Sokowatch - Afrikan Heroes

East African E-commerce Startup Sokowatch Plans Entry Into Ivory Coast and Senegal

July 2, 2021

Sokowatch is an East African e-commerce startup on a mission to revolutionize Africa’s informal shopping. The company led by Daniel Yu wants to expand in West Africa, notably in Ivory Coast and Senegal, after deploying its B2B strategy in Kenya, Rwanda, Tanzania, and Uganda.

By the end of the year, the corporation plans to establish itself in Cote d’ivoire. It has already sent a staff to this location and has even established a legal subsidiary there. On the other hand, Senegal’s expansion will be implemented in 2022. Sokowatch aspires to have the same success in these new markets as it has in its main sub-region, where it serves 24,000 retailers.

The business claims to have solved a challenge that players like Jumia are having trouble solving. According to Daniel Yu, Africa’s unorganized retail industry is significantly larger than what the continent’s e-commerce leader can handle. According to him, Jumia’s approach, which is comparable to Amazon’s, is too complex to be adapted to Africa.

A Look At What Sokowatch Does

From Nairobi, the company has created a platform that connects merchants directly to local and multinational suppliers — such as Unilever and Proctor and Gamble — and digitizes orders, payments and delivery-logistics.

Since launching in 2016, and raising a $2 million seed round in 2018, Sokowatch has expanded within Kenya and into Rwanda, Tanzania and Uganda.

By Yu’s account, too many of Africa’s local merchants are sacrificing capital and incurring opportunity cost due to inefficient supply-chain.

Sokowatch Ivory Coast Senegal Sokowatch Ivory Coast Senegal

Kenya-based Startup Sokowatch Raises $14m To Disrupt Informal Retailers

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

Kenya’s Sokowatch Makes it to Fast Company’s “World’s Most Innovative Companies 2021”

March 16, 2021

Kenya’s innovative e-commerce platform Sokowatch, which supplies and finances mom-and-pop stores across East Africa has been named in Fast Company’s prestigious annual list of the World’s Most Innovative Companies (MIC) for 2021.The company currently has an established network of over 18,000 shops across Kenya, Tanzania, Rwanda, and Uganda, serving the neglected informal retail market that sells over $850 billion of basic goods to African consumers every year.

Sokowatch Global CEO and Founder, Daniel Yu

The list honors businesses that have not only found a way to be resilient in the past year, but also turned those challenges into impact-making processes. These companies did more than survive; they thrived—making an impact on their industries and culture as a whole. This year’s MIC list features 463 businesses from 29 countries. Fast Company’s editors and writers sought out the most groundbreaking businesses across the globe and industries. They also judged nominations received through their application process.

In response to the potential devastating effects of the pandemic, Sokowatch in 2020, launched an e-voucher scheme to support its ecosystem of shop owners and the local communities. The scheme was launched to ensure vulnerable families would have access to essential goods by redeeming sms vouchers at their local shop, maintaining a steady income for the shop during a precarious time.

The scheme supported over 10,000 beneficiaries, with participating informal retailers experiencing revenues rise by up to 54%. In December 2020, the company deployed electric tuk-tuks in Uganda where the air quality is 6x worse than global standards, the first-ever commercial deployment of such vehicles in Africa. This is part of the company’s drive to reduce the impact of carbon emissions and foster cleaner and more sustainable environments in the markets it operates.

On receiving the recognition from Fast Company, Global CEO and Founder, Daniel Yu, says that “this recognition is very exciting and we are delighted to be listed as one of the world’s most innovative companies across Europe, the Middle East and Africa. It further validates Sokowatch’s efforts to support thriving retailers across the continent and demonstrates the real impact of innovative solutions”. Adding that at Sokowatch we are always looking at ways to reimagine the status quo to ultimately increase the purchasing power of African communities.”

The World’s Most Innovative Companies is Fast Company’s signature franchise and one of its most highly anticipated editorial efforts of the year. It provides both a snapshot and a road map for the future of innovation across the most dynamic sectors of the economy.

