Tech-enabled logistics used to be a darling sector in the African startup ecosystem. But, a recent string of troubling events has turned the landscape into the valley of the shadow of doubts, especially in the Nigerian market.
The first name that comes to mind is Gokada, a motorcycle-hailing turned last-mile delivery platform that has, since inception, tanked up USD 12.4 M in funding yet ran into bricks trying to raise further capital since its USD 5.3 M Series A in 2019.
Gokada’s troubles go beyond fundraising. Though the company’s order volume grew a hundredfold and [its] revenues swelled ten times under its former leadership, the Lagos-headquartered business has turned unprofitable, triggering mass layoffs and rumors regarding a contemplated shutdown.
Likewise, Kenyan-born, Toyota-backed Sendy, a few months after discharging 30 percent of its workforce, shuttered on-ground operations in Nigeria and switched to an asset-light model that simply connects sellers to other logistics service providers. Though it is still operational elsewhere, it might be only a matter of time before Sendy completely cuts its Nigerian ties.
