ShapShap, a Nigerian on-demand delivery firm, has received a seed expansion investment from V8 Capital Partners in order to grow its capabilities and enter new markets.
ShapShap is an on-demand motorcycle delivery service founded in 2019 that uses data and mobile technologies to formalize the fractured and unreliable same-day delivery service. In Lagos and Abuja, the company has executed over 40,000 deliveries.
ShapShap received seed funding from GreenTec Capital Partners in Germany late last year, and it has now announced an extension to that round, secured from V8 Capital Partners through its Growth Labs Fund.
The new money will be used to develop the company’s current abilities in last-mile delivery for businesses and individuals in Nigeria, with plans to extend to other African countries in the near future.
According to Khalil Halilu, CEO of ShapShap, technology is assisting businesses throughout the world in reaching their customers faster, and Africa is no exception.
ShapShap is developing intellectual property that will improve the efficiency of last-mile logistics. He also stated that the company has witnessed a considerable increase in the distribution of goods and services via online channels and that it is devoted to assisting its customers in their endeavors.
ShapShap’s unique approach to last-mile logistics, combined with Khalil’s established track record, creates a unique investment opportunity, according to Tobi Oke, the managing partner at V8 Capital Partners.
He expressed his delight at the prospect of collaborating with Khalil on a variety of projects, including delivering completely automated last-mile delivery infrastructure to many portfolio companies.
The impacts of COVID-19 lockdown and lower discretionary income have affected businesses all across the world, but perhaps none more so than those in Africa’s customer-concentrated sectors.
Food vendors, clothing merchants, and other consumer goods providers all fall into this category, and as the outbreak has driven people across the continent to stay away from shopping malls and other populated public spaces, these businesses have encountered significant hurdles.
This has highlighted the essential need for African countries to develop and implement a digital-first approach to work, commerce, and other elements of daily life.
However, last-mile delivery in Africa grew, and companies like GoKada, Kwik, and ShapShap began to raise financing to extend their services and reach new markets.
Since it performs such a significant part in making customers happy, the last-mile delivery stage of logistics is critical to overall supply chain management success. It’s also quite hard to get right.
As a result, these businesses must not only expand into new regions but also improve their offerings to fulfill customer demands.
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