Kenya-based Trucking Startup Amitruck Raises $4m Seed Funding to Accelerate Expansion of Digital Logistics Solutions Across Africa
The shipping business in Africa has for years been inefficient and costly due to the traditional ways of managing operations — traditional in the sense that a shipper has to physically look for a transporter, sometimes through a middle-man, and often, once goods are delivered, the trucks almost always make the return trip empty.
For a continent like Africa, where roads are heavily used to ferry goods, any inefficiencies encountered translate into higher prices of goods for the end-customer. However, over the last decade, tech solutions are emerging to bring efficiency into the sector and make shipping cheaper, while increasing the availability of options for shippers.
Amitruck, a Kenyan tech-enabled logistics platform, is one such provider of solutions that streamline the shipping market. The startup, which has achieved a great take-off in Kenya, is set to strengthen its technical, operations and sales team to lay ground for its entry into Tanzania and Uganda, after raising $4 million in seed funding (bringing the total funds raised to date to $5 million). The expansion plans come as it looks to be the regional go-to platform for shippers and transporters doing in-country and cross-border business.
“The most important purpose of this round is hiring. We are also improving our technology as we start our expansion into other countries in Africa,” Amitruck founder and chief executive officer Mark Mwangi told TechCrunch.
Kenya-based digital trucking logistics startup Amitruck has announced today that it has secured $4m in a seed funding round that had the participation of investors from Africa, Asia, Europe, the Middle East, and the United States.
The fundraising was led by Better Tomorrow Ventures (BTV), a San Francisco-based venture capital firm that targets early-stage startups. Also in the round were supply chain and mobility venture capital Dynamo Ventures, an investor to Berlin-based Digital Freight Forwarding unicorn, Sennder GmbH. Other investors included Rackhouse Ventures, founded by Kevin Novak, one of the early members of Uber Freight; Flexport Inc, a digital freight forwarding and customs brokerage company based in San Francisco; Knuru Capital, Launch Africa Ventures, the Uncovered Fund, and several strategic angel investors.
Amitruck’s CEO and Founder, Mark Mwangi, said the funding will be used to lead the startup’s expansion across Africa and to hire teams across its technical, operations, and sales units, including senior leadership.
“We are thrilled about the positive response that Amitruck has received from cargo owners and transporters alike. Transport touches on almost every sector of the African economy and is crucial to its development; we are excited to be part of that journey. Thanks to the support from our investors, we look forward to expanding our footprint across Africa and bringing more carriers and shippers to our marketplace,” he said.
BTV’s General Partner Jake Gibson said Amitruck was selected for investment due to its high level of innovation and a growing need for its services.