NIGERIA—Renda, a Nigerian logistics company, has secured US$1.9 million in pre-seed funding, marking a significant achievement in the growing African logistics sector.
The startup said the fund would be invested in improving its offerings while fueling its expansion into more cities across Nigeria and Kenya, the two markets where it currently operates. It also wants to invest the funds in growing its partnership network across its markets.
The funding, comprising US$600,000 in debt and US$1.3 million in equity, attracted investment from a diverse group of backers, including Ingressive Capital, Techstars Toronto, Founders Factory Africa, Magic Fund, Golden Palm Investments, Reflect Ventures, SeedFi, and Vastly Valuable Ventures.
In the world of e-commerce, efficient last-mile delivery and warehousing solutions are essential. Companies like Renda, which provides warehousing, delivery, and cash collection services, are valuable partners for e-commerce companies.
Renda operates on a model that relies on a network of over 5,000 partners rather than owning warehouses or trucks for warehousing, delivery, and cash collection.
Founded in 2021 by siblings Ope and Bimbo Onaboye, Renda initially served small and medium-scale enterprises’ warehousing and logistics needs (SMEs).
Through their app, Renda360, companies can manage their inventory, process and fulfill orders, manage deliveries and returns, and reconcile real-time cash on delivery.
Ope Onaboye, CEO of Renda, confirmed the startup’s profitability, crediting this success to the quality of customers who use their services.
The startup said its model allows it to access flexible storage, monitor and manage inventory, process and fulfill orders, manage deliveries and returns, and receive and reconcile cash on delivery in real time.
This approach has helped it build an extensive partnership network, enabling its clients to expand quickly across the country. The platform has over 300 warehousing and storage partners, more than 3,000 delivery assets, including trucks, vans, bikes, and 2,000+ cash collection partners.
Although Renda started off serving small businesses, its customer base has changed over the years.
The logistics fulfillment startup now serves e-commerce businesses, FMCG manufacturers, agriculture companies, and manufacturers nationwide.
Its current clientele includes OmniRetail, Jumia, M-KOPA, and Dangote, highlighting the diverse range of businesses that use its solution for their logistics needs.
Its business model has also evolved and now hinges on prioritizing enterprise-level entities over small businesses. These enterprise-level organizations are typically higher-value clients who commit to 12 to 24-month contracts over small businesses.
Maya Horgan Famodu, Founder and Partner at Ingressive Capital, expressed excitement about partnering with Renda, noting that Renda’s technology solution addresses a critical need in the African manufacturing and e-commerce sectors.
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