Sendstack, the Norrsken-backed startup that pivoted from last-mile logistics to fleet administration, is betting on a brand new {hardware} play—GPS monitoring units—to hit $1 million in income by the top of 2025. That may be 4 instances what it made out of its now-defunct supply platform, DLVR, which it shelved in 2024 after struggling to scale.

To succeed in this milestone, Sendstack plans to promote 10,000 trackers by July—every gadget prices ₦100,000, turning {hardware} gross sales right into a dependable income stream whereas driving the adoption of its fleet administration software program, CTRL. The compact trackers, which resemble AirTags and run on 2G networks, combine with Sendstack’s platform and third-party techniques by way of API—giving the corporate a number of entry factors to upsell software program providers.

This shift is a major departure from Sendstack’s preliminary imaginative and prescient of making an aggregator platform for last-mile supply firms. In 2024, the corporate pivoted from last-mile supply to fleet administration and launched CTRL, a software program product it plans to copy throughout rising markets. Nevertheless, as we predicted in our report on the pivot, the corporate has needed to adapt to a market the place companies nonetheless rely closely on guide processes and are hesitant to undertake standalone fleet administration software program.

Whereas the trackers are a distribution play for its current software program enterprise, the trackers additionally handle a persistent problem in Nigeria’s logistics sector: cargo visibility. Many apps promise real-time monitoring, however long-haul shipments usually go darkish because of unreliable cell connectivity and truck drivers who depend on function telephones. 

The corporate provides each a one-time buy choice and a managed service subscription that features the gadget, SIM card, insurance coverage, and assist. The gadget prices ₦100,000 however a managed service attracts further month-to-month charges. This twin income mannequin is designed to cater to totally different enterprise wants and budgets.

{Hardware} is extra intuitive for Nigerian customers

CEO Mba-Kalu believes that introducing {hardware} isn’t nearly adaptation—it’s a chance to copy the success fintech firms have had with card and POS gadget distribution.

“Like POS terminals for funds, {hardware} trackers are extra intuitive for Nigerian customers, and companies are extra receptive to the thought of investing in trackers for his or her autos,” stated Mba-Kalu. “It’s simpler to then upsell them on further software program options.”

Within the final decade, fintech startups have distributed low-cost debit playing cards and POS units to amass clients and increase transaction volumes. Sendstack is making use of the identical considering and believes that trackers will function an entry level for companies to undertake its software program at scale. The corporate already claims notable clients, together with electronics producer Panasonic and logistics agency NG Logistics.

“App-based trackers work nicely for intra-city journeys however not for long-distance haulage,” Mba-Kalu famous. Many truck drivers are sometimes unreachable throughout transit, resulting in communication breakdowns and inefficiencies.

Sendstack is optimising GPS trackers for cargo

GPS trackers aren’t a brand new idea, and Sendstack faces stiff competitors from current gamers within the casual monitoring market. Mba-Kalu acknowledges this however argues that the majority trackers in the present day are “fundamental and primarily designed for monitoring between areas,” whereas Sendstack’s product is optimised for cargo monitoring.

In contrast to software program, {hardware} comes with larger upfront prices. If manufacturing bills exceed projections or if Sendstack fails to hit its 10,000-unit gross sales goal, the monetary pressure may very well be important. The corporate has solely raised $350,000 since its founding and has to date resisted elevating further funding.

“We’re not in a rush to lift further capital,” Mba-Kalu asserted, including that the corporate is assured within the margin potential of the tracker.

Nevertheless, scaling {hardware} in Nigeria comes with logistical challenges—managing stock, guaranteeing dependable manufacturing, and dealing with distribution throughout a number of states. With a lean crew of about 5 individuals, Sendstack may even must increase its workforce, particularly its technical gross sales crew, to assist its bold progress plans. 

If Sendstack’s {hardware} gamble pays off, it may reshape fleet administration in Nigeria. The flip aspect of that gamble may depart Sendstack in a troublesome spot—neither a software program nor logistics chief.