Kenyan construction tech start-up Jumba bagged a Ksh567 million (USD4.5 million) capital injection to boost its growth.
In a statement released on Monday, February 20, Chief Executive Officer (CEO) Kagure Wamunyu confirmed that the funds were raised in a seed round led by LocalGlobe, Europe's leading seed-stage investor.
Wamunyu noted that investors were impressed by the firm's growth in Kenya given its disruption in the construction supply chain.
"This priced round follows a year of rapid growth in Kenya, where Jumba operates. The funds will be used to further develop tech and extend growth in East Africa and beyond," the CEO remarked.
Yvonne Bajela, a Partner at LocalGlobe, explained that they were drawn by the solutions that the construction tech firm offered to the people of Africa.
“Africa’s rapidly growing construction industry remains largely undigitised and dogged by significant inefficiencies. Jumba is changing that and we’re thrilled to be partnering with the exceptional team-building Jumba,” she said
Other companies which contributed towards the half-a-billion shillings investment are Fundamental, Enza Capital, Seedstars International Ventures, Logos Ventures, SpeedInvest, First Check Africa and Alumni Angel Network.
Jumbo introduced efficiency in the construction industry supply chain by offering digital transactions and transparent pricing for manufacturers, hardware stores and construction sites.
Using the capital injection, the company which began operation in April 2022 hopes to include credit to the list of services it offers.
"This will address cash flow constraints in the construction materials ecosystem that have historically hindered residential construction," the statement read in part.
Funds will also be used to expand the company's staff with the recruitment of software engineers, product managers and UX designers to help build out the firm's vision.
The company boasts a wide customer base spread across 28 counties in Kenya.
