Deliver Addis, a universal courier company has received a follow-on-investment courtesy of RENEW and Impact Angel Network. RENEW attributed their investment to the increased volumes arising from the COVID-19 pandemic.
The Impact Angel Network and RENEW aim to change hearts and minds when it comes to investment in the 54-member country continent. This measure was in response to increased demand sparked by COVID-19.
Deliver Addis, a logistics and delivery company began its operations in 2015. What once began as an online food delivery platform, has added a marketplace where users can shop for groceries. This is all in response to the spike shift in traffic to online platforms occasioned by the need to avoid public spaces and practice social distancing. Deliver Addis distributes food from 100 restaurants, flowers, groceries, and other consumer products.
RENEW is an Ethiopian-based impact investment and consulting firm serving as the investment arm of the Impact Angel Network (IAN). The firm aspires to leverage its funding and expertise in converting small and medium-sized enterprises (SMEs) into market leaders. The platform intends to unlock private capital from families and individuals across the globe and channel it into local investments.
RENEW invests anywhere between $200,000 and $3 million into SMEs that delivers a social impact to their clients. Thus far the company has a tally of 14 investments into 12 companies. They recently exited two Ethiopian companies which recorded a gross IRR of 26.7% and 17.6%.
The new investment round has been channeled to Roadrunner Technology Solutions LLC, which has partnered with Deliver Addis. Previously, Deliver Addis raised two rounds of funding from the RENEW Impact Angel Network. The arrangement was fairly similar to the last rounds.
Not much has been disclosed about the first rounds of funding, however, the IBEX frontier report estimated the sum anywhere at 300K. Renew is upbeat over their prospects into Deliver Addis given its 630% growth over their partnership journey. The follow on investment will increase their capacity, reduce prices, and increase their efficiency as they expand their market share.
Highlights of the Ethiopian eCommerce sector can be seen here.
The CEO of RENEW Matthew Davis expressed strong optimism for Deliver Addis given he is both “a frequent user” and an “owner of Roadrunner.” He pointed put how the services by Deliver Addis are essential during the pandemic and keep hundreds employed directly and indirectly.
Founder of Delivery Addis, Feleg Tesgaye, pointed out how starting and operating an eCommerce platform is a challenge in Ethiopia, but the landscape is quickly transforming.