Kenyan e-commerce platform Copia has raised $26 million (KSh2.6 billion) in a Series B funding round led by LGT Lightstone. The six-year-old company will use the funding to expand across Kenya and other African countries.
Moreover, Copia is looking to add new delivery points within the country. Copia offers mobile commerce services to low and middle-income consumers through local agents and a technology-enabled logistics service.
The company targets the low-income population in remote areas through small shopkeepers serving as order and delivery points. A press release reveals that Copia has a network of over 5,000 agents. As a result, Copia has fulfilled over 3 million orders to customers online and offline, most within two days.
“We built our business on a mobile platform to bring retail services to low and middle-income African consumers—consumers who are remote, unbanked, unconnected, and who may not have a valid ID or address,” Quartz quotes Tim Steel, CEO of Copia.
Furthermore, the company reaches the urban population through a website. The website allows urban shoppers to order goods and avail the products to relatives in rural areas.
The company hinges its model on trust, leveraging on tech, and reliability to serve underserved populations. While many e-commerce platforms target the African Middle class, the company chose to tap into a previously unprofitable market.
“While mobile technology underpins all we do, it is Copia’s relentless focus on building trust that has enabled us to succeed in a market that many perceive as impossible. We build trust through reliable delivery, quality products, low prices, and uncompromising customer service,” said Tracey Turner, Founder, and Chair of Copia Global.
Lastly, the company also named two new board members. Isaac Awuondo and Betty Mwangi will bring their financial expertise and business acumen to Copia.