A startup in East Africa has created a digital service that appeals to thousands of small shopkeepers across the region, while finding innovative ways to lend to the traditionally risky sector. While most of Africa’s well-known ventures into e-commerce have been designed to appeal to the continent’s burgeoning middle class, Sokowatch is aiming to bring goods and services to the millions of informal shop owners across the East African region. Raising $14m in Series A funding in February, the fast-growing tech company delivers essential goods like oil, rice and soap to over 16,000 informal shops across Kenya, Tanzania, Uganda and Rwanda. Making the bulk of its money on the margins between the wholesale purchase of items and the sale of those goods to each individual business, the delivery service is free and functions through an app or SMS. Around 15% of Sokowatch’s order book is supported by credit, and although it began as a value-added service alongside its core business the startup is beginning to focus more of its attention on creating various financial products for its customers. In East Africa alone, the size of the essential goods market in the informal sector is around $180bn increasing to $600bn throughout the rest of Africa.
SOURCE: AFRICAN BUSINESS MAGAZINE
More Stories
Angélique Kidjo & Ibrahim Maalouf on ‘Queen of Sheba’
Discovery of Embalming Workshop Reveals How Ancient Egyptians Mummified the Dead
On a Walking Safari in Zambia
theGrio Style Guide: A Glimpse Into the Robust African Fashion Industry
Top 5 African Cities Food Lovers Must Visit in 2023
SA’s First Black African Freediving Instructor On her Favourite Ocean Spots along Cape Town
Iemanjá Festival: Keeping the Afro-Brazilian Tradition Alive
African Travel and Tourism has Potential for Immense Growth
Dakar Hosts the First Africa Vegan Restaurant Week
Under the Hanging Tree Examines how Namibia’s Genocide Lives on Today
Under the Hanging Tree Examines how Namibia’s Genocide Lives on Today
Re-entry of Higher Capacity Aircraft on African Routes Shows Recovery of Hard Hit Travel Sector