Kenyan logistics startup Sendy raises US$20m in funding round backed by Toyota

KENYA – Sendy, an on-demand logistic platform that connects clients to drivers and vehicles for goods delivery, has raised a US$20 million Series B led by Atlantica Ventures.

Sendy’s US$20 million round includes an R&D arrangement with Toyota Tsusho Corporation, a trade and investment arm of Japanese automotive company Toyota, whose investment comes from a venture arm the company established for Africa, called Mobility 54.

The company plans to use the funding for new hires and to upgrade its tech. “Getting better operational efficiency is super key so we’ll invest…in engineering teams and data teams…and deploying talent to improve the services that we give our customers,” said Alloys.

Alloys co-founded Sendy in 2015 with Kenyans Evanson Biwott and Don Okoth and American Malaika Judd. The startup currently has offices in Kenya, Tanzania, and Uganda with 5000 vehicles on its platform that move all sorts of goods, according to Alloys.

“We’ll look at optimizing the kind of trucks that perform well in this market…They’ll also look at setting up vehicle services centers in partnership with us,” said Alloys.

Asia Africa Investment, Sunu Capital, Enza Capital, Vested World, and Kepple Capital joined lead investor Atlantica Ventures on the $20 million round — which brings Sendy’s total funding to $29 million, according to Alloys.

Formed in 2019, Atlantica Ventures is a relatively new Africa focused VC fund co-founded by Washington DC based Aniko Szigetvari. She confirmed the fund’s lead on Sendy’s Series B and that Atlantica Ventures will take a board seat and work on strategic planning and execution with the company.

On how Sendy will outpace rivals such as Kobo360 and Lori Systems, Alloys points to the startup’s platform. “Our customer service is superior and that’s driven by our technology…I think we’re miles ahead of our competition today when it comes to tech,” he said.

Lowering logistics expenses for businesses in Africa is central to Sendy’s mission, according to Alloys.

“We’re organizing a marketplace using technology so companies can efficiently deliver to their customers while reducing overall costs,” he said.

Sendy offers services for e-commerce, enterprise, and freight delivery for a client list that includes Unilever, DHL, Maersk, Safaricom and African online retailer Jumia.

The company uses an asset-free model, with an app that coordinates contract drivers who own their own vehicles, while confirming deliveries, creating performance metrics and managing payment.

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