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Tag: logistics

  • Renda raises $1.9 million pre-seed

    Renda raises $1.9 million pre-seed

    Renda, a logistics startup, has raised $1.9 million in pre-seed equity and debt funds.

    Ingressive Capital led the $1.3 million equity investment, which also included Techstars Toronto, Founders Factory Africa, Magic Fund, Golden Palm Investments, Reflect Ventures, and Vastly Valuable Ventures, according to a statement from the company. Founders Factory Africa and SeedFi provided the $600,000 debt funding investment.

    Renda said that the pre-seed funding would be used to make its services more technologically advanced, to grow its partnership network across all busy markets, and to expand to more cities in Nigeria and East Africa.

    Read also: 6 Prospective Grant Opportunities for African Startups

    Renda is a renowned 3rd Party fulfilment supplier that helps African enterprise and medium-sized e-commerce enterprises develop. Renda helps businesses achieve profitability, reach more consumers, and streamline operations with flexible storage, inventory management, order processing, on-time and in-full delivery, cash collection, and reconciliation.

    Renda is a technology solution that improved order fulfilment and helped businesses increase across Africa. Ope Onaboye, a third-time founder, and Bimbo Onaboye, an experienced automobile product manager, created it.

    On the African market, Renda faces competition from companies like Haul247, Amitruck, and Leta.

    Renda’s aim for firm growth

    According to Renda CEO and Co-Founder Ope Onaboye, the fundraising will assist the company achieve its vision.

    Renda aims to be Africa’s largest and most trusted fulfilment partner for e-commerce and significant businesses. We have helped some of Nigeria’s leading manufacturing, FMCG, agribusiness, and e-commerce enterprises scale across Nigeria since our founding.

    “We appreciate the investors who believe in Renda and have partnered with us to build the continent’s commerce future. I’m delighted to use technology to streamline order fulfilment and retail distribution for thousands of businesses throughout the continent.”

    Maya Horgan Famodu, Founder and Partner of Ingressive Capital, commented on the funding.

    “Investing with Renda is strategic for us. Renda’s technology solves a significant problem in African manufacturing and e-commerce by providing seamless fulfilment infrastructure access.

    Renda’s success in Africa, revolutionising logistics and storage and providing commercial prospects, has increased focus on markets and export solutions to enhance African currencies.

    Read also: Nigeria opens startup portal for tech innovators

    Renda’s journey 

    Since it began, Renda says it has helped more than 500 businesses in 15 Nigerian states and seen growth of up to 450% yearly. It’s handled more than 250,000 orders, which has helped big companies in e-commerce, manufacturing, and fast-moving consumer goods (FMCG) reach more than 100,000 users.

    It grew to Kenya in 2023 to make its presence in Africa stronger. This aligned with its goal of becoming the biggest and most reliable fulfilment partner for African businesses.

  • CloudFret secures $2.1 million for transport, logistics in Morocco

    CloudFret secures $2.1 million for transport, logistics in Morocco

    CloudFret, a Morocco-based company, a revolutionary startup in the transportation and logistics industries, has successfully completed a €2 million ($2.1 million) funding round. 

    The company received investments from AfriMobility and Azur Innovation Fund, amongst other entities. It initially raised $1 million in 2022, bringing its total to $3.1 million to date after that year’s contribution.

    The company, which was established in 2021 by Driss Jabar and is based in Morocco, is planning to swiftly grow its operations, which will include a strategic extension to Marseille. CloudFret plans to more than double the size of its personnel by the year 2024, in keeping with its trajectory of rapid expansion.

    CloudFret’s commitment to tackling the inefficiency of empty truck returns within the intra-European market is at the core of the most recent funding drive that the company has undertaken. CloudFret’s cutting-edge platform functions as a mobile Software as a Service (SaaS) solution, and it does so with the help of an AI-driven algorithm. It is aimed to connect shippers and carriers throughout Europe in a seamless manner, which will streamline the process of discovering and scheduling freight transportation.

