The Kenyan retail-tech startup Wasoko, which utilizes innovative technology to revolutionize the informal retail supply chain, has expanded its operations into Zambia, marking its entry into Southern Africa.
Originally launched in 2016 as Sokowatch, Wasoko offers free same-day delivery and financing services for essential goods to informal retail stores across Africa. Through its platform, retailers can place orders at any time using SMS or a mobile app and receive deliveries through its proprietary logistics network.
Having successfully delivered over 2.5 million orders to more than 50,000 informal retailers in Kenya, Tanzania, Rwanda, Uganda, Ivory Coast, and Senegal, Wasoko secured a Series B funding round of $125 million in March of the previous year to support further expansion.
Now, Wasoko has announced its expansion into Zambia, marking its first presence in Southern Africa. In its inaugural year of operation, the company plans to invest over $1 million to support local Zambian businesses and communities in accessing essential goods at affordable prices through e-commerce.
Wasoko will establish its central hub in Lusaka, enabling small retailers across the city to conveniently access a wide range of products for same-day delivery and obtain working capital financing solely through a mobile app. This strategic move to create a central hub in Lusaka is part of Wasoko's broader transition to a hub-and-spoke logistics network, aiming to enhance operational efficiency and facilitate faster regional expansions.
Daniel Yu, the founder and global CEO of Wasoko, expressed confidence in Zambia's operating environment, emphasizing the country's high smartphone usage and pro-business government administration that is keen on expanding the digital economy. He believes that Zambia provides an ideal environment to launch its model, as it aligns with its current core markets in terms of regulatory practices and supplier bases intertwined with East Africa. Yu expects the expansion to not only accelerate progress across the continent but also significantly improve the purchasing power and livelihoods of Zambian citizens.
In addition to the expansion into Zambia, Wasoko plans to double its service radius across all existing locations in Kenya, Tanzania, Rwanda, and Uganda. With a network of over 200,000 informal retailers and more than 5 million orders delivered to date, the company aims to extend its reach and impact in these markets.
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