Tech

Nigeria’s digital cargo provider MVX has landed $ 1.3 million to help shippers move their cargo faster – TechCrunch

In Africa, it can be difficult to handle charter and sea freight.Sector mainly Inefficient and fragmented. Merchants also struggle to access finance to conduct cross-border trade on the continent. Several Nigerian-based digital freight companies are tackling this issue MVX.. The company today announced a $ 1.3 million seed round to step up its efforts.

Tonye Membere-Otaji I thought about the idea of ​​MVX in 2016. Membere-Otaji, who worked in the maritime industry (who ran his family business and had the professional ability to build apps and websites for businesses). Intrigued by There was no online marketplace for ships.

“There were too many intermediaries and the process was difficult, so we decided to find a way to solve the problem of finding a ship,” he told TechCrunch. butSeveral issues related to lack of the right team to build the product have stagnated the company’s progress.. In 2019, Membere-Otaji finally launched a company with the CTO Tobiam Sun rear Secure $ 100,000 pre-seed investment from Oui Capital, Pan-African Venture Capital Company..

Company Was called The first is MVX change. Its business model revolved around providing a support vessel reservation platform that matches charter requests from operators using available offshore support vessels (OSVs).

However, in March 2020, the company made a sharp pivot and tweaked the model. CEO Membere-Otaji cites oil price uncertainty and pandemics as the reasons behind the decision..

“The demand for fossil fuels will steadily decline in the coming decades, so we couldn’t charter ships in the long run. I wanted to be scalable, impactful, and proud of the next 20 years, “he added...

Later, the digital cargo booking platform MVX transit was launched, allowing cargo owners to find transactions in moving containers throughout Nigeria. In April of this year, the company launched MVXpay, a financial and payment solution for providing trade finance to freight operators...However, both offerings are currently Rolled In one: MVX.

According to the CEO, MVX wants to make freight transportation and trade finance easier for African companies by bringing the booking and deployment process online. Startups have expanded beyond Nigeria, with merchants from West African countries You can use its platform to move cargo in and out of your country, as well as Kenya, South Africa, Ghana and Rwanda.

MVX charges fees for the services provided, such as trucking, warehousing, shipping and cargo stuffing.

“NS Make it easy and convenient for your business.Instead of trying to do everything yourself, it can be chaotic and cause All of these service providers are on one platform, so you’ll be distracted from your core business and handle everything. So, as shippers work with us, MVX will work with 7-10 other service providers, “says Membere-Otaji.

Cross-border logistics services market Is said to be Achieve $ 32 billion in revenue by 2025. Many Enterprise Is required For the market to reach its full potential. That’s a fact, and investors are aware of it. For example, Ghana’s Jetstream Providing similar services and raising $ 3 million 2 months ago.. SEND is another example. YC Supports Startups..

butWhat stands out in MVX, according to Membere-Otaji, is that the company considers itself a trading finance company.

This concept combines the best of both worlds with fintech and trade. This means that for merchants trying to move cargo from Africa to the United States or China, some merchants lack sufficient capital for their cargo and supply. With MVX you can proceed to request credit. MVX hands it over to the financial partner, who lends it to the consumer if it meets the minimum requirements.. The MVX then processes the shipment and ships it overseas. Transaction once End, Merchant repays and all partners receive commissions..

“Our work true It is about empowering African trade, and freight is the way to do it. From all the steps involved in the process, from trade and financial offerings to warehousing and payment processing, we want to play in all its areas. Not many companies like us have that transactional financial component. There is also great potential in the offline market. The reason this issue is currently occurring is because the transaction is offline. Our strategy to capture the offline market is also important. “

The Pan-African Freight Company has already recorded more than 300 shipments this year and will end at 1,500. By revenue and traction, the CEO claims the company has exceeded 2020 numbers.

MVX has raised seed round funding from Africa-focused companies Kepple Africa, The Continent Venture Partners, Founders Factory, Launch Africa and Capital Oak. Angel investors from the United States, Japan, Nigeria and South Africa also participated. 2-year-old startup uses investment Expand operations, hire staff and improve technology.. MVX is also discussing with investors to raise more money, perhaps debt, for its trade financial instruments...

Sinada Satoshi, general partner of Kepple Africa, said in a statement: MVX is building breakthrough technologies and platforms that will revolutionize the way African companies ship and trade around the world. “

Nigeria’s digital cargo provider MVX has landed $ 1.3 million to help shippers move their cargo faster – TechCrunch

Source link Nigeria’s digital cargo provider MVX has landed $ 1.3 million to help shippers move their cargo faster – TechCrunch

Related Articles

Back to top button