Logistics Startup Fez Delivery Raises $1 Million Seed Fund to Expand Operations

Technology-driven company that provides hassle-free last-mile logistics services to businesses and individuals across Africa, Fez Delivery has raised $1 million in a seed round to deepen its products offering and expand operations to other African markets.

The funding round was led by Ventures Platform, with participation from other investors such as Voltron Capital, and Acasia Ventures as well as other Angel investors.

This funding announcement follows Fez Delivery’s acceptance as one of the only two logistics companies in Nigeria to have received investment from Techstars Toronto, an elite global tech accelerator.

Speaking on how the recent capital raised will be deployed, Fez Delivery CEO Seun Alley disclosed that the company will continue to push towards leveraging technology to solve real problems.

In her words, “With this funding, we are repositioning as a full-fledged tech company focused on last-mile deliveries. We are currently focused on the $10 billion transport and logistics market in Nigeria, where we still have room to grow. We plan to keep growing in Nigeria and expand to other markets starting in the last quarter (Q4) of this year. Ghana, Kenya, and South Africa are on our list, but we haven’t decided on the order yet. While the platform is currently in development, interested parties can sign up to join the waitlist”.

Also commenting is the company’s co-founder and CTO Oluwafemi Jose who said, “Our goal has always been to create something truly transformative. We are excited to use this funding to accelerate our innovation, expand our team, deepen our development efforts and bring more value to our customers and partners”.

Founded in 2020, Fez delivery distinguishes itself from its competitors by offering tailored and hybrid solutions that combine physical touch-points with technology to serve its customers.

The startup offers APIs to its business clients and claims over 17,000 people currently use its platform, with 70% being individuals and 30% being a mix of SMEs and startups.

Fez Delivery makes money by charging individuals per delivery, and businesses a monthly subscription. It offers customers live tracking. Upon placing an order, customers will receive a tracking ID to track their order with an up-to-the-minute status report as well as the courier’s live location, Investors King understands.

In 2022, the logistics startup completed 200,000 trips and grew revenue by 20% month-on-month. Fez delivery boasts a team of well-trained professionals that provide best-in-class services and are committed to making the delivery as hassle-free as possible. Some of its partners include Opay, Kuda, Fairmoney, Techstars, Flutterwave, and paystack