Fez Delivery, a Nigerian logistics and delivery start-up, has announced a $1 million seed round of funding, led by Ventures Platform. The funding round also saw participation from Voltron Capital, Acasia Ventures, and several angel investors.
The funding announcement comes after the company’s acceptance into Techstars Toronto, a global tech accelerator.
Founded in 2020 by Seun Alley, Fez Delivery offers tailored hybrid solutions combining physical touchpoints with technology. It serves a range of clients across various sectors, including Flutterwave, Kuda Bank, Moniepoint, OPay, Famasi Africa, and Red Bull.
The Nigerian logistics industry is experiencing tremendous growth, driven by the rise of online shopping, with an estimated revenue of $5 billion in 2019 and an expected CAGR of 20.5% from that period.
Fez Delivery aims to address the challenges faced by small and medium-sized businesses in the last-mile logistics space through its platform that allows businesses and individuals to easily track their items online in real-time.
Speaking on how they will deploy the capital, Alley said, “With this funding, we are repositioning as a full-fledged tech company focused on last-mile deliveries. 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.”
Fez Delivery’s marketing manager, Toheeb Azeez, said, “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.”
General partner at Ventures Platform Fund, Dotun Olowoporoku, commented, “We are excited to partner with Fez Delivery in their mission to bring efficiency to the logistics industry. 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 plans to continue 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,” said Alley.
The company is committed to leveraging technology to solve real problems and intends to expand its services by building a platform that enables other market players to thrive. The platform is currently in development, and interested parties can sign up to join the waitlist.
