Kenyan logistics startup Sendy confirms insolvency and goes into administration
Kenyan logistics startup Sendy has gone into administration and appointed Peter Kahi of PKF Consulting Limited to oversee its operations.
This comes after the startup startup which was up for sale failed to find a buyer.
By going into administration, Sendy confirms it has now become insolvent and is now seeking legal protection from the suppliers and organisations it owes money to while it’s developing a restructuring plan.
Peter Kahi in a statement said ”any party having a claim against Sendy should submit their claim in writing together with the relevant supporting documents and proof of debt form to the administrator before 19th October for consideration.”
Founded in 2014, Sendy initially offered a marketplace for last-mile package delivery and logistics services. In 2021 though, the startup expanded into the fulfillment service space targeting e-commerce and direct-to-consumer businesses that do not have storage or delivery systems. In February this year, it also unveiled a Payment on Delivery product for e-commerce and social commerce vendors in Africa, in a bid to enhance secure online shopping across the continent.
[Update] Kenyan logistics has entered into administration. pic.twitter.com/xs7rWxEa0Y
— TechTrends Media (@TechTrendsKE) September 27, 2023
Even with these offerings, the startup has been facing a lot of sustainability challenges, a move that saw it send home 10% of its workforce in August 2022.
In October of the same year, Sendy wound down its Supply service. The startup said it will now lay more emphasis on its Fulfilment Service and provide more streamlined services to its business clients. The move came after the firm failed to raise $100 million funding it had targeted to get that year only raising a small portion from MOL PLUS the Corporate Venture Capital of Japanese transport firm Mitsui O.S.K. Lines (MOL). The startup went ahead and laid off a further 20% of its workforce.
Sendy Supply was initially built to make it possible for retailers to purchase affordable stocks directly from manufacturers and distributors. The CEO said the turbulence witnessed in the e-commerce market today was part of what informed the decision to shut it down.
Follow us on Telegram, Twitter, and Facebook, or subscribe to our weekly newsletter to ensure you don’t miss out on any future updates. Send tips to info@techtrendske.co.ke