“In a year of unprecedented challenges, the companies on this list exhibit fearlessness, ingenuity, and creativity in the face of crisis,” said Fast Company Deputy Editor David Lidsky, who oversaw the issue with Senior Editor Amy Farley.

To coincide with the issue launch, Fast Company hosted its first-ever Most Innovative Companies Summit on March 9 and 10. This virtual, multi-day summit celebrated the Most Innovative Companies in business, provide an early look at major business trends, and offer inspiration and practical insights on what it takes to innovate in 2021.

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

Kenya-based Startup Sokowatch Raises $14m To Disrupt Informal Retailers

February 24, 2020

Kenya based B2B e-commerce startup Sokowatch has raised $14 million in Series A funding toward its mission of revamping supply-chain markets for Africa’s informal retailers.

“We’re looking to build out the largest B2B e-commerce network across Africa,” Sokowatch’s CEO Daniel Yu said.

Here Is The Deal

This round of funding was led by Quona Capital joined by Amplo, Breyer Capital, Vertex Ventures, Timon Capital and repeat investor 4DX Ventures.
With its Series A, the startup plans to broaden its client services — from working-capital to data-analytics — and target new African markets, according to CEO Daniel Yu.
Sokowatch didn’t however name which countries in Sub-Saharan Africa it’s eyeing for expansion. The company’s CEO did confirm the startup could someday use the advantages of its platform to offer 3PL services or sell online directly to consumers in Africa.

“It’s within the power of our networks to do so” said Yu. “At the end of the day, we want to be the channel — both digital as well as physical — for transforming access to goods and services for these communities.”

The Kenya-based Sokowatch also doesn’t rule out using its infrastructure to someday enter business-to-consumer online retail.
For the moment, the startup’s primary business focus is to reduce costs and increase profit margins for small merchants.

Read also: Lessons Twiga Foods Has Taught Startups About Disrupting Africa’s Food Supply Chain

Why The Investors Invested

The lead investor Quona Capital is empowering entrepreneurs building a more financially inclusive world by connecting them with the ideas, innovation, and capital they need to help solve challenges for the underserved in every corner of the world, from Mumbai, India to Monterrey, Mexico, and beyond.

‘‘With a massive transformation in connectivity and mobility, innovation is spreading around the globe more rapidly than ever before. These forces are fueling entrepreneurial creativity to address the needs of the billions of financially underserved people and businesses around the world lacking access to fundamental financial services such as credit and convenient, secure ways to store and use their money every day. We invest to benefit the financially excluded, connecting financial services with technology and cutting-edge innovation with everyday pain points.

Quona works shoulder to shoulder with entrepreneurs, investors, and strategic partners, with a holistic approach to venture capital investing, aligning value with values, profit with purpose, and combining financial return with social impact,’’ the VC Quona Capital notes.

A Look At What Sokowatch Does

From Nairobi, the company has created a platform that connects merchants directly to local and multinational suppliers — such as Unilever and Proctor and Gamble — and digitizes orders, payments and delivery-logistics.
Since launching in 2016, and raising a $2 million seed round in 2018, Sokowatch has expanded within Kenya and into Rwanda, Tanzania and Uganda.
By Yu’s account, too many of Africa’s local merchants are sacrificing capital and incurring opportunity cost due to inefficient supply-chain.
Sokowatch is shifting that scenario, according to its CEO, and now serves over 15,000 small retailers across its operating areas.

“We…estimate that we save merchants at least 20% on supply-chain costs for the goods we supply,” said Yu.

Sokowatch offers retailers an app to order products from its partner suppliers and maintains a fleet of vehicles, primarily three-wheel tuk tuks, for delivery.

“We handle all of our last-mile logistics exclusively ourselves,” said Yu.

The startup is also generating additional enterprise services. “As part of the product we are developing other tools for merchants to directly manage other aspects of their business, especially when it comes inventory and overall sales,” said Yu.

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.
He could be contacted at udohrapulu@gmail.com