The economic downturn has hit African start-ups hard, with Sendy laying off 20% of its workforce. It’s his second layoff in two months.
Sendy, a Kenyan startup that facilitates e-commerce in Africa, has announced that it will close one of its products, Sendy Supply, laying off 20% of its staff.
Sendy Supply was originally a product built to help retailers buy affordable inventory directly from multiple manufacturers and distributors, but as the startup shifted its focus to another product, Sendy Fulfillment. , is paused.
This move is due to the fact that startups areThe current reality is affecting technology companies around the world. ” Due to the business model shift, Sendy will lay off 54 staff, or 20% of its current 270 employees.
According to Bloomberg, in 2021 the Nairobi-based startup was aiming to raise $100 million to expand its operations and improve trade efficiency in African countries such as Egypt, Ghana, South Africa and Nigeria.
In January 2020, Sendy raised a $20 million Series B backed by Toyota Tsusho, Atlantica Ventures, Enza Capital, and Asia-Africa investments to expand its competitive edge in the West African logistics industry.
Founded in 2015 by Mesh Alloys, Evanson Biwott, Don Okoth and Malaika Judd, Sendy connects clients to drivers and vehicles to deliver goods.
Speaking about the startup’s decision and announcement, the co-founder and CEO of Mesh Alloys said the move “consolidates efforts on solutions that will reach more customers and address current and pressing market challenges.” Recognizing the increasing ubiquity of commerce and the opportunities it presents for businesses, we founded (Sendy) Fulfillment to support online merchants with the tools they need to sell and fulfill directly through digital platforms. We are doubling it.”
Sendy Fulfillment is one of the startup’s offerings that allows e-commerce businesses to store and distribute their products. This streamlines the startup’s entire product line into Sendy Transport and Sendy Fulfillment.
mesh continues. We believe this integrated service offers a great opportunity to solve the challenges faced in warehousing, packaging, and last-mile delivery for businesses large and small. ”
Global recession hits African startups hard
2022 has been a challenging year for startups around the world. Rising prices, inflation, war in Ukraine and rising interest rates have made attracting venture capital a very difficult task for most startups.
The global recession predicted by Y Combinator in May 2022 is hitting African startups hard. There have been numerous shutdowns, layoffs and staff pay cuts across the African tech ecosystem.
In June 2022, Kune Foods, a Kenya-based cloud kitchen that offers affordable ready-to-eat meals, closed its operations. Sky.Garden, another Kenyan startup, has announced that it will cease operations by October 16th.
MarketForce, an end-to-end informal merchant distribution platform backed by Y Combinator, raised a $40 million Series A debt and equity round in February 2022 and laid off 9% of its workforce in July. did.
Wave, the French-speaking African fintech unicorn, also cut 15% of its workforce in July 2022. Rather than laying off employees, the startup cut salaries by he 30-50% to cut costs and keep the business going.