Kenya Startup, Duhqa Secures $2m in Seed Round Funding
In order to expand its service offerings throughout Kenya and East Africa, the Kenyan startup Duhqa, a B2B platform for retail distribution of consumer goods in FMCG, Cold Chain, and Pharmaceuticals, has closed a US$2 million Seed round.
Participating in the investment round were CrosssFund, Roselake Ventures, and Mo Angels. Additionally, it included current investors like Techstars and strategic angels.
Seven months after obtaining US$ 150,000 in pre-seed funding late last year, Duhqa, which ran in stealth mode for the most of the year and later joined Techstars during the October 2021 batch (the first time for a Kenyan firm), has closed a seed round of US$ 2 million.
Duhqa now has a staff of 40 employees and uses an asset-light strategy, but it intends to grow by the end of the year. With the funds raised in this round of investment, Duhqa plans to increase the number of digital solutions it offers to its expanding markets and grow its merchant network.
The company’s CEO and founder, Victor Maina, worked with DHL Express for almost ten years and at one point oversaw operations throughout East and South Africa. He has a wealth of business and logistical experience across 31 African nations.
After DHL, he transitioned to the startup world and started companies in Cote d’Ivoire, Ghana, and Nigeria before founding Duhqa.
Under his direction, Duhqa has experienced tremendous growth and has taken home more than 5 international awards, including the CX eCommerce Awards in Canada, the Unicorn Battle of Africa, the Wazo Challenge East Africa, the Seedstars and Financial Times SDG Challenge, and the Entrepreneur of the Year from Afric Angels.
“The significant demand for our solution, an improved way for companies to distribute their goods and services to mass markets in Africa has caught on. We are thrilled to get a boost from returning and new investors at this crucial time. This will enable us to continue making it easier for retailers to trade by connecting them to manufacturers and give them the resources
to be efficient”Victor Maina the CEO & Founder.
About Duhqa
Duhqa is a B2B retail technology platform founded in 2021 by Victor Maina, Davis Angwenyi, and Dudu Moilwa that enables unlicensed African retailers to digitally source and pay for inventory and receive easy delivery, and access short-term finance.
The supply and sales distribution chains are run as efficiently as possible with this strategy.
Their system optimizes the unauthorized “Dukas” mini stores in Kenya, where over 5,000 merchants have already signed up, by connecting them to manufacturers.
The Nairobi-based company relies on third-party transportation services because it lacks many resources, owns neither vehicles nor storage facilities. Suppliers using the platform have access to dashboards where they can monitor product delivery locations, review important performance indicators, and make merchandising plans.
Retail spaces can also be used for advertising campaigns, product giveaways, and merchandising profits.
What Duhqa partners are saying…
Speaking on the raise, Ben, the co-founder of CrossFund says:
“CrossFund is proud to be investing in Duhqa as they grow across Eastern Africa. Victor and team have shown that they understand the market, its pain points, and how to best deliver daily necessities to the local communities that need them most. We look forward to supporting Duhqa in scaling their logistics capabilities so that they can widen their impact and continue improving the quality of life of everyday people.”
The Mo Angels spokesman added the following to his remarks regarding the most recent investment:
“We are thrilled to work with Duhqa as it grows in Kenya and elsewhere. We are eager to work with them as they strive to break through this crucial barrier to providing marginalized regions with greater access to goods and services since we have been genuinely inspired and impressed by their brilliant team and business strategy.
Roselake noted the expansion and potential the business has been demonstrating in its knowledge of the supply chain sector.
“Duhqa not only deeply comprehends the supply chain issues local retailers confront, but also provides a workable way to resolve them. Additionally, Duhqa is generating enormous social value by bridging the gap between shops and producers to provide local communities with inexpensive everyday necessities. We are excited to help Duhqa’s A-class team as they grow their reach over time as a long-term partner.
With the best in logistics, e-commerce, financing, and data insights, we hope to fill the gaps in African distribution logistics and create a more efficient and effective African distribution industry.
