Minute 5 targets 58,000 dollars investment to open own stores

Kampala based online groceries retailer Minute 5 has big plans for its 4th anniversary this year according to the company’s co-founder and CEO Paul Katumba.

As part of its bid to change the way we buy our groceries from the hectic inconvenient journeys to the market to just clicking away on your computer or swiping away on your handset, the company that has been running market errands and deliveries for clients since 2018 is pushing a new front.

“We are planning to open our own stores to ease logistics and also offer farmers an assured reliable market for their produce away from exploitative middle men.”

“We are looking at 10 stores by 2025 and the aim is to ensure steady supply of groceries to customers across the city suburbs and also have stable prices all year round so that shoppers can plan their purchases ahead without any uncertain changes.” he says.

To pull this off effectively, the company is pushing to raise 58,000 dollars which is 214.6 million shillings in convertible notes that they will use to set up the first store and keep it afloat for 15 months till it hits profitability and makes way for the opening of others.

In the medium to long term Minute 5’s founders and investors are looking at turning Minute 5 into the leading logistics and food supply chain company in Uganda something that will require continuous fundraising of capital and steadfast commitment to the goal.

The opening of their own stores will also have another 500 or so products added to what customers can choose from on their app and website plus a meal planner embedded into the application. The meal planner Katumba says will help customers better plan for their meals at home and budget more effectively on a monthly basis.

Achievements to date

As of February 2021, Minute 5 had managed to attract over 22,000 dollars about 81.4 million shillings in investment, customer numbers too are growing steadily from just a handful every month, they are now serving over 600 customers monthly 2/3 of whom are returning customers showing both loyalty and growth.

The average spending of their customers has also grown from 15000 shillings to 80,000 shillings for every order they process which is good traction on their side according to Katumba.

The young digital oriented groceries retailer boasts a number of accolades key among them being the 2019 open MTN API challenge, MIIC start up fest, the Open Kitchen Masterclass and most recently they were among the nominees for the Anzisha Africa Youth Entrepreneurs cohort of 2020.

Background

Minute 5 opened shop in December 2018 and started making tangible returns the next year 2019. The company which started with only 3 partners has since grown to have 7 employees and up to 11 delivery boda boda agents contracted to them.

Over 40 market vendors have also been taken on board as suppliers according to Katumba and the number of employees he says is likely to grow to 20 plus later this year with new products and fresh capital invested in the company.

With 10 outlets planned to be opened by 2025, Minute 5 is certain they will be part of the new normal in regards to the way Ugandans do their groceries shopping.

Already at the touch of your screen, through the company’s app minute 5 or website you can easily order for whatever groceries you need that are then delivered to your place of convenience in a couple of hours at most and they plan to add more options to this.