Social commerce startup Kapu, by ex-Jumia govt, comes out of stealth with $8M funding • TechCrunch

Kapu, a social commerce startup, popping out of stealth as we speak having raised $8 million seed funding, is hoping to assist reduce the burden of shopping for meals for Kenyan shoppers, lots of whom are grappling with the sky-rocketing meals costs.

Kapu founder, Sam Chappatte, an ex-Jumia govt, stated the startup has since inception in January this 12 months been constructing a b2c e-commerce service that allows shoppers purchase groceries at decrease costs, via on-line and offline channels.

The startup is now increasing its community of native brokers that buyers can place orders with. It should quickly assist WhatsApp orders too. By sourcing instantly from producers and producers, Kapu allows group bulk-buying of groceries and claims to assist shoppers save up 30% of the spend on recent produce and packaged client items.

“Folks spending like 40 to 50% of their family earnings on the grocery basket is a giant drawback for society, however it is usually an enormous alternative … The rationale we began Kapu is that we expect that there’s a extra related mannequin of e-commerce that may be constructed to focus on the grocery basket, which is the largest portion of spend for the overwhelming majority of shoppers. And if by utilizing expertise we will deliver effectivity then we will have an amazing influence on society for shoppers and companies,” Chappate informed TechCrunch.

The seed spherical was co-led by Big Ventures and Firstminute Capital, with participation from Founder Collective, Base Capital, Norrsken (Klarna co-founder Niklas Adalberth’s fund) and Raven One. They be a part of Kapu’s early backers, together with India’s Meesho and Brazil’s Facily co-founders, and numerous African household workplaces, Twitter’s Biz Stone, Supercell’s Ilkka Paananen, Tom Blomfield of Monzo and serial entrepreneur Alexander Rittweger.

Sam Endacott, associate at Firstminute capital, stated in a press release: “Sam is deeply skilled in each the e-commerce and logistics class and we’re thrilled to associate with him and your entire Kapu staff to assist alleviate the price of residing disaster on the Continent for shoppers, unlock social mobility and drive progress for SMEs within the area.”

Kapu says it has 1,500 agent assortment facilities throughout Nairobi, and can, in its subsequent section of progress, work to totally penetrate Kenya’s capital earlier than increasing to new markets.

Kapu’s brokers, normally positioned inside residential areas, takes prospects’ orders, and makes deliveries the subsequent day.

“Clients obtain a notification from Kapu and in addition from the brokers, to go choose up their items. Many brokers additionally ship to shoppers’ houses,” stated Chappate.

Kapu stated the offline channel (via brokers) and on-line direct to client (through WhatsApp) fashions are designed to swimsuit the Kenyan market, the place e-commerce has not taken off however social commerce is displaying indicators of potential.

Kenya is alleged to have one of many highest percentages of month-to-month WhatsApp customers on the planet, in line with International Internet Index’s 2020 Social Media Consumer Developments Report — taking place as the recognition of the social commerce sector surges within the area because the shift towards on-line procuring continues submit Covid pandemic.

Kapu joins the rising listing of startups which are digitizing the casual retail sector in Kenya, together with Tushop, which launched final 12 months. Kapu and Tushop are each enabling group shopping for of meals provides via brokers and WhatsApp.