You must be aware of logistics firm Sendy which is based in Kenya and was running well since a long time. Now, we are here to tell you that the logistics startup has decided to “shut down its operations and is exploring a sale of its assets” as reported by TechCrunch with information from its sources. This will also confirmed by its co-founded in a statement given to the publication.
Meshack Alloys, Sendy co-founder, confirmed, “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.” As per a few sources from TechCrunch, “the company ran out of funds two months ago and had been scrambling to cut costs for the past year to remain afloat. Last July, it announced a 10% cut of its workforce, which Alloys noted was in response to the “current realities impacting tech companies globally.””
People familiar with the matter revealed, “The Kenyan startup, valued at over $80 million late last year, was in talks with several investors to raise additional capital a few months back but at a lower valuation of $40 million to $60 million. However, one of its key investors backed out of the transaction, leaving Sendy short on funds for the last two to three months, including funds to cover salaries — it is now attempting to sell some of its assets”.
They also added that “Sendy is in talks with other African companies in the B2B e-commerce and trucking space, including Trella, Sabi, Wasoko, and one of its investors, to sell some of its assets, including tech and fulfillment operations. It’s unclear if any of the talks have resulted in a deal, and discussions on various options could still be ongoing, including an acquisition, as claimed by the startup. Over 200 employees are set to be affected by the closure”. Sendy’s shut down is clearly a case of crisis of investments at the company and not necessarily due to bad management or losses piling up so this is also possible.
