Administrator appointed to run struggling logistics firm, Sendy 

The High Court has appointed an administrator to oversee the recovery of Sendy Group. PHOTO | POOL

The High Court has appointed an administrator to oversee the recovery of Kenyan logistics startup, Sendy Group.

Peter Kahi of PKF Consulting has been picked as the administrator of collapsed retail and supplier trading platform, Sendy Group of companies.

He will take care of Sendy Group’s outfits including Sendy Kenya Freight Ltd; Sendy Ltd; Sendy Store Ltd & Sendy Kenya Marketplace Ltd.

The logistics firm shut down its retail and supplier trading platform known as Sendy Supply in October last year, axing 20 percent of its workforce citing funding challenges.

Placing a firm under administration helps to regain control when it has serious cash flow problems, is insolvent, and facing serious threats from creditors.

This helps to rescue the company as a going concern, achieve better results for creditors or control, and then sell off its property.

Mr Kahi said he would call a meeting with Sendy’s suppliers within 60-90 days.

“Any party having a claim against Sendy should submit their claim in writing together with the relevant supporting documents and proof of debt form to the administrator before October 19, 2023, for consideration,” he said.

Sendy which has raised a combined $29 million (Sh4.2 billion), has been expanding since 2015, increasing its headcount from the four founders Mesh Alloys, Evanson Biwott, Don Okoth, and American Malaika Judd, to 300 workers.

Since 2021, the fund has been seeking to raise $100 million (Sh14.7 billion) for expansion into western and southern Africa, including Nigeria, Ghana South Africa, and Egypt.

The logistics firm has been in talks to be acquired by an unnamed investor in a deal that was expected to be concluded in the next few weeks. This did not materialize, according to sources familiar with the details.

The company faces similar difficulties to those that have hit the startup segment as funding dries up and dollar debt repayment costs soar on weaker shilling.

The tech start-up industry has also been hit by a saturated market and an explosion of service providers, targeting market dislocations caused by Covid-19.

Sendy’s woes come at a time when several tech start-ups have shut down their operations, with most of them citing difficult market conditions as well as funding hitches.

A Business Daily analysis shows that at least seven major Kenyan-based tech start-ups have gone down in under one year.

The most recent one to shut in March this year was e-commerce platform Zumi which said funding had dried up.

Others that closed shop last year are Kune Foods, Notify Logistics, WeFarm, BRCK, and Sky-Garden.