An ex-Jumia executive established Kapu, a new social commerce firm that has raised $8 million and come out of stealth mode. In Kenya, where food costs have skyrocketed, the startup wants to transform how customers purchase food.
Sam Chappatte, a seasoned veteran in the e-commerce sector, created Kapu. Previously, Chappatte served as an executive at Jumia, where they contributed to the development of the firm into one of Africa's major online marketplaces.
According to Chappatte, a B2C e-commerce business called Kapu, which was created in January of this year, enables customers to buy food at reduced costs via both online and offline channels.
A group of investors just provided $8 million in investment for Kapu, according to a recent announcement. These monies will be used by the business to grow its network of regional representatives, facilitate WhatsApp orders, and enhance its e-commerce platform.
According to Kapu, the company's platform enables group bulk purchasing and direct sourcing from producers and manufacturers, which enables customers to save up to 30% on the cost of food.
According to Chappatte, the high cost of goods is a significant issue for society, but it also presents a chance for businesses like Kapu to change things.
The fact that some people spend between 40 and 50 percent of their family income on groceries is a major opportunity as well as a social concern, according to Chappatte.
"We founded Kapu because we believe that a more applicable e-commerce model can be developed to target the grocery basket, which represents the largest percentage of expenditure for the overwhelming majority of customers. And if we can increase efficiency via the use of technology, both companies and consumers will be greatly impacted.
Giant Ventures and Firstminute Capital co-led the seed round for Kapu, while some additional investors, including Founder Collective, Base Capital, Norrsken, and Raven One, also participated.
Meesho and Facily, as well as other African family offices and well-known investors like Biz Stone, Ilkka Paananen, Tom Blomfield, and Alexander Rittweger, were among the company's early supporters.
Before expanding into other areas, Kapu, which has 1,500 agent collection points dispersed around Nairobi, said the business will first concentrate on firmly establishing itself in that city.
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