This archive report was first published on 30 October 2019.
On-demand delivery platform Sendy, based in Nairobi, Kenya, has secured a $2m investment from Goodwell Investments to enhance access to affordable basic products and services for lower-income groups in East Africa.
Founded in Nairobi in 2015, Sendy connects cargo and parcel owners to third-party transporters, streamlining supply and demand. The platform currently covers Kenya, Uganda, and Tanzania, with plans to expand to all of East Africa in the near future.
Sendy's primary revenue stream is a per-delivery commission charged to logistics partners. The company's innovative approach aims to reduce logistical costs, which account for a staggering 40% of consumer prices in East Africa due to poor infrastructure, limited technology use, inefficient capacity utilization, and lack of pricing transparency.
Since its launch, Sendy has experienced rapid growth. In its first year, the company completed 12,000 deliveries, had 27 drivers on its platform, and generated $45,000 in revenue. Over the past three years, Sendy has completed over 180,000 deliveries, has more than 700 drivers on its platform, and posted $1.5 million in revenue in 2018.
Sendy is also exploring new distribution models, including a pilot 'agency model' that aggregates packages at a central collection point before delivery to customers. This approach is expected to increase efficiency and improve margins.
