Ghanaian e-logistics company, JetStream Africa has just raised $13 million in equity and debt pre-Series A funding. The debt round was led by Fintech lender Cauris while the equity round saw participation from French development institution Proparco through the Digital Africa Bridge Fund; ASC VC, a venture fund founded by executives of the supply chain visibility platform Project44; Nigerian venture capital fund Octerra; Senegal’s Wuri Ventures; Seed9, a syndicate founded by Google alumni; the MBA Fund; the W Fund; and existing investors like Alitheia, IDF, and Golden Palm.
Founded in 2018 by Miishe Addy, Racquel Micenheimer Wilson and Solomon Torgbor, JetStream aims to enable its customers to make better decisions by integrating the various banking and logistics companies that support trade throughout Africa. The company’s platform allows exporters and importers to apply for trade financing, book shipments, and insure their goods in a fraction of the time it would take to manage such operations separately with different vendors.
The business model of the company is built on charging a fee for independent logistics services such as air, ocean, and land transportation, customs clearance, pickup, delivery, and handling. The company also offers financing to its customers by paying all of their vendors as a loan to the customer, which has to be repaid 90 days after the shipment.
Jetstream claims that after modifying its business model, it has gone from disbursing one loan per month to up to 50 loans per month, becoming EBITDA positive. According to a statement released by the e-logistics startup, which handles 47% air freight, 44% ocean freight, and 9% land transport, revenue has increased by 48% and active customers by 102% in the last year.
Jetstream has partnered with several other key players, such as multinational banks like Societe Generale, pan-African e-insurance broker LAMI, and cross-border payments operator MFS Africa, to establish itself as “the digital integrator of all the resources its customers need to grow their supply chains”.
Speaking on the investment, Tokunboh Ishmael, co-founder and principal partner at Alitheia IDF, said in a statement, “This round of funding supports Jetstream’s expansion to new markets which capitalizes on trade policies like AfCFTA, enabling richer inter-continental trade which is needed to support inclusive economic development and unleashes the continent’s full potential. Alitheia IDF is proud to work with this visionary company in ushering in a bold new future for Africa.”
Currently operating in 29 countries with 12 in Africa, JetStream says this new investment will allow it to expand into new countries and continue to develop its technology platform, which vertically aggregates fragmented logistics and financing vendors in the world of African trade.