Fez Delivery raises $1 million to tap into Nigeria's $10 billion transport and logistics market
Lagos-based Fez Delivery has secured $1 million in a seed funding round led by pan-African investor Ventures Platform, with participation from Acasia Ventures, Voltron Capital, and angel investors.
Fez Delivery, which was founded in 2020 by Seun Alley, a former banker who has worked at Nigerian startups such as OPay and Bloc, claims to have over 17,000 customers using its platform.
In the last-mile category, Fez Delivery aims to optimize pricing, reach, and delivery times. The startup claims to have grown revenue by 20% month-on-month and completed 200,000 trips last year. Its clientele base includes Flutterwave, Kuda Bank, Moniepoint, OPay, Red Bull, and Famasi Africa.
The startup offers individual customers mobile and web apps to place and track orders, manage spend, collate data on specific business points, and make payments.
For business clients, Fez Delivery offers APIs and dashboards. Last year, the company launched a vertical called FEZ for fintechs to help them deliver debit cards and point-of-sale terminals to customers and agents across Nigeria.
Despite being one of Nigeria's fastest-growing industries, logistics is also one of the country's more fragmented, with pricing, reach, and delivery times posing common headaches for startups and small businesses.
The last-mile logistics startup plans to use the funding to deepen its presence in Nigeria's $10 billion transport and logistics market, while also considering expansion to Ghana, Kenya, and South Africa from Q4 2023.
The startup intends to also improve its technology and operation efficiency, hire more talent, and increase its marketing spend.
