Press Release
Fez, a leading logistics startup secures $1 million
Fez Delivery Team
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.
mediaReach OMD Nigeria Board of Directors has confirmed the appointment of Stephen Onaivi effective January 1st, 2024. Onaivi will become the managing director of the nation’s foremost media investment and management agency, known for its thought leadership and innovativeness. The Regional Chief Executive Officer of Omnicom Media Group West & Central Africa (OMG WeCA), Alaba Fadero, announced Onaivi’s appointment in Lagos.
According to Fadero, “Stephen’s appointment is the result of a careful succession planning and talent development program. He is expected to maintain OMD’s industry leadership and drive our regional growth strategy across the three critical global pillars of Client, People, and Capability.”
Onaivi is a homegrown, globally evolved professional who has been responsible for driving innovation across major brands, including Diageo, Airtel, Olam, Vodafone, Virgin Atlantic, Google, Uber, and GSK, to mention a few across the West and Central African region.
In addition to being the Managing Director of OMD Nigeria, he has a mandate to drive the OMD brand across West and Central Africa to enhance client value and ensure the seamless integration of OMD values, technology, and strategic processes.
Before his new appointment, Onaivi was the Managing Director of OMD Ghana, where he contributed to developing a multi-disciplinary, forward-looking media and advertising industry and serviced an array of national, multinational, and regional clients.
Reacting to his new appointment, Onaivi expressed confidence that the industry leadership and innovative strides of OMD Nigeria would be maintained under his leadership, stating, “We are proud of our thought leadership and pragmatic approach to providing value-driven services to our clients, and they should expect more with our team’s renewed commitment.”
According to Onaivi, key focus areas of OMD Nigeria will include innovation driven by technology and marketing science, the development of local talents, and enhanced strategic thinking to improve the agency’s value proposition to its clients.
Onaivi is a communication expert who has attended several management training courses and conferences from renowned business schools across the globe, including the Lagos Business School and London Business School. He is a keen golfer and a firm believer in the importance of community service. He is also the founder of the “Play with Stephen” golf tournament held annually in Accra, Ghana. The tournament leverages golf as a ‘passion point’ for key decision-makers to create awareness and support for Autism across Africa.
Endeavor Nigeria Chairman, Bolaji Balogun (Photo: Eleanor Goodey).
Endeavor Nigeria’s board of directors has appointed Bolaji Balogun, Chief Executive Officer at Chapel Hill Denham, as its new Chairman. Bolaji was previously Endeavor Nigeria’s Vice Chairman and succeeds Atedo Peterside, Endeavor Nigeria’s founding board chairman.
“I am honored to be asked to lead Endeavor Nigeria’s Board at this time, building on the strong platform provided by Endeavor Nigeria’s founding Chairman, driving our commitment to providing high-impact entrepreneurs with the access to capital, networks and mentorship that are so important to building a strong entrepreneurial ecosystem. I believe private capital and entrepreneurship are mission critical to delivering sustainable development.”
Outgoing Chairman Atedo Peterside stated, “It has been a pleasure serving as the Chairman of Endeavor Nigeria in its first five years in Nigeria, during which we have seen the organization help to accelerate high-impact entrepreneurship in Nigeria. Once Endeavor, always Endeavor and I look forward to offering my support to Endeavor Nigeria under the capable leadership of Bolaji and all his colleagues on the Board.”
We are also pleased to announce that Endeavor Entrepreneurs Olugbenga ‘GB’ Agboola (Founder and CEO, Flutterwave) and Christian Wessels (President and co-founder, Daystar Power) have been appointed to the Endeavor Nigeria Board, becoming the first Endeavor Nigeria Entrepreneurs to join the local office’s board.
GB, founder and CEO of Flutterwave Inc., a FinTech company facilitating cross-border payment transactions of small to large African businesses via one API, was selected as an Endeavor Entrepreneur in April 2019. Christian Wessels, President & co-founder of Daystar Power, a leading provider of hybrid solar power solutions for commercial and industrial businesses in Africa, was selected as an Endeavor Entrepreneur in February 2020.
“As an Endeavor Entrepreneur, I have experienced firsthand the invaluable impact that this organization can have on scaling a company,” said Wessels. “I look forward to supporting both Endeavor Nigeria and its entrepreneurs.”
