Kenya - Startup under 3 years old

Describe your project or startup in a few words

We bridge the trust gap in e-commerce by seamlessly integrating payment and last mile delivery. Keeping both parties safe from fraud, while allowing the business to scale its operations and convert 3 times faster.

01.01 Describe your startup in more detail

We provide a comprehensive solution to the two most significant challenges in e-commerce: payments and logistics. By seamlessly integrating them, we offer a secure and efficient transaction process for both buyers and sellers. Here's how we do it: 1. Secure Transactions: We hold the funds until one of our riders picks up the package and delivers it to the consumer. This ensures that both parties are protected. Upon delivery, a one-time password is used to confirm receipt. We also provide the consumer ample time to verify their goods 2.Reliable Delivery Services: Our delivery services are characterised by transparency and communication. Customers are kept informed throughout, enhancing their delivery experience. Making for a very satisfied customer with an 85% of becoming a return consumer.

01.02 What is the main problem you are trying to solve?

The lack of trust is the most fundamental problem in e-commerce. To avoid being conned, not receiving their delivery, or receiving the wrong item, 99% of consumers prefer to pay on delivery. However, this shifts the risk to businesses, who then face issues such as fake M-Pesa payment messages, challenges with third-party riders, and the risk of failed remittance if the rider collects cash on their behalf. Fraudulent customers might also deceive the rider, promising to remit payment to the store but failing to do so, and riders often agree because it is not their business. As a result, 90% of businesses prefer advertising for in-store shopping, where customers pay at the point of sale, rather than online. While other countries see 19% of their retail volume transacted via e-commerce, Kenya stands at a mere 3%. Our goal is to solve this by bridging the trust gap and enabling secure e-commerce transactions.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

By bridging the trust gap, our service offers significant benefits: Improved Conversion Rates: Many Kenyans are wary of online shopping. By ensuring transaction security, we can convert 4 out of the 8 skeptical website visitors, enhancing conversion rates for e-commerce sites. Expanded Customer Base: Online shopping is challenging, especially for those outside the city who must pay upfront without delivery assurance. Currently, 2 out of every 10 orders come from outside Nairobi. Our solution can double this, boosting sales and growing the customer base. Time and Cost Savings: Pay-on-delivery orders require extensive reconciliation efforts. Our secure transaction journey and reliable delivery system minimize the need for reconciliation teams, reducing costs and logistical burdens for businesses.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

Our main target market is e-commerce businesses located in Nairobi that handle 2-100 deliveries daily. This includes individual businesses as well as marketplaces like Jiji, Jumia, and Shopzetu. Additionally, we focus on women aged 24-45, who make up the majority of online shoppers. These women typically reside in towns, have an average monthly income of 70,000 Ksh, and highly value the convenience of receiving their goods at their doorstep. We also aim to serve small businesses transacting via social commerce platforms such as Instagram, Facebook, WhatsApp, and TikTok. These businesses often face significant risks of fraud.

01.05 When was your company established?

2023-01-31

01.06 Are you already selling your product/service?

Yes

01.07 How many other owners are there within your startup?

1

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

Natasha, our co-founder and Business Development Officer, has a strong background in Actuarial Science, which has equipped her with excellent analytical skills. She is resilient, diligent, and innovative in her work. With extensive experience in e-commerce, having successfully run two online stores, Natasha brings invaluable knowledge to our team. She currently wears many hats, serving as the Business Development Officer and overseeing our finances. Notably, she secured our first stable everyday parcel delivery customer. Natasha is an inborn leader with a unique ability to balance being both soft and cutthroat, making her an incredibly effective team member. Recognized by Forbes as part of "The Future Is Female" Mentorship Program, where 20 female founders were selected to master the fundamentals of PR, she continues to aspire for more, driven by a direct hunger for success.

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://paydel.app

01.11 Which industry best describes your project?

g) Financial services

02.01.01 My startup contributes to the No poverty goal

5

02.01.02 No poverty - Justification for my startup

We contribute to no poverty in the following ways: 1. Employment Opportunities for Bodaboda Riders: Paydel employs bodaboda riders for deliveries, providing them with a stable source of income and the opportunity to develop professionally. This employment helps lift these riders out of poverty by offering consistent work and financial stability. Additionally, the skills and experience gained can lead to further economic opportunities and career development, contributing to long-term poverty reduction. 2. Facilitating Small Business Operations: By offering reliable escrow and delivery services, Paydel supports small businesses and entrepreneurs, particularly in developing regions. These businesses often face significant challenges in securing trustworthy payment and delivery systems. Paydel's services help overcome these barriers, enabling small businesses to expand their market reach, increase sales, and create jobs, all of which contribute to poverty reduction.

02.02.01 My startup contributes to the Zero hunger goal

2

02.02.02 Zero hunger - Justification for my startup

02.03.01 My startup contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification for my startup

02.04.01 My startup contributes to the Quality education goal

2

02.04.02 Quality education - Justification for my startup

02.05.01 My startup contributes to the Gender equality goal

7 - Strongly Agree

02.05.02 Gender equality - Justification for my startup

Low Barrier to Entry for Underserved Groups: We create a low barrier to entry for underserved groups, including women, to enter the e-commerce space. Our platform simplifies the process of setting up an online business, making it accessible for women who may face socio-economic barriers. By providing secure and affordable escrow services, women entrepreneurs can confidently engage in e-commerce, knowing their transactions are protected and their businesses are supported. Supporting Women Entrepreneurs: By facilitating secure financial transactions and reliable delivery services, we empower women entrepreneurs to reach broader markets. This support helps women grow their businesses, increase their income, and achieve financial independence. Access to a wider customer base and secure payment methods enables women to overcome traditional market access barriers.

