Sote, a Kenyan logistics startup, raises $4m to expand its offering in fintech

Sote, a Kenyan supply chain company that focuses on fintech, has raised a US$4million seed extension round. This will allow it to expand its offerings into the fintech sector.

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In 2018, Sote was founded and launched its licensed tech-enabled customs clearance and forwarding service in 2020. This platform gives manufacturers, distributors, and retailers real-time visibility to shipment status. It saves time and money.

In the past year, Sote grew its customer base by 37% and saw revenue growth of 22%. Sote recently received its Authorised Economic Operator (AEO), certification. Now, the startup aims to target larger customers by 2022 and surpass growth targets.

The startup raised US$4 million in a seed extension round to finance it. This brings its total raised to date at US$8.4 millions. Social Capital, Chamath Palihapitiya, led the round, and Ray Ko, the firm’s growth partner, joined Sote’s board. A small number of investors were also involved, including Justin Saslow and Harry Hurst from Pipe, MaC Venture Capital and K50 Ventures.

Sote is now looking to expand into fintech, and plans to offer a full-service work capital loan solution to Africa’s supply chain. It has also added Samora Kariuki as director of fintech and John Bish as CFO/M&A lead.

“Sote is always about people. An organization of passionate people who are committed to Africa’s future. “We’re excited to bring Samora and John together with our logistic and engineering teams in order to create unique solutions for our customers.” Felix Orwa is the founder and CEO at Sote.

Sote already controls the flow product, information and cash in the supply chain. We will be able to have positive influence and control over all three with the launch of our fintech solutions. This creates a strong flywheel effect among our customers, as they discover more convenient and holistic bundled services between capital and logistics.

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