Techstars-backed Fez Delivery gets funding to scale its last-mile logistics platform
Summary
Fez Delivery, a Lagos-based last-mile logistics startup with hubs across Nigeria, has raised $1 million led by pan-African investor Ventures Platform with participation from Voltron Capital, Acasia Ventures and other angel investors.Founder and CEO Seun Alley, in a statement, said the company plans to use the seed investment to deepen its work in Nigeria (which has a $10 billion transport and logistics market) while it considers expansion from Q4 2023 into other African markets, including Ghana, Kenya and South Africa. And the reason for this, we learned, was because most of the places they were buying stuff from did not have a dispatch or logistics service.The situation is peculiar to many businesses across Nigeria, as evident in a simple market research Alley undertook before launching Fez Delivery. The sector is still pretty nascent in many parts of Africa and has barely scratched the surface even though the millions poured into startups operating in various facets from haulage to last mile are yet to build sustainable businesses. Individual customers can access its services via mobile and web apps to place and track orders, manage spend, collate data on specific business points and make payments. So for us, we think that gives us an edge because we also own a significant number of assets while also providing technology.Speaking on why Ventures Platform invested, Dotun Olowoporoku, general partner at Ventures Platform, in a statement, said his firm decided to back Fez Delivery because its technology, which enables other market players to thrive, is well-aligned with the firms investment thesis to support market-creating innovation in underserved industries such as logistics.Ive realized we can build and create solutions around payment and core fintech.