    Read also: Kobo360 appoints Ciku Mugambi Head supply chain logistics

    CloudFret’s achievements

    The one-of-a-kind platform developed by CloudFret aims to reduce the number of empty return trips, which is a prevalent problem in the logistics business. It does this by pairing empty vehicles with available cargo that needs to be transported. This technique not only improves efficiency for carriers’ operations but also shortens the time it takes for shippers to get their orders. As a result, the transport ecosystem becomes more environmentally friendly and efficient.

    CloudFret is operating with a team of approximately twelve people at the moment; however, due to the recent infusion of funding, the firm is now in a position to increase the size of its talent pool dramatically. The implementation of artificial intelligence inside CloudFret’s business functions serves as a representation of the ‘carpooling’ idea applied to freight transportation and takes its cues from established business models such as BlaBlaCar.

    CloudFret’s Chief Executive Officer, Driss Jabar, conceived of the idea for the platform after observing trucks driving for extensive distances without any cargo. The innovative solution that was developed by CloudFret not only improves the efficiency of the operations of the shippers, loaders, and transporters but it also makes the experience of receiving deliveries more pleasant by providing real-time tracking updates.

    CloudFret currently manages a fleet of 7,000 vehicles spanning six countries, including France, Spain, Morocco, Senegal, Portugal, and Italy. The company also boasts a client base that consists of 130 shippers and works in collaboration with more than 900 transport businesses.

    In addition to increasing efficiency in the use of trucks, CloudFret has expanded its product offerings to include a B2B software as a service (SaaS) marketplace. This marketplace not only offers competitive transport solutions, but it also incorporates value-added services such as post-delivery payment alternatives through FastPay, discounted gasoline cards with deferred payment choices, and reasonably priced cargo insurance options.

    CloudFret’s future 

    When Driss Jabar speculates about the future, he indicates that there will be even more expansion by disclosing that “other large-scale investments are in the closing phase.” This hints to a bright future for CloudFret as it continues to carve out a position for itself in the transport and logistics sector, rewriting the standards and practices of the industry with the creative solutions it provides.

  • Kenya’s Baobab Network funds Moroccan logistics startup Colis.ma

    Kenya’s Baobab Network funds Moroccan logistics startup Colis.ma

    As part of its accelerator programme, Kenya’s Baobab Network has donated $50,000 to the Moroccan logistics startup Colis.ma.

    The most recent group to go through the accelerator programme added five new start-ups from Morocco, Kenya, Guinea, Nigeria, and Togo to the Baobab Network collection.

    Each startup will also get a customized, expert-led accelerator programme in addition to the $50,000 USD cash prize. Through a demo day, the programme connects startups with top seed investors and venture capitalists.

    Christine Namara, who is in charge of ventures at The Baobab Network, said, “Once again, we have seen the power of African creation firsthand with this amazing group of start-ups.

    Their passion, creativity, and determination to solve important problems in their towns and ecosystems have been truly inspiring. We are proud that they asked us to join them on this journey, and we can’t wait to see how they change the African environment and other places as we grow.

    Colis.ma is a logistics platform that was started in 2022 by Issam Darui. It helps clients find, rate, and choose their transportation based on their personal preferences. It also helps transporters digitise their operations by letting them track their journey. It also makes it easy for customers and businesses to send and receive packages from anywhere in Europe. This helps companies reach more customers and grow their businesses.

    “The insights and advice we got from their exceptional accelerator programme not only changed our course but also gave us a clear road map to grow and hit new heights,” said Colis.ma CEO Issam Darui. Baobab Network leaders are empowered individually. Each meeting demonstrates their real care. They’re unique. We’ve enhanced Colis.ma’s growth with their help. We’re thrilled and confident!”

    Read also: Nairobi-based Accelerator, ‘The Baobab Network’ Invests $200,000 In Four African Startups

    The accelerator also gave the same amount of money to Afrigility in Kenya, Eazy Chain in Togo, Poultry in Nigeria, and Mudu Pay in Guinea.

    Afrigility is a Kenyan logistics startup that uses asset-light technology to offer B2B e-commerce services and on-demand storage solutions.

    Eazy Chain, which used to be called Togo Cargo, offers an integrated logistics system that includes air, sea, and road freight services. This makes it easy for cargo to be moved from one place to another.

    ePoultry is a Nigerian agritech company that helps chicken farmers get rid of structural inefficiencies by giving them input credits, advisory services, and a dynamic B2B marketplace.

    MuduPay is a financial technology company based in Guinea. Using their world-class technology stack, they make it possible for Africans to move money online from anywhere.

    African Fintech, Peach Payments secures $31M from Apis Partners

    Impacting Africa’s tech ecosystem

    The number of tech companies in Africa is on the rise. But while some new businesses do well, many fail in the first few years. There are many reasons why so many tech startups in Africa fail, and fixing these problems is key to creating a tech environment that is strong and can last.

    Accelerators like the Baobab Network have helped the community. They give entrepreneurs the whole package, which includes money, coaching, and advice. They also help entrepreneurs find the right donors. New tech companies can keep going with the help of these mentors, which makes it less likely that they will fail.

    “Our journey with these founders goes beyond the demo day,” said Niama El Bassunie, Managing Partner at “The Baobab Network.” Their passion and our dedication make it possible for them to grow and leave a lasting mark on Africa’s tech environment. As they figure out how to grow, we are ready to help them and look forward to the great strides they will make in their various fields.”

  • Haul247 secures $3 million for Africa’s logistics sector

    Haul247 secures $3 million for Africa’s logistics sector

    Haul247 has raised $3 million in a seed funding round for the advancement of the African logistics sector.

    Haul247 is an end-to-end logistics technology platform that connects companies to haulage and warehousing assets in one ecosystem. 

    The transportation company will use the money to grow its share of the market in Nigeria, move into other African markets, hire new people, and improve its technology.

    Alitheia Capital’s uMunthu Fund led the $3 million seed funding round. Investment One also took part in the round by giving money in the form of loans. 

    This funding round comes after a pre-seed funding round led by Khafid Gbadamosi and Horsham Gates in 2021. The company was recently chosen as one of the 2022 Google for Startups Black Founders Fund winners.

    Sehinde Afolayan, the CEO of Haul247, is sure that this round of funding will help the company solidify its place as an Airbnb for trucks and warehouses in Africa. He said;

    “Africa’s logistics industry is still being held back by a lack of supporting infrastructure, slow service delivery, and a common informal way of doing logistics business. More than 80% of the market is controlled by small carriers with one to three trucks.

    Sehinde has worked in the African supply chain business for more than a decade. He thinks that logistics solutions in Africa that don’t solve problems with storage will be more expensive, less efficient, and dangerous.

    “We started Haul247 to fix the mismatch between supply and demand in the ecosystem,” he said. “This funding will help us improve logistics service delivery in key African markets.”

     Read also: Egypt Avanz Capital funds Trella logistics startup

    Haul247 links African innovation

    The platform connects businesses with dependable and efficient haulage and storage assets, making continental transport easier and faster. The CEO of the company is certain that its investors will help it expand into new areas, hire more bright people, and develop its technology to make logistics for African businesses easier and more efficient.

    Tokunboh Ishmael, Alitheia Capital’s managing partner, said the organisation is proud to lead logistics service delivery in important African countries. Trade and commerce fuel growth, he remarked.

    Our investment will help Haul247 streamline continental logistics for moving and storing products. This unlocks value and increases its effect on individuals and enterprises across the value chain.

    The African Continental Free Trade Area (AFCFTA) relies on services, although the company is raising funds. This is a crucial issue since experts worldwide believe that logistics drives growth, and the World Economic Forum projects that intra-African commodity demand will jump 28% by 2030. This will boost continental economic growth and change.

    Senegalese logistics firm, Chargel secures $2.5M to drive African expansion

    About Haul247

    Haul247 provides a unique platform for businesses to seamlessly book trucks and warehouses across multiple geo-locations in Africa using real-time technology. The company has over a thousand trucks on its roster and about 151,000 square meters of warehouse space across various locations.

    The company’s proprietary software enables individuals, enterprises, manufacturers, and FMCGs to book logistics services in three simple steps. The software takes an order request from a shipper, attaches a quote, and then matches the request with the most suitable truck and warehouse for efficient fulfilment.

    Companies looking for warehouse facilities can also use the same process, making it an efficient and versatile platform for all logistics needs. Additionally, the system allows shippers to track the status of their goods until they reach their destination.

