Sendstack, the Norrsken-backed startup that pivoted from last-mile logistics to fleet management, is betting on a new hardware play—GPS tracking devices—to hit $1 million in revenue by the end of 2025. That would be four times what it made from its now-defunct delivery platform, DLVR, which it shelved in 2024 after struggling to scale.
To reach this milestone, Sendstack plans to sell 10,000 trackers by July—each device costs ₦100,000, turning hardware sales into a reliable revenue stream while driving the adoption of its fleet management software, CTRL. The compact trackers, which resemble AirTags and run on 2G networks, integrate with Sendstack’s platform and third-party systems via API—giving the company multiple entry points to upsell software services.
This shift is a significant departure from Sendstack’s initial vision of creating an aggregator platform for last-mile delivery companies. In 2024, the company pivoted from last-mile delivery to fleet management and launched CTRL, a software product it plans to replicate across emerging markets. However, as we predicted in our report on the pivot, the company has had to adapt to a market where businesses still rely heavily on manual processes and are hesitant to adopt standalone fleet management software.
While the trackers are a distribution play for its existing software business, the trackers also address a persistent challenge in Nigeria’s logistics sector: cargo visibility. Many apps promise real-time tracking, but long-haul shipments often go dark due to unreliable mobile connectivity and truck drivers who rely on feature phones.
The company offers both a one-time purchase option and a managed service subscription that includes the device, SIM card, insurance, and support. The device costs ₦100,000 but a managed service attracts additional monthly fees. This dual revenue model is designed to cater to different business needs and budgets.
Hardware is more intuitive for Nigerian users
CEO Mba-Kalu believes that introducing hardware isn’t just about adaptation—it’s an opportunity to replicate the success fintech companies have had with card and POS device distribution.
“Like POS terminals for payments, hardware trackers are more intuitive for Nigerian users, and businesses are more receptive to the idea of investing in trackers for their vehicles,” said Mba-Kalu. “It’s easier to then upsell them on additional software features.”
In the last decade, fintech startups have distributed low-cost debit cards and POS devices to acquire customers and boost transaction volumes. Sendstack is applying the same thinking and believes that trackers will serve as an entry point for businesses to adopt its software at scale. The company already claims notable customers, including electronics manufacturer Panasonic and logistics firm NG Logistics.
“App-based trackers work well for intra-city trips but not for long-distance haulage,” Mba-Kalu noted. Many truck drivers are often unreachable during transit, leading to communication breakdowns and inefficiencies.
Sendstack is optimising GPS trackers for cargo
GPS trackers are not a new concept, and Sendstack faces stiff competition from existing players in the informal tracking market. Mba-Kalu acknowledges this but argues that most trackers today are “basic and primarily designed for tracking between locations,” whereas Sendstack’s product is optimised for cargo tracking.
Unlike software, hardware comes with higher upfront costs. If production expenses exceed projections or if Sendstack fails to hit its 10,000-unit sales target, the financial strain could be significant. The company has only raised $350,000 since its founding and has so far resisted raising additional funding.
“We’re not in a rush to raise extra capital,” Mba-Kalu asserted, adding that the company is confident in the margin potential of the tracker.
However, scaling hardware in Nigeria comes with logistical challenges—managing inventory, ensuring reliable production, and handling distribution across multiple states. With a lean team of about five people, Sendstack will also need to expand its workforce, especially its technical sales team, to support its ambitious growth plans.
If Sendstack’s hardware gamble pays off, it could reshape fleet management in Nigeria. The flip side of that gamble could leave Sendstack in a tough spot—neither a software nor logistics leader.
