Haul247, a Nigerian end-to-end logistics platform that connects businesses to haulage and warehousing assets, has successfully raised a seed round of $3 million. The investment comprises equity capital provided by Alitheia Capital, a gender-lens investing fund, and $1 million in debt financing contributed by Investment One.
With the recent investment, Haul247 intends to capture a larger market share, aiming for about 20% and increasing the number of multinationals on its platform to 50. The startup also plans to expand its operations into other African countries where it is present. The founders of Haul247 believe that the timing of their fundraising aligns perfectly with the critical importance of logistics for the success of the African Continental Free Trade Area (AfCFTA). By expanding into new African countries and creating value for stakeholders, asset owners, warehouse operators, and truck owners, Haul247 aims to play a significant role in unlocking the full potential of the logistics industry throughout the continent.
Why the Investors Invested
The investors’ decision to invest in Haul247 can be attributed to several significant factors. Firstly, Haul247 addresses a critical need in the market by offering a comprehensive solution to the challenges faced by businesses in the logistics and warehousing sector. This ability to provide end-to-end services distinguishes Haul247 from other platforms, positioning it as a one-stop logistics solution. The investors recognized the potential for Haul247 to meet the increasing demand for efficient and reliable logistics services in Africa.
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Secondly, the CEO of Haul247, Sehinde Afolayan, has a wealth of experience in the African supply chain business, spanning over 15 years. This expertise and industry knowledge instilled confidence in the investors regarding the leadership and management capabilities of the Haul247 team.
Furthermore, the investors were likely attracted to Haul247’s growth potential and positive unit economics. The company has achieved a gross margin of 20% to 22% and has been experiencing a remarkable 50% month-on-month revenue growth. With such promising financial performance, Haul247 is projecting $5 million in annual revenue by the end of the year. This strong growth trajectory and solid financial foundation make Haul247 an attractive investment opportunity.
A Look at Haul247
Haul247 was founded in 2020 by CEO Sehinde Afolayan, along with co-founders Tobi Obasa and Akindele Phillips. The idea for the startup was born out of Afolayan’s previous agriculture business, which was adversely affected by poor logistics and warehousing services. Afolayan, drawing on his firsthand experience and driven by a desire to solve these challenges, decided to launch Haul247.
The logistics startup offers a convenient solution for small businesses and large companies to book trucks and warehouses across multiple African geolocations. With a statement from the company, it is revealed that Haul247 currently boasts a fleet of over 1,000 trucks available on its platform and provides access to approximately 151,000 square meters of warehouse space in various locations.
Haul247 utilizes its proprietary software, which enables individuals, enterprises, manufacturers, and FMCGs to book logistics services seamlessly. The process involves taking an order request from a shipper, attaching a quote, and subsequently matching the request with the most suitable truck and warehouse for efficient fulfillment. The platform also allows shippers to track the status of their goods until they reach their intended destination.
The primary markets of Haul247 are in Nigeria and other African countries. The startup aims to become “Africa’s Airbnb for trucks and warehouses,” offering its comprehensive warehousing services to both multinationals and farmers. Haul247 differentiates itself from competitors by integrating haulage and warehousing, actively participating in the primary and secondary distribution processes of the overall logistics workflow.
Haul247’s technology-driven approach extends beyond logistics coordination. The company has developed proprietary software to manage internal processes, such as tracking shipments and optimizing asset utilization. In addition, Haul247 plans to introduce an electronic proof of delivery feature, which will replace traditional physical copies and streamline payment processes.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard