Twiga Holdings, the parent company of Kenya’s leading B2B eCommerce platform Twiga Foods, announced a landmark majority investment in three prominent food distribution firms, Jumra, Sojpar, and Raisons, in a strategic move to supercharge its FMCG procurement, accelerate expansion into upcountry markets, and drive operational efficiencies across its network.
The details:
- Key players: Jumra (serving Nairobi and Central regions), Sojpar (Western region), and Raisons (Coastal region) are now integrated with Twiga’s ecosystem.
- What’s in it: The distributors gain access to Twiga’s advanced technology, deep market analytics, and institutional capital to fuel growth and digitize operations, enhancing service to Kenya’s general trade ecosystem, wholesalers, mini-marts, dukas, kiosks, and mama mbogas (green grocers).
- Leadership continuity: Industry veterans Raju Shah and Bijal Shah of Jumra, and Sunil Shah of Sojpar, will continue leading operations, ensuring stability and sustained growth.
Why it matters: These deals position Twiga as a frontrunner in Kenya’s FMCG distribution landscape, merging the distributors’ deep market knowledge and cost-efficient practices with Twiga’s cutting-edge technology, best-in-class procurement expertise in fresh fruits and vegetables, and unparalleled reach in Kenya’s informal retail sector. The partnership enables a digitally powered distribution model that promises enhanced value for retailers and consumers alike.
Scaling and Leadership:
- Twiga will tap the distributors’ strategically located warehouses and large delivery fleets to scale cost-effectively, resuming operations in Kenya’s Western region, where it previously saw success, with further expansions planned in coming quarters.
- A new high-impact leadership team, including Paul Bombo (Technology), Ankur Agarwal (Supply Chain), Felix Okumu (Internal Audit), and Ekua Nkyekyer (Finance), is set to steer Twiga’s next growth phase.
Voices:
- “This transaction represents a pivotal moment in our journey. It not only concludes our transformation but also inaugurates a new period of sustainable growth, innovation, and unparalleled customer service,” said Twiga CEO Charles Ballard.
- “Twiga’s investment unlocks exciting new opportunities for Jumra. Their advanced technology, extensive market reach, and deep insights will enable us to serve our suppliers and customers more effectively,” said Raju Shah, CEO of Jumra.
Why? : Backed by reference shareholders Creadev and Juven, Twiga is committed to revolutionizing Africa’s retail ecosystem through technology and market innovation. Chairman Hein Pretorius praised the combined expertise of Ballard, Raju Shah, and Sunil Shah, noting their “deep-rooted, generational knowledge of the Kenyan distribution ecosystem” will propel Twiga to become the region’s food distribution champion.
Future: Twiga Holdings is doubling down on its digital platform, investing in seamless ordering, inventory management tools, and innovative financing options like buy-now-pay-later solutions to modernize Kenya’s food distribution. The distributors will assume some of Twiga’s operational responsibilities, boosting efficiencies and enabling the combined entities to expand distribution lines and unlock new growth opportunities.
Conclusion: This strategic alignment underscores Twiga’s vision to deliver a tech-driven, customer-centric distribution model. By blending the distributors’ operational excellence with Twiga’s digital prowess and market insights, the company is poised to redefine FMCG distribution in Kenya, delivering sustainable value to suppliers, retailers, and consumers.
