Fez Delivery, a Lagos-based last-mile logistics startup, has raised $1 million in funding from pan-African investor Ventures Platform with participation from Voltron Capital, Acasia Ventures and other angel investors. The startup intends to use the money to expand its operations across Nigeria and grow its customer base.
Seun Alley’s ambition is clear; the Nigerian transport and logistics market is huge and ripe for disruption. With its $10 billion potential, Alley plans to use the seed investment to deepen its work in Nigeria while it considers expansion into other African markets. The startup also intends to improve its technology and operation efficiency, hire more talent and increase its marketing spend in order to better compete with larger incumbent companies.
This ambitious plan could pay off as Nigeria is a fast-growing economy with plenty of potential customers who need these services. With such a promising start, Seun Alley has positioned itself well for continued success in the future!
Fez Delivery aimed to bridge this gap and provide a logistics and dispatch service for businesses that did not have one. This would allow them to more effectively clean the premises, as touch-ups could be done on a regular basis rather than only in the morning. The business was successful from the start; Alley received many complaints from her customers about how poorly the janitors were performing their duties, but she was able to address these issues with Fez Delivery’s logistical service.
Fez Delivery is a start-up that provides on-demand courier and dispatch services to businesses in Nigeria. The company has faced numerous problems, including a lack of talent and logistics. Alley met with entrepreneurs and small business owners to understand their issues, and found that talent was the most pressing concern for them. Fez Delivery plans to overcome these challenges by partnering with other companies in the industry, focusing on quality services, and generating more revenue through advertising and online sales.
Fez Delivery believes that it can address some of the main issues that hinders the logistics industry from becoming more widespread. Away from price woes, delivery times, and reach, the startup sees an opportunity to cater to businesses with centralized data storage, order management systems and financial tracking capabilities. Operating on a subscription-based platform, Fez Delivery hopes to make it easy for businesses of all sizes to get started and make better use of data analytics in order to improve processes as well as increase efficiency.
Fez Delivery is a Nigerian startup that helps deliver debit cards and POS terminals to all the customers and agents across Nigeria. To meet up with the demand, Fez Delivery recently developed a SaaS platform to onboard and verify trained third-party two-wheeler logistics platforms, with fleet sizes of about five-10, to help complete orders that it can’t fulfill. These third-party partners share in the revenue Fez Delivery makes by charging individuals per delivery (based on the distance covered and size of items) and businesses a monthly flat-fee subscription (based on a set range of deliveries). This service has proved very popular among Nigerians as it offers an efficient way to get things done, while also giving small businesses access to cutting edge technology.
Looking to expand its reach in the continent, Fez Delivery is seeing positive growth with its 200,000 trips completed last year. The company plans to continue this momentum with an increased focus on creating value for its clientele base which includes some of the leading names in Africa. With a 20% month-on-month increase in revenue, it looks like Fez Delivery has everything it takes to continue growing and expanding within the African market.
Uber has faced some fierce competition in Nigeria, including Fez Delivery and its Uber Connect product, Kwik Delivery, among other upstarts. Alley argues that the startup’s differentiator is its hybrid model; while others operate on-demand, her startup is a hub and spoke model where they pick items from customers in bulk and take them to a central location where they’re zoned before assigning them to riders to complete. This allows Fez to provide technology while still retaining control over the assets on their platform.
Fez Delivery has developed a technology that is well-aligned with Ventures Platform’s investment thesis to support market-creating innovation in underserved industries such as logistics. This technology could disrupt the industry by making it easier for other businesses to compete and grow.
One of the problems Alley is looking to solve with her company is the lack of visibility into and understanding of the logistics and delivery space. This sector has been notoriously difficult to analyze, track, and understand, making it an out-of-the-box opportunity for companies like hers. By piecing together various data sources and working with various partners in this field, Alley’s team will be able to provide a better understanding of how consumer goods move from place to place – ultimately resulting in more informed buying decisions from consumers.
