Renda, a Nigerian logistics startup, has secured $1.9 million in pre-seed funding to enhance its end-to-end fulfillment solutions across Africa. Targeting e-commerce businesses, FMCG manufacturers, and agricultural companies, Renda aims to streamline order fulfillment and retail distribution.
Founded by siblings Ope and Bimbo Onaboye, Renda distinguishes itself by offering a comprehensive solution that extends beyond typical middle-mile or last-mile delivery services. The platform consolidates existing logistics resources, encompassing warehousing, delivery vehicles, and cash collection services, enabling businesses to access flexible storage, manage inventory, process orders, handle deliveries and returns, and reconcile cash on delivery in real-time, all through a single interface.
Renda operates on an asset-light model similar to companies like Flexport and ShipBob. It partners with existing providers instead of owning assets, forming a network that includes over 300 warehousing facilities, 3,000 delivery vehicles, and 2,000 cash collection partners. This strategy allows Renda to offer scalable and customizable solutions without the overhead of managing extensive physical assets.
Recently shifting its focus to enterprise-level clients, Renda has experienced a 450% year-over-year revenue growth. Its clientele includes prominent companies such as OmniRetail, Jumia, M-KOPA, and Dangote. The newly acquired funds will be used to enhance platform capabilities, expand operations into new cities within Nigeria and Kenya, and bolster its network of partners.
Moreover, Renda plans to roll out embedded financial products for its delivery partners, including weekly loans and health insurance benefits, and is exploring AI applications to automate processes and reduce logistics costs.
Ingressive Capital, the lead investor in this funding round, highlighted Renda’s pivotal role in facilitating the African manufacturing and e-commerce sectors. “Renda’s technology solution addresses a critical need in the African manufacturing and e-commerce ecosystems, offering seamless access to fulfillment infrastructure,” said Maya Horgan Famodu, founder and partner at Ingressive Capital.
The investment round also saw participation from Techstars Toronto, Magic Fund, Golden Palm Investments, Reflect Ventures, and Vastly Valuable Ventures, with Founders Factory Africa and SeedFi providing an additional $600,000 in debt funding. Ingressive Capital believes Renda is well-positioned to capitalize on current market trends, such as rising inflation and shipping costs, which are increasing the demand for efficient logistics solutions.
