Lagos-based Fez Delivery got $1 million in seed funding from Acasia Ventures, Voltron Capital, and angel investors, who pan-African investor Ventures Platform led.
Seun Alley, a former banker who has worked at Nigerian startups like OPay and Bloc, started Fez Delivery in 2020. The company says that over 17,000 people use its platform.
Fez Delivery wants to improve pricing, reach, and delivery times in the last-mile area. The new company says its sales have grown by 20% monthly and it made 200,000 trips last year. Kuda Bank, Flutterwave, Opay Moniepoint, Famasi Africa, and Red Bull are among its clients.
Customers can use the startup’s mobile and web apps to place and track orders, control spending, collect data on specific business points, and make payments.
Fez Delivery has APIs and dashboards for its business partners. Last year, the company started a division called FEZ for fintechs to help them get debit cards and point-of-sale terminals to customers and dealers all over Nigeria.
Even though logistics is one of Nigeria’s industries that is growing the fastest, it is also one of the most fragmented. Pricing, reach, and delivery times are often problems for startups and small companies.
The last-mile logistics startup intends to use the funds to bolster its standing in Nigeria’s transport and logistics market, currently valued at $10 billion. It is also considering expanding to Ghana, Kenya, and South Africa in Q4 2023.
The startup also wants to improve its technology and operations, hire talented people, and spend more on marketing.