- Ghanaian logistics startup, Jetstream Africa, has raised $13 million in a pre-Series A round.
- It follows a $3 million seed round in 2021 to build digital infrastructure for Africa’s trade corridors.
- The company allows African businesses to see and control their cross-border supply chains. It uses technology to move cargo across borders clearly and simply.
Ghanaian logistics startup, Jetstream Africa, has raised $13 million in pre-Series A equity and debt financing to expand to other countries.
Cauris provided debt funding, while Octerra, Wuri Ventures, Seed9, The MBA Fund, French development institution Proparco, ASCVC, Alitheia IDF, and Golden Palm contributed equity.
Miishe Addy (CEO) and Solomon Torgbor (COO) founded Jetstream in 2018 to allow African businesses to see and control their cross-border supply chains. It gathers and connects private sector logistics providers at African ports and borders.
When it launched, Jetstream Africa said it offered logistics services to cargo owners who import and export goods and financing to freight forwarders. However, in recent months, Jetstream has bundled both products to serve only cargo owners.
The company’s new business model is one of a freight forwarder. The company now handles the entire movement of shippers' cargo (both import and export), charges a fee, and, most importantly, provides financing to those in need.
Jetstream claims its trade finance product has grown from a $1 million debt secured in mid-2021 to approximately $9 million in total loans disbursed thus far. It expects to increase it by fivefold by the end of 2023.
After switching its business model, the company claims to have scaled from disbursing one loan per month to up to 50 loans per month, becoming EBITDA (earnings before interest, taxes, depreciation, and amortisation) positive.
In addition, revenue has increased by 48% and active customers by 102% in the last year, according to a statement released by the e-logistics startup, which handles 47% air freight, 44% ocean freight, and 9% ground transport.
Jetstream is currently available in 29 countries, with 12 of them located in Africa.
It plans to use the funds to expand into new markets and further develop its technology platform, which vertically aggregates fragmented logistics and financing vendors in the African trade market.
In 2021, the company closed a $3 million seed round to build digital infrastructure for Africa’s trade corridors.