    Its founders, Sehinde Afolayan, Tobi Obasa, and Akindele Philips, are confident that the company is well-positioned to unlock Africa’s commercial potential while delivering substantial value to clients and partners.

  • Jetstream, a Ghanaian e-logistics platform secures $13 million in funding

    Jetstream, a Ghanaian e-logistics platform secures $13 million in funding

    Jetstream, a Ghanaian e-logistics platform, raises $13 million in equity and debt funding. Jetstream serves Africa’s business-to-business importers and exporters.

    It is anticipated that revenues will reach $32 billion in the cross-border logistics services market by the year 2025. Several organisations are already competing with one another for market share in this rapidly expanding and increasingly cut-throat industry. 

    On the list is the Ghanaian e-logistics startup Jetstream Africa, which is making the announcement that it has acquired $13 million in equity and debt pre-Series A investment. 

    The debt financing was provided by the fintech lender and private equity firm Cauris as well as the French development institution Proparco through its bridge fund. 

    The equity investors included Octerra, Wuri Ventures, Seed9, The MBA Fund, and ASCVC, which is a venture fund that executives of the supply chain visibility platform Project44 established. Additionally, long-time investors Alitheia IDF and Golden Palm took part in the offering.

    About 18 months have passed since Jetstream disclosed a seed round of $3 million (including $1 million in debt), and this new round of funding brings the total to $4 million. 

    Read also: Africa based GIG Logistics, Extends Operations To China

    The Impact of the Fund on the Operation of Jetstream

    According to Jetstream, this new investment will enable the company to continue developing its technology platform, which vertically incorporates fragmented logistics and financing vendors in the world of African trade, as well as allow it to expand into new countries. Currently, Jetstream operates in 29 countries, 12 of which are located in Africa.

    At the period of its seed round, Jetstream Africa had two distinct business lines: one involved the provision of logistical services to cargo owners who were engaged in international trade, and the other involved the distribution of funding to freight forwarders. 

    However, in order to better assist cargo owners, Jetstream has combined both offerings into a single package during the past few months. According to Miishe Addy, chief executive of the startup company, Jetstream has reached a point where its product is a good fit for the market.

    “Running those two lines side by side, we observed that the import or export business controls the supply chain,” Addy said. 

    “Although the cargo owners and freight forwarders have a lot of information asymmetry, the importer and exporter can put pressure on the freight forwarder to digitize the supply chain. We simplified our business into just the import-export product line by working directly with them with a combination of trade financing and logistics.”

    Taelo, Nigeria’s E-commerce raises funding for expansion

    How Jetstream Would Improve

    Jetstream is now a freight forwarder. The company now manages shippers’ import and export cargo, collects a fee, and provides loans for those in need. Most freight owners get loans from banks by getting a letter of credit. The counterparty bank decides. Explain: The Ghanaian bank takes cedi and interacts with the Chinese exporter’s bank, which dispenses the yuan after vouching for the cargo owner.

    It takes weeks. The letter of credit method is inefficient for cargo owners on both sides of the transaction who desire faster credit, forcing them to locate other sources of finance that require collateral. Jetstream provides working capital backed by shipment. Addy says the four-year-old firm secures the freight. Jetstream underwrites loans to be repaid within 15–90 days through its banking partners and distributes the loan funds to all supply chain vendors.

    “If you’re importing 10 containers, in addition to paying for the actual goods, importers have to pay the shipping line, customs broker on both sides, truck drivers on both sides, you have to pay a warehouse operator in some cases, or container terminal. There’s a minimum of nine different vendors you have to pay,” remarked Addy.

    “And when someone applies for a Jetstream loan, they’re not just saying give me $50,000 but enough money to fund this entire shipment and pay these nine vendors. Also, we don’t give the money to the cargo owners but to the nine vendors directly.”

    Jetstream has disbursed $9 million in trade financing loans since mid-2021, up from $1 million. Addy predicted a fivefold gain by year’s end. After altering business models, Jetstream has grown from disbursing one loan per month to up to 50 per month, becoming EBITDA positive. The e-logistics startup, which handles 47% air freight, 44% ocean freight, and 9% land transport, also reported 48% revenue growth and 102% active client growth over the past year.

