Nigeria logistics startup MVX raises $1.3M to expand digital logistics offering
It is barely a month since MVX then MVXChange rebranded by adopting the first three letters as the official brand recognition name. The move by the digital logistics startup move was primarily aimed at capturing its product and service offerings and overall ambition under one umbrella. The target market for cross-border logistics is estimated to exceed $32 billion in 2025 – necessitating the need for several other companies such as MVX to enter the market segment and meet the demand.
MVX has just raised $1.3 million in a round led by Kepple Africa alongside Founders Factory, Continent Venture Partners, Capital Oak, and Launch Africa. There was also participation from other investors in the USA, Nigeria, Japan, and South Africa.
The logistics sector across Africa is known for its high level of fragmentation and inefficiencies. MVX has decided to play a role in helping merchants access finance to carry out cross-border trade in the continent. MVX claims to also have operations outside Nigeria in markets such as Kenya, Ghana, South Africa, and Rwanda.
MVX was launched in 2019 by Tonye Membere-Otaji alongside Tobi Amusan after securing a $100,000 pre-seed investment from Oui Capital. After several pivots and tweaks on its initial business model, they launched a digital freight booking platform MVXtransit, then later MVXpay – a finance and payment solution. MVX earns revenue from charging a commission on the services it provides for instance trucking, shipping, warehousing, and cargo stuffing. Other logistics platforms in the space are Ghana’s Jetstream and YC-backed SEND.
According to TechCrunch, MVX has already elicited traction of over 300 shipments this year with plans to level off the number at 1500. MVX is also one of the AfricArena alumni.