Rapid urbanization and economic growth in Africa have contributed to a rise in e-commerce activity.
Simultaneously, the lack of developed transportation infrastructure and logistics networks in many African countries poses a significant challenge for businesses attempting to move goods across the continent.
This creates a significant market opportunity for e-logistics platforms that can assist businesses in overcoming logistical challenges.
Ghanaian e-logistics platform, Jetstream was founded in 2018 by Miishe Addy and Solomon Torgbor with the goal of giving African businesses greater visibility and control over their global supply chains.
Following a successful $3 million seed round, the company announced today that it has raised $13 million in a Series A round of funding.
Initially, Jetstream provided two services: logistics for cargo owners handling imports and exports, and financing for freight forwarders. Recently, however, they have consolidated these two services into a single one, focusing exclusively on cargo owners. According to CEO Miishe Addy, the pivot helped Jetstream in achieving product-market fit.
Since adopting this new strategy, Jetstream has experienced significant growth. The company estimates that its trade finance product has disbursed approximately $9 million in loans to date, up from $1 million at the middle of 2021. By the end of 2023, it intends to increase this by five times.
Additionally, in the past year, the company’s revenue has grown by 48% and its active customer base by 102%. Currently, 47% of the freight handled by Jetstream is transported via air, 44% via ocean, and 9% via ground.
Twelve of the 29 countries where the company currently operates are in Africa. The funds will be used to support Jetstream’s expansion into new countries and its ongoing technological platform development.