Kenyan Startup Sukhiba Connect Secures $1.55 Million Seed Extension to Fuel African Expansion

26 Sep 2024

Kenyan social commerce startup Sukhiba Connect has raised $1.55 million in a seed extension round, securing further backing nearly a year after its initial $1.5 million seed round. The fresh capital injection, led by EQ2 Ventures, also saw participation from Accion Venture Lab, Musha Ventures, Quona Capital, and returning investor CRE Ventures. This round pushes Sukhiba Connect’s total funding to over $3 million as it accelerates its ambitious expansion plans across Africa and other emerging markets.

Founded in 2021 by Ananth Raj Gudipati and Abhinav Reddy, Sukhiba Connect has quickly positioned itself as a key player in the growing field of conversational commerce. The startup offers a B2B platform built on WhatsApp that enables businesses to engage with customers, manage sales, and enhance customer retention. Leveraging the popularity of WhatsApp—used by 97% of internet users in Kenya—the platform tailors its services to the unique needs of medium and large enterprises in emerging markets.

“This seed extension marks a pivotal moment for Sukhiba Connect,” said co-founder Gudipati. “We’re bridging the gap between brands and customers in emerging markets by leveraging the ubiquitous nature of WhatsApp. This funding allows us to scale our operations and refine our platform to better meet the needs of manufacturers, distributors, and D2C brands.”

EQ2 Ventures, which led this round, sees Sukhiba Connect as well-positioned to dominate the burgeoning market for social commerce in Africa. “Sukhiba Connect’s innovative use of WhatsApp as a sales and customer management tool is exactly the kind of disruption we believe in,” said a representative from EQ2 Ventures. “The company has demonstrated remarkable growth in a short period, and we’re confident in its ability to scale even further.”

For existing investor CRE Ventures, the decision to reinvest was driven by the company’s execution and its strong market fit. “Sukhiba Connect has proven its ability to integrate seamlessly with local payment systems and ERP tools, which is crucial for scaling across diverse markets,” noted a partner at CRE Ventures.

Sukhiba Connect intends to use the newly raised funds to accelerate its expansion into additional African markets and further into India. The company already operates in eight markets across these regions, collaborating with prominent manufacturers, distributors, and direct-to-consumer brands. The additional capital will also support enhancements to Sukhiba Connect’s SaaS platform, enabling it to better serve its growing customer base, which includes over 35,000 small and medium-sized enterprises (SMEs) and major corporations.

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