Safaricom-backed logistics startup, Sendy has absolutely transitioned right into a B2B enterprise after its product Sendy Transport turned solely obtainable to solely companies. “Sendy Transport will now be obtainable to companies solely. Convert your account by thirtieth Sept,” an SMS that the corporate lately despatched to its final remaining B2C prospects reads.
Up till this transfer, Sendy Transport was the startup’s solely product nonetheless in use by people. What this implies is that Sendy has absolutely transitioned right into a B2B mannequin as all of its merchandise: Sendy Transport, Sendy Provide and Sendy Achievement now solely serve companies.
“Our mission has been, and continues to be, empowering companies to commerce with ease, and thus we constructed Sendy Transport for companies and corporates. As such we are going to proceed to develop it to handle and assist our enterprise prospects’ ache factors,” a press release to TechCabal reads.
Sendy formally launched in 2015 as an on-demand supply platform which linked purchasers to a community of transporters for items deliveries.
The startup was established to digitally rework the logistics trade in Kenya, nevertheless it has met with a number of challenges since its inception. In 2016, for instance, it closed its boda-boda or taxi-hailing enterprise after two months amidst rising competitors within the taxi trade in Kenya.
In August, the Nairobi-based startup told TechCabal that it was laying off 10% of its 300-strong workforce. In accordance with its CEO Mesh Alloys, the choice was in response to the “present realities impacting tech firms globally”.
A few of its rivals, Kobo360 and Lori Programs, each primarily based in Nigeria, have struggled throughout 2020 on account of the COVID-19 pandemic and accompanying lockdown restrictions, and have had to restrategize.
Though Sendy admitted that the pandemic introduced with it new challenges within the logistics sector, it began adapting to the brand new adjustments. “This formed a brand new actuality and accelerated our development in ways in which made it simpler for retailers to do enterprise,” a doc Sendy shared with TechCabal reads. In 2021, regardless of the challenges of the pandemic, the corporate expanded to Nigeria and Côte d’Ivoire.
In 2021, the corporate expressed plans to lift $100 million in 2022 to fund its growth plan to international locations like Egypt, Ghana, South Africa, and Nigeria. However so far, it has solely raised a complete of $26.5 million from 13 traders, no because of the worldwide tech downturn which has made VC much less more likely to flush startups with cash. As well as, sources aware of the matter instructed TechCabal that Sendy, which at present operates in Nigeria, Kenya, Uganda and Ivory Coast, is halting its growth into Egypt and South Africa.
Sendy has completely different merchandise that assist companies promote, transfer items, and get financing. Sendy Transport permits companies to maneuver small packages, medium-sized items, or massive cargo. Sendy Provide permits companies to buy inventory at aggressive costs from a number of producers, and offers credit score financing. With Sendy Achievement, companies, largely on-line manufacturers and huge ecommerce manufacturers can retailer and distribute their merchandise.
As VC funding dries up, startups like Sendy are looking for the clearest path to profitability, and this may simply be a kind of strikes.
“We’re not slicing down any a part of our enterprise mannequin. Our present mannequin helps our long-term technique which is to proceed constructing simple options for companies utilizing our merchandise. Thus far, all our merchandise are aligned with this purpose,” the rest of the assertion reads.
On Friday, the twenty third of September, TechCabal in partnership with Moniepoint (by TeamApt) will host a very powerful gamers in tech and enterprise on and off the continent to debate the way forward for commerce in Africa. Register now to attend.