There have been reports that struggling logistics start-up Sendy was in the market looking for a buyer. Now, it is officially confirmed that the Kenyan-based start-up has entered into administration.
“NOTICE is hereby given that Peter Kahi of PKF Consulting (K) Limited, Kalamu House. Grevillea Grove, Westlands and PO Box 14077-00800 Nairobi was appointed as the Administrator of Sendy Group of Companies, comprising Sendy Kenya Freight Limited (Under Administration) company number PVT-Q7UDVX5, Sendy Limited (Under Administration) company number CPR/2014/140428, Sendy Store Limited (Under Administration) company number PVT-PIUQRL9 and Sendy Kenya Marketplace Limited (Under Administration) company number PVT-MKUJX57 on 20 September 2023.” Read a statement put out by PKF Consulting.
Administration is a formal insolvency process that involves an appointed insolvency practitioner taking over the running of a company while a long-term plan for the business is put in place.
Hence, the directors of Sendy are no longer in charge of the day-to-day operations of the organization.
The appointed administrator has asked all parties that are owed by Sendy to submit their claims. Any claim should reach PKF Consulting before the 19th of October 2023. Further, the claimants must attach all relevant documentation to act as proof.
Lack of a Buyer Led to the Administration
Sendy has had a tumultuous period recently including layoffs before eventually shutting down operations last month. Reports in the media claimed the fulfilment company was spending up to 1 Million USD every month.
The loss-making start-up was looking to go the way of Sky Garden by finding a buyer. However, that quest appears to have been unsuccessful. Eventually, the company has been forced to enter administration.
Funding in the African start-up landscape has hit a new low in 2023. This fact has proved to be a challenge for many start-ups.
In the past, Sendy had been quite successful in raising capital. In 2020, Sendy raised Kshs 2 billion in a round with global backers led by Atlantica Ventures and Toyota Tsusho Corporation which is Toyota’s investment arm. Only last year, the company secured funding from MOL PLUS.
Hard economic times in the region have led to reduced order volumes. Furthermore, the increasing fuel prices hit the logistics company hard with deliveries being made at a loss.