Corporate

Logistics company Sendy seeks new investor

sendy

Sendy CEO Alloys Meshack. FILE PHOTO | NMG

Logistics firm Sendy is in talks to be acquired by an unnamed investor in a deal that is expected to be concluded in the next few weeks.

The firm’s co-founder, Meshack Alloys, confirmed the proposed transaction to Business Daily.

“We are in the middle of an acquisition process but we are not shutting down operations. We will announce (the deal) in two weeks,” said Alloys.

On possible job losses, he stated that “our team will continue into the acquiring company.” He did not give details about the firm set to take over, the amount involved and the reason that necessitated the move.

In October last year, the logistics firm shut down its retail and supplier trading platform known as Sendy Supply, axing 20 percent of its workforce citing funding challenges.

Sendy was co-founded in 2015 by Alloys, Evans Biwott, Don Okoth and Malaika Judd as an online platform connecting entities moving goods.

By last October, the firm had raised a cumulative $29 million (Sh4.1 billion) and in the process increased its headcount from the four founders to 300 workers.

Japanese multinational Toyota Tsusho Corporation is among the firms that had invested in the logistics company.

Sendy’s latest move comes after several tech start-ups have shut down their operations, with most of them citing difficult market conditions as well as funding hitches.

A Business Daily analysis shows that at least seven major Kenyan-based tech start-ups have gone down in under one year.

The most recent one to shut in March this year was e-commerce platform Zumi which said funding had dried up.

Others that closed shop last year are Kune Foods, Notify Logistics, WeFarm, BRCK and Sky-Garden.

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