Renda, a Nigerian logistics startup, has raised $1.9 million in pre-seed funding to expand its end-to-end fulfilment solutions across Africa.
Aiming to simplify order fulfilment and retail distribution for businesses, Renda is particularly focused on e-commerce businesses, FMCG manufacturers, and agricultural companies.
Co-founded by siblings Ope and Bimbo Onaboye, Renda differentiates itself by providing a complete solution that goes beyond typical middle-mile or last-mile delivery services.
The platform aggregates existing resources across the logistics chain, including warehousing, delivery vehicles, and cash collection services. This allows businesses to access flexible storage, manage inventory, process orders, manage deliveries and returns, and receive real-time cash on delivery reconciliation – all in one place.
Similar to companies like Flexport and ShipBob, Renda leverages an asset-light model. Rather than owning warehouses or trucks, the company partners with existing providers, creating a network of over 300 warehousing facilities, 3,000 delivery vehicles, and 2,000 cash collection partners.
This approach allows Renda to offer scalable solutions tailored to each client’s needs without the burden of managing a fleet of assets.
Renda has transitioned its focus to enterprise-level clients, typically larger businesses with longer contracts, resulting in commendable revenue growth — 450% year-over-year.
With clientele including established names like OmniRetail, Jumia, M-KOPA, and Dangote, Renda plans to utilize the new funding to improve its platform offerings, expand into new cities within Nigeria and Kenya, and strengthen its partnership network.
Additionally, the company wants to introduce embedded financial products for its delivery partners, such as weekly loan access and health insurance benefits. Renda also sees potential in using AI to automate processes and optimize logistics costs.
Ingressive Capital, the lead investor in the round, sees Renda’s solution as essential for Africa’s manufacturing and e-commerce ecosystems. “Renda’s technology solution addresses a critical need in the African manufacturing and e-commerce ecosystems, offering seamless access to fulfilment infrastructure,” said Maya Horgan Famodu, founder and partner at Ingressive Capital.
The firm believes Renda can capitalize on the current market trends, with rising inflation and shipping costs driving demand for efficient logistics solutions.
Other participants in Renda’s pre-seed funding round included Techstars Toronto, Magic Fund, Golden Palm Investments, Reflect Ventures and Vastly Valuable Ventures. Additionally, Founders Factory Africa and SeedFi contributed $600,000 in debt funding.
