Sendstack, a startup supported by Norrsken, has shifted its focus from last-mile logistics to fleet management and is now venturing into a new hardware initiative with GPS tracking devices. The company aims to generate $1 million in revenue by the end of 2025 through the sale of 10,000 trackers priced at ₦100,000 each. These devices, which operate on 2G networks, are designed to integrate with Sendstack’s platform and third-party systems, offering additional software services.
The decision to introduce GPS trackers stems from the need for improved cargo visibility in Nigeria’s logistics sector. Sendstack provides customers with the option to purchase the device outright or opt for a managed service subscription, catering to diverse business requirements and budgets.
CEO Mba-Kalu believes that hardware trackers will be more intuitive for Nigerian users, drawing a parallel to the success of fintech companies distributing debit cards and POS devices. By optimizing its GPS trackers for cargo tracking, Sendstack aims to differentiate itself in a competitive market.
While hardware entails higher upfront costs compared to software, Sendstack is confident in the potential of its tracker’s margins and is not currently seeking additional funding. However, scaling hardware operations in Nigeria poses logistical challenges that the company will need to address, including managing inventory, production, and distribution.
The success of Sendstack’s hardware venture could revolutionize fleet management in Nigeria, but there is also a risk of being caught in a challenging position if the initiative does not yield the expected results.