Telecom
Fez Delivery, Nigeria’s Techstars-backed Logistics Startup Raises $1m Seed Fund
Fez Delivery, a leading logistics and delivery company, announced its $1 million seed round today.
Ventures Platform led the funding round, with participation from Voltron Capital, Acasia Ventures (formerly Cairo Angels), and 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.
Fez Delivery was founded in 2020 by Seun Alley, as a pivot from her previous company which offered janitorial services to businesses but suffered from absenteeism of the janitors because 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.”, says Seun Alley.
“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.”
The logistics industry is one of the fastest-growing industries in Nigeria, spurred by the meteoric rise in online shopping which generated an estimated revenue of $5 billion in 2019 with an expected CAGR of 20.5% from then till now. The size of this opportunity has led to the rise of many logistic businesses in the country. Yet, many struggle to differentiate themselves and run a sustainable business.
Fez Delivery distinguishes itself in the market by offering tailored and hybrid solutions that combine physical touchpoints with technology to serve its customers. “Our learnings over the last seven years have revealed that different business priorities exist regarding last-mile delivery”, says Seun Alley.
“For FinTech, reach is critical. For Pharma, the estimated delivery time is a big deal, and the pricing must be competitive for SMEs.
“Therefore, we have built an array of tech-enabled solutions; mobile and web apps (targeted at individuals), dashboards and APIs (for businesses) alongside a wide physical reach that spans all the 36 states in Nigeria, including the FCT ”.
The three-year-old startup makes money by charging individuals per delivery, and businesses a monthly subscription. In 2022, the logistics startup completed 200,000 trips and grew revenue by 20% month-on-month. Its clientèle includes the likes of Flutterwave, Kuda Bank, Moniepoint, OPay, Famasi Africa, and Red Bull.
Marketing Manager, Redbull Nigeria, Toheeb Azeez, says, “Fez Delivery has been a reliable and affordable delivery service for our company, since their inception. They have a wide reach across all the 774 local governments in Nigeria, which makes it easy for us to get our products to our customers quickly and efficiently. We are also impressed with their customer service, which is always prompt and helpful”.
Speaking on how they will deploy the capital, Seun Alley says that the company will continue its push towards leveraging technology to solve real 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”.
“The co-founder and CTO, Oluwafemi Jose adds that “our goal has always been to create something truly transformative. We’re 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.”
General Partner, Ventures Platform Fund, Dotun Olowoporoku says “We are excited to partner with Fez Delivery in their mission to bring efficiency to 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 will continue to deepen its work in Nigeria 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”, says Seun Alley.
Galaxy Backbone (GBB), the information technology and shared services provider of the Federal Government of Nigeria, has announced the successful expansion of its state-of-the-art fibre optic network to Lagos, Ibadan, the capital of Oyo State in southwestern Nigeria, and Ilorin, capital of Kwara State in the north-central region.
What is described as a remarkable milestone is part of Phase II of the country’s National Information and Communication Technology Infrastructure Backbone (NICTIB) project.
With a robust cross-country optical fibre backbone now extending over 5,000 kilometres and across 27 state capitals, GBB says it has solidified its role as the digital backbone of Nigeria. This development seamlessly integrates the nation’s six geopolitical zones.
The newly completed Abuja-to-Lagos route, traversing key cities such as Minna, Bida, Mokwa, ilorin, Ogbomoso, Oyo, Ibadan and Lagos, is a strategic enhancement designed to strengthen network reliability. By establishing a closed network ring linking Lagos – the nation’s economic hub – to Abuja, the capital city, GBB says it ensures service redundancy and minimises potential downtime.
Professor Ibrahim A Adeyanju, managing director/CEO of Galaxy Backbone, says: “The expansion of our fibre optic network to Lagos, Ibadan and Ilorin is a significant step forward in our mission to bridge the digital divide and position Nigeria as a leader in the global digital economy. This advanced infrastructure empowers us to deliver innovative, customer-centric solutions that serve the needs of both the public and private sectors.”
