South African logistics startup Droppa has closed its Series A investment round with logistics giant SkyNet Worldwide Express Holdings increasing its stake in the startup.
An on-demand logistics platform founded in 2016, Droppa offers a nationwide suite of delivery options which include road and air delivery modes, offering same-day delivery services between Johannesburg, Cape Town and Durban, through its partnership with SkyNet.
Droppa and SkyNet entered into a two-way partnership in July 2020 at the height of COVID-19, giving Droppa customers access to SkyNet’s courier services and SkyNet the opportunity to increase their capacity by utilising Droppa’s large vehicle fleet to further enhance their services. The success of this initial investment set the stage for the increase in shareholding by SkyNet, which has just taken place.
“Having gone to 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 and 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,” said Khathutshelo Mufamadi, Droppa’s founder and CEO.
“We are very excited about the investment in Droppa. Following intensive negotiations to strategically align and shape our market offerings, I am confident the investment in Droppa will help drive further business growth for both parties and allow continuous innovative business solutions that benefit our customers,” said Tommy Erasmus, CEO at SkyNet.