Nigeria’s Fez Delivery Raises $1 Million In Funding

Fez Delivery has raised a $1 million seed funding round to further accelerate its growth and development.

The Nigerian based startup was launched in 2020 by Seun Alley where it initially began by offering janitorial services companies, but suffered from absenteeism of the janitors as they were running errands for employees.

“We launched a janitorial service company in 2016. The following year, we observed a trend of janitors being absent from their duty posts because they were on errands for employees,”

“As a stop-gap, we introduced delivery services to the companies we were working with so that our janitors could focus on their work. It was wildly successful. This experience made us realise that last-mile logistics is a significant problem for SMEs and individuals. We decided to address this problem by creating a platform that allows businesses and individuals to easily track their items online in real-time, without using multiple logistics partners.”

Ventures Platform led the startup’s $1 million seed round, with participation from Acasia Ventures, Voltron Capital, and other angel investors.

Fez Delivery makes money by charging businesses a monthly subscription and individuals per delivery. In 2022, the startup completed 200 000 trips and grew revenue by 20% on a monthly basis. It boasts clients such as the likes of Kuda, Flutterwave, OPay, Moniepoint, Red Bull and Famasi Africa.

According to Alley, the startup will continue to push towards leveraging technology to solve real life problems.

“With this funding, we are repositioning as a full-fledged tech company focused on last-mile deliveries. While the platform is currently in development, interested parties can sign up to join the waitlist,”

Dotun Olowoporoku, Ventures Platform general partner, revealed that he was excited to partner-up with Fez Delivery as it seeks to bring efficiency in the logistics industry.

“This industry is characterised by high fragmentation, demand-supply mismatch, and lack of transparency, due to heavy manual processes. Seun, a second-time founder, is an excellent operator with a solid vision for the future of last-mile delivery. By developing technology to enable other market players to thrive, Fez Delivery is well-aligned with our investment thesis to support market-creating innovation in underserved industries,”

Fez Delivery wants to dominate Nigeria first before considering other African markets.

“We’re 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 of this year. Ghana, Kenya, and South Africa are on our list, but we haven’t decided on the order yet,”

Get South Africa’s latest entrepreneurial or business success stories delivered right to your inbox — Sign up to Entrepreneur Hub SA’s newsletter today 

eBook: 50 South African Entrepreneurs Reveal HOW THEY MADE IT

Leave a Reply

Your email address will not be published. Required fields are marked *