Ghanaian e-commerce startup Tendo opens office in Nigeria after securing robust backing

Tendo, a Ghanaian startup that allows anyone to sell online with no upfront inventory, has launched in Nigeria with the support of industry heavyweights such as Catalyst Fund, Google, and Y Combinator.

Tendo, which debuted last year, has created a mobile app that connects dropshippers with local wholesalers. Sellers on the platform can use social commerce tools like WhatsApp to source products and resell items, as well as arrange delivery and receive payment, all through the Tendo app.

“Right now, people who want to sell online must save money, visit hundreds of suppliers to find a reliable one, and risk losing capital by stockpiling inventory.” Aside from that, they must pay for logistics and warehousing. “We get rid of everything,” Felix Manford, co-founder and CEO of the startup, told Disrupt Africa.

The startup already works with thousands of merchants in Ghana, and it has now expanded into Nigeria. Tendo has received funding from the Google Black Founders’ Fund, LoftyInc Capital Management, and Plug and Play Ventures, among others, and has recently participated in the Y Combinator W22 accelerator and Catalyst Fund’s inclusive digital commerce program.

All of this success is the result of a pivot. Manford and the Tendo team first created Hashfyre, an influencer marketing platform, to help young social media users earn money by collaborating with brands on micro-influencer campaigns.

“As we grew our community, we discovered that the majority of our users were more interested in starting a business but struggled to raise the necessary capital.” “We also discovered that social media had become the preferred shopping channel for many African consumers – an estimated 32% of all e-commerce in Africa was taking place on Facebook,” Manford said.

“At first, we launched Tendo and distributed products via WhatsApp groups.” Spreadsheets were also used to manage and track orders.”

Not any longer, with Tendo on a rapid growth trajectory, addressing the lack of trust among African consumers when it comes to online shopping.

“Consumers in this region trust people they know rather than brands, and they base their purchasing decisions on this.” This social experience, however, is lacking on many traditional African e-commerce platforms,” Manford explained.

“To address that gap, Tendo leverages individual social networks, and the platform capitalizes on existing consumer behavior.” Tendo is changing the face of digital commerce in Africa by putting selling power in the hands of ordinary people. “Anyone can become a business owner.”

Tendo operates on a marketplace model, charging a percentage of each order placed on the platform. Suppliers can also pay for ad placements on the app to increase product visibility. Manford stated that revenues were steadily increasing, with the startup’s main challenge being to provide affordable and reliable last-mile delivery.

“However, in recent months, we’ve been able to refine our process and secure better partnerships, which have provided us with significant cost savings that our sellers have benefited from,” he explained.

Then it was on to Nigeria, where new country manager Chisom Ukaegu explained the magnitude of the opportunity Tendo was looking to seize there.

“With young demographics accounting for more than one-third of Nigeria’s growing population, Tendo’s entry into Nigeria is the logical next step in our efforts to build Africa’s largest reselling platform.” “Our primary goal here is to build the largest network of resellers, or Tendo merchants as we like to call them, and to provide them with the resources and support they need to grow and manage their business,” Ukaegu explained.