NIGERIA – Nigerian on-demand delivery startup ShapShap has secured a seed extension investment as it bids to expand its capabilities and move into more markets.
The new funding is an investment of V8 Capital Partners through its Growth Labs Fund I and adds up to the undisclosed seed investment the startup received from Germany-based GreenTec Capital Partners last year.
The startup will use the new funding to expand its capabilities in last-mile delivery for businesses and individuals in Nigeria and is also looking at expanding to other African countries soon.
Founded in 2019, the startup offers motorbike delivery service that utilizes data and mobile technology to formalize the fragmented and highly inefficient same-day delivery service.
Since its inception, the startup has completed over 40,000 deliveries in Lagos and Abuja and is planning to expand to other countries.
“Technology is aiding the ability for businesses globally to reach their consumers faster, and Africa is no different,” said Khalil Halilu, CEO of ShapShap.
“We are building IP that makes last-mile logistics more effective. We have noticed a significant spike in distribution of goods and services through online channels and are committed to helping our clients succeed.”
The additional investment and impending expansion plans coincide with the increasing demand for fast delivery services evidenced by the rising of SMEs in the country.
The West African country’s e-commerce is growing rapidly following the explosion of affordable smartphones and cheap data.
The e-commerce market is increasing in its attractiveness due to convenience, good shopping experience, ability to view and shop for unlimited products across several channels (Omni channels) as well as multiple and secured electronic payment options.
While shopping online guarantees comfort and convenience, customers’ expectations to have access to their purchases as quickly as they would if buying from a traditional brick and mortar shop remains a huge challenge.
According to a Mckinsey report, “customers’ desire to get their goods delivered same day when ordered online tends to increase the value of online purchases but also creates an opportunity for the eCommerce and logistics market.”
Using the ShapShap platform integrated with eCommerce, orders placed by customers trigger a pickup from the vendor directly to the customer.
The platform immediately locates logistics providers closest to vendor locations to reduce pickup time.
While it may be true that logistics alone cannot solve all the problems of eCommerce, addressing the problems with delayed or failed delivery goes a long way to delivering on the same-day delivery promise and by extension the success of eCommerce.
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