02.06.01 My startup contributes to the Clean water and sanitation goal

1 - Strongly Disagree

02.06.02 Clean water and sanitation - Justification for my startup

02.07.01 My startup contributes to the Affordable and clean energy goal

4

02.07.02 Affordable and clean energy - Justification for my startup

Transition to Electric Bikes: We are committed to sustainability and reducing our environmental impact. We are moving towards exclusively using electric bikes for our deliveries. By transitioning from traditional gasoline-powered bikes to electric bikes, we significantly reduce our carbon footprint and contribute to cleaner air quality in the communities we serve. Reducing Greenhouse Gas Emissions: The shift to electric bikes helps in reducing greenhouse gas emissions, which are a major contributor to climate change. Electric bikes produce zero tailpipe emissions, which means every delivery made with an electric bike helps in decreasing the overall carbon emissions associated with our operations.

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

Creating Employment Opportunities: We provide numerous job opportunities, including positions for bodaboda riders who handle our deliveries. By employing these riders, we offer stable and reliable sources of income, which are essential for economic stability and personal development. This employment helps reduce unemployment rates and supports economic growth in the communities we serve. Supporting Small and Medium Enterprises (SMEs): Our secure escrow services and reliable delivery solutions help SMEs expand their reach and customer base. By facilitating smoother transactions and ensuring timely deliveries, we enable small businesses to grow, generate more revenue, and create additional employment opportunities. This support is vital for fostering economic growth at the local level. Promoting Financial Inclusion: We enable more people, especially those from underserved communities, to participate in the formal economy. This helps individuals access credit, save money, and invest

02.09.01 My startup contributes to the Industry innovation and infrastructure

7 - Strongly Agree

02.09.02 Industry innovation and infrastructure - Justification for my startup

Innovative Escrow Services: Our secure escrow services provide an innovative solution for safe financial transactions in e-commerce. By ensuring that funds are held securely until both parties fulfill their obligations, we foster trust and reliability in online transactions. This innovation helps mitigate fraud and disputes, encouraging more people and businesses to engage in e-commerce. Supporting E-commerce Growth: By offering reliable payment and delivery solutions, we support the growth of the e-commerce industry. Our services enable small and medium enterprises (SMEs) to reach a broader customer base, facilitating market expansion and economic growth. This support is crucial for the development of robust e-commerce infrastructure.

02.10.01 My startup contributes to the Reduced inequalities goal

7 - Strongly Agree

02.10.02 Reduced inequalities - Justification for my startup

Financial Inclusion for Underserved Communities: We provide secure and accessible financial services that empower underserved communities, including those without traditional banking access, to participate in the digital economy. By offering secure escrow services through m-pesa, we help bridge the gap between marginalized groups and the formal financial system, reducing economic disparities. Supporting Women Entrepreneurs: We actively support women entrepreneurs by creating a low barrier to entry into the e-commerce space. Our platform offers secure transactions and reliable delivery services, enabling women to start and grow their businesses with confidence. By fostering female entrepreneurship, we contribute to reducing gender inequalities in the business world.

02.11.01 My startup contributes to the Sustainable cities and communities goal

4

02.11.02 Sustainable cities and communities - Justification for my startup

02.12.01 My startup contributes to the Responsible consumption and production goal

4

02.12.02 Responsible consumption and production - Justification for my startup

02.13.01 My startup contributes to the Climate action goal

4

02.13.02 Climate action - Justification for my startup

02.14.01 My startup contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification for my startup

02.15.01 My startup contributes to the Life on land goal

3

02.15.02 Life on land - Justification for my startup

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

4

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

02.17.01 My startup contributes to the Partnerships for the goal

3

02.17.02 Partnerships for the goal - Justification for my startup

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

3

06.02 The product/service represents an entirely new type of product/service.

5

06.03 The product/service could be described as a new technology.

5

06.04 The product/service is an improvement on an existing product or service.

5

06.05 The product/service could be described as an extension of a range of products or services.

5

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

5

06.07 The product/service is a new version of an old product/service.

2

06.08 Justification for my startup

While acknowledging existing competition, we recognise the innovation and novelty of our offering, which incorporates new features without relying on groundbreaking technology. Our product/service builds upon existing solutions, extending their capabilities while addressing unmet market demands. While it includes some elements of previous offerings, it represents a departure from traditional versions. Overall, our assessment highlights the innovative nature of our product/service, its ability to meet market needs, and its potential to differentiate itself within existing competition.

06.09 Competitive Analysis

Our main potential competitors include Leta and Pick Up Mtaani, who offer payment collection upon delivery. However, they still encounter challenges with unsuccessful deliveries and trust gaps from businesses. Additionally, marketplaces like Jumia, Jiji, and Shop Zetu require businesses to post items on their platform first, but they also face trust issues. Our competitive edge lies in several factors: Firstly, we prioritize security with escrow systems that protect all parties involved in transactions, including the e-commerce platform. Secondly, we streamline the process by integrating payments and logistics into one platform, eliminating the need to work with multiple companies. Thirdly, we facilitate the expansion of e-commerce businesses into new markets, tapping into untapped customer bases and increasing revenue potential. Lastly, the Kenyan government's e-commerce strategy emphasizes trust-building, presenting an opportunity for us to fulfill this need and secure market share.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?

By creating a secure transaction journey, we create a low barrier to entry for women to access the formal economy. A secure transaction platform provides a level playing field for all entrepreneurs, including women, to participate in the formal economy without concerns about fraud or payment security issues. This can empower women entrepreneurs by giving them the confidence to engage in online transactions, expand their businesses, and contribute to economic growth.