Kenyan social commerce startup Sukhiba Connect has successfully raised $1.55 million in a seed extension round. The funding comes almost a year after the startup secured an initial $1.5 million seed round to expand its operations beyond East Africa. The extension round was led by EQ2 Ventures, with additional backing from Accion Venture Lab, Musha Ventures, Quona Capital, and existing investor CRE Ventures. Sukhiba Connect plans to use the new capital to accelerate its growth across Africa and other emerging markets.

The Evolution of Sukhiba Connect

Founded in 2021 by Ananth Raj Gudipati and Abhinav Reddy, Sukhiba Connect is a conversational commerce and customer relationship management (CRM) platform built on WhatsApp. The platform is tailored for emerging markets, helping medium and large enterprises enhance their sales and customer retention through the widely-used messaging app. Sukhiba Connect's B2B tool allows businesses to connect with customers, manage orders, accept payments, and provide customer service—all within the WhatsApp ecosystem.

Leveraging WhatsApp for Business Growth

With 97% of internet users in Kenya utilizing WhatsApp on a monthly basis, according to the Global Web Index's 2020 Social Media User Trends Report, Sukhiba Connect has strategically positioned itself to capitalize on this widespread adoption. The platform customizes its services, including sales, marketing, customer service, and payment solutions, around the WhatsApp infrastructure, offering a seamless experience for both sellers and buyers.

Sukhiba Connect enables sellers to manage orders efficiently, accept payments via local methods such as M-Pesa, and communicate with customers through notifications and organized groups. Buyers can browse product catalogs, adjust their shopping carts, and complete purchases, all within the familiar WhatsApp interface. The platform's ability to scale effortlessly by integrating with multiple payment providers and Enterprise Resource Planning (ERP) systems, such as SAP, ERPNext, Shopify, and WooCommerce, has been a key factor in its growth.

Expansion and Future Prospects

Since its initial seed round in 2023, Sukhiba Connect has experienced significant growth, expanding its operations to eight markets across Africa and India. The startup has forged partnerships with leading manufacturers, distributors, major retail chains, and direct-to-consumer (D2C) brands. Over 35,000 small and medium-sized enterprises (SMEs) now use the platform to purchase products and services through Sukhiba Connect's network of merchant partners.

In 2023 alone, Sukhiba Connect facilitated WhatsApp commerce for over 30 major companies, including some of the top manufacturers and distributors in the region. These companies, in turn, serve nearly 15,000 micro, small, and medium-sized enterprises (MSMEs), encompassing various retailers.

Aiming for Market Leadership

Sukhiba Connect is not content with its current achievements. The startup has set its sights on becoming the leading CRM and sales force automation tool in emerging markets. By continuing to innovate and expand its offerings, it aims to compete with other social commerce platforms, such as Kapu and MarketForce.

The $1.55 million seed extension round marks a significant milestone for Sukhiba Connect, enabling the startup to scale its operations and enhance its SaaS platform. With the continued backing of prominent investors and a clear focus on leveraging the ubiquitous nature of WhatsApp, Sukhiba Connect is well-positioned to achieve its ambitious growth targets and solidify its place as a market leader in conversational commerce and CRM for emerging markets.