Nigerian freight logistics startup MVX has raised $1.3 million in seed funding to expand operations and grow its team
Nigerian freight logistics startup MVX has raised $1.3 million in seed funding to expand operations and grow its team
MVX, which began as a booking service for chartered sea vessels before pivoting into a digital freight forwarding and trade finance venture last year, has raised $1.3 million in seed funding to help merchant shippers move cargoes more quickly.
In addition to Kepple Africa Ventures and The Continent Venture Partners, MVX has received funding from Founders Factory, Launch Africa and Capital Oak. A small number of angel investors from the United States, Japan, Nigeria, and South Africa also took part, according to the startup, which did not reveal their identities.
The two-year-old startup intends to use the funds to hire new employees, expand its operations, and improve its technology as part of the investment. MVX is also in discussions with investors about raising additional funds, most likely in the form of debt, for its trade financing product.
Tonye Membere-Otaji founded the company after failing miserably in his first two attempts at entrepreneurship. Mme Membere-Otaji had attempted to start a tech company, Membere & Longe, but had been unsuccessful, and she eventually joined the maritime logistics company Elschon in 2015.
Few months later, he developed the concept of a "Uber for Ships" under the name MVcharter. This venture, like the others, failed to take off.
In 2019, Membere-Otaji collaborated with Tobi Amusan to launch MVxchange, a platform that connects ships with charterers in West Africa's offshore oil and gas ecosystem. The platform received $100,000 in pre-seed funding from African venture capital firm Oui Capital. Amusan has been promoted to Chief Technology Officer at MVX.
In exchange for the services provided, such as trucking, warehouse storage, shipping, and cargo stuffing, MVX collects a commission from the customer.
About MVXtransit
MVXtransit, a new product from the company, was introduced last year. MVXtransit is a digital freight platform that allows for the booking and deployment of import, export, and land haulage services, as well as customs brokerage, in Nigeria, South Africa, Kenya, Tanzania, Rwanda, and Ghana, among other countries. It exports goods from these six African countries to the rest of the world, including the United States.
MVXpay, a finance and payment solution for freight operators, was also recently launched by the company, according to the company. The MVX brand has been adopted as the company's overall identity.
MVX is one of a handful of logistics-tech startups in Sub-Saharan Africa to receive funding this year. Jetstream, a technology-enabled supply chain venture based in Ghana, is another peer that has recently raised money through a funding round.
Aerospace company Jetstream, which is based in the city of Tema, has raised $3 million in a seed round led by Alitheia IDF and including Golden Palm Investments, 4DX Capital, Lightspeed Venture Partners, Asia Pacific Land, Breyer Labs, and MSA Capital.
Africa-focused data-driven vertical broker, the startup has established itself as a market leader for cross-border trade in the continent. Each trade corridor's platform is supported by a fulfillment network of third-party customs brokers, freight forwarders, terminal operators, and other logistics providers who work together to fulfill orders.
The following is what Membere-Otaji said in a statement: "We make it simple and convenient for businesses. Our team handles everything instead of our clients trying to do everything themselves, which can be chaotic and cause distraction from their core businesses. This is possible because we have all of these service providers on one platform. Consequently, as shippers work with us, MVX collaborates with approximately seven to ten additional service providers.” Some merchants lack adequate capital to pay for freight or supply and are looking to move shipments from Africa to the United States or China; therefore, this concept works best for them to the best of their trade. They will be able to request credit by utilizing MVX. It then distributes the money to its financial partners, who in turn lend the money to consumers who meet the minimum requirements.
Following that, MVX arranges for the shipment to be shipped overseas and to be delivered. Once the transaction is completed, the merchant reimburses the customer, with commissions shared among all partners.
The company has recorded more than 300 shipments so far this year, and it expects to end the year with 1,500 shipments. According to the CEO, the company has outperformed its 2020 revenue and traction projections so far.