“Joining the Endeavor Nigeria Board of Directors is a full-circle moment for me. Endeavor has been instrumental in Flutterwave’s trajectory, and I’m excited to pay it forward by supporting the next generation of Endeavor Entrepreneurs. I look forward to helping drive transformative change in our local tech ecosystem“, said Agboola.
“We are thrilled to have GB and Christian join us as the first Endeavor Entrepreneurs on the board and offer their unique perspective representing Endeavor Entrepreneurs and paying it forward,” said Endeavor Nigeria Board Chairman Bolaji Balogun.
Endeavor is a non-profit organization that supports high-impact entrepreneurs worldwide to transform economies locally and globally. Having launched its operation in September 2019, Endeavor Nigeria possesses an active local board of business leaders who believe high-impact entrepreneurship can transform Nigeria. A complete list of board members may be found here.
Endeavor Nigeria’s objective is to accelerate the growth of high-impact entrepreneurs through access to mentorship, talent, capital and markets. Endeavor Nigeria currently supports 16 companies and 35 entrepreneurs from diverse industries that will impact the Nigerian economy through job creation and economic opportunities as they scale.
Impact investor Goodwell Investments has joined forces with social impact investing cooperative Oikocredit and Global Partnerships/Eleos Social Venture Fund (GP SVF) to provide USD 8.5 million in equity to Zambian social enterprise Good Nature Agro (GNA).
Good Nature Agro currently supports about 30,000 southern African smallholder farmers in growing drought-resistant, early-maturing legume seed varieties, including beans, cowpeas, soyabeans and groundnuts. Its agritech-based business model encompasses access to inputs, input finance, smart and reduced fertiliser use, climate-smart training, and a guaranteed market for high-value produce, giving farmers a wealth of support to professionalise their businesses and establish a clear path out of poverty.
In line with Goodwell’s mission to support innovative African companies that are contributing to a more inclusive society, the organisation first invested in Good Nature Agro in 2020 via its uMunthu I fund. In the years since, GNA has continued to expand its ambitions and reach, consistently growing farmers’ productivity and incomes, as well as improving their access to finance. In addition, the company has recently opened a new factory in Lukasa.
To enable GNA’s next phase of growth, Goodwell Investments led the company’s series B round, partnering with Oikocredit and GP SVF to raise a total of USD 8.5 million. With this new investor capital, GNA aims to grow its client base to 50,000 farmers by 2027. It will also deepen its engagement with its clients, improve its integration of whole farm income, develop new genetics to deliver greater yields and resilience, and innovate to keep its clients at the centre of agricultural supply chains.
Neo Maruatona Ratau, the Investment Director at Goodwell Investments, eagerly anticipates GNA’s future accomplishments, stating, “The remarkable growth GNA has experienced since our initial investment has been impressive. We have observed the company’s ability to deliver robust financial returns and make a significant social impact, all thanks to its farmer-centric business model, which effectively integrates smallholder farmers into the agricultural value chain. We are delighted to collaborate with investors Oikocredit and Global Partnerships to support GNA’s upcoming growth phase, which will be fueled by the convergence of digital and financial inclusion, along with strategic inorganic growth initiatives.”
Samuel Kibiri, Oikocredit’s Equity Officer for Africa, is equally enthusiastic about GNA’s potential for creating impact, saying, “Our new partnership with Good Nature Agro will enable Oikocredit to help more low-income African farmers improve their livelihoods through improved yields and access to markets. We’re delighted to be co-investing with like-minded investors in an innovative business with a clear mission to move farmers out of poverty.”
Finally, Jim Villanueva, Managing Director of GP SVF at Global Partnerships, is confident in GNA’s ability to continue to deliver remarkable results, saying, “We first invested in GNA during their seed round in 2018 and have witnessed the enterprise’s ability to adapt and scale its offering to enable farmers to increase and diversify their incomes, in the face of both climate change and gender inequality. We are proud of the results achieved to date and the opportunity to support GNA in this next chapter of growth and impact.”
Reflecting on the new investment, Carl Jensen, CEO of Good Nature Agro comments, “Good Nature has broken the boundaries of most agribusinesses by engaging the full value chain – connecting growers, aggregators, processors and consumers – and delivering exceptional service through a hybrid tech and ‘boots on the ground’ model. We very much welcome Oikocredit as a new investor, endorsing our approach and potential, and are equally grateful for the partnership and trust of our existing investors Goodwell and GP SVF who participated in this round.”
