Jumba, a Kenyan construction tech platform that simplifies B2B purchase and financing of construction material has secured $4.5 million in a seed round led by LocalGlobe, with participation from Enza Capital, Foundamental, Seedstars International Ventures, Logos Ventures, SpeedInvest, First Check Africa and Alumni Angel Network.
Founded in 2022 by Kagure Wamunyu and Miano Njoka,the startup helps construction material retailers or hardware stores to restock, and real estate developers to access the supplies they need for their projects.
Co-founder and CEO Kagure Wamunyu said “Ours is a one-stop shop, we manage the sourcing and logistics headache. By using our platform, they also have access to their documents and invoices, for them to reconcile.”
The company runs in-house logistics as a way to create efficiencies to deliver for people in a way that is not so expensive for them to access goods.
Since its launch ,the startup claims to have recorded three times quarterly growth at the close of 2022. It has expanded to cover 60% out of Kenya’s 47 counties scaling its operations in the country.
“We are growing very fast, and our problem has always been that we have way more demand than we can meet,” said Wamunyu.
Africa has the world’s highest birth and fertility rates which makes it the fastest growing population at I billion and is projected to exceed 2 billion by 2050. Shelter remains a basic need for millions of Africans who need a roof over their heads. This demand provides a lucrative potential to investors and entrepreneurs who are investing in residential buildings and real estate projects.
“We realized that the need is not only with the hardware stores, it’s also with the developers because they were also requesting the products from us,” she said.
The startup allows its customers to access products through its web platform while its team of sales associates in the different counties help with client sourcing too. Jumba then negotiates discounted prices with manufacturers.
The startup is also solving the financing headache for retailers through short-term financing supported by its bank partners, and plans to provide long-term credit to developers too.
Jumba also allows retailers to access financing through services like buy-now-pay-later from bank partners. Construction sites will also have the ability to get the materials to complete the works in the near future.
We put a lot of emphasis on understanding the customer, and what they need, their pain points, and then tailor our products to fit them. We are doing this so that we can unlock access, and cash flow,” said Wamunyu
With this funding round ,Jumba aims to grow its digital business-to-business platform for the predominantly offline construction sector which is expected to continue to grow as a result of mega infrastructure projects.