Ecommerce is a big business in Kenya, but not many companies have had success with it. Still, they continue to offer services to Kenya using a variety of models.
Some are focusing on fulfillment, whereas others want to offer their services to clients in rural areas.
Others also think that major e-commerce companies do not do enough for customers, so they want to leverage that gap with an appealing product.
The new kid on the block is named Kapu. It is not new per se because it has been around since the start of 2022.
This media launch comes after the firm raised $8 million seed funding, which was led by Giant Ventures and Firstminute Capital, alongside Founder Collective, Base Capital, Norrsken (Klarna co-founder Niklas Adalberth’s fund) and Raven One.
Its founders are former Jumia employees, and they have done a good job of reminding everyone where they worked before (Jumia).
According to a statement given to the media during its launch today, Kapu wants customers in cities to shop & save on their weekly grocery baskets.
While at it, Kapu hopes that its pricing model will be lower enough to attract customers.
For now, it is available for the Kenyan market. The company also adds that it has been designed for the Kenyan customer.
How it works
Customers buy the products they usually purchase, in the quantities they want.
The range is larger than the kiosk, including quality fresh produce from Kenyan farms, and at wholesale prices. Goods are delivered for free the next day, to a Kapu Agent collection center near their homes.
At the same time, Kapu sources products directly from farms & manufacturers. To this end, it hopes to lower logistical costs and minimize wastage.
Also, customers access even lower prices if they place the order as a group.
Access
Consumers can order with their local Kapu agent. Kapu adds that soon, orders will be done via WhatsApp.
Orders placed before 9 PM are delivered the next day for free to a local Agent.
Customers who want to try the service can dial 7898# to register & get 50 KES cash back on their first order.
Once registered, they can place an order with a KAPU-branded agent in their neighborhoods.
Agents and served areas
Kapu has more than 1,500 Kapu Agent Collection Centers in Nairobi.
They are branded and identifiable in areas like Eastlands, Kasarani, Kawangware, South B, Kibra, Embakasi, Githurai and Kiambu.
Kapu plans to open up access to its services across Nairobi by March 2023.
Kapu agents include mama mbogas, salons, and individuals such as stay-at-home-mums and students, who are able to earn an extra income.
Staff
Meera Dhanani – Head of Marketing
Cyrus Onyiego – COO
Sam Chappatte – CEO
Mateus Kratz – CPO
Stanislas Barth – Head of Supply
Janelle Muchai – Growth Lead
Quotes
Speaking during the launch, Kapu CEO Sam Chappatte said, “We think it’s unfair that consumers in Kenya spend 40% of their income on food, when Americans spend 6%. This is a huge blocker to social mobility. Our goal at Kapu is to build the most relevant model of e-commerce for the majority of urban consumers in Africa. By working with existing community groups & local entrepreneurs, we believe we can play a part in reducing the costs of goods, and unlocking opportunities for millions of people.”
“Once a customer tries Kapu, our data shows that they quickly adopt Kapu for their weekly grocery shopping needs. It works because our model is relevant – we sell the products people want, affordably, and work with trusted community partners. In our first year of operations we will have saved consumers 40M KES, be on track to deliver 1 million orders annually & working towards profitability,” added Chappatte.
