Kenyan E-Commerce Startup Kapu Secures Pre-Series A Funding to Scale Operations Across Africa

Kenyan e-commerce startup Kapu has raised an undisclosed amount in a pre-Series A funding round. The funding round was led by BlackWood and other existing investors and will be used to scale its operations across Africa. 

Kapu is a B2C e-commerce platform that offers essential products through a community of agents. This helps the company address the challenges of fragmented retail and logistical complexities in the region. The company says it has delivered $1 million in savings and serves 100,000 households per month while processing 2 million customer orders annually. 

The pre-series A round also saw the participation of Giant Ventures, firstminute capital, Norrsken VC, Founder Collective, Hesabu Capital, and Base Capital. Back in 2022, the startup raised $8 million in a seed round. 

Sam Chappatte, Kapu’s chief executive and a former Jumia executive, said, “We want to build a new retail model for Africa’s mass market, and we’re delighted that BlackWood has recognized the potential it brings. We’re even more delighted to have investors who know when to step back and give us the space we need to execute, but when we reach out, they’re there with thoughtful support. Working with them is a pleasure. It frees us up to get the job done.”

The company’s says its goal is to save African consumers $1bn over the next 10 years, addressing the significant proportion of income — estimated at 46 per cent — spent on groceries, which limits disposable income for other essential needs like education and investment.

Bastian R. Larsen, CEO, BlackWood said,  “Kapu’s model unlocks efficient scaling potential in Kenya’s more fragmented retail market. Expanding across the continent and targeting Africa’s $500 billion total addressable market presents an opportunity we couldn’t miss. Especially with the team’s deep understanding of this space, shaped by their experience at Jumia Group and Grab. It makes partnering with them a privilege. I’m truly enthusiastic about what’s to come.”

Also Read: How Kapu wants to change kenya’s Ecommerce industry