Photo - Duhqa Limited
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Duhqa Limited

Duhqa is a last mile end to end supply chain & distribution

Kenya
Market: Logistics and warehouses, Financial services, Artificial Intelligence
Stage of the project: Operating business

Date of last change: 29.08.2021
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Idea

Duhqa was built to address the gaps in African distribution logistics with the best of Logistics, e-commerce, financing and data insights needed most to build a better, leaner African distribution sector. We make it easier for retailers to trade by connecting them to manufacturers and giving them the resources to be efficient.

Current Status

We currently have 987 active retailers using us. We expect 1,050 in the next two months. We expect 4,000 in the next six months
Whereas above are active customers we are talking about, we expect 10,000+ downloads of our app within six months
January to April, we had a growth of 250%+ month on month. This is now at 150%
Our net revenue is at 9%. We expect this to grow to 14% by the end of the year. We are also introducing 3 other revenue streams to give us an additional 15% off the gross revenue.

Market

Our customers are owners of retail outlets/ small shops:
They have embraced the modern way of doing things, have a smartphone, they are between 20-55 years old and they want to run an efficient business.
They are self employed. Either trained by parents/guardians or training themselves
25% are employed formally and work evenings and weekends at their shop to supplement income
They want to be respected in their hustle, are on social media and over the weekends they like to hang out with friends for a good time even virtually or shopping online.
They are motivated by the need to be self employed, earn money, be seen as modern entrepreneurs who are trendy.
Their pain points are that access to products is hard, they lack enough finances to stock the items and they find the right partners who are a one stop shop.
We primarily acquire these customers through two ways; social media (facebook, instagram) and then using sales agents/our drivers. Once they are in, we give them a good service level to ensure that they promote us through word of mouth. We keep them through offers and in app messaging

Problem or Opportunity

- In Kenya there are 250,000+ informal fragmented shops purchasing products from middleman & wholesalers, resulting in higher prices to these low-income households. 95% shop daily which represents 12 million households in the country. It's a $5.04billion opportunity.
- The Africa opportunity is over $250 billion and expected to grow to over $470 billion by 2023 as the African population grows and many move to trade online.
-Our solution saves our customers time and money. We are able to uplift the stature of small businesses and unlock their potential

Solution (product or service)

Our customer, who is the retailer, serves 45 customers a day. The customers are buying from wholesalers and middlemen which means they have to close the shop to do this. They have to travel the distance to pick goods which adds to the cost and removes them from their core focus.

https://youtu.be/ItDmj6UMmMo

Competitors

Twiga (https://twiga.com/)
Sokowatch (https://sokowatch.com/)
Kyosk (https://kyosk.app/index.html)

Advantages or differentiators

We are a one stop shop for retailers when it comes to shopping, distribution and financing. We make it easy for them to grow their business

Finance

We make money from the manufacturer & banks through the following:
- Product Listing on our app - 15-20%
- Digital marketing ($800-$1,200 a month)
- Data analysis (5-10%)
- Financing of SMEs, we charge the financial institution - 1-3%

Business model

We have a web based model and app that can be downloaded from play store
With a cheap smartphone
Technology Used is innovative, modern, easy to scale and reliable
Our product is hosted on AWS, easily maintainable code and expandable structure.
Our metrics are as below:
- We deliver in under 6 hours
- Our customer retention is 94%
- We are 89% of our achievement
- Our growth is on average 154% month on month


Money will be spent on

$1,007,806 for personnel (developers, coders, finance, business teams etc);
$834,053 for marketing (advertising, PR, and exhibitions);
$184,443 for operating expenses, working capital, rent, and travel;
$151,181 for hardware and CAPEX;
$125,060 for intellectual property.

Offer for investor

Equity in the company and opportunity to grow their wealth 10 + times in a few years.

Team or Management

Risks

- Regulatory space may change in the next few years
- There may be other players backed by more funds who may want to drive the same agenda.

Incubation/Acceleration programs accomplishment

Na

Won the competition and other awards

Na

Product Video

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video