Kenyan logistics startup Sendy has restructured its operations, effectively winding down its Supply service. The startup says it will now lay more emphasis on its Fulfilment Service and provide more streamlined services to its business clients.
The move comes after the firm failed to raise $100 million funding it had targeted to get this year which has also seen the firm lay off 20% of its workforce.
Sendy CEO Meshack Allows told employees that the overall projections of the company are headed in the right direction, but “the gap between where we are today and where we’re supposed to be is still huge.”
”If you look at the last three months from a GMV perspective, we’re only 65% of where we need to be. And from a revenue perspective about 44%. So the gap is quite huge. And we need to do something about it, given the tough economic conditions we’re seeing,” he said.
Launched in November last year, Sendy’s Fulfillment service offers storage, packing and delivery of goods and the complete shift from supply service is expected to help enhance the fulfilment experience. In February this year, the company said the service has crossed 1,000 online sellers with over 7k unique products.
Sendy Supply was initially built to make it possible for retailers to purchase affordable stocks directly from manufacturers and distributors. The CEO says the turbulence witnessed in the e-commerce market today is part of what informed the decision.
“This move is part of our wider strategic focus to consolidate efforts around solutions that impact more customers and speak to the current and immediate market challenges,” Alloys said.
In August this year, Sendy laid off 10% of its 300-strong workforce. The current layoff affected about bout 54 employees, out of the 270 that have been supporting the operations of the startup.
It’s been a tough year for startups across the world with reports indicating that hundreds of jobs have been lost across several industries. The main cause of this slowdown is dwindling investments from VCs.
In Kenya, foodtech startup Kune exited the market after falling short of investor funding and failing in its investment model. Recently, e-commerce platform Sky.Garden expressed the intention to wind up its business if it fails to raise much-needed funds from investors.