Goodwell Investments US$2m on Kenyan on-demand deliveries startup Sendy

KENYA – Nairobi-based on-demand delivery platform, Sendy, has raised US$2 million in funding from Dutch impact investor Goodwell Investments to help it expand further across East Africa.

The company intends to use the funds to expand operations and its business reach to cover all East Africa in the near future.

Sendy connects businesses and individuals to third party delivery drivers of all vehicle types in Kenya, Uganda and Tanzania. The startup was founded in 2014 by Meshack Alloys, Malaika Judd, Evanson Biwott and Don Okoth.

Sendy offers a marketplace for last-mile package delivery and logistics services, allowing customers to send packages and documents using a mobile application that connects them to motorcycle riders, and drivers of vans and pickup trucks.

Goodwell Investments explained in its statement that the startup’s primary revenue stream is a per-delivery commission charged to the logistics partner.

The startup still sees more growth potential and is planning to expand geographically and launch new distribution models.

Sendy is already piloting a so-called “agency model” in which packages are aggregated at a central collection point before delivery to the customer.

Goodwell East Africa senior investment manager Joel Wanhoji said in the same statement that Sendy is “already a gamechanger” in the logistics sector.

“Its cutting-edge technology brings efficient capacity utilisation and transparent pricing to a sector that was previously seen as being beyond change.

“Sendy’s platform is enabling savings of more than 20% on the logistics costs, which makes Sendy a good fit within Goodwell’s uMmunthu mandate of providing basic goods and services to people on low and middle incomes — the majority,” added Wanhoji.

“Sendy is already a gamechanger in the logistics sector. Its cutting-edge technology brings efficient capacity utilisation and transparent pricing to a sector that was previously seen as being beyond change,” said Joel Wanhoji, senior investment manager of the Goodwell East Africa team.

“Sendy’s platform is enabling savings of more than 20 per cent on the logistics costs, which makes Sendy a good fit within Goodwell’s uMmunthu mandate of providing basic goods and services to people on low and middle incomes – the majority.”

The investor added that Sendy, which has 700 drivers on its platform, has in the last three years completed over 180 000 deliveries, with the startup posting revenues of US$1.5-million last year.

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