SOUTH AFRICA – Droppa, a logistics startup, has announced that it has closed a Series A funding round led by logistics company SkyNet Worldwide Express.

The 2 companies believe the deal, whose amount was not disclosed, will accelerate business growth for both brands and strengthen their existing customer-centric approach. 

“We are very excited about the investment in Droppa. Following intensive negotiations to strategically align and shape our market offerings, I am confident the investment in Droppa will help drive further business growth for both parties and allow continuous innovative business solutions that benefit our customers,” said Tommy Erasmus, CEO at SkyNet Worldwide.

Mufamadi, a computer scientist, started Droppa in 2016 as South Africa’s “Uber for bakkies” and over its last 6 years of existence, it has transitioned from a bakkie-for-hire model to offering an all-in-one delivery platform, where individuals and businesses are able to courier parcels, transport goods and furniture and also rent bakkies and trucks.

“We went to Radio 702 and requested for a logistics giant to partner with us at Droppa. This initiative caught the attention of a SkyNet Executive who then made contact and thus began the journey which has grown stronger over the past 2 years,” he noted.

“Through the many lessons learned, we are confident that [SkyNet] deserves to have a seat at the table and Droppa is looking forward to expanding its wings and taking the delivery hub global through the SkyNet international network.”

SkyNet had previously partnered with in Droppa in July 2020 at the height of the COVID-19 pandemic through a two-way agreement which gave Droppa customers access to SkyNet’s courier services and gave SkyNet the opportunity to increase their capacity by utilising Droppa’s large vehicle fleet to enhance their services further.

The 2020 SkyNet partnership enabled Droppa to expand its suite of delivery services to nationwide road and air delivery modes and same-day delivery services between Johannesburg, Cape Town and Durban.

The partnership had come about as a result of Droppa’s founder and CEO Khathutshelo Mufamadi going on national radio to request a logistics giant to partner with. A SkyNet executive heeded this request.

Previous investments for Droppa include its multi-million-rand funding from IDF Capital in 2019 raising funding from IDF Capital. IDF has funded Droppa from its seed stage through its IMIN Accelerator and has made the further investment after seeing the startup experience quick growth.

The investment will see Droppa penetrate the national logistics market, while it also aims to drive an increase in skill sets for business communication through technological development to ensure constant and uninterrupted two-way communication channels as well as feedback.

Part of the Droppa business development plan is to create a booking management system customised per retail sector.

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