VC-Backed Transport and Logistics in Africa
Over the past few years, we have seen a definite shift in how people move things and around. In the wake of the fourth industrial revolution, digitization has made its way into the transport and logistics sector as African start-ups provide solutions for moving goods and people.
The past year was a mixed bag for transport and logistics companies; faced with Covid-19 restrictions, some start-ups faced major hurdles, in Kampala for instance, where motorcycle taxis were banned to curb the spread of the virus. Other transport and logistics companies, such as delivery platforms, thrived during the same period as people turned to delivery apps to get food and other goods to their homes.
Launching at the beginning of this year, the African Continental Free Trade Agreement (AfCFTA) seeks to remove restrictions on travel and trade for Africans, making efficient transport and logistics across the continent increasingly important.
How are African transport and logistics companies rising to the challenge?
In August 2021, Alerzo, a transport and logistics company digitising the distribution process for traditional traders and SMEs in Nigeria secured $10.5 million USD in a Series A funding round. In North Africa, MaxAb, a B2B food and grocery delivery start-up also announced an additional $15 million USD to their Series A funding round closing at over $60 million USD as they acquired WaystoCap, a Moroccan counterpart, to expand their regional coverage.
Our research team found over 430 African transport and logistics start-ups in Africa in our database and of these, 65% were founded during or after 2017. This year, 30 transport and logistic companies have secured VC Funding over 37 funding rounds (excluding grants, non-equity fundraises, crowdfunding and corporate rounds).