Sendy, the logistics platform that revolutionized delivery processes, is set to cease its operations as it enters advanced discussions for acquisition, new reports have revealed.
Co-founder of Sendy, Meshack Alloys confirmed this development to TechCrunch, stating that the company is in the midst of an acquisition process.
“A formal joint statement regarding the acquisition is anticipated within approximately two weeks. For the time being, specific details surrounding the acquisition remain undisclosed.”
Established in 2015 by Don Okoth, Evanson Biwott, Malaika Judd, and Meshack Alloys, Sendy has provided a user-friendly solution for businesses to facilitate secure and transparent goods delivery.
Its platform and Application Programming Interfaces (APIs) have been leveraged by thousands of companies to efficiently sell and transport products to consumers.
Sendy’s overarching mission has been to simplify trade processes and empower individuals and enterprises alike.
Throughout its journey, Sendy has successfully raised a total of $26.5 million from various investors, including Toyota Tsusho, Atlantica Ventures, VestedWorld, Keppel Capital, Enza Capital, AAICA Investment Pte Ltd, Sunu Capital, and Goodwill Investments.
In recent times, Sendy has encountered challenges that have impacted its sustainability, prompting a series of staff reductions and strategic decisions involving discontinuing certain services.
In response to the global landscape affecting tech companies, Sendy downsized its workforce by 10% last year, a measure noted by Mr Alloys.
Further streamlining initiatives ensued, including the discontinuation of a product line and an exit from a particular market.
In a subsequent move in October, the Kenyan startup let go of 54 employees and phased out its supply service.
This February, Sendy announced its withdrawal from its end-to-end fulfilment offering in Nigeria, a market it had entered two years prior.
In 2022, Sendy secured “bail-out funds” from MOL PLUS, the venture capital division of Japanese transportation company Mitsui O.S.K. Lines, Ltd. (MOL). However, it became apparent that this injection of funds was insufficient to sustain its operations, falling short of its targeted goal of approximately $100 million.
Despite ongoing efforts to explore alternative strategies to bolster its business, Sendy has not achieved the desired outcome, leading to the forthcoming decision to shutter its operations.
While the identity of the acquiring party remains undisclosed, further details are anticipated to be unveiled over the upcoming two-week period.