Duhqa, a B2B platform based in Kenya, has raised $2 million in its seed funding round.
The startup, which deals with retail distribution of consumer goods in FMCG (Fast-moving-consumer-goods), Cold Chain and Pharmaceuticals, said it intends to use the funds to scale its service offering within Kenya, and East Africa.
The recently concluded seed funding round had participations from investors like CrosssFund, Roselake Ventures, and Mo Angels. It also featured recurring investments from existing investors which include Techstars, and a number of angel investors.
After operating in stealth mode for about a year, Duhqa joined Techstar accelerator programme’s October batch. The startup plans to record significant increase by the end of the year, and also expand its merchant network, and provide more digital tools to its expanding markets.
Duhqa was founded in 2021 by Victor Maina, Davis Angwenyi and Dudu Moilwa. It aims at empowering informal African merchants to digitally source for, and pay for inventory; get delivery conveniently, and access short-term financing.
About a year ago, the Nairobi based startup raised $150,000 in its pre-seed round, before raising the recent seed funding.
CEO and co-founder Victor Maina, has gathered logistics experiences from his near-decade long stay at DHL Express, where, at some point, he led the East and South African region. He has also conducted logistics and business in 31 African countries.
Speaking in the fundraise, Maina said:
“The significant demand for our solution, an improved way for companies to distribute their goods and services to mass markets in Africa has caught on. We are thrilled to get a boost from returning and new investors at this crucial time. This will enable us to continue making it easier for retailers to trade by connecting them to manufacturers and give them the resources
to be efficient”
Also commenting on the fundraise, Ben, the co-founder of CrossFund said:
“CrossFund is proud to be investing in Duhqa as they grow across Eastern Africa. Victor and team have shown that they understand the market, its pain points, and how to best deliver daily necessities to the local communities that need them most. We look forward to supporting Duhqa in scaling their logistics capabilities so that they can widen their impact and continue improving the quality of life of everyday people.”
Roselake Ventures’ representative also emphasized the growth and potentiality Duhqa has been showing in its understanding of the supply chain industry.
“Duhqa not only has a deep understanding of the supply chain pain points faced by local retailers, but also offers an effective solution to address them. In addition, Duhqa is creating tremendous social value by bridging the gap between retailers and manufacturers to offer affordable daily goods for local communities. We look forward to being a long-term partner of Duhqa’s A-class team and support them to further expand their outreach.”
Duhqa currently has a team of 40 personnel running processes, it has recorded over 5000 users on its platform, and currently do not own any vehicles or storage facilities, and instead depends on outside transportation providers.