Ghanaian e-logistics company Jetstream Africa has announced it raised $13 million in equity and debt pre-Series A financing.
The debt funding was provided fully by private equity firm Cauris while equity investors include Octerra, Wuri Ventures, Seed9 and other financiers.
Jetstream Africa is based in Tema, Ghana and has operations across 14 African countries. The company started off with two main products: the first is the provision of logistic services to cargo owners dealing with import and export and the other one is distribution of financing to freight forwarders. The two products have since been collapsed into one, allowing the company to serve only cargo owners.
Company CEO Miishe Addy said that they had to adjust the products after observing market behaviour.
“Running those two lines side by side, we observed that the import or export business controls the supply chain,” she said, “Although the cargo owners and freight forwarders have a lot of information asymmetry, the importer and exporter can put pressure on the freight forwarder to digitize the supply chain. We simplified our business into just the import-export product line by directly them with a combination of trade financing and logistics.”
Cross-border logistics services are expected to raise about $32 billion in revenue by 2025. The market has attracted several players across the continent eyeing a piece of the pie.