Tushop, a social-commerce platform in Kenya that enables the group buying of fast-moving consumer goods (FMCGs), is set for expansion across Nairobi after raising $3 million in pre-seed funding in a round led by 4DX Ventures.
Founded in 2021, Tushop aims to make access to groceries more affordable and more convenient for Kenyans, and eventually all Africans. Community group-buying saves consumers up to 60 per cent on groceries compared to buying in supermarkets, dukas, or at “mama mbogas”, while providing the added convenience of free delivery.
Each community leader has a virtual shop where the neighbors place their orders, which Tushop aggregates for bulk orders to manufacturers or other producers, like farmers. Cathy Chepkemboi the CEO said this arrangement earns shoppers up to 60% in savings, even with the agents earning sales commissions.
The startup plans to grow its business in Kenya’s capital, Nairobi, before expanding to the rest of the country.
“We are going to scale across Nairobi, and because it is an operationally intensive business, we [immediately] need more warehouses and delivery trucks. We are hiring and also improving our technology and our agents’ channels to make the experience even better,” Cathy Chepkemboi told TechCrunch.
The startup’s latest round had the participation of JAM Fund, Breyer Capital, Chandaria Capital, TO Ventures, Golden Palm Investments, FirstCheck Africa, and DFS Lab. Wasoko (formerly Sokowatch) also joined to make its first strategic institutional investment. A number of angel investors also took part in the round, including Olugbenga Agboola, Flutterwave CEO; Raja Kaul, Logos Ventures founder; Eli Pollak, Apollo Agriculture CEO; and Ida Mannoh, Chipper Cash director of growth.
Tushop joins the growing list of startups that are digitizing the retail sector in Kenya and is also one of the first social commerce platforms in the Kenyan space directly sourcing goods, including fresh produce, from producers and delivering to shoppers.
Read also; Moove Partners with SWVL for Electric Buses Financing.
