Safaricom #ticker:SCOM -backed logistics firm Sendy has announced plans to expand into East Africa within the year.
Sendy’s chief executive Meshack Alloys says the company now has sufficient financial muscle to foray into East African countries.
“We shall expand into East Africa by this year,” he said in interview, but declined to disclose the specific countries the firm is eyeing.
Sendy has about 50,000 customers and serves over 4,000 businesses in Thika, Mombasa, Kisumu and Nairobi. The company last year said it expected to move to new towns in Kenya “in the next few months.”
The on-demand logistics firm allows customers to order courier services over their mobile phones.
Sendy recently received Sh207.6 million ($2 million) in equity investment from Dutch impact fund DOB Equity and CFAO Group, a multinational firm that is a fully owned subsidiary of Toyota Tsusho Corporation on October last year.
DOB Equity said on Friday in a statement that part of the funds will be focused on venturing into regional markets.
“The new funds will enable Sendy to increase their platforms’ service offering,” said the Dutch PE firm.
“This includes adding more delivery vehicles to their platform, increasing their coverage area, expanding the sales and technology team, and preparing for future expansion into neighboring countries in East Africa,” the firm added.
DOB and CFAO Group are among a consortium of international investors that have invested in Sendy.
“With the support of DOB Equity and CFAO we look forward to sustaining our high growth and outstanding services to our current and new clients over the coming years,” said Mr Alloys in the statement.
The app-based on-demand delivery services platform focuses on packages and goods deliveries connecting individuals and companies to delivery service providers, similar to ride-hailing companies like Uber – but focused on goods rather than passengers. It says it offers customers “a wide choice of types and sizes of vehicles”, ranging from motorcycles to 28 ton trucks.
“A well-functioning logistics sector is key to economic development and competitiveness. However it is often overlooked when analyzing and discussing the impact of investments,” DOB Equity chief executive Brigit van Dijk – van de Reijt, CEO said.