    One of Jetstream’s investors says this round of funding will help the startup expand to new markets by leveraging trade policies like AfCFTA, enabling richer inter-continental trade, which is required to assist inclusive economic development and unleashes the continent’s full potential.

  • Fintech for African Mobility, Moove and Uber UK join forces in London

    Fintech for African Mobility, Moove and Uber UK join forces in London

    As part of its global expansion, Moove, the first mobility fintech in the world and Uber’s largest car supply partner in EMEA, has announced that it will launch in London.

    Moove is a company that started in Africa and has a growing number of mobility entrepreneurs as customers all over the world. It has just made its debut in Europe with a 100% EV rent-to-buy model that lets people use brand-new, zero-emission vehicles for a fixed weekly cost. With plans to grow up to 10,000 vehicles by the end of 2025, Moove wants to be the largest electric vehicle (EV) partner on Uber’s platform in London, creating long-term income opportunities and helping the city meet its net zero carbon emissions goals.

    With more EVs on the platform than any other Uber city, London leads the world in electrification initiatives. The introduction of Moove in London will help Uber move closer to its objective of having an all-electric platform in the city by 2025. Customers of Moove can seek to lower the cost of their vehicle through Uber’s £145 million Clean Air Plan.

    Vehicle financing is being used to transform gig economies for mobility

    In order to democratize access to automobile ownership, Ladi Delano and Jide Odunsi, Nigerian entrepreneurs of British descent, founded Moove, which went live in Lagos, Nigeria, in 2020. Moove is leading the charge in the “mobility fintech sector,” a white space it created and which is addressing the issue of limited access to vehicle financing for millions of gig workers across the ride-hailing, logistics, and instant delivery sectors, of which there are approximately 4.5 million in the UK alone. Moove has now scaled to nine markets across sub-Saharan Africa and India.

    Read Also: Moove Secures $105 Million To Expand Its Auto Lending Offerings

    With Moove’s alternative credit scoring system, customers who might not have been able to get financial services before can now finance a car. Moove has enabled sustainable employment creation and a road to asset ownership, with its customers having made over 7 million journeys in Moove-financed automobiles over the previous two years.

    Following its recent launch in India, the company is now bringing its impact-led model to the UK as part of its global mission to close the finance gap for gig workers who work on the move. This is its first expansion into Europe.

    The goal of Moove’s new way of financing cars in London is to give its customers quick access to brand-new, zero-emission vehicles without credit checks, upfront fees, or deposits. As part of Moove’s plan to improve safety through ongoing training and vehicle maintenance, the company offers value-added services like regular maintenance, an MOT, and car insurance. The weekly price for Moove customers includes health insurance and gives them access to a customer success team. This is something that no other business that is part of Uber’s Clean Air Plan can do.

    Also, Moove users who drive for Uber can lower their weekly payments by using the money they earn through Uber’s Clean Air Plan to help pay for the cost of switching to an EV. Over £145 million has been raised for Uber’s Clean Air Plan of about £3,000 per driver. Moove says that the 10,000 electric cars it plans to fund in London by 2025 will help cut carbon dioxide emissions by about 63,000 megatonnes per year.

    “We are happy to have created a business in Africa to now be able to scale our model here in Europe, which is something that no other African fintech company has done before,” said Ladi Delano, co-founder, and co-CEO of Moove. We are proud to launch our first 100% EV fleet, representing a significant first for us. We are overjoyed to extend our collaboration with Uber to advance our goals of electrifying transportation.

    “Our goal at Uber is to become a 100% electric platform in London by 2025, and we recognize that drivers need access to financing if they want to switch to an electric vehicle,” said Andrew Brem, general manager of Uber UK. With Moove’s strategy, more Uber drivers can make the conversion to all-electric vehicles more quickly, saving money on fuel and contributing to cleaner air in London. Our collaboration with Moove will benefit drivers and riders when demand from riders is higher than ever.

    Uber Green, Uber’s service for electric vehicles only, is now available in all of London. This means that millions of users in the city can reserve an EV on-demand for the same price as an UberX. EV drivers make 15% more money on Uber Green trips and save money on costs and fees compared to drivers of gasoline and hybrid vehicles.

