Lagos-based delivery startup, Kwik, is planning to raise €2 million to facilitate its plan to scale up business in Nigeria’s economic capital. The startup, which began operations in Lagos last year, wants to increase its competitiveness especially now that Gokada, Max, and other bike-hailing operators are trooping in to the last-mile delivery market.
Kwik has been raising funds, including a personal investment from Ubisoft‘s Founder & Chief Executive Officer, Yves Guillemot. Although the investment by Guillemot was not disclosed, the CEO of Africa Delivery Technologies, Romain Poirot-Lellig, told Nairametrics that it is in the process of raising €2 million. He also disclosed that “we have more commitments in this round, but they have not been disclosed.”
Africa Delivery Technologies is the company behind Kwik Delivery. It launched in Nigeria last year to compete in the delivery service, with a focus on business to business. Note that the last-mile delivery business is a budding market that has recently witnessed the influx of bike-hailing operators.
Bike-hailing operators grab market share: The ban on bike-hailing in Lagos compelled most of the operators to switch market and change their services into last-mile delivery. Interestingly, the entry of Max, Gokada, and Opay into the last-mile delivery business has slashed the market shares of traditional delivery firms like GIG Logistics, Kwik, delivery man, Easy Dispatch, Brain Express Courier, etc.
But Poirot-Lellig said the company is “not concerned” about the influx of bike-hailing operators. Kwik had announced last year that the company reached 2000 verified customers two months after launch, and has since grown that number to 10,000 B2B customers. Some of its clients include Medsaf, SPIE and Mitsubishi.
Coronavirus aiding Kwik amidst lockdown: While some businesses have shut down because of the Coronavirus pandemic, delivery firms have become essential service providers, helping to deliver parcels to those in need of them.
“The terrible situation of Covid-19 has made life much harder for many Lagosians and their businesses. Delivery platforms have proven a vital tool to provide essential products to Lagos homes and busineses.
“We joined hