- The seed round was co-led by Giant Ventures and Firstminute Capital, with participation from Founder Collective, Base Capital, Norrsken (Klarna co-founder Niklas Adalberth’s fund) and Raven One. They join Kapu’s early backers, including India’s Meesho and Brazil’s Facily co-founders, and a number of African family offices, Twitter’s Biz Stone, Supercell’s Ilkka Paananen, Tom Blomfield of Monzo and serial entrepreneur Alexander Rittweger.
Kapu, a new social commerce startup founded by a former Jumia executive, has emerged from stealth mode with $8 million in funding. The company aims to revolutionize the way consumers shop for food in Kenya, where sky-rocketing prices have become a major concern.
Kapu was founded by Sam Chappatte, a seasoned veteran of the e-commerce industry. Chappatte previously worked as an executive at Jumia, where they helped to grow the company into one of Africa’s largest online marketplaces.
Chappatte stated that Kapu, which was founded in January of this year, has been developing a B2C e-commerce service that allows consumers to purchase groceries at lower prices through both online and offline channels.
Kapu has recently announced that it has received $8 million in funding from a group of investors. The company plans to use these funds to expand its network of local agents, support WhatsApp orders, and further improve its e-commerce platform.
According to Kapu, the company’s platform allows consumers to save up to 30% on the cost of groceries by enabling group bulk-buying and sourcing directly from manufacturers and producers.
Sam Endacott, partner at Firstminute Capital, said in a statement: “Sam is deeply experienced in both the e-commerce and logistics category and we are thrilled to partner with him and the entire Kapu team to help alleviate the cost of living crisis on the Continent for consumers, unlock social mobility and drive growth for SMEs in the region.”
Kapu says it has 1,500 agent collection centers across Nairobi, and will, in its next phase of growth, work to fully penetrate Kenya’s capital before expanding to new markets.
Kapu’s agents, usually positioned within residential areas, takes customers’ orders and makes deliveries the next day.
“Customers receive a notification from Kapu and also from the agents, to go pick up their goods. Many agents also deliver to consumers’ homes,” said Chappate.
Kapu said the offline channel (through agents) and online direct to consumer (via WhatsApp) models are designed to suit the Kenyan market, where e-commerce has not taken off but social commerce is showing signs of potential.