He adds: “This expansion not only supports the government’s digital economy agenda but also sets the stage for meaningful collaboration with private sector organisations seeking to leverage our infrastructure.”
National Bureau of Statistics (NBS) has reported that over 25 million phone thefts between March 2023 and April 2024, according to its Crime Experience and Security Perception Survey 2024.
The Crime Experience and Security Perception Survey 2024, indicated that an estimated 17,965,741 people had their phones stolen during the reference period
Phone theft, which is a common individual crime in the country, shows that seven out of every 10 stolen phones happened at home or public places, with a mere 11.7% of people who reported to the police expressing satisfaction with their response.
Less than 10% of the victims of phone theft reported the case to the police, while over 90% failed to report to the police for various reasons.
“At the individual level, 21.4 per cent of Nigerians reported being victims of crime, and the most common crime was phone theft (13.8%),” the report read in part.
Airtel Nigeria has once again been recognized for its commitment to sustainable development, carting away the Partnership of the Year award at the 18th edition of the Sustainability, Enterprise, and Responsibility Awards (SERAS) held at the Oriental Hotel, Victoria Island, Lagos, on Saturday, 14th December, 2024.
The award celebrates Airtel’s continued success with its Re-imagine Education Initiative, a ground-breaking collaboration with the United Nations Children’s Fund (UNICEF) aimed at transforming education in Nigeria through technology.
Airtel’s consistent focus on creating social value through strategic partnerships reflects its position as a key enabler of progress in the Nigerian education sector.
Commenting on the award, Femi Adeniran, Director, Corporate Communications and CSR, highlighted the significance of the winning the Partnership of the Year award for the second time with the Airtel collaboration with UNICEF to provide digital access to quality educational resources for more than 1,200 schools in Nigeria.
“Winning this award for the second consecutive year is a reflection of our enduring belief in the transformative power of technology in education. We are deeply committed to making a meaningful difference in the lives of Nigerians, and this recognition fuels our resolve to do even more,” he said.
The SERAS Awards, widely regarded as Africa’s most prestigious platform for celebrating sustainability and corporate social responsibility, brought together leaders from various industries to honour organizations driving impactful change.
Airtel Nigeria remains steadfast in its mission to foster inclusive growth, empower communities, and champion a sustainable future for its stakeholders and the environment.
Fraud in Bank Branches Surges by 31 Percent in Q2 — FITC
UBA to Deepen International Expansion, Others with N239bn Rights Issue
Galaxy Backbone Deploys Fibre Optic Network in Lagos, Ibadan and Ilorin
NBS Says 25m Phones Stolen in Nigeria in 12 Months
Dangote Refinery Denies Liquidity Challenges, Dismisses NNPCL’s $1Bn Loan Claim
UBA Group Sets Foot in France with Full Banking Services
FG Begins N50 Electronic Levy Deductions from Moniepoint, Other Digital Banks
Report Reveals Most Organisations Fear AI-driven Cyberattacks but Lack Key Defences
Nigeria Risks Missing out on $1.2 Trillion AI Opportunity- NigComSat
Firm Sues NIMC, Others On Digital Rights Breach Allegations
News3 days agoRCCG Turns Former Barclays Banks’s Branch Building into Church
E-Financial3 days agoUBA Supports Lagos State Security with N500m Donation
Telecom3 days agoTravellers on Glo Roaming Bundles Get Attractive Offers
Telecom3 days agoMastercard Partners with Allawee to Enhance Financial Access in Nigeria
Telecom2 days agoAbuse of Trusted Applications Grows by 51% in Latest Sophos Report
E-Financial3 days agoFirstBank Spreads Joy with DecemberIssaVybe campaign
News3 days agoFEC Approves 161.3m Euros for Phase 1 Siemens Power Project
Telecom3 days agoTizeti Launches New Fibre Broadband Service in Nigeria, Ghana