    In Ghana, Uber Raises Minimum Fare for Rides

     

    Promoting the electrification of transportation

    Moove solves many of people’s problems when switching from a gas- or diesel-powered car to an electric one. Aside from price, worries about charging infrastructure and the inability to get to charge points are among the biggest reasons people don’t buy EVs.

    Moove has released Moove ChargeTM, the first end-to-end charge experience and full EV charging network app specifically for ride-hailing drivers, to streamline the charging process. With over 6,600 slow, fast, and quick charge points, one of London’s largest roaming networks may be searched for, managed, and paid for by Moove consumers.

    The app, which comes with an RFID electric car charging card, is an all-in-one solution that brings together charge points from 15 charge-point network partners. This saves users about 12% of the average yearly cost of charging an electric vehicle.

    Other features include a dynamic spending cap tool that helps Moove customers better manage their budgets and cash flow and the ability to search for charge points based on how well they work with their vehicle, how fast they charge, and how well they work with their vehicle, how fast they charge, and many are available.

    Overall, this leads to more electric vehicles being on the road and shorter wait times for Uber’s expanding customer base, improving the experience for both drivers and customers.

  • Business closes at Notify Logistics

    Business closes at Notify Logistics

    After assisting more than 10, 000 small enterprises for five years, Notify Logistics, a prominent supporter of SMEs in Kenya’s retail sector, announced its closure. This comes after a statement that it failed to remain viable due to high operating costs.
    When the business started in 2018, it had a pretty good business plan: it would rent shelves to merchants so they could run their businesses.

    But one of the directors of the startup says that it became hard to keep going because even the businesses that their partners started didn’t work. Also, it was found that Notify was spending up to KES 800,000 per month on three flours for its mall, which was a huge amount of money.
    As a result, it closed both of its branches in Nairobi and Mombasa. Notify Logistics also says it stopped taking on new suppliers because auctioneers were making threats against it.
    And even though Notify raised KES 45 million a year ago, it doesn’t seem like the money helped the company turn things around.

    Read: Sendy, Kenyan Logistics Company, Lays off 10% workforce

    This is coming from the news that startup Kune Foods shut down a few weeks earlier. The company, which had initially raised millions of shillings, was criticized by its clients after its CEO said something controversial.
    Additionally, it struggled to stand out from the city’s dozens of competing meal delivery applications. FoodsFoods’ Downfall?

    “Since the beginning of the year, we have sold more than 55,000 meals and acquired more than 6,000 individual customers and 100 corporate customers. But at $3 per meal, it just wasn’t enough to sustain our growth… Coupled with rising food costs deteriorating our margins, we just couldn’t keep going.
    This was a portion of the statement made by Robin Reecht, the founder and CEO of Kune Food, as he for $3.

    Many in Kenya prefer to eat meals prepared at home and only buy food when out with friends or at work. On average, many Kenyans who work and purchase lunch each day spend at least $1 a day on food.
    This was Kune Food’s target market when they first started, and they committed to providing Kenyans with cheap meals. It was fantastic news for Kune Food customers who couldn’t always make it to their physical locations that the company went ahead and launched an app through which people could purchase food.

    More from Notify Logistics

    In February 2022, Kune Food released its mobile app, and business was booming for the startup at the time. The new company even said that investing in its own production and mobile app could save money on infrastructure costs, which would be passed on to customers in the form of lower meal prices.

    “Over the past few months, we’ve seen a huge rise in demand thanks to our changing menu and financing, and it was clear that Kune Food had nowhere to go but up. Launch Africa Ventures, a pan-African venture capital firm, helped the startup raise $1 million in June 2021 through a pre-seed investment round.
    It is strange for a firm to shut down after a year with a capital of $1 million. Let’s examine this in more detail.

    https://techpressionmedia.com/jumia-zipline-partner-to-launch-drone-package-delivery-in-ghana/

    At an average price of $3 per meal, Kune has sold 55,000 meals, implying they likely made $165,000 during their time in business.
    They had acquired 100 corporate clients and 6,000 individual clients, which would have been a good clientele for the startup to continue operating, but not enough to gain profit for the business.
    This could be one of the reasons why Kune Foods opted to shut down operations in Kenya.