Nigerian logistics startup Renda has raised $1.9 million in a pre-seed round. The funding comprises $1.3 million in equity and $600,000 in debt financing. Leading the equity round was Ingressive Capital, with contributions from Techstars Toronto, Magic Fund, Golden Palm Investments, Reflect Ventures, and Vastly Valuable Ventures. The debt portion was supported by Founders Factory Africa and SeedFi.

The newly acquired funds are earmarked for enhancing Renda's services and supporting its expansion in Nigeria and Kenya, where it currently operates. Additionally, the funds will be used to expand Renda’s partnership network within these markets.

Launched in 2021 by CEO Ope Onaboye and his sister Bimbo, Renda leverages an asset-light business model to streamline order fulfilment and retail distribution for businesses across Africa. The company partners with various providers in the logistics chain, from warehousing to delivery services, enabling customized solutions for each client without owning the infrastructure.

Ope Onaboye explained,

"At Renda, we don’t own any assets directly. Instead, we utilize existing resources. We connect underutilized storage spaces with businesses in need and make idle delivery assets, such as vans, trucks, and bikes, available for managing deliveries.”

Ope Onaboye, CEO, Renda

Renda’s platform allows businesses to access flexible storage, manage inventory, process orders, handle deliveries and returns, and reconcile cash on delivery in real time. This model has enabled Renda to build a robust network of over 300 warehousing partners, more than 3,000 delivery assets, and over 2,000 cash collection partners.

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Initially focused on small businesses, Renda has shifted towards serving larger enterprise clients such as e-commerce businesses, FMCG manufacturers, agriculture companies, and more, with notable clients including OmniRetail, Jumia, M-KOPA, and Dangote. The startup now prioritizes longer-term contracts with these high-value clients.

Renda has achieved profitability and reported a 450% year-on-year revenue growth, thanks to a solid management and leadership team experienced in logistics and e-commerce. The company's revenue model includes charges for storage, fulfilment, vehicle booking, deliveries, and cash collection.

Renda also provides a comprehensive platform with dedicated apps and dashboards for managing operations, enhancing the user experience for both partners and clients. Ope Onaboye noted that establishing a solid platform was challenging, but it paved the way for easier scaling.

“Our mission is to simplify business processes by providing a comprehensive platform that allows businesses to expand across Nigeria and Africa without the need to engage multiple providers,”

said Ope.