Kenyan digital trucking logistics startup Amitruck has raised a $4 million seed funding round that had the participation of investors from Africa, Asia, Europe, the Middle East, and the United States to accelerate its expansion across Africa.
Better Tomorrow Ventures (BTV) led the round, a San Francisco-based venture capital firm that targets early-stage startups. Also in the game, supply chain and mobility venture capital Dynamo Ventures, an investor to Berlin-based Digital Freight Forwarding unicorn, Sender 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.
The Kenyan startup was founded in 2019 by Mark Mwangi to streamline the trucking business in Africa, disrupt the manual systems, and eliminate increased operating costs that usually arise due to the informal arrangements.
Amitruck’s trucking logistics marketplace allows transporters (owners of motorbikes, pick-ups, vans, and trucks) to find and connect with shippers through its mobile and web applications.
On Amitruck, transporters bid for work on the platform, ensuring competitive prices. At the same time, cargo owners have convenient access to a range of competitive offers and can choose a transporter based on price, rating, and experience.
Some of Amitruck’s more than 300 B2B customers in Kenya include FMCG firm Unilever, L’Oréal, a beauty company; SkyGarden, an e-commerce platform; and Twiga, a fresh produce marketplace. They also work with individual customers, for example, moving houses. The goods ferried by Amitruck’s partners are insured.
Amitruck’s CEO and Founder, Mark Mwangi, expressed excitement while speaking on the importance of the funding.
“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.
“As an investor in unicorn CloudTruck startup here in the US, we have in-depth knowledge of the operational and financial requirements from truckers. While the trucking and logistic business in Africa has grown tremendously over the years, the pace of innovation, particularly in its administration, has been slow. Amitruck’s solution is ideal for bringing the industry into the 21st century.” he said
According to Mark Mwangi, the funding will lead the startup’s expansion across Africa and hire teams across its technical, operations, and sales units, including senior leadership.