The logistics sector in Nigeria, much like other informal economies, is challenged by inadequate infrastructure and operational inefficiencies, making the storage and movement of goods difficult for businesses of all sizes. Many new ventures have focused on solving the middle- and last-mile delivery issues, but a crucial gap remains in providing a truly comprehensive, end-to-end fulfillment solution. Renda, a three-year-old startup, is actively filling this vacuum by streamlining both order fulfillment and retail distribution for enterprises across Africa. The company has successfully closed a $1.9 million pre-seed funding round, which it will deploy to improve its technology, broaden its operations in its current markets of Nigeria and Kenya, and expand its partnership network.
Capital Structure and Key Investors
The total $1.9 million financing was structured as a mix of equity and debt:
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Equity Portion ($1.3 million): This was led by Ingressive Capital, a prominent pan-African early-stage venture capital firm. Other investors in the equity component included Techstars Toronto, Magic Fund, Golden Palm Investments, Reflect Ventures, and Vastly Valuable Ventures.
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Debt Funding ($600,000): This capital was contributed by Founders Factory Africa and SeedFi.
The Asset-Light Fulfillment Model
Renda operates on an asset-light strategy, similar to global logistics managers like ShipBob and Flexport, meaning the company does not maintain its own warehouses or vehicle fleets. Instead, Renda aggregates and provides access to end-to-end infrastructure by partnering with existing providers throughout the supply chain.
CEO Ope Onaboye, who co-founded the company with his sister Bimbo Onaboye, explained that this approach helps Renda build an extensive partnership network, enabling clients to scale rapidly. The platform connects underutilized storage spaces and warehouses with businesses that require storage solutions. Similarly, it onboards idle delivery assets, including trucks, vans, and bikes, making them available for managing deliveries.
The company’s aggregated network includes:
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Over 300 warehousing and storage partners.
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More than 3,000 delivery assets (trucks, vans, and bikes).
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Over 2,000 cash collection partners, a necessary feature given the prevalence of cash on delivery (COD) transactions in the market.
Renda’s platform enables businesses to access flexible storage, monitor and manage inventory levels, process and fulfill orders efficiently, manage deliveries and returns, and receive and reconcile cash on delivery payments in real time.
Business Evolution and Financial Performance
Since its inception in 2021, Renda’s clientele has evolved. While initially serving small businesses, the logistics firm now caters to enterprise-level customers, including e-commerce businesses, FMCG manufacturers, agriculture companies, and manufacturers across the nation. Its current roster of clients features major entities like OmniRetail, Jumia, M-KOPA, and Dangote, demonstrating the diverse needs for its end-to-end solution.
The strategy of prioritizing enterprise-level clients, who typically sign higher-value contracts lasting 12 to 24 months, has significantly benefited Renda’s financial metrics. The CEO claims the startup has achieved profitability and experienced an impressive 450% year-on-year revenue growth.
Renda’s revenue is generated through five primary service streams: storage, fulfillment, vehicle booking, deliveries, and cash collection. Fees are calculated based on metrics such as square meters for storage, per item processed for fulfillment, a daily fee for vehicle booking, per item delivered, and a percentage of collected cash.
Strategic Expansion and Tech Development
The concept for Renda originated from the inventory and delivery difficulties Onaboye observed a friend facing when starting a home-based business. Since its launch, the company has assisted over 500 businesses and reached more than 100,000 customers across 15 states in Nigeria, processing over 250,000 orders.
The startup’s expansion into Kenya—expected in late 2023—is designed to serve as a strategic entry point into the wider East African market.
For future growth, Renda plans to introduce an embedded finance product for its partners, particularly drivers, allowing them to access small weekly loans for immediate financial needs, such as vehicle repairs, with repayments automatically deducted from their payouts. Other planned services for drivers include health insurance and fuel assistance. The company also intends to integrate AI to automate internal processes, helping partners save on logistics costs and optimize delivery routes.
Maya Horgan Famodu, founder and partner at Ingressive Capital, expressed strong support for the investment: “Renda’s technology solution addresses a critical need in the African manufacturing and e-commerce ecosystems, offering seamless access to fulfillment infrastructure. We are particularly impressed by their track record of empowering businesses to thrive in this market and financials from the start of their business. With the current high inflation and skyrocketing prices for shipping and storage, there has never been a better time for Renda.”
