Venture capital firm, Greentec Capital, has announced an undisclosed investment sum in Kenya’s logistics startup, Amitruck. This investment is coming at a time when the continent’s logistics sector is facing challenges due to the coronavirus outbreak.
Amitruck uses technology to create a logistics process that gives credibility and transparency to trucking operations between trucking professionals and cargo owners.
How Amitruck connects its users
Through its mobile and web platforms, Amitruck connects people who deliver cargoes to people who can move the cargoes effectively, in a transparent process.
For each operation, a competitive bidding process takes place where drivers bid on the platform in order to get effective handling and delivery of cargoes at great prices.
The cargoes to be delivered are insured using the best option from the startup’s fleet of motorbikes, pick-ups, vans and trucks. The drivers and vehicles are vetted to ensure cargoes are entrusted into safe hands.
Amitruck and other logistics players in Africa
In 2018, the logistics sector crossed the $160 billion mark in money spent by African manufacturers and retailers. Since then, new players have entered the space to deliver solutions that effectively tackle the challenges faced in the sector.
Amitruck began operations in 2019 and has since amassed an increasing customer base for its services. This is particularly because of the options it gives to people who want to transfer cargoes from one point to another.
In Nigeria, Kwik Delivery recently raised an undisclosed amount from Ubisoft SA as part of its Series A funding. With this, the logistics startup plans on scaling up in Nigeria and expanding into African countries.
The startup’s founder, Poirot-Lellig told Guardian last year that Kwik Delivery plans on expanding into large cities in sub-Saharan Africa.
Gokada and Max made a pivot into deliveries after the ban on motorcycles from major roads in Lagos state, where they majorly operate. Lori made an entry into Nigeria in October last year and then raised an undisclosed round of funding from Chinese investors.
Other major players in Nigeria’s logistics sector include GIGL, Max, Gokada, Lori, and Kobo360.
The interplay of logistics startups within countries in the African continent sets an interesting backdrop for competition and innovation. This ups the ante beyond funding by placing a demand on the startups to offer more value in order to get and retain a good share of the logistics market.
With its latest round of funding, Amitruck said that it will continue to scale its business, leveraging the vast strategic experience of Greentec Capital in its efforts to enter new territories.