Kenyan Logistics Startup Sendy Enters Administration
Kenyan logistics startup Sendy has gone into administration, appointing Peter Kahi of PKF Consulting Limited to oversee its operations. This comes after the startup failed to find a buyer after being put up for sale.
By going into administration, Sendy confirms that it has become insolvent and is seeking legal protection from the suppliers and organizations it owes money to while it develops a restructuring plan.
Sendy was founded in 2014 and initially offered a marketplace for last-mile package delivery and logistics services. In 2021, the startup expanded into the fulfillment service space, targeting e-commerce and direct-to-consumer businesses that do not have storage or delivery systems. In February this year, it also launched a Payment on Delivery product for e-commerce and social commerce vendors in Africa, in a bid to enhance secure online shopping across the continent.
Despite these offerings, Sendy has been facing a lot of sustainability challenges. In August 2022, the company sent home 10% of its workforce. In October of the same year, Sendy wound down its Supply service, saying it would now focus on its Fulfilment Service and provide more streamlined services to its business clients. The move came after the firm failed to raise $100 million in funding and only managed to raise a small portion from MOL PLUS, the Corporate Venture Capital of Japanese transport firm Mitsui O.S.K. Lines (MOL). The startup went ahead and laid off a further 20% of its workforce.
Sendy Supply was initially built to make it possible for retailers to purchase affordable stocks directly from manufacturers and distributors. The CEO said the turbulence witnessed in the e-commerce market today was part of what informed the decision to shut it down.
It is unclear what the future holds for Sendy, but the company’s entry into administration is a major blow to Kenya’s tech startup scene. Sendy is one of the most well-known and well-funded startups in the country, and its failure is a sign of the challenges that startups are facing in the current economic environment.
Sendy’s entry into administration is the latest in a string of failures for Kenyan startups. Earlier this year, other well-known startups such as Lori Systems and Sokowatch also shut down their operations.
The challenges facing Kenyan startups are due to a number of factors, including the rising cost of living, the global economic slowdown, and the ongoing war in Ukraine.
Despite the challenges, Kenya’s tech startup scene remains vibrant and there are still many successful startups operating in the country. However, the recent failures have raised concerns about the sustainability of the sector.
Sendy’s entry into administration is a sign of the challenges that startups are facing in the current economic environment. The company was unable to raise sufficient funding to continue operating, and its failure is a reminder that even the most successful startups are not immune to the global economic slowdown.
It is important to note that Sendy is not the only Kenyan startup that is facing challenges. Other well-known startups such as Lori Systems and Sokowatch have also shut down their operations in recent months. This suggests that the Kenyan tech startup scene is going through a period of upheaval.
However, it is also important to note that there are still many successful startups operating in Kenya. The recent failures should not be seen as a sign that the sector is doomed. Rather, they should be seen as a wake-up call to startups to focus on sustainability and to be prepared for the challenges that lie ahead.
