South Africa: Droppa closes investment round led by logistics giant SkyNet
South African on-demand delivery service Droppa Group has closed its series A investment round with logistics giant SkyNet Worldwide Express increasing its stake in Droppa.
Droppa and SkyNet entered into a two-way partnership in July 2020 at the height of Covid-19. The partnership gave Droppa customers access to SkyNet’s courier services and gave SkyNet the opportunity to increase its capacity by utilising Droppa’s large vehicle fleet to further enhance its services. The success from the initial investment set the stage for the increase in shareholding by SkyNet.
“Having gone to Radio 702 and requesting for a logistics giant to partner with Droppa, this initiative caught the attention of a SkyNet executive who then made contact and thus began the journey which has grown stronger over the past two years,” says Khathutshelo Mufamadi, Droppa founder and CEO.
Droppa’s platform, deemed ‘South Africa’s Uber for bakkies’, was founded in 2016 by computer scientist Khathutshelo Mufamadi. Over the past six years, it has transitioned from a bakkie-for-hire model to offering an all-in-one delivery platform, where individuals and businesses are able to courier parcels, transport goods and furniture, and rent bakkies and trucks.
“We are very excited about the investment in Droppa. Following intensive negotiations to strategically align and shape our market offerings, I am confident the investment in Droppa will help drive further business growth for both parties and allow continuous innovative business solutions that benefit our customers,” says Tommy Erasmus, CEO of SkyNet.
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