Jetstream Africa, the technology-enabled logistics company, has secured a $ 13 million pre-Series A financing to scale into various markets in the continent. The funds will be used to support Jetstream’s expansion into new countries and the continued development of its technology platform, which vertically aggregates the fragmented financing and logistics vendors that support trade across the continent’s 54 countries.
The round included debt financing provided by the French development institution Proparco (Digital Africa Bridge Fund), fintech lender, and private equity firm Cauris. The equity investors include Octerra, Wuri Ventures, Seed9, The MBA Fund and ASCVC. Existing investors Alitheia IDF and Golden Palm participated as well.
The company pivoted its business model a couple of months to be a digital freight forwarder to focus only on cargo owners. It now involves itself with the end-to-end movement of shippers’ cargo (both import and export), charges a fee and, most importantly, supplies finance to those who need it. Jetstream achieved product-market fit after switching its business model and has grown its trade finance product from the $1 million debt it secured in mid-2021 to about $9 million while also becoming EBITDA positive. According to the CEO, it expects to grow the loan book by five folds by the end of the year. Also, revenue has increased by 48% and active customers by 102% within the past year.
Founded in 2018 by Miishe Addy and Solomon Torgbor, the startup is currently in 29 countries, with 12 in Africa.
Source:Techcrunch
