On-demand courier and fleet hire e-hailing platform Droppa Group has closed its Series A investment round with logistics giant SkyNet Worldwide Express, increasing its stake in Droppa.
Droppa, also referred to as the “Uber for bakkies”, allows patrons and businesses to request a truck or bakkie for multi-purpose logistics, nationwide.
The courier company says it has seen an increase in demand for its service, particularly over the past two years, after shifting its business model to respond to the COVID-19 lockdown regulations.
According to a statement, the investment of an undisclosed amount will help Droppa expand and scale its business throughout the country and globally, while strengthening both firms’ existing customer-centric approach.
Droppa and SkyNet entered into a two-way partnership in July 2020 at the height of COVID-19.
The partnership gave Droppa customers access to SkyNet’s courier services and gave SkyNet the opportunity to increase its capacity by utilising Droppa’s large vehicle fleet to further enhance its services.
The success from the initial investment set the stage for the increase in shareholding by SkyNet.
“Having gone to Radio 702 and requested for a logistics giant to partner with Droppa, this initiative caught the attention of a SkyNet executive, who then made contact and we thus began the journey, which has grown stronger over the past two years,” says Khathutshelo Mufamadi, Droppa founder and CEO.
“Droppa is looking forward to expanding its wings – the investment will be used to accelerate our growth prospects nationwide and gear up for the international rollout of Droppa through the SkyNet network.”
Computer scientist Mufamadi founded the home-grown ‘Uber for Bakkies’ in 2016. Over the past six years, it has transitioned from a bakkie-for-hire model, to offering an all-in-one delivery platform, where individuals and businesses are able to courier parcels, transport goods and furniture, and rent bakkies and trucks for a period, through its partnership with Elite Truck Hire.
Established in Johannesburg in 1988, SkyNet says it is now one of SA’s biggest express parcel and courier businesses,delivering to over 200 gateway cities worldwide.
The logistics giant says it has seen the value Droppa adds to the logistics value chain and the great opportunity that will arise by offering Droppa access to the SkyNet network.
“We are very excited about the investment in Droppa. Following intensive negotiations to strategically align and shape our market offerings, I am confident the investment in Droppa will help drive further business growth for both parties and allow continuous innovative business solutions that benefit our customers,” says Tommy Erasmus, CEO of SkyNet Worldwide Express.
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