The logistics sector in Nigeria faces challenges due to poor infrastructure and inefficiencies, hindering businesses of all sizes in moving and storing goods.
While several startups have addressed middle-mile and last-mile delivery issues, there is a gap in providing end-to-end fulfillment solutions. Renda, a three-year-old startup, aims to simplify order fulfillment and retail distribution for businesses in Africa. Securing a $1.9 million pre-seed round, Renda plans to enhance its services, expand to more cities in Nigeria and Kenya, and grow its partnership network in these markets.
Ingressive Capital led the equity portion of the round with $1.3 million, with other participants including Techstars Toronto, Founders Factory Africa, Magic Fund, Golden Palm Investments, Reflect Ventures, and Vastly Valuable Ventures. Additionally, Founders Factory Africa and SeedFi contributed $600,000 in debt funding.
Renda aggregates end-to-end infrastructure to optimize order fulfillment for businesses. Its solution enables access to flexible storage, inventory monitoring, order processing, delivery management, real-time cash-on-delivery reconciliation, etc.
CEO Ope Onaboye described Renda’s asset-light approach, partnering with various providers in the logistics chain to offer tailored solutions without owning assets directly. This approach has helped Renda build a partnership network with over 300 warehousing partners, 3,000+ delivery assets, and 2,000+ cash collection partners.
Renda now serves a diverse range of clients including e-commerce businesses, FMCG manufacturers, agriculture companies, and more, witnessing significant revenue growth year-on-year by prioritizing enterprise-level entities over small businesses.
Renda’s revenue model is based on five key drivers: storage, fulfillment, vehicle booking, deliveries, and cash collection, each charged based on specific factors.
Learnings from Logistics Experience
Logistics challenges in Africa have driven businesses to rely on fragmented services, leading to the rise of platforms like Renda offering comprehensive logistics solutions beyond the middle or last mile.
Renda plans to introduce an embedded finance product for partners, providing access to loans, health insurance, fuel assistance, and AI automation to optimize routes and save costs.
Since its launch, Renda has supported over 500 businesses, reaching over 100,000 customers across 15 states in Nigeria. With plans to expand into Kenya in late 2023, Renda aims to enter other East African markets as well.
Investors like Ingressive Capital see Renda’s technology as crucial for African manufacturing and e-commerce ecosystems, empowering businesses to thrive and navigate market challenges effectively.
