand its team, and prepare for expansion into East Africa.
Sendy, an app-based on-demand delivery services platform operating across Kenya, has completed a Series A investment round, led by DOB Equity. DOB Equity will invest alongside CFAO, member of the Toyota Group, and other private investors.
This is an exciting announcement for VC4A, following the company’s participation in the XL-Africa. XL Africa was the first post-acceleration program designed to support the 20 most promising digital ‘scale-ups’ from across Africa raising series A rounds, and Sendy represents this new breed of company coming up across the continent.
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 targets a US$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 are expected to further boost demand on Sendy’s platform.
The current logistics sector in Kenya –worth US$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.
Focusing on the sub-sector of packages and goods deliveries, Sendy offers an app-based on-demand marketplace, connecting individuals and companies to delivery service providers, similar to ride-hailing companies like Uber – but focused on goods rather than passengers. As a result, it helps reduce inefficiencies in the market primarily by removing friction costs between matching customers and providers.
Sendy works with Partners to deliver tailor-made, efficient and affordable service using verified, trained drivers and automated order tracking. It offers customers a wide choice of types and sizes of vehicles, ranging from motorcycles to 28-ton trucks.
The new funds will enable Sendy to increase their platforms’ service offering. This includes adding more delivery vehicles to their platform, increasing their coverage area, expanding the sales and technology team, and preparing for future expansion into neighboring countries in East Africa.
DOB Equity is a Dutch, family backed impact investment firm that invests in impactful and innovative businesses in East Africa, with offices in Nairobi, Dar es Salaam, and in the Netherlands. DOB Equity invests equity and offers tailored financing, access to international networks and technical assistance to meet the needs of the business. With a portfolio of fast-growing companies in the East African energy, agriculture, education, retail and distribution sectors, DOB Equity is determined to further expand its presence and impact in the region.
Source: Alina Vinogradova, VC4A
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