In a seed funding round, the Kenyan construction tech startup Jumba raised $4.5 million to grow its one-stop marketplace for buying building materials.
The B2B platform makes the supply chain easier by letting stores that sell building materials restock and letting real estate developers get the materials they need for their projects.
Since it started less than a year ago, Jumba has already gotten clients in some of Kenya’s most important areas. At the end of last year, the company says it grew three times faster than it did each quarter.
Jumba’s fast growth can be explained by the fact that it is the only place where retailers and developers can find a central marketplace, which saves them from having to deal with multiple suppliers.
The platform also gives retailers short-term loans, which its bank partners back. Plans are in the works to provide long-term loans to developers as well. Jumba has a web platform, but it also has a team of salespeople in different countries who help find clients. The startup also handles logistics in-house to make delivery faster.
Kenya’s infrastructure projects will likely keep the construction industry growing, which Jumba is taking advantage of. The startup focuses on verticalization in the building industry.s goal is to solve problems in the industry and make up for Kenya’s 80% housing deficit.
With the funds in hand, Jumba plans to grow its business in Kenya and get more customers before looking at other markets.
LocalGlobe led the funding, which also came from Enza Capital, Seedstars International Ventures, Fundamental, and other places.