The construction industry inKenya is so big that it is one of the few global industries that has expanded. It is expected to grow at an average rate of 6.1% over the next three years, according to the data agency.
The growth of real estate is another sign of transformation because of the ever-increasing demand for housing. Almost all of the construction supplies in the country are purchased physically.
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Jumba, a b2b construction technology platform launched in April this year, is trying to bridge the gap through an online platform that allows operators of hardware stores to easily replenish their stock.
After securing $1 million in pre-seed funding, the startup is set for a lot of growth.
According to the needs of hardware stores, we are expanding our products. When Jumba grows beyond its borders, it will be the source of all construction materials in the country, according to the company's CEO.
The pre-seed round was led by Enza Capital with participation from a number of investors.
Africa's populations are rapidly growing and increasingly urbanizing, and the construction industry is a core economic engine supporting sustainable growth across Africa. We are thrilled to be supporting Kagure and the Jumba team.
Jumba is a b2b construction tech platform that allows operators of hardware stores to easily replenish. The image is called Jumba.
The launch of Jumba was inspired by Wamunyu's experience as a real estate entrepreneur, where she faced inefficiencies in the purchases of building supplies due to fluctuations in prices. Wamunyu, a civil engineer and contractor, was part of the team that helped drive the expansion of the company. She had previously co-invested with her in real estate projects.
As Jumba connects manufacturers with retailers, Wamunyu said the startup will ensure that the small hardware stores (which don't have sufficient storage) will be connected to medium-sized ones near their regions from where they can easily update their inventories.
We will partner with different retailers in different neighborhoods who can support smaller retailers as opposed to working with a warehouse model. She said that the smaller hardware stores would pick their stock from these locations.
Jumba works with manufacturers to negotiate prices. You can pay for orders on delivery. The buy-now-pay-later option is being considered to allow their best performing clients to broaden their stock and increase their earnings.
"BNPL can be used to help them stock more, and it is a product that will be introduced but it will be built on the back of the reseller's order history."
Jumba hired Peace Osangir to be its CFO for a rapid take-off. Osangir was the initial financial manager of Mshwari, which is backed by East Africa's biggest telecomSafaricom and regional bank NCBA.
According to Wamunyu, the startup is looking to add manufacturers and hardware stores in other parts of the world.
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