Kenyan On-Demand Delivery Platform Raises $20M, Partners With Toyota
Sendy, a Kenyan on-demand delivery platform, has raised a $20 million Series-B round of funding, bringing its total investment to $27.5 million.
Sendy connects businesses and people to third-party delivery drivers through its on-demand mobile platform which operates in East Africa.
Just like Uber connects people who need a ride with drivers in the area, Sendy’s platform connects people or businesses that need to have something delivered to a driver or rider who owns their own vehicle and can make the delivery.
Users are given options based on their preference and budget, with Sendy offering the ability to have the item or items delivered via motorcycle, car or truck.
The investment was led by U.S.-based Africa-focused VC firm Atlantica Ventures with participation from Toyota Tsusho Corporation, a trade and investment arm of Japanese automaker Toyota, Techcrunch reports
Toyota has agreed to provide vehicle financing for third-party drivers on the Sendy platform, allowing them to loan a vehicle to use for deliveries based on the driver’s track record on the platform.
Toyota will also set up vehicle service centers in partnership with Sendy.
The Nairobi-based startup has offices in Kenya, Tanzania and Uganda. It claims to have 5,000 vehicles on its platform that move all kinds of goods.
Sendy makes its money through commission charged to the third-party driver on each delivery. In 2018, the company made $1.5 million in revenue, Ventures Africa reports.
The Kenyan company offers services for e-commerce, enterprise, and freight delivery for a client list that includes Unilever, DHL, Maersk, Safaricom, and Jumia, according to Techcrunch.
Sendy was founded in 2015 by Meshack Alloys, Malaika Judd, Evanson Biwott and Don Okoth.
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The logistics startup has raised $27.5 million since it was launched, according to Crunchbase. It plans to use its Series B funding for new hires and to upgrade its technology.
Investors who participated in the $20M round include Singapore-based investment firm Asia Africa Investment, Atlanta-based investor Sunu Capital, Nairobi-based VC firm Enza Capital, Chicago-based private equity firm Vested World, and Singapore-based asset manager Keppel Capital.