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Amitruck, Kenyan Logistics Startup Raise Fund for African Expansion

February 4, 2022

As part of efforts aimed at expanding its operations across Africa, the Kenya-based digital trucking logistics startup Amitruck raised a US$4 million seed funding for that purpose. Amitruck was launched in 2019, as a trucking logistics marketplace that seeks to bring trust, transparency and efficiency to transport. The startup’s platform connects transporters directly with cargo owners via its web or mobile application, avoiding middlemen. Transporters bid for work on the platform, ensuring competitive prices, while cargo owners have convenient access to a range of competitive offers and can choose a transporter based on price, rating and experience.

The startup, which raised a pre-seed round a year ago, has banked a US$4 million seed round to help it expand across Africa and expand its team across key functions, including sales, engineering, and customer success.

The fundraising was led by Better Tomorrow Ventures (BTV), a San Francisco-based venture capital firm that targets early-stage startups. Also in the round were supply chain and mobility venture capital Dynamo Ventures, Rackhouse Ventures, Flexport, Knuru Capital, Launch Africa Ventures, Uncovered Fund, and several strategic angel investors.

“We are thrilled about the positive response that Amitruck has received from cargo owners and transporters alike. Transport touches on almost every sector of the African economy and is crucial to its development; we are excited to be part of that journey. Thanks to the support from our investors, we look forward to expanding our footprint across Africa and bringing more carriers and shippers to our marketplace,” said Amitruck’s CEO and founder Mark Mwangi.

BTV’s general partner Jake Gibson said Amitruck was selected for investment due to its high level of innovation and a growing need for its services.

“As an investor in unicorn CloudTrucks here in the US, we have in-depth knowledge of the operational and financial requirements from truckers. While the trucking and logistic business in Africa has grown tremendously over the years, the pace of innovation particularly in its administration has been slow. Amitruck’s solution is ideal for bringing the industry into the 21st century.” he said.

Amitruck’s database consists of over 8,000 vehicles, which have in just over two years completed almost 100,000 deliveries for more than 300 corporate clients. Consequently, its revenue grew 1,000 percent in 2021. The startup is now eyeing market dominance in the Africa trucking and logistics market, which accounts for almost 80 per cent of transported goods.

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

US Investors Back Kenyan Logistics Startup Amitruck In $4m Seed Round

February 2, 2022

Amitruck, a Kenyan tech-enabled logistics platform aiming to simplify Africa’s shipping business, has received seed funding of $4 million. Better Tomorrow Ventures (BTV) (USA) led the seed round, which included investors such as Dynamo Ventures (Tennessee), Rackhouse Venture Capital (CA, USA), Flexport Inc (CA, USA), Knuru Capital (Dubai, UAE), Launch Africa Ventures (Ebene, Mauritius), Uncovered Fund (Tokyo, Japan), and a number of angel investors.

The current investment raises the total amount of money invested in the firm to $5 million.

The firm, which has had a strong start in Kenya, will use the funds to improve its technical, operational, and sales teams in preparation for expansion into Tanzania and Uganda. The intentions come as it appears to be the go-to platform for shippers and transporters operating in-country and cross-border business in the region.

“The most important purpose of this round is hiring. We are also improving our technology as we start our expansion into other countries in Africa,” Amitruck founder and chief executive officer Mark Mwangi said in a statement.

Why The Investors Invested

Amitruck has acquired considerable traction since its last funding. Amitruck has over 8,000 vehicles registered on its platform, and Mwangi claims that income increased by 1,000 percent in 2021, up from 400 percent the year before, as COVID highlighted the need to automate supply chain procedures. Last year, the company was approved into the JICA-backed Ninja Accelerator program, as well as AbInbev’s Budstart Accelerator and Google’s Black Founders Fund Accelerator, all of which give non-dilutive finance.

The startup’s founding team also played a great role in convincing investors to back it in this round. Mwangi, a former investment banker, wasn’t always in the logistics industry. After his father died, he had to work nights driving trucks to fund his tuition at the City University of London, where he studied mathematics. Following that, he became a member of the management team of Bluecrest Capital Management, a British-American hedge fund, where he was responsible for the operations of a variety of private assets in Canada, Ecuador, and China. He eventually departed for Pictet Asset Management, where he ascended through the ranks to become an Equities portfolio manager, a job he resigned in 2017 to pursue his dream of starting his own business.

“As an investor in a unicorn CloudTruck startup here in the U.S., we have in-depth knowledge of the operational and financial requirements from truckers. While the trucking and logistic business in Africa has grown tremendously over the years, the pace of innovation particularly in its administration has been slow. Amitruck’s solution is ideal for bringing the industry into the 21st century,” BTV’s general partner Jake Gibson said.

