E-commerce logistics associate Renda raises $1.9 million to develop throughout Nigeria, Kenya

Renda, a Nigerian logistics startup that counts Jumia and MarketForce as high purchasers, has raised $1.9 million in pre-seed funding as curiosity in Africa’s logistics sector continues to develop. The funding was a mixture of debt ($600,000) and fairness ($1.3 million). 

The logistics startup, which operates in 15 Nigerian cities, will use the funding to develop into Kenya and different Nigerian cities. 

Renda’s $1.9 million pre-seed increase continues a powerful 12 months for logistics and transport startups on the continent. In keeping with Techcabal Insights, startups within the sector raised about $151 million in Q1 2024.

The funding spherical was led by Ingressive Capital, with participation from Techstars Toronto, Founders Manufacturing facility Africa, Magic Fund, Golden Palm Investments, Mirror Ventures, SeedFi and Vastly Helpful Ventures.  

E-commerce firms want environment friendly last-mile supply and warehousing options, and it could not make enterprise sense for them to deal with these components of the enterprise. So startups like Renda, which offer warehousing, supply and money assortment, are useful.

Like many different startups within the logistics house, Renda claims to be asset-light and doesn’t personal any warehouses or vans. As an alternative, it fulfills orders with the assistance of over 5,000 warehousing, supply and money assortment companions. 

The startup, which generates income via year-long contracts with companies, is worthwhile, stated CEO Ope Onaboye. “The expansion additionally speaks to the sort of clients  who use our answer.” 

Renda serves companies like Jumia, Omnibiz, LaCasera, MarketForce, and CDcare and claims to have processed 250,000 orders because it launched. 

Based in 2021 by siblings Ope and Bimbo Onaboye, Renda started offering warehousing and logistics wants for small and medium-scale enterprises (SMEs) earlier than transferring to serve FMCG and e-commerce companies attributable to increased margins. By its app, Renda360, firms can entry versatile storage, monitor and handle their stock, course of and fulfil orders, handle deliveries and returns, and obtain and reconcile money on supply in actual time.

“Becoming a member of forces with Renda as an investor is a strategic transfer for us. Renda’s know-how answer addresses a essential want within the African manufacturing and e-commerce ecosystems, providing seamless entry to fulfilment infrastructure,” Maya Horgan Famodu, Founder and Associate at Ingressive Capital, stated.

Renda plans to develop into Kenya and can discover the potential for an asset-heavy mannequin. “Our imaginative and prescient at Renda is to develop into the biggest and most trusted fulfilment associate for e-commerce and main companies throughout Africa,” Onaboye advised TechCabal.