Remember when I told you Sendy was broke? Well, the Kenyan logistics startup is now shutting down its operations and is in advanced discussions about an acquisition.
Sendy is in advanced discussions about being acquired by an undisclosed buyer just shy of a year after shutting down its retail and supplier trading platform known as Sendy Supply and sending home 20 percent of its workforce due to a lack of funds.
Sendy was founded in 2015 by Don Okoth, Evanson Biwott, Malaika Judd, and Meshack Alloys. At the time of publishing the startup has raised over $26.5 million in funding from investors including Toyota Tsusho, Atlantica Ventures, VestedWorld, Keppel Capital, Enza Capital, AAICA Investment Pte Ltd, Sunu Capital, and Goodwill Investments.
In recent years, Sendy has faced financial difficulties. In 2022, the company laid off 54 employees and phased out its supply service. This February, Sendy announced its exit from its end-to-end fulfillment offering in Nigeria.
In an interview with TechCrunch, Sendy co-founder Meshack Alloys said that the company is “in the middle of an acquisition process.” He said that Sendy will issue a formal joint statement in two weeks or so time.
It is not yet clear who the buyer is. However, Alloys said that the buyer is a “strategic investor” that is “committed to the future of logistics in Africa.”
The acquisition of Sendy is a sign of the challenges facing logistics startups in Africa. The continent is a vast and growing market, but it is also a difficult one to operate in. Logistics companies face challenges such as poor infrastructure, high costs, and a lack of skilled labor.
The acquisition of Sendy could help the buyer to gain a foothold in the African logistics market. The company has a strong brand and a loyal customer base. It also has a proven track record of innovation.
It remains to be seen what the future holds for Sendy’s employees and customers. However, the acquisition is a positive development for the African logistics market. It shows that there is still interest in the sector, even in the face of challenges.