The logistics industry is one of the most underrated sectors that has a major impact on the economy. Unless you are a direct player in the industry, you might be quick to discount the contributions of the industry until you have a product clogged up in some logistics inefficiencies.
The logistics industry has an impact on the shipment of goods and how quickly they can get to the consumer, adding a competitive advantage to businesses that can get it done faster and more efficiently. In 2020, the industry contributed more than $344.2 billion in revenue in Africa.
Although the logistics industry suffered a significant blow during the pandemic, the aftermath has seen a rise in logistics startups. In Lagos, Nigeria, there are more than 150 logistics startups.
Although the logistics industry’s growth is hampered by challenges such as poor road infrastructure, fragmented supply chains, multiple taxations and insecurity, the sector has a lot of potentials. Logistics startups are one of the leading tech startups to have attracted the highest funding in the ecosystem.
Per BD tracker, the logistics sector in Africa has attracted more than $380 million in investments as of the time of writing this article. Few Nigerian logistics startups have been active players, attracting this funding.
A peculiar pattern of most of these startups was that they started because of the Covid-19 pandemic, or their growth was either ignited by it.
Here’s an exciting list of the top Nigerian tech logistics startups that have received the most venture funding. They are Topship, Kwik, OnePort 365, Gokada, Kobo360, Vendease, truQ, Jumia, Max.ng and Shapshap.
Topship
Topship is a freight forwarder providing end-to-end delivery services to businesses in Africa. The startup’s platform helps merchants ship cargo, freight, and last-mile deliveries from customers’ doorstep to any location, enabling clients to access a hassle-free logistic facility.
The startup which claims to be the Flexport of Africa has received funding of $3 million since inception from Y Combinator, Flexport, Brex, and Paystack. Topship was founded in 2020 by Moses Enenwali and Junaid Babatunde and is based in Lagos, Nigeria.
Kwik
Kwik is a Nigeria and French-based delivery platform that provides logistics services to B2B merchants, from social vendors to e-commerce platforms (warehousing and fulfilment).
The company works with crowdsourced delivery agents (called ‘Kwiksters’) and enables users (consumers & businesses alike) to search, book, track & pay for on-demand delivery services. Kwik was founded in 2018 by Romain Poirot-Lellig and operates in Nigeria and France. The startup has raised a total of $4.7 million in funding over 7 rounds.
OnePort 365
OnePort 365 is a Nigerian tech logistics startup solving the challenges of cross-border traders in Africa. Some solutions they provide include booking, instant warehousing, customs brokerage & marine insurance. The platform enables tracking of supply chain visibility and transparency, documentation and collaboration, quotations, and customs clearance for importers and exporters.
OnePort 365 was founded in 2019 by Hio Sola-Usidame to help move cargo within and from Africa. The startup has raised $5.2 million in funding from investors such as Mobility 54, CFAO Group, Flexport, the VC arm of Toyota Tsusho and ODX.
Gokada
Gokada launched as a ride-hailing company in 2017, before diversifying into Logistics and Food Delivery in 2020 after a ban on commercial motorcycles by the Government of Lagos State. The tech startup allows customers to access food delivery, eCommerce, ride-hailing (available in Oyo and Ogun states) and logistics service on its platform
Founded by Deji Oduntan and Fahim Saleh, Gokada has now raised $5.63 million in total venture funding across two 2 rounds. Gokada’s latest and most notable round took place in May 2019 and was led by Rise Capital, CRE Venture Capital and Adventure Capital.
Kobo360
Kobo360 is a web-based marketplace connecting cargo owners & transporters. The platform enables individuals and businesses to order or schedule a pickup and track freight deliveries. The tech-enabled digital logistics platform helps drivers, cargo owners, and cargo recipients to manage end-to-end haulage operations.
Kobo360, nicknamed the “Uber” of trucks, was founded in 2018 by Obi Ozor and Ife Oyedele II. The startup has raised $43.3 million in funding from Y Combinator, International Finance Corporation, and Goldman Sachs.
Vendease
Vendease enables African restaurants and food businesses to buy supplies, access financial services and power their business operations. Rather than go through expensive middlemen, and vendors or waste productive hours sending staff to markets with hiked prices, Vendease assists food merchants to get all their food supplies within 24hrs.
Vendease was founded in January 2020 by Tunde Kara with Olumide Fayankin, Gatumi Aliyu and Wale Oyepeju. The agrifood-tech company has raised a total of $43.3 million in funding over 4 rounds from investors such as Y Combinator, Partech, and Magic Fund.
truQ
truQ is a mobility platform that helps individuals and businesses find moving vans, minivans, or trucks by matching them to the closest available driver. The truck-sharing platform, for all moving and delivery needs, connects people to the closest truck/van driver.
truQ was founded in February 2020 by Foluso Ojo, Isaac Chikutukutu and Williams Fatayo. The startup has raised more than $170,000 in funding from investors such as V8 Capital Partners and Techstars Toronto.
Jumia
Jumia is a pan-African technology company that is built around a marketplace, logistics service and payment service. The online marketplace has a logistics network, that includes over 20 warehouses and more than 1,300 drop-off stations and pick-up stations, located across Jumia’s 11-country market, including remote areas.
Jumia was founded in 2012 by Jeremy Hodara and Sacha Poignonnec. The African unicorn has raised more than $850 million across six funding rounds in seven years. Some of the investors are AXA Group, CDC Group, MTN Group, Goldman Sachs and Mastercard.
Max.ng
MAX (Metro Africa Express) started as a delivery startup using motorcycles to fulfil customer orders before venturing into ride-hailing, and later into vehicle subscription and financing services. The startup facilitates agro supply chain, e-commerce, and food delivery through its logistics arm.
Founded in Nigeria in 2015 by Chinedu Azodoh and Adetayo Bamiduro, it has now raised $8.5M in funding over 3 rounds. The major investors in Max.ng are Novastar Ventures, Alitheia Capital and Yamaha Motor Ventures.
ShapShap
ShapShap is a Nigerian logistics technology company developing innovative solutions focused on documents, parcels, medicines food delivery, and other retail deliveries. The App-based platform also provides a live tracking feature.
Shapshap which was founded in 2017 by Khalil Halilu has raised more than $8,000 in funding from investors such as GreenTec Capital and V8 Capital Partners. The company which is based in Lagos and Abuja, Nigeria has already processed more than 30,000 orders for more than 4,000 users and is working with more than 100 vendors.
