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Renda Raises $1.9M to Revolutionize African Logistics

Renda secured a $1.9 million pre-seed funding round, which it plans to utilize for enhancing its services
May 3, 2024

The logistics industry in Nigeria faces significant challenges due to poor infrastructure and inefficiencies. Startups are emerging to tackle various aspects of this problem, but one area that remains relatively untapped is providing an end-to-end fulfillment solution.

In this landscape, Renda, a three-year-old startup, has secured a $1.9 million pre-seed round to address these challenges. The funding will be used to enhance its offerings, expand into more cities in Nigeria and Kenya, and grow its partnership network across these markets.

Leading the round's $1.3 million equity portion is Ingressive Capital, a pan-African early-stage VC. Other participants include Techstars Toronto, Magic Fund, Golden Palm Investments, Reflect Ventures, and Vastly Valuable Ventures. Founders Factory Africa and SeedFi have contributed $600,000 in debt funding.

Renda offers an end-to-end infrastructure solution that optimizes order fulfillment for businesses. Its platform allows businesses to access flexible storage, manage inventory, process and fulfill orders, handle deliveries and returns, and manage cash on delivery in real time.

CEO Ope Onaboye explained that Renda adopts an asset-light approach similar to companies like Flexport and ShipBob. Instead of owning its own assets, Renda partners with various providers across the logistics chain, from warehousing and storage companies to delivery and payment processing services. This allows Renda to offer tailored solutions to its clients without owning a fleet of assets.

According to Onaboye, this approach has enabled Renda to build an extensive partnership network, allowing its clients to expand quickly across the country. The platform currently boasts over 300 warehousing and storage partners, more than 3,000 delivery assets, and 2,000+ cash collection partners.

"We don’t own any delivery or warehousing assets ourselves," Onaboye said. "Instead, we leverage existing resources across the country. We aggregate storage spaces and warehouses that may be underutilized and connect them with businesses needing storage solutions. Similarly, we onboard delivery assets, including vans, trucks, and bikes, that may be sitting idle and make them available to businesses for managing deliveries."

Since its launch in 2021, Renda's customer base has evolved significantly. While it initially served small businesses, the startup now caters to a diverse range of clients, including e-commerce businesses, FMCG manufacturers, agriculture companies, and manufacturers nationwide. Its clientele includes OmniRetail, Jumia, M-KOPA, and Dangote, among others.

Renda has also shifted its focus to enterprise-level entities, prioritizing higher-value clients that commit to long-term contracts. This strategy has proven successful, with the startup achieving profitability and experiencing a 450% year-on-year revenue growth.

Renda's innovative approach to logistics is transforming the way businesses manage their fulfillment operations in Nigeria and Kenya. By offering an end-to-end infrastructure solution and leveraging an extensive partnership network, Renda is enabling businesses to streamline their operations and scale rapidly across the region. With its recent funding round, the startup is well-positioned to further expand its reach and continue driving innovation in the logistics industry.

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