Last mile logistics company Fez Delivery has raised a $1 million seed investment to strengthen operations across Nigeria and expand into other African markets including Ghana, Kenya and South Africa.
The seed round, which will also enable the startup improve its technology to enhance efficiency, as well as hire more talent and increase its marketing spend, was led by pan-African investor Ventures Platform with participation from Voltron Capital, Acasia Ventures and other angel investors.
Seun Alley, with experience in the banking sector, founded Fez Delivery in 2020 to connect businesses and markets without issues of mistrust and inefficiencies. The company was built with the goal to be the first choice for customers, employees and investors worldwide, with a growth, focus on its profitable core logistics business and accelerating digital transformation in the sector.
Fez Delivery offers hassle-free business practices, corporate participation and training activities, leveraging APIs and dashboards to enable its business clients have a seamless experience. The logistics company affirms to have over 17,000 customers using its platform, with 70% being individuals, and 30% made up of a combination of SMEs and startups.
Last year, FEZ for fintechs was launched by the company in a bid to provide debit cards and POS terminals to customers and agents in Nigeria. To further meet the demand, Fez Delivery developed a SaaS platform to onboard and verify two-wheeler logistics platforms of about five-10 fleet sizes. These third-party partners receive revenue from Fez Delivery as individuals get charged per delivery (distance/size of items) and businesses pay a flat-fee subscription (based on a set range of deliveries).
The Techstars Toronto-backed asserts to have completed 200,000 trips last year and grew revenue by 20% month-on-month. Flutterwave, Kuda Bank, Moniepoint, OPay, Red Bull and Famasi Africa are some of its clients.
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