Sote, an African supply-chain startup has raised $4 million to expand its fintech solution offering.
Social Capital, Chamath Palihapitiya’s fund, led the round. Ray Ko, Ray Ko’s growth partner, joined Sote’s board.
A small group of investors also participated, including Justin Saslow, Ribbit Capital, Harry Hurst (CEO/Founder at Pipe), MaC Venture Capital doubling up, and K50 Ventures.
In 2018, Felix Orwa, Meka Este McDonald and Meka Este-McDonald founded Sote. They are building Africa’s largest digital logistics network and B2B marketplace. Their mission is to increase the African continent’s GDP by encouraging trade. Sote offers a mix of efficient and affordable supply chain services, Fintech Underwriting models, and SaaS for businesses in Africa.
In 2020, it raised $3 million in seed funding. The total amount raised thus far is $8.4 Million.
In order to improve Africa’s digital logistics infrastructure, the company also launched Africa’s first tech-enabled customs clearing service and forwarding service.
The company has 50 customers as of December 2021, having grown its customer base by 370% and its revenue growth to 200% over the past year. Sote recently obtained their Authorized Economic Operator (AEO), certification. They plan to target larger customers by 2022 and surpass growth targets.
The startup currently charges $1,500 per container. It also provides real-time dashboards that allow manufacturers, retailers and distributors to see shipment status and save time.
Sote has named Samora Kariuki Director of Fintech, and John Bish CFO and M&A Lead.
“Sote is always about people. An inspiring group of people who are passionate about Africa’s future. “We’re excited to bring Samora and John together with our Logistics and Engineering team to create unique solutions for our customers and beyond,” said Felix Orwa (Kenyan-born CEO and Founder of Sote).
Sote already controls the first two components of the supply chain, which is the flow product, flow information and flow cash. We will be able to have positive influence and control over all three with the launch of our Fintech solution. This creates a strong flywheel effect among our customers, as they discover more convenient and holistic bundled services between capital and logistics.