[Kenya] Sendy set for East Africa expansion
Sendy, an 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.
DOB Equity says that the new funds will enable Sendy to increase their platforms’ service offering. This includes adding more 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 explains that 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.
Focusing on the sub-sector of packages and goods deliveries, Sendy offers app-based on-demand marketplace, connecting you 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.
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.”
“Investments in agriculture or manufacturing are not sustainable if there is no efficient supply chain to get products out to the market. As such, DOB Equity is increasingly interested in investing in companies that look to solve economic inefficiencies throughout the supply chain. For example, we recently invested in Africa Logistics Properties, a developer of modern warehousing facilities across Africa.”
Hayo Afman, Portfolio Manager of DOB Equity, comments “Sendy targets 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 is expected to further boost demand on Sendy’s platform.”
“Across the globe we are seeing a similar rise of new tech-based logistics business models replacing traditional service offerings. To date, only a few sizeable players have emerged in Sub-Saharan Africa and Sendy is one of the most advanced new entrants in East Africa, giving the company a first-mover advantage to gain a significant share of the market.”
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.”