Jumba, the Kenyan technology company which simplifies business-to-business (B2B) purchase and financing of construction materials, has announced that it has closed a Ksh.568 million ($4.5 million) seed round.

The start-up was launched less than a year ago in April 2022 and creates efficiency in the construction materials supply chain by connecting manufacturers to hardware stores through its online platform, enabling them to restock seamlessly.

The round was led by LocalGlobe and other participants are Foundamental, Enza Capital, Seedstars International Ventures, Logos Ventures, FirstCheck Africa, Alumni Angel, Speedinvest and Ronak Popat.

Enza Capital led Jumba’s Ksh.117 million ($1 million) pre-seed round last year, which also saw the participation of Seedstars International, Logos and First Check Africa, among others. 

Jumba said this new capital will enable it expand its local operations as it strives to match the high demand of construction materials.

Co-Founder and CEO Kagure Wamunyu was quoted by American technology outlet TechCrunch as saying; “We are growing very fast, and our problem has always been that we have way more demand than we can meet.”

While noting that the company had recorded three times quarterly growth at the close of 2022, Wamunyu said they currently cover 60 per cent of Kenya’s 47 counties.

“Most of our customers are in counties beyond the capital, Nairobi, and the reason is that manufacturing is centralized in Nairobi, but customers are located throughout the country, and that is where we come in because we help with distribution,” she said.

Jumba’s product features a common marketplace for retailers and developers, that saves them the hassle of dealing with multiple suppliers.

The start-up negotiates prices with the product manufacturers, including their markup, and as such, hardware store owners who place orders through its platform benefit from standardised pricing, product selection and reliable delivery. 

Additionally, resellers pay for orders upon delivery.

Wamunyu herself is a civil engineer and contractor and was part of the team rolling out local services for taxi-hailing service Uber. Her co-founder and Jumba CTO Miano Njoka, meanwhile, is a software engineer who had previously co-invested with her in real estate projects.

Jumba says plans are also underway to provide long-term credit to developers on its platform, adding to the existing short-term financing plan for retailers the company offers in conjunction with its bank partners.

“Retailers can access financing through services like buy-now-pay-later from our bank partners. Construction sites will also have the ability to get the materials to complete the works in the near future,” said Wamunyu.