Kenya-based logistics startup Sendy has entered administration due to severe financial challenges, with a monthly burn rate of up to $1 million. Going into administration allows the company to seek protection from creditors while devising a restructuring plan. Earlier attempts to find buyers for the business, including discussions with e-commerce companies Sabi and Wasoko, did not materialize as potential acquirers were wary of taking on Sendy's liabilities. Founded in 2014 and once a promising player in the logistics industry, Sendy faced difficulties exacerbated by the COVID-19 pandemic, leading to cost-cutting measures and a shift in business models. Despite an investment from MOL PLUS in late 2022, Sendy continued to burn cash, primarily due to rising fuel prices and economic uncertainties in Kenya.
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