Droppa, a South African logistics start-up, closed its series A investment round with SkyNet Worldwide Express. The relationship, though, was not formed in a boardroom, but over the radio.
Droppa founder and chief executive Khathutshelo Mufamadi said, “Having gone on Radio 702 and requesting for a logistics giant to partner with Droppa, this initiative caught the attention of a SkyNet executive who then made contact.”
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The rest is history. Droppa’s on-demand courier and fleet hire e-hailing customers now have access to the services offered by SkyNet as the world’s largest independently owned courier company. And SkyNet could increase its capacity by utilising Droppa’s large vehicle fleet to further enhance its services.
The success from the initial investment in July 2020 set the stage for increased shareholding by SkyNet, said Mufamadi.
“Thus began the journey which has grown stronger over the past two years. Through the many lessons learned, we are confident that they deserve to have a seat at the table and Droppa is looking forward to expanding its wings through the SkyNet international network, taking the
delivery hub global.”
In an earlier interview about the Droppa relationship, SkyNet Worldwide Express chief executive Tommy Erasmus said, “There is a lot of untapped potential in this space and we want to explore opportunities to create employment through collaboration.”
While Droppa does not own any bakkies or trucks, it boasts more than 1 000 registered drivers. SkyNet has a network alliance of more than 35 courier hubs across South Africa, servicing more than 200 countries across the world.
SkyNet’s latest investment amount was not disclosed. Insiders, however, said the deal is set to accelerate the future business growth for both brands and strengthen the existing customer centric approach.
Erasmus added, “We are very excited about the investment in Droppa. Following intensive negotiations to strategically align and shape our market offerings, I’m confident the investment in Droppa will help drive further business growth for both parties and allow continuous innovative business solutions that benefit our customers.”
Mufamadi, Droppa’s founder, hails from Limpopo and holds a computer science degree from the University of KwaZulu-Natal. He worked as a computer programmer in the banking industry from 2009 to 2016, at which point he decided to dedicate his time to the development of Droppa.
Droppa was kick-started with funding from mLab Southern Africa in 2016.