Sokowatch, a Kenyan e-commerce business that uses technology to improve the informal retail supply chain, has secured a US $125 million Series B financing investment, rebranded as Wasoko, and expanded into West Africa.
Sokowatch, which was founded in 2016, offers free same-day delivery of vital supplies as well as finance to informal retail establishments across Africa. Retailers may order items at any time by SMS or mobile app and have them delivered to their store using the platform’s unique logistics network.
Wasoko, as it is now called, has delivered 2.5 million orders to over 50,000 informal retailers in Kenya, Tanzania, Rwanda, Uganda, Ivory Coast, and Senegal, with revenue growth of over 500 percent in the last year. Following a US $125 million Series B financing, it is now aiming for even more development and growth.
Tiger Global, the world’s largest venture capital company, and Avenir Growth Capital are leading the round, which also includes VNV Global, Binny Bansal, the co-founder of Flipkart, and Sujeet Kumar, the co-founder of Udaan. Quona Capital, 4DX Ventures, and JAM Fund are among the existing investors.
Sokowatch has also officially opened in Abidjan, Ivory Coast, and Dakar, Senegal, the company’s first locations in West Africa, in addition to the additional investment. The firm has renamed as Wasoko, which means “People of the Market” in Swahili, to reflect its rapidly expanding pan-African activities. The company’s transformation from a backend distribution software platform in East Africa to a public brand that provides free delivery of vital items and working capital finance to informal shopkeepers on opposite ends of the African continent is reflected in the new name.
Wasoko will be able to expand its geographic reach and product offerings throughout the continent with the extra financing. While continuing to maintain its market-leading position throughout its six present nations, the firm is looking into expanding into Nigeria and Southern Africa. Wasoko is also looking towards expanding its product portfolio into sectors including merchant point-of-sale systems, bill payments, and social commerce, both through internal innovation and strategic investments and acquisitions of relevant firms.
“After more than six years building and constantly iterating on our operations, we are proud to have demonstrated the traction and quality of business required to raise funding from world-class investors. We’re fully focused on leveraging their strategic support to build one of the biggest e-commerce companies in the world and transform access to goods and services for African citizens across every corner of the continent,” said Daniel Yu, global CEO and founder of Wasoko.
