Kenyan logistics startup Sendy has laid off 10% of its 300-strong headcount, in line with native information publication TechCabal. That is the newest public layoff information from Africa over the previous couple of months after Swvl, Vezeeta and Wave trimmed their employees measurement to scale back prices amid a collection of world downturns and enterprise capital slowdown occasions.
In a press release, CEO Mesh Alloys stated Sendy made this resolution in June in response to the “present realities impacting tech corporations globally”. He additional acknowledged that it was in July that the corporate downsized its workforce, “which affected 10% of our headcount.”
Alloys co-founded Sendy in 2015 with Kenyans Evanson Biwott, Don Okoth and American Malaika Judd. As of 2020, the startup had over 5,000 autos on its platform that transfer all kinds of products. Sendy provides e-commerce, enterprise, and freight supply companies for a shopper checklist that features Unilever, DHL, Maersk, Safaricom and African on-line retailer Jumia. The corporate makes use of an asset-free mannequin, with an app that coordinates contract drivers who personal their very own autos, whereas confirming deliveries, creating efficiency metrics and managing fee. A few of its opponents embody Goldman Sachs-backed Kobo360 and Chinese language-backed Lori Methods.
In 2021, co-founder Malaika Judd informed Bloomberg that the Kenyan startup, which facilitates door-to-door deliveries between people and companies, was searching for to lift $100 million this yr to fund its plan to develop in western and southern Africa, significantly Nigeria, Egypt, Ghana and South Africa.
Nevertheless, judging by its Crunchbase profile, that cash is but to be raised. The logistics firm has acquired over $26 million from traders, together with its $20 million Collection B spherical in 2020 from Atlantica Ventures and Toyota Tsusho Company, a commerce and funding arm of Japanese automotive firm Toyota. Additionally, a few of its growth plans have been shelved. In response to TechCabal, a supply stated Sendy, which operates in Nigeria, Kenya, Ivory Coast and Uganda, might be halting its growth into Egypt and South Africa.
The remainder of the assertion addressing the layoffs reads: “This transfer was completed in full adherence to relevant legal guidelines and trade finest apply. All employment and contractual terminal advantages have been duly paid to each affected worker. Our employees have all the time been our greatest asset as an organization. Now we have all the time valued their various abilities and, extra critically, their welfare. Choices impacting them usually are not taken evenly. We’ll proceed to concentrate on creating options for companies throughout the continent according to our mission of empowering individuals and companies by making it simpler to commerce.”