A Look At What Amitruck Does

Amitruck, a digital logistics platform that launched in 2019, connects shippers with carriers who operate trucks, vans, tuk-tuks (three-wheelers), pickup trucks, and motorcycles, allowing them to negotiate haulage prices. The software also allows shippers to modify services, such as adding off-loading fees. The site offers information such as a transporter’s rating and the average number of trips made, which aids shippers in narrowing down their options. Once all sides have reached an agreement, the process can proceed.

“Amitruck connects shippers directly with transporters and provides a platform where you can get secure competitively priced transport,” said Mwangi. “In an informal setting, you can have up to three middlemen between a transporter and the cargo owner or shipper. And these guys can cause several problems; including claiming up to 60% of the delivery fee, and if something happens to your load (loss or damage), it’s very difficult for you to get compensated. For shippers, it is very hard for them to compare the quality and level of service they’re going to get. So, it’s quite manual, tedious and very difficult to know who’s good [at what they do] and who’s not.”

Unilever, L’Oréal, a beauty brand, SkyGarden, an e-commerce platform, and Twiga, a fresh produce marketplace are among Amitruck’s more than 300 B2B customers in Kenya. They also work with individual consumers, such as those who are relocating.

The goods shipped by Amitruck’s partners are insured. In addition, the startup offers operational assistance.

Amitruck logistics Amitruck logistics

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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

Kenyan Logistics Startup Amitruck Continues Its Partnership Streak, This Time With Sanergy

June 3, 2021

Amitruck, a Nairobi-based digital logistics marketplace with a focus on Africa, remains undeterred in its mission to dominate the African digital logistics sector. Only two months after forming a strategic partnership with ecommerce startup Sky.Garden, the firm has shifted its focus to waste management, a strategic step toward environmental sustainability for the firm. Sanergy, a social venture that cleans up fast-growing cities by collecting and transforming harmful organic waste streams into high-quality, safe goods that help cities expand economically sustainably, is the most recent alliance.

Both East African innovators will join forces to exploit their end-to-end value chain network of operations and efficient logistics to collect, treat, and convert two streams of waste: sanitation waste generated in low-income informal settlements with inadequate sanitation services as well as kitchen and agricultural waste from restaurants, market places and agricultural pack houses. The partnership will take effect on June 5, 2021, World Environment Day.

“With more than 5,000 drivers, we are proud to be partnering with Sanergy and its community to enable a circular economy benefiting the Environment, Health, People and Greener cities. Thanks to its innovative digital marketplace, Amitruck accelerates the transition to more sustainable logistics, allowing existing fleets of vehicles to be used a lot more efficiently for Positive Impact,” said Mark Mwangi, Amitruck CEO.

partnership Amitruck Sanergy — *Image credits: Amitruck*

How The Partnership Will Work And Why It Is Significant

Partnering with Amitruck, Sanergy removes more than 12,000 tons of waste every year, and upcycles it into end-products such as organic fertilizer, insect-based protein for animal feed and biomass briquettes used as clean fuel. This circular economy solution addresses multiple challenges: environmental pollution by sanitation waste that is improperly disposed of, low agricultural yields due to declining soil fertility and increasing GHG emissions from open dumping of waste.

In addition, innovative logistics solutions for waste collection, using Amitruck’s digital marketplace of vehicles and drivers, more effectively managing fleets and the transport of goods, are accelerating the transition to more sustainable cities.

Through the partnership, therefore, the two partners will heavily be impacting the economy and the society. Sanergy has already created more than 2,000 direct and indirect jobs, whilst Amitruck has hired more than 5,000 drivers over two years thanks to innovative digital models.

“We are excited to be pioneering a sustainable waste management solution that benefits the people and economy, and restores our ecosystem. Our next big goal is to expand here in Nairobi, and then replicate our model across Kenya and Africa,” said Michael Lwoyelo, Sanergy Managing Director.

However, while there are impeccable successes in Nairobi, Kenya, Sanergy and Amitruck believe that scaling and replicating the closed loop circular economy approach in other cities in Kenya and beyond is key to strengthen fragile systems such as waste management, production of agriculture inputs and to build resilient cities where residents are healthy and prosperous. Both parners, therefore, noted that it is imperative to forge partnerships with government stakeholders and other sector players to scale and serve more citizens and businesses with professional services. In particular, they also noted that government plays a critical role in creating and improving the regulatory framework that sees these novel models thrive.

The partnership is significant in some ways. Sanergy has built one of the largest Organics Recycling Factory in Sub-saharan Africa with a capacity to process 72,000 tons of waste every year. Having modeled successful operations in Nairobi, Sanergy is scaling and replicating their solution to serve 10 cities in Kenya and beyond over the next 5 years. And so, this would provide an immense opportunity for Amitruck which has more than 5000 drivers at its disposal. For its part, Amitruck has had an exciting 12 months with its revenues growing by over 300% despite the COVID-19 crisis.

The relationship is also a significant step forward for Amitruck in terms of ESG compliance, a criterion that has become more vital in earning high sustainability rankings.

partnership Amitruck Sanergy partnership Amitruck Sanergy

Kenyan Logistics Startup Amitruck Secures Pre-seed Funding Round

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

Kenyan Logistics Startup Amitruck Partners Ecommerce Startup Sky.Garden. What This Means For Startup-Startup Partnerships In Africa

April 19, 2021

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.

“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.

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.

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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

Kenyan Logistics Startup Amitruck Secures Pre-seed Funding Round

February 16, 2021

Barely a year after it secured funding from Africa-focused early stage investor GreenTec Capital Partners, Nairobi-based trucking logistics startup Amitruck has landed an undisclosed amount of pre-seed funding led by US- based Dynamo Ventures with participation from Plug and Play Ventures and a host of other strategic angel investors.

“I look forward to working with Dynamo Ventures and Plug and Play Ventures who alongside their investment bring a huge amount of experience building and scaling companies and access within the logistics sector,” said Mark Mwangi, the founder and CEO of Amitruck.

Here Is What You Need To Know

Although the exact amount involved in this round of founding was not disclosed, lead investor Dynamo Ventures had recently participated in Philadelphia-based YC-backed logistics startup nextmv’s $8m Series A funding round. It also participated most recently in MadeiraMadeira, a Brazilian online home goods platform’s $190 million funding round that valued the startup above $1 billion. To date, the VC has more than 40 investments to its credit.

The investment will boost Amitruck’s efforts at growing its client base in the East African market where the likes of Lori Systems and Sendy (two well-funded logistics startups) are already making headway.

Last year, Amitruck raised an undisclosed amount of investment from GreenTec.

In 2018, Amitruck was accepted into Newchip’s online accelerator. It also completed Google for Startups Accelerator Africa program last year.

Why The Investors Invested

As a sector-focused investor, Dynamo Ventures invests in supply chain and mobility startups across the world. The VC is known for its early investment in Sennder, Europe’s largest digital freight brokerage, which recently purchased European operations from Uber Freight and raised $160 million with an over $1B valuation. Investment in Amitruck is its first outing in Africa and is also a game changer. The VC joins other investors in the African logistics startup space, such as Chinese investors Hillhouse Capital and Crystal Stream Capital; Nigeria and U.S.-based EchoVC; US-based VC Atlantica Ventures; Toyota Tsusho Corporation, a trade and investment arm of the Japanese automaker Toyota; Asia Africa Investment and Consulting, Sunu Capital; Enza Capital; Vested World; Kepple Capital; TLcom Capital; Goldman Sachs; Y Combinator; the International Finance Corporation (IFC), among others

“We are excited to be investing in Amitruck given the momentum it has achieved over the last 12 months particularly in light of the challenges associated with COVID-19. We see many similarities between Amitruck and Sennder which we invested in at a very similar stage of their lifecycle” said Barry Large from Dynamo Ventures who previously was a board director at Sennder “and believe Amitruck has the potential to become equally as successful.”
Read also:AFRALTI Partners IBM to Launch a Digital Training Programme in Kenya

On the other hand, Silicon Valley-based Plug and Play Ventures is a seed and early-stage venture capital firm focused on investing in emerging growth companies. This is the venture arm of Plug and Play, an innovation platform, bringing together startups and the world’s largest corporations. Last year, the investor announced it would open its first African office in Johannesburg. Across the world, it has a portfolio of over 20000 startups, 400 major corporate partners and over 180 venture capital firms in 35 global locations. Investment in Amitruck is not its first in Africa. Its previous investments include those in Flutterwave, WorldCover and HealthLane.

“We are extremely excited to invest in Amitruck. We have been in contact with Mark for the last 10 months and we are not only impressed by his incredible growth, but also by his story and ambitions,” said Alberto Anton, Analyst for Plug and Play Ventures. “Amitruck brings efficiency and transparency to the supply chain and we are convinced that Mark and his team will be able to lead the logistics market in Kenya and East Africa.”

Investment in Amitruck also follows the coming into force on the 1st of January, 2021 of the African Continental Free Trade Agreement (AfCFTA), which 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 — especially those in the logistics sector — in their quests for international expansion, by, among other things, reducing the regulatory and financial costs of such expansion.

A Look At What Amitruck Does

Founded in 2018 but launched in January, 2019 by two brothers Mark and Timothy Mwangi, Amitruck is a trucking logistics marketplace that connects truckers with shippers using its web and mobile application, side stepping middlemen and brokers.

In simple terms, the Amitruck app works like this:

A customer books a delivery using the mobile app.
The trucks in the area get notified and their quotes are sent to the customer through the app.
The customer chooses a quote, date and time for the delivery to be made.
Payment is made but only released to the driver upon confirmation of delivery.

Goods shipped using the Amitruck app are also insured up to Kes 500,000 ($4.5k) for free, with options for a small premium to raise cover above this.

“Approximately 60% of the total cost of transported goods in Kenya is attributable to ineffeciencies in the logistics supply chain. There are typically 2–3 ‘middle men’ involved in most off-platform delivery transactions, and our digital platform removes that expensive and unnecessary cost,” said Mark Mwangi, Amitruck’s Founder and CEO.

Last year, the startup announced it saw revenues from its business rise by 300%, with its app downloaded more than 10,000 times since it was launched.

The latest investment in Amitruck comes barely a year after Sendy, another Kenyan logistics startup that raised $20 million in VC funding. In 2019 Kobo360, a Nigerian truck logistics startup, secured $ 20million in Series A funding round backed by Goldman Sachs. This was immediately followed by East Africa-focused on-demand delivery company, Lori Systems, which raised $30 million with the support of Chinese investors. Amitruck will, in the coming months, hope to find a strong presence amidst the competition.

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

One-year-old Kenyan Logistics Startup Amitruck Secures Funding From GreenTec Capital

April 8, 2020

Mark Mwangi, chief executive officer (CEO) of Amitruck

Barely a year it was founded, a logistics startup based in Kenya Amitruck has secured an undisclosed amount of funding from GreenTec Capital to boost its growth plans.

“With a presence in Germany and in Africa, GreenTec is an ideal partner as we continue to scale our business,” said Mark Mwangi, chief executive officer (CEO) of Amitruck. “We’re excited to have a partner on board that provides vast strategic experience in our market.”

Here Is All You Need To Know

The investment from GreenTec Capital is expected to boost Amitruck’s efforts at gaining a foothold in the East African market where the likes of Lori Systems and Sendy (two well-funded logistics startups) are already making headway.
GreenTec, which makes small investments in African tech startups but says its real value-add comes from its “company-building” model, has invested in a host of African startups, including Kenyan AI startup SuperFluid Labs, Nigerian logistics startup Parcel-it, Zambian cleantech platform WidEnergy, Moroccan recruitment service KWIKS,Kenyan cleantech startup Ecodudu, and, most recently, Ivory Coast-based waste management startup Coliba.

[For an HD version of this map, please click here)

Why The Investor Invested

Amitruck is believed to have already demonstrated impressive traction while boasting a tightly-knit team prepared to take the company forward. And according to a post on its official website, GreenTec will be working closely with Amitruck to support the company’s growth plans and further scaling.

According to a tweet by GreenTec Capital@GreenTecCapital:

@GreenTecCapital is very happy to announce our investment in @amitrucks an innovative Kenyan logistics platform bringing trust and transparency to the African logistics sector. Read more: https://bit.ly/2JJxC2i

Maxime Bayen, Senior Company Builder at GreenTec said logistics is a significant challenge in Africa and the current crisis is only making this more obvious.

“Amitruck’s solution has the potential to tackle the fragmentation and lack of trust in the sector while enabling capacity growth by increasing driver and truck owner accessibility to the broader market. We are extremely proud to be kicking off this long-term collaboration with Amitruck’s team,” he said.

A Look At What The Startup Does

Founded one year ago (January, 2019) by two brothers Mark and Timothy Mwangi, Amitruck is a vehicle-hailing company which connects traders to trucks, pick-ups, and motorcycles for goods delivery.

The startup describes itself as “an innovative mobile and web-based trucking logistics platform that brings together cargo owners and transporters for their mutual benefit.”

Amitruck’s solution cuts out expensive middlemen whilst increasing security as all drivers and vehicles are vetted and goods in transit insured. The startup has already seen impressive traction, and has now secured investment from GreenTec Capital to support its growth plans and further scaling.

As of 2019, Amitruck claimed to connect traders to over 500 registered transport service providers who move their goods to different locations, as well as up to 200 fleet owners on the platform.

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.