Renda, a Nigerian logistics startup that counts Jumia and MarketForce as top clients, has raised $1.9 million in pre-seed funding as interest in Africa’s logistics sector continues to grow. The funding was a mix of debt ($600,000) and equity ($1.3 million).
The logistics startup, which operates in 15 Nigerian cities, will use the funding to expand into Kenya and other Nigerian cities.
Renda’s $1.9 million pre-seed raise continues a strong year for logistics and transport startups on the continent. According to Techcabal Insights, startups in the sector raised about $151 million in Q1 2024.
The funding round was led by Ingressive Capital, with participation from Techstars Toronto, Founders Factory Africa, Magic Fund, Golden Palm Investments, Reflect Ventures, SeedFi and Vastly Valuable Ventures.
E-commerce companies need efficient last-mile delivery and warehousing solutions, and it may not make business sense for them to handle those parts of the business. So startups like Renda, which provide warehousing, delivery and cash collection, are valuable.
Like many other startups in the logistics space, Renda claims to be asset-light and does not own any warehouses or trucks. Instead, it fulfills orders with the help of over 5,000 warehousing, delivery and cash collection partners.
The startup, which generates revenue through year-long contracts with businesses, is profitable, said CEO Ope Onaboye. “The growth also speaks to the kind of customers who use our solution.”
Renda serves businesses like Jumia, Omnibiz, LaCasera, MarketForce, and CDcare and claims to have processed 250,000 orders since it launched.
Founded in 2021 by siblings Ope and Bimbo Onaboye, Renda began providing warehousing and logistics needs for small and medium-scale enterprises (SMEs) before moving to serve FMCG and e-commerce businesses due to higher margins.
Through its app, Renda360, companies can access flexible storage, monitor and manage their inventory, process and fulfil orders, manage deliveries and returns, and receive and reconcile cash on delivery in real time.
“Joining forces with Renda as an investor is a strategic move for us. Renda’s technology solution addresses a critical need in the African manufacturing and e-commerce ecosystems, offering seamless access to fulfilment infrastructure,” Maya Horgan Famodu, Founder and Partner at Ingressive Capital, said.
Renda plans to expand into Kenya and will explore the possibility of an asset-heavy model. “Our vision at Renda is to become the largest and most trusted fulfilment partner for e-commerce and major businesses across Africa,” Onaboye told newsmen.
