Nadya Eka Lestari
TechInAfrica — Droppa, an on-demand platform for trucks and bakkies based in Johannesburg, has secured a multi-million rand investment from South African investor, IDF Capital.
Droppa CEO Khathutshelo Mufamadi, who was a former computer engineer who previously worked at Rand Merchant Bank and Standard Bank, founded the startup in 2016.
Mufamadi said that the deal, which was concluded two weeks ago, is in the form of a convertible note. He first would not disclose the amount of the investment or the stake that the investor had taken, but later said that it was over R5 million.
However, IDF Capital CEO Polo Leteka was not immediately available for comment regarding this investment.
The web platform and app allows members of the public, and now retailers too, to source trucks and bakkies to deliver goods on their behalf.
Droppa collects a 15% commission on whatever bakkie and truck operators using the platform charge the end customer. Drivers using the platform charge between R300 to R2000 per load, with the charge depending on the size of the load.
About 300 drivers, from the Western Cape and Gauteng, where the startup currently operates, are currently signed up to the platform. Mufamadi said, overall, drivers have completed over 2000 trips since the platform went live in May 2018.
He said with the current funding, Droppa, plans to expand to more cities across South Africa including Durban in the first quarter of 2020 and Port Elizabeth in the first half of 2020. The startup also plans to create a booking management system customized per retail sector.
In the first quarter of 2019, Droppa introduced a platform aimed at retailers, warehouses and small businesses.
Mufamadi claimed that this has cut the turnaround time that retailers delivering goods to clients commonly provide, from the current up to seven working days, to less than 24 hours.
Droppa subsequently introduced a Droppa API for developers, which enables e-commerce and online platforms to integrate with Droppa for last-mile deliveries.
He also added that the startup would use the current investment to expand these two offerings.
The startup currently has a partnership with Hyundai which allows drivers who want parts and services to get these at a reduced rate. He said the startup is looking to conclude similar partnerships with other vehicle manufacturers.
Previously, IDF Capital funded Droppa with R950,000 for an 8% stake when the startup underwent acceleration in late 2017 to 2019, through its I’M IN Accelerator, which is aimed at black tech startups.
Source: ventureburn.com
