Two startups in Kenya, digital logistics startup Amitruck and ecommerce startup Sky.Garden, which have been collaborating since 2019 have just moved their relationship a step higher. Both startups have announced a major reinforcing partnership to defy Covid. This partnership aims to keep economic and social chains alive during lockdown by providing vital services to keep products moving, sustain the economy, and keep business supply chains moving.
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“Creating Growth requires teamwork, partnerships, and technology, particularly in our continent. Likewise, creating a better Africa and a better World has to be the mission of an entire army of companies and people. Sky.Garden and the Amitruck team are delighted to be leading the way with shared objectives and values,” Mark Mwangi, Amitruck CEO said.
This Is How The Partnership Will Work
- Forming an end-to-end digital chain for goods pick-up, promotion, online sales, provisioning and deliveries to the last mile, the partnership allows more than 6,000 B2B clients to keep their business alive and maintain jobs across many industries.
- Both companies have built smart technology with AI (Artificial Intelligence) and ML (Machine Learning) to secure and maintain a competitive edge powered by leading players such as Amazon Web Services and Google.
- According to the African Tech Startups Funding Report 2020 released by startup news and research portal Disrupt Africa, the year saw $190 million in investments flow into Kenya, which remains at the top of Africa’s list of recipients. The two companies have recently announced funding from top investment firms and intend to develop their activities further across Africa this year.
“At Sky.Garden we are always delighted to find partners that are eager to disrupt the African market and bring lasting solutions that are continent specific and breed further innovation in the region. We have found that with the innovative logistics platform, Amitruck, and look forward to the leaps and bounds we can achieve together,” states Isaac Hunja, Co-Founder & Managing Director at Sky.Garden
Economies Of Scale
One important implication of the renewed collaboration is the economies of scale which partnerships usually offer. The need for such partnerships has further been highlighted by explosion of tech hubs and startups across Africa. Therefore, finding intersecting areas for possible collaborations can be the one strategy that makes all the difference.
Amitruck-Sky.Garden partnership, for instance, has allowed both startups to circumvent or reduce the harsh economic conditions occasioned by lockdowns.
Another of such partnerships is that between FinTech company, AellaCare and leading health insurance enterprise Hygeia, last year. At that time, people were most concerned about their health status. Government’s policies on health insurance also barely existed. By estimates, about 95 percent of Nigerian adults, for instance, do not have insurance coverage and 77.2 percent of the country’s population have no understanding of what insurance entails. Aware of the fact that it is not one of the leading fintech companies in Nigeria and amidst the fear of being forced to shut down, AellaCare immediately pulled a partnership deal with health insurance enterprise Hygeia which they hope would help bridge the gap between people and health care services in Nigeria with relatively affordable health insurance coverage.
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Through the partnership, customers can get Hygeia’s insurance plans on credit via the Aella app, which guarantees tailored financial plans, the flexibility of payments and better-improved healthcare access. Additionally, people can seek and receive needed health services such as General Consultations, Pharmacy Benefits, Ante-Natal Care & Delivery services, Accidents and Emergencies, Surgeries, Outpatient and Specialist Consultations, HIV/AIDS Care and Treatment, Dental Care, Prescription Glasses, Family Planning Services among others.
Amitruck also seems to be aware of the implications of the African Continental Free Trade Area (AfCFTA) on its business model.
The operational phase of AfCFTA which entered into force on the 1st of January, 2021,covers a market of 1.2 billion people and a combined gross domestic product of $2.5 trillion — making Africa the world’s largest free trade area since the formation of the World Trade Organization seven decades ago.
AfCFTA will greatly assist startups in Africa in their quests for international expansion, by reducing the regulatory and financial costs of such expansion.
The combination of Amitruck’s digital logistics and Sky.Garden’s e-commerce is set to unlock barriers and facilitate the accomplishment of trades within the World’s largest economic zone, including not less that 54 countries across the Continent.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer