Kenya online market braces for rivalry as StanChart eyes share
By John Otini, March 2, 2022INVESTMENT: Kenya’s e-commerce market is set for another role with the entry of India-based ecommerce platform Solv in what will unsettle incumbents such as Jumia, Jiji and Skygarden and many others.
The Standard Chartered Bank backed Solv is targetting to digitise the supply chain by providing small retailers with the platform to reach customers in what will pit it against local players.
“Solv currently operates in over 20 Indian towns, and is set to expand to 200 towns within the next year. Beyond India, Solv will be rolling out in Kenya, Ghana and is also exploring other markets for expansion,” said Stanchart.
With Jumia and Jiji having 2.5 million visitors every month and Skygarden with 171,000 users, it remains to be seen how Solv will navigate the market given Mastercard research shows that Kenya has a very small ecommerce market.
Earlier entrants in the space such as Kilimall and OLX, Masoko, Mall for Africa found it impossible to survive in the terrain while Jumia is also hoping to change its fortunes having changed its CEO four months ago.
Unlike its competitors, the platform targets to not only provide the marketplace solution but also offer loans to the small business based on the volume of transactions carried out on the platform.
This could be the differentiating factor that could set it apart from competition depending on the terms of credit. “Additionally, Solv’s extensive open network of more than 20 financial service providers enables invoice financing through a “buy-now-pay-later” solution, growth capital through business loans and a well- integrated supply chain finance programme to support small businesses in their growth journey,” Stanchart said in its latest financial statement.
Customer onboarding
Stanchart said Solv is plugging into data sources provided by its backers and building end-to-end technology led commerce and financial services solutions, that can help to solve problems across customer onboarding, alternative credit scoring and underwriting, digitising operations and improving the efficiency of supply chains.
Kenya has an estimated 22 million internet users with a penetration of 40 percent. The e-commerce landscape remains challenging with South Africa and Nigeria being the best performing markets.
Solv has signed up 1,000 sellers and 30,000 buyers in India. The platform offers an online business-to-business marketplace where sellers are able to reach new and verified customers. Buyers on the other hand can source quality products at competitive prices from verified and pre-screened suppliers.