KENYA – Sendy, a technology company that builds infrastructure for e-commerce and consumer brands has partnered with the Small and Medium Enterprise [SME] Support Centre to offer logistics support to online traders.
The startup is using its supply-chain expertise to help over 5000 minimarts in Nairobi revive their operations through a third-party credit financing program and fulfilment operations.
Mini Marts in Nairobi’s residential areas will receive credit financing ranging from KSh50,000 to KSh2 million (US$439 – 17,574) to expand their stock, boost their profitability, and provide affordable products to households.
According to a Sendy survey, 70 per cent of the FMCG market is concentrated on small scale businesses targeting consumers who prefer day-to-day purchases, and the majority of small merchants are unable to stock up on a constant basis.
According to the survey, almost 5000 minimarts in Nairobi are unable to adequately stock their shelves.
“We have made this capital accessible to help mini-marts optimize their profitability and reduce losses caused by stock-outs, product unavailability and price inconsistency,” Sendy Supply’s General Manager Don Okoth said.
“The impact of minimarts being able to source quality goods at affordable prices with assured delivery is felt by many households.”
Sendy will also leverage its logistics expertise to offer next day delivery from instant order fulfillment.
“Most mini-mart owners have to deal with the issue of logistics from suppliers which takes their focus away from running their businesses,” added Mr. Okoth.
“With our partnership, they can instantly order goods from our Sendy Supply mobile App and get next-day shipment of the purchased stock for free.”
The deal also offers customers an access to a wider variety of products from different suppliers at competitive pricing from Sendy’s Supply platform, including Bidco Africa, Chandaria Industries Ltd, Alpha Grain Millers, Excel Chemicals Ltd, Highlands Drinks Ltd, KimFay EA Ltd, Mombasa Maize Millers Ltd, Pwani Oil and Premier Food Industries Ltd.
With the expansion of the retail economy, mini-marts impact at the bottom of the pyramid has grown significantly.
According to market research firm Nielsen, kiosks and groceries accounted for 66.3 per cent of total FMCG spend in Kenya in the year ending March 2019, up 10.7 percent from the previous year’s same period, explaining the expansion of neighbourhood mini-marts.
Mini-marts are small supermarkets in estate neighbourhoods that are not part of a large retail chain and keep moderate stock levels.