By October 11, 2018

Nigerian Logistics Startup Parcel-It Cinches Investment From GreenTec Capital

By October 11, 2018

It has been announced that Nigerian logistics startup Parcel-it, which was launched in 2017 employing an app, has successfully secured funding from Germany-based GreenTec Capital, with plans to expand further.

The Lagos-based company, which is an on-demand marketplace for dispatch riders, has been able to register hundreds of users and have processed more than 200 transactions. The startup was founded to address the wider issues facing the logistics sector, such as security by means of screening and training riders and leveling up GPS tracking.

According to a post by GreenTec, the expansion of the Nigerian middle class has culminated in the development of an active, thriving e-commerce market to serve the growing need of online shoppers. The only issues seriously tackling aspect is in the form of inconvenient logistics solutions – an average delivery could take three days or more. Parcel-it incepted to look into this problem and use it innovative app to bring about a lasting solution to the on-time delivery of purchases.

Parcel-it is an alumnus of the Tony Elumelu entrepreneurship initiative and has successfully been able to build a system that claims to have more than 20,000 daily delivery requests around Lagos, representing USD 13 Bn of the annual market. The startup aggregates courier companies to arrive at a brick-wall supply of riders. The dispatch riders register with the platform’ mobile app as independent contractors, which enables them to get trained to deliver courteously and on time, while they earn additional revenue during their leisure time.

Riders on the Parcel-it platform are provided with a GPS-based location device for their vehicles, tracking the deliveries in transit and bringing about real-time information on the package’s journey. Registered drivers are assigned distributions by proximity to the pick-up location, contributing to the creation of an open marketplace approach that allows for expedient dispatch assignments available to riders.

The amount of the investment round remains undisclosed, and GreenTec will be on close working terms with the startup given incorporating a robust fintech solution to help further the waxing of the platform.

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