Sendbox, A Nigerian Logistics Startup, Raises $1.8 Million In Seed Funding

Sendbox, a Nigerian logistics startup, raises $1.8 million in seed funding

Sentbox, a Nigerian social commerce delivery platform that connects people to each other, has raised $1.8 million in a seed round of funding to help it expand its operations.

Enza Capital, FJLabs, and Golden Palm Investments joined 4DX Ventures in leading the round, which included participation from other investors. In addition, Flexport and Y Combinator were present. In addition to the $125,000 investment from Y Combinator and an undisclosed sum from Microtraction, the startup has received approximately $2 million in total funding to date, according to the company.

Since the company's official launch in 2018, its technology has been used by more than 10,000 merchants worldwide. The startup also claims to have completed over 200,000 deliveries since its inception, with between 35 and 40% of those being international deliveries, according to its website.

Sendbox was chosen for the investment, according to Walter Baddoo, co-founder and general partner of 4DXVentures, because of the company's growth and the solution it provides to the logistics industry.

Logistics for social commerce

The ability to obtain sufficient logistics services has proven to be extremely difficult for merchants and individuals who run microbusinesses. Sendbox, on the other hand, asserts that it wishes to assist these businesses in carrying out their e-commerce responsibilities as effectively as possible.

According to Emotu Balogun, CEO of Sendbox, the company's mission is "to assist small e-commerce merchants who sell directly to customers through their own online and offline channels with fulfillment."

Next-day delivery is available within Lagos, nationwide delivery is available within three to five days, and international delivery is available within five to seven days, depending on the location.

Sendbox provides local delivery in Nigeria as well as international delivery to more than 200 countries.

Requests for pickup and delivery can be made by either the seller or the customer, and businesses can make use of bill payment and escrow services to streamline operations. The startup also assists businesses in increasing sales by utilizing additional channels, which it accomplishes through the use of its agents and franchise sellers.

It's estimated that the African courier delivery industry is worth between $250 and $300 billion, and Sendbox is just one of the many companies competing to get their hands on a piece of the action.

The goal of both organizations is the same: to make it easier for small and medium-sized enterprises (SMEs) to conduct business.

Using the funds raised from this new investment, the startup hopes to broaden the scope of its product capabilities to include financing and payments. In addition, the company plans to expand into other African countries and hire new employees in order to achieve these objectives.