27 November 2024: In the heart of Thembisa, Gauteng’s East Rand, a digital revolution is transforming the local economy. KasiD, a digital delivery service founded by Freddy Mahhumane, is proving that with the right mix of technology, purpose, and local understanding, significant business value can be unlocked in previously underserved markets.
In just two years, KasiD has grown from a fleet of 10 motorcycles to 50, increasing daily deliveries from 50 to over 300. The platform has helped its business partners achieve significant growth, with one small restaurant more than tripling its annual turnover since partnering with KasiD.
The KasiD founder emphasises the vital role that banks have in supporting and growing the township economy by empowering businesses like KasiD. While he agrees that financial support is crucial, he says that banks can, and must, play a much broader role in supporting township businesses and their customers. He cites his relationship with FNB as an example of how financial institutions can add value beyond traditional banking services. “Although we haven’t needed funding from FNB yet, they’ve still been instrumental in our success,” he explains. “Their commitment to digitising banking and payment services aligns perfectly with our business model. Our drivers carry FNB Speedpoints, and having the FNB branding so visible has significantly boosted customer trust and confidence in our payment process.”
Mahhumane says that when a bank truly engages with, and understands, the businesses they serve, especially in underserved markets like townships, they become powerful catalysts for economic growth and empowerment, and KasiD’s success offers proof of the power of this type of supportive banking relationship.
He also attributes KasiD’s success to a clear sense of purpose and effective use of digital technology. “Our model is simpler, more accessible, and more affordable than most other delivery models,” he explains. “But more importantly, it’s built on a genuine desire to serve this historically underserved market and empower businesses in township economies for sustainable success.”
This focus on what Mahhumane calls “knowing your why” permeates the KasiD business model. Unlike many delivery services, KasiD doesn’t charge smaller, niche restaurants for being part of its delivery network or for marketing their food. Instead, it makes its money via a small delivery fee charged to customers that order from these smaller venues.
Looking ahead, KasiD plans to launch a SuperApp, allowing even more township businesses to digitize their offerings and expand their market reach. Mahhumane’s vision extends to leveraging the proven KasiD model to transform and empower townships across Africa.
Success stories like KasiD’s demonstrate the immense potential waiting to further unlock in township economies. By embracing digitisation, maintaining a clear sense of purpose, and leveraging practical support from financial institutions that share their passion and vision, township entrepreneurs have the potential to drive significant economic growth, transformation, and inclusion.