Kenyan logistics startup, Sendy, is reportedly ceasing operations and considering selling its assets.
The company has yet to reveal many details about this transaction, including which company will acquire it, for how much, and whether the new owners will reduce its workforce further or keep it at its current size.
However, the business confirmed to TechCrunch that an acquisition process is currently underway.
“We are in the middle of an acquisition process. So yes, Sendy is being acquired. We will issue a formal joint statement in two weeks or so time. In the meantime, we are unable to comment on further details at this time.”
The company reportedly ran out of funds two months ago and has been struggling to cut costs since 2022 to stay afloat.
In 2022, Sendy planned to raise $100 million but only received a small portion of the funding from MOL PLUS, the corporate venture capital of a Japanese transportation company, Mitsui O.S.K. Lines.
Consequently, Sendy has reportedly been looking into additional options to support its business, including finding new funding and a buyer.
In 2022, Sendy was negotiating to receive additional funding from several investors. However, one of its major investors pulled out of the deal.
This move left the business without funds for several months, including money to pay salaries.
Launched in 2015 by Meshack Alloys, Evanson Biwott, Don Okoth, and Malaika Judd, Sendy provides eCommerce, enterprise, and freight delivery services for a client list that includes Unilever, DHL, Maersk, Safaricom, and African online retailer Jumia.
The company connects customers and businesses with delivery drivers who deliver packages and goods across several locations using motorcycles, tuk-tuks, and vans.
Since its launch, Sendy has received disclosed funding totalling $26.5 million from several investors, including Toyota Tsusho, Atlantica Ventures, VestedWorld, Keppel Capital, Enza Capital, AAICA Investment Pte Ltd, Sunu Capital, and Goodwill Investments.
Meanwhile, in July 2022, Sendy laid off 10% of its 300-person team, citing "current realities impacting tech companies globally."
But ever since, the logistics business has cut back on staff through additional cost-cutting measures. In October, the company terminated its Supply service and reduced its workforce by 10%.
In February 2023, Sendy also suspended its on-the-ground operations — an end-to-end fulfilment offering — in Nigeria to "find the right product for the market."