With the relative success it has achieved in Kenya where it has bridged the gap between retailers and key suppliers through seamless logistics, Sokowatch, the business-to-business (B2B) eCommerce startup has raised $14 million in series A funding. The startup that enables informal retailers to order products and receive free same-day delivery to their store is working on expanding its operations to few other countries in Africa. Sokowatch disrupted the logistics industry through highly innovative payments and delivery logistics platform.
Company sources say that Sokowatch adopted a strategy of aggregating orders for independent retailers and negotiating better prices from suppliers. Through that, Sokowatch generates revenues by taking a percentage off the savings it makes for its clients. After that, it collects client data and uses it to offer credit and other financial services. Through the platform informal retailers can order their goods from Sokowatch’s online platform by SMS, phone or mobile application and the goods get delivered to the retailers by its fleet of vehicles, mostly three-wheeled tuk-tuks. To ensure quality control Sokowatch CEO Daniel Yu said that “we handle all of our last-mile logistics exclusively ourselves”.
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Founded in 2013, Sokowatch developed business-to-business (B2B) eCommerce supply chains for retailers in Africa’s informal markets to connect with large FMCG suppliers like Unilever, and in the process, digitise their orders, payments and delivery-logistics.
This funding comes almost two years after the Nairobi-based startup closed a $2 million seed investment led by 4DX Ventures and an additional $2.5 million in February 2019. This time, however, Quona Capital led the series A round, with 4DX Ventures participating. Vertex Ventures, Timon Capital, Breyer Capital, and Amplo also participated.
Having expanded within Kenya, and outside to Rwanda, Tanzania, and Uganda, Yu says Sokowatch now serves over 15,000 small retailers across these countries and plans to broaden its client services with this series A funding. “We’re looking to build out the largest B2B e-commerce network across Africa,” Yu said.
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Although the startup has plans to target new African markets, Sokowatch did not name the countries it has set its sights on, however, Wu said that the startup could begin to offer third-party logistics or sell online directly to African consumers.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry