Kenyan logistics startup Sandy laid off 10% of 300 employees, according local news outlet TechCabal. This is the latest public news on layoffs from Africa in the past couple of months after Swvl, Vezeeta and Wave cut staff to cut costs amid a series of global downturns and VC slowdown events.
Mesh Alloys CEO said in a statement that Sandy made the decision in June in response to “current realities affecting tech companies around the world.” He also stated that it was in July that the company cut its staff, “which affected 10% of our staff.”
Alloys co-founded Sendy in 2015 with Kenyans Evanson Bewott, Don Okot and American Malaika Judd. As of 2020, the startup’s platform had over 5,000 vehicles that carry all sorts of goods. Sendy offers e-commerce, corporate and freight services to a list of clients that includes Unilever, DHL, Maersk, Safaricom and African online store Jumia. The company uses an asset-less model with an app that coordinates contract drivers who own their own vehicles to confirm deliveries, create performance metrics, and manage payments. Some of its competitors include Goldman Sachs-backed Kobo360 and China-backed Lori Systems.
In 2021, co-founder Malaika Judd told Bloomberg that the Kenyan startup, which facilitates door-to-door delivery between individuals and businesses, was aiming to raise $100 million this year to fund its expansion plan in western and southern Africa, especially in Nigeria. , Egypt, Ghana and South Africa.
However, judging by the profile on Crunchbase, this money has yet to be raised. The logistics company has raised over $26 million from investors, including a $20 million Series B round in 2020 from Atlantica Ventures and Toyota Tsusho Corporation, the trading and investment arm of the Japanese automobile company Toyota. In addition, some of its expansion plans have been shelved. According to TechCabal, a source said that Sendy, which operates in Nigeria, Kenya, Ivory Coast and Uganda, will stop its expansion into Egypt and South Africa.
The rest of the resignation letter reads: “This move was made in full compliance with current legislation and industry best practice. All employment and contractual severance pay was duly paid to each affected employee. Our employees have always been our biggest asset as a company. We have always appreciated their diverse talents and, more importantly, their well-being. Decisions that affect them are not taken lightly. We will continue to focus on building solutions for businesses across the continent in line with our mission to empower people and businesses through trade facilitation.”
Credit: techcrunch.com /