Haul247, a Nigerian logistics startup, announced that it has raised $3 million in a seed funding round with $2 million equity investment from Gender-lens investing fund Alitheia Capital.
Haul247 intends to use the funds to grow its market share to about 20% and increase the number of multinationals on its platform to 50; while easing its expansion into other African countries where they are present.
Founded in 2020 by CEO Sehinde Afolayan, co-founders Tobi Obasa and Akindele Phillips, Haul247 is an end-to-end logistics tech API platform that connects businesses to haulage and warehousing assets all in one ecosystem. It claims to have over 1,000 trucks on its platform, 151,000 square metres of available space and moved 29.2 million kilograms.
According to the 2018 Logistics and Supply Chain Industry report, the value of the logistics sub-sector of the economy was estimated at N250 billion ($60 billion), making it one of the fastest-growing sectors. Haul 247 intends to play a major role despite larger competitors like kobo360 and Lori.
Haul247 has developed its own software that empowers individuals, enterprises, manufacturers, and FMCGs to easily book logistics services. This innovative system operates by receiving order requests from shippers, providing a quote, and subsequently matching the request with the most appropriate truck and warehouse for seamless fulfillment. Similarly, companies in need of warehouse facilities can utilize the same process, utilizing the system’s capabilities to track the status of their goods until they reach their final destination.
According to Afolayan, it is crucial for logistics platforms in Africa to address warehousing challenges in order to avoid future issues related to cost, efficiency, and risk. With its vision of becoming “Africa’s Airbnb for trucks and warehouses,” Haul247 differentiates itself from other platforms by providing comprehensive warehousing services. By positioning itself as a one-stop logistics solution, the startup actively engages in both primary and secondary distribution processes within the overall logistics workflow. Haul247 adopts a unique model that integrates haulage and warehousing, offering a seamless and integrated approach.
Haul247’s technology not only handles internal processes such as shipment tracking and asset utilization but also aims to introduce an electronic proof of delivery feature. This innovative feature is intended to replace the conventional practice of exchanging physical copies of delivery proof between suppliers and truck owners.
According to Haul247, they have more than 21 multinational companies on their platform, with 16 currently active. The CEO states that the logistics firm, which has been operating for three years, has achieved positive unit economics and maintains a gross margin of 20% to 22%. With a remarkable revenue growth rate of 50% month-on-month, the company’s asset utilization, as reported by its executives, stands as high as 95%. As a result, Haul247 anticipates closing the year with an annual revenue of $5 million.
Tokunboh Ishmael, managing partner at Alitheia Capital said, “We are excited to be at the forefront of optimizing logistics service delivery in key African markets, as trade and commerce is a key lever for driving development. Our investment further enables Haul247 to provide a seamless logistics solution for transporting and storing goods across the continent in a way that unlocks value and amplifies impact for individuals and companies throughout the value chain.”
Alithea Capital and Goodwell Investments recently achieved a first close of €57 million for their uMunthu II fund, which is dedicated to investing in early and growth-stage SMEs in Africa, with a particular focus on businesses led by women.
