With the goal to provide logistics and e-commerce fulfilment for merchants in Africa, Sendbox announced the completion 0f its $1.8 million seed round.
The round had 4DX Ventures, Enza Capital, FJLabs and Golden Palm Investments as investors. Sendbox’s total investment raised has now reached $2 million following a pre-seed round from Microtraction and 4DX Ventures in 2018. Meanwhile Flexport and YC Combinator — as part of its 2021 winter cohort, participated.
Since 2018, the company has provided affordable access to local and international delivery options for small-scale merchants selling on e-commerce and social media platforms. Sendbox intends to use this funding to expand its operations in other countries across West Africa, develop its product range and hire new talent.
The new funding will be used to expand the company’s operations in other countries across West Africa, bolster the development of its product range, and hire new talent.
"With this fundraise our aim is to support more and more SMEs and help them grow both locally and internationally, scaling alongside them as we connect African merchants with a global community of consumers.", Emotu Balogun, CEO and Co-Founder of Sendbox said.
According to him, "no matter where in the world customers are, we want African SMEs to be able to reach them. Deliveries in Lagos, Abuja, Port Harcourt and Ibadan have made up a large proportion of business for our domestic merchants."
"On top of that, affordable access to the UK, EU, US and Canada has created an opportunity to sell products to hundreds of millions of previously unreachable buyers.", Balogun added.
Over 10,000 Nigerian SMEs have sent 200,000 products through Sendbox, saving on average 30-40% per item by eliminating the need to work with separate logistics providers.
Through its delivery management platform, which aggregates logistics providers and enables tracking, the company also offers a solution for merchants who lack the high volumes required to attract discounted delivery fees.
Starting with logistics and fulfilment, Sendbox is building the operating system for e-commerce in Africa.
"African e-commerce is accelerating faster than anybody could have imagined a decade ago and it needs smart solutions to ensure that logistics and fulfilment capacity doesn’t lag behind", Walter Baddoo, Co-Founder and General Partner at 4DX Ventures commented.
Baddoo said, "not only were we impressed by Sendbox’s 300% year-on-year growth since launch, but we’re seeing the market potential balloon with over 40 million Nigerian SMEs and a projected industry value for social and e-commerce reaching $45 billion on the continent by 2025."
With 200 million Instagram users and 1 million Instagram businesses in Nigeria alone, Sendbox is well positioned to serve this growing market and multiply its merchant count over the coming months.
Users can access it via iOS and Android users, via web application, on Whatsapp, Facebook, Instagram and other e-commerce platforms, and through developer APIs, Sendbox is providing a single location to manage both local deliveries and international shipments to the EU, UK, US and Canada.
The next stage of the company’s growth will see a move towards financing & payments, followed by e-commerce & marketplace integrations across West Africa and then further afield.
As a sector-agnostic platform, Sendbox is available to sellers right across the spectrum, empowering designers, micro-manufacturers and entrepreneurs who produce their own goods and distribute them on behalf of others. In terms of products, Clothing, Fashion & Lifestyle, and Beauty & Self-Care have been most prominent since launch, while the company expects other categories to grow rapidly as SMEs continue to expand their customer bases.
Due to the fast-rising mobile penetration on the continent, social media and knock-on impacts from the COVID-19 pandemic have shifted additional momentum towards e-commerce and social commerce, doubling monthly revenues for Sendbox since March 2020. Africa’s e-commerce market is expected to be worth $75 billion by 2025.