Kenyan Logistics startup, Sendy raises new funding months after massive layoff

Kenyan fulfilment and logistics startup Sendy has raised an unspecified amount of money in an undisclosed funding round. MOL PLUS Co., Ltd, the Corporate Venture Capital arm of Japanese transportation company Mitsui O.S.K. Lines, led the round.

This is the company’s first investment round after raising $20 million in its previous Series round in 2020. However, this new funding comes just a few weeks after the startup stated that it is shutting down its supply services, focusing more on its fulfilment services, and providing more simplified services to its commercial clients.

Speaking on the newly formed partnership with MOL PLUS & MOL Logistics Co., Ltd., Mesh Alloys. Sendy Founder and CEO said,

We believe our financial and operational partnership with MOL PLUS & MOL Logistics Co., Ltd.(MOL Logistics) will drive a huge impact not only for the growth of Sendy and its fulfillment network but also for the Merchants we serve as we continue to offer more value add and solutions to help them grow and trade more. We will work with MOL Logistics to leverage their strengths and expertise in logistics and cross-border fulfillment, to grow our services and network of businesses we serve

Mesh Alloys. Sendy Founder and CEO

According to a LinkedIn post by the Kenyan Logistics startup, the agreement will assist businesses to streamline operations while focusing on its new fulfilment capabilities.

MOL PLUS has joined Sendy’s existing investors in their objective to help scale the company’s Fulfillment services in Kenya, Uganda, Nigeria, and Cote d’Ivoire.

This prioritised service, Fulfillment services, is a portfolio of services that includes Direct, Smart, and All-in-one fulfilment, making it easier for businesses of any size to transport goods, allowing for greater efficiency and growth.

The Kenyan startup, Sendy in a rollercoaster phase

Sendy was officially launched in 2015 as an on-demand delivery platform that connected clients to a network of transporters for goods deliveries. The startup became a B2B business, transitioning all of its products into a B2B model; Sendy Transport, Supply, and Fulfillment now only serve businesses.

In 2021, Sendy established a target of obtaining $100 million by 2022 to assist fund its expansion plan across other African countries, but it appears it was too big a dream for the platform.

According to a report, it had only raised roughly $26 million for the goal before this new fundraising. The logistics startup appeared to have been hit by an economic downturn, reducing its prospects of meeting its objectives.

In August, the startup laid off 10% of its workforce, but that was not all. In October, the logistics startup confirmed that an additional 20% of its remaining 270 staff were laid off. This was because the founders noticed that the company was far off from the projection it made and that changes needed to be made to hit the next projects.

Read Also: Sendy’s 20% workforce trim

About the new partnership

Takuya Sakamoto, Representative of MOL PLUS, a corporate venture capital fund of MOL Logistics, an integrated logistics and supply chain solutions provider for organisations worldwide, also commented on the new relationship, saying,

We were very specific in choosing to invest in Sendy because of the solution that they offer; we share a common goal. We all want to democratize logistics and support businesses in Africa to move their goods reliably and affordably. We look forward to an exciting partnership with Sendy as we forge this joint mission. We endeavor to work with partners with innovative ideas like Sendy through creating synergies and collaborations that will generate value,.

This merger lays the way for significant benefits that will streamline corporate logistics. MOL also plans to collaborate with Sendy to provide more mid- and last-mile services to its shipping and freight customers.