Kenyan Company Controlling Ksh85 Trillion Global Industry

Sokowatch Founder Daniel Yu at a past event.
Sokowatch Founder Daniel Yu at a past event.
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Before 2013, small scale retailers had to manoeuvre various challenges in the line of work including exorbitant inventory orders and multi-layered middlemen.

The industry, which is now valued at over Ksh85 trillion ($850 billion), was for decades considered a neglected sector left to be fleeced by brokers.

In 2013, a US national, Daniel Yu, however, founded a revolutionary company, Sokowatch, which is based in Nairobi, that has grown to become a dominant force in the industry by connecting suppliers to small scale retailers.

Ranked among the most innovative companies worldwide by Fast Company Magazine, the company now operates in nine cities across Africa.

A tuktuk transporting a Sokowatch consignment to retailers.
A tuktuk transporting a Sokowatch consignment to retailers.
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The company developed a mobile application that helps retailers to account for their inventory and allows them to make new orders without engaging the middlemen.

"Using Sokowatch’s mobile app–or even just SMS messaging–shop owners can request inventory replenishment from central distribution hubs instead of needing to contact myriad suppliers.

"Best of all, orders can be placed at any time of the day and be delivered via tuk-tuks in two hours or less," described Fast Company in its ranking.

Sokowatch, which was founded in 2013, developed an e-voucher scheme in 2020 aimed at helping its shop owners survive the Covid-19 pandemic.

In December 2020, the company placed electric tuk tuks in Uganda with the sole purpose of delivering inventory to shops while helping conserve the environment.

The company also has data systems to track real-time sales and orders across thousands of stores. 

The company, which was also ranked among seven African start-ups shaking global tech ecosystem by The African Report, raised Ksh1.4 billion Series A funding to help it scale its operations.

Celebrating the Fast Company nod, Sokowatch founder Daniel Yu noted that the fete validated its course of connecting retailers to suppliers. The company aims at developing a business to consumer (B2C) model in future.

“This recognition is very exciting and we are delighted to be listed as one of the world’s most innovative companies across Europe, Middle East and Africa. It further validates Sokowatch’s efforts to support thriving retailers across the continent and demonstrates the real impact of innovative solutions.

"At Sokowatch we are always looking at ways to reimagine the status quo to ultimately increase the purchasing power of African communities," stated Yu.

Electric Sonkowatch tuk tuks in Uganda.
Electric Sonkowatch tuk tuks in Uganda.
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