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Home » Sendy to Empower Residential Mini Marts Financially, Operationally

Sendy to Empower Residential Mini Marts Financially, Operationally

Joan Aimuengheuwa by Joan Aimuengheuwa
February 18, 2022
in StartUPs
0

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Kenyan-based on-demand logistics and freight startup, Sendy, has entered into partnership with mini-marts to facilitate retail commerce at micro-levels.

Sendy is leveraging its supply-chain expertise to help over 5000 mini-marts across Nairobi revive operations through a third-party credit financing programme and fulfilment operations.

The small supermarkets in Nairobi residential areas, which are not part of a large retail chain and keep moderate stock levels, will receive credit financing ranging from Ksh 50,000 to Ksh 2 million to expand their stock, boost their profitability, and provide affordable products to households.

According to a Sendy survey, 70 percent of the FMCG market is concentrated on small scale businesses targeting consumers who prefer day-to-day purchases, and the majority of small merchants are unable to stock up constantly. According to the survey, almost 5000 minimarts in Nairobi are unable to adequately stock their shelves.

Don Okoth, general manager at Sendy said: “We have made this capital accessible to help mini-marts optimise their profitability and reduce losses caused by stock-outs, product unavailability and price inconsistency. The impact of mini-marts being able to source quality goods at affordable prices with assured delivery is felt by many households.” 

Sendy will also leverage its logistics expertise to offer next day delivery from instant order fulfilment.

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“Most mini-mart owners have to deal with the issue of logistics from suppliers which takes their focus away from running their businesses. With our partnership, they can instantly order goods from our Sendy Supply mobile App and get next-day shipment of the purchased stock for free,” added Okoth.

The deal offers customers access to a wider variety of products from different suppliers at competitive pricing from Sendy’s Supply platform, including Bidco Africa, Chandaria Industries Ltd, Alpha Grain Millers, Excel Chemicals Ltd, Highlands Drinks Ltd, KimFay EA Ltd, Mombasa Maize Millers Ltd, Pwani Oil and Premier Food Industries Ltd.

With the expansion of the retail economy, mini-marts’ impact at the bottom of the pyramid has grown significantly. According to market research firm Nielsen, kiosks and groceries accounted for 66.3 percent (Sh185.2 billion) of total FMCG spend in Kenya in the year ending March 2019, up 10.7 percent from the previous year’s same period, explaining the expansion of neighbourhood mini-marts.

 

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  • Joan Aimuengheuwa
    Joan Aimuengheuwa

    Joan thrives at helping individuals and businesses scale via storytelling...

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