Logistics firm Sendy, which operates an app linking delivery drivers with customers, has raised Sh2 billion in funding from a group of institutional investors including Japanese conglomerate Toyota Tsusho Corporation (TTC).
The multinational provided most of the funds, with Sendy declining to disclose the actual contribution and identity of the other investors.
TTC, which had invested earlier in Sendy, increased its capital commitment in the latest funding. The conglomerate says it has signed an agreement that will see them develop logistics businesses jointly.
Sendy’s chief executive and co-founder Alloys Meshack said in a statement Thursday that the funds will help the firm expand its business to other African countries.
The start-up currently has offices in Kenya, Tanzania and Uganda with plans to expand to West Africa by 2021.
“We are excited to announce a Sh2 billion round led backed by Toyota Tsusho Corporation and other investors. The funding is a great commitment from our investors and will go a long way towards achieving our goal of making it easier to trade in Africa,” he said.
Sendy has about 50,000 customers in Thika, Mombasa, Kisumu and Nairobi. The company is expected to venture into new Kenyan towns in the next few months.
The on-demand logistics firm that allows its customers to order courier services over their mobile phones, uses motorcycles, pickups, vans and trucks to deliver parcels.
Safaricom, MultiChoice, Mall for Africa.com, Bidco, Chandarana, Kenafric, Davis and Shirtliff, Auto Express, Good Life Pharmacy, Toyota and Highlands are some of the firms already using the platform to handle deliveries of their products.
Last April, the firm lowered prices for same day deliveries.