April 14, 2024
https://techcrunch.com/2023/08/08/kenyan-logistics-startup-sendy-shuts-down-embarks-on-asset-sale/

Sendy, a Kenyan logistics startup that enabled retailers to purchase FMCGs directly from manufacturers, among other services, has shut down its operations and is exploring a sale of its assets.

The company had raised over $30 million in funding from investors including Accel, General Atlantic, and TPG Growth. However, it was unable to raise additional funds to support its growth.

Sendy’s struggles come at a time when the Kenyan logistics market is facing increasing competition from other startups, such as Lori Systems and Quick Cargo. These startups have been able to offer lower prices and better service than Sendy, which has put pressure on the company’s finances.

In a statement, Sendy co-founder Meshack Alloys said that the company was “disappointed” to have to shut down, but that it was the “best decision for our stakeholders.”

“We have explored all options to raise the necessary capital to continue our operations, but unfortunately we have not been successful,” Alloys said. “We are grateful to our investors, employees, and customers for their support over the years.”

Sendy’s closure is a setback for the Kenyan logistics market, which is still in its early stages of development. However, it is also a reminder of the challenges that startups face in raising funds and competing with well-funded rivals.

Source: Techcrunch.com

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