A significant development in Africa’s logistics sector unfolds as a Nigerian startup secures $1.9 million in pre-seed funding to fuel its expansion across Nigeria and Kenya. The funding, consisting of both debt and equity, signifies growing interest and investment in the region’s logistics landscape.
The startup, operating in 15 Nigerian cities, aims to utilize the funding to expand its operations into Kenya while also targeting further expansion within Nigeria. This move comes amidst a surge in funding for logistics and transport startups across the continent, with Q1 2024 witnessing approximately $151 million raised in the sector, according to Techcabal Insights.
The funding round was led by prominent investors, including Ingressive Capital, Techstars Toronto, Founders Factory Africa, and others, highlighting the confidence in the startup’s potential and the broader logistics market in Africa.
In response to the increasing demand for efficient last-mile delivery and warehousing solutions, startups like this one play a crucial role in providing essential services to e-commerce companies. By offering warehousing, delivery, and cash collection services, they contribute to streamlining operations and improving overall efficiency for businesses.
Utilizing an asset-light model, the startup leverages a network of over 5,000 warehousing, delivery, and cash collection partners to fulfill orders. This approach enables flexibility and scalability while catering to the diverse needs of its clients, which include leading e-commerce and FMCG businesses.
With profitability as a key focus, the startup has demonstrated significant growth and success, serving notable clients and processing a substantial number of orders since its inception. Founded in 2021, the startup initially targeted small and medium-scale enterprises (SMEs) before pivoting to serve larger e-commerce and FMCG businesses, capitalizing on higher margins and greater market demand.
Looking ahead, the startup plans to expand its presence into Kenya and explore potential opportunities for adopting an asset-heavy model. With a vision to become the premier fulfillment partner for e-commerce and major businesses across Africa, the startup remains committed to driving innovation and delivering value to its clients and stakeholders.
The funding round marks a significant milestone in the startup’s journey, signaling its readiness to scale and capitalize on emerging opportunities in the dynamic African logistics landscape.
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