KAROOOOO, the owner of Cartrack, has acquired Cape Town-based on-demand logistics startup Picup Technologies for R70 million ($4.8m). Picup Technologies was purchased for 70.1 percent by Karooooo.
“As we think beyond connected vehicles, it is imperative that our cloud platform is a comprehensive mobility solution that addresses the needs of both our existing and future enterprise customers,” Zak Calisto, CEO and Founder of Karooooo and Cartrack, said.
“E-commerce transactions across the globe are increasing dramatically and we need to ensure that we are well-positioned to assist our enterprise customers in fully digitalising the mobility aspects of their businesses. Picup helps enterprises scale their operations without having to unnecessarily invest in additional assets.
“Our customers that use the Cartrack Delivery functionality on our platform will soon be able to have a one stop cloud platform to manage their fleets with the option of using crowd-sourced drivers when faced with unplanned demand.”
Here Is What You Need To Know
- Following the acquisition, Picup’s founder and CEO, Antonio Bruni, as well as the management team, will retain a 29.9% stake in the company.
- However, Karooooo retains the option to increase its shareholding to 83.5%.
- Since founding, Picup’s total funding from investors stands at $650k. The investment was reportedly made by Naspers.
- According to the company, the acquisition will help Cartrack and Picup achieve their growth goals as the demand for last-mile deliveries continues to grow at a rapid pace.
“The management team is business competent, customer sensitive, and has the start-up ethos that we treasure,” Calisto said of the Picup team.
“Picup’s committed management team is enthused about developing Picup alongside Karooooo, who has a strong track record of scaling a firm with smart financial discipline,” Bruni said of the acquisition.
- Karooooo has a strong balance sheet and has proved its capacity to scale and generate high-quality organic earnings growth while generating substantial free cash flow.
A Look At What Picup Does
Picup was founded in South Africa in 2014 after the founder’s horrible Black Friday delivery experience, which sparked the legendary light-bulb moment: “Logistics requires better tech!”
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The startup is a logistics cloud-based startup that enables companies to plan optimally without having to consider peak times into their base operational capacity by facilitating an elastic fleet of third-party delivery drivers to accommodate overflow volumes.
Picup streamlines transportation processes and reduces logistics risks, particularly when it comes to achieving tight delivery deadlines. Enterprises and transporters can also use the platform to plan and assign cargo, get real-time tracking, and evidence of delivery with automatic payments.
Before its acquisition, the company has been working with Cartrack to address the challenges of last-mile delivery through an integrated offering because Cartrack’s mobility open eco system platform allows for seamless integration into third party systems.
Customers of Cartrack can now manage their own fleets and workflows, as well as interface with specialist courier firms and a network of vetted crowd-sourced drivers, allowing them to scale their e-commerce business, deliveries, and general logistic needs more efficiently.
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Picup presently handles over 200,000 monthly deliveries and works with significant blue-chip companies like Dischem and Pick n Pay. The startup’s annualized growth revenue run rate was R79 million as of July 31, 2021, representing a 130 percent increase over March. Picup’s scalable business model has gained traction since the launch of Covid-19, providing a significant prospect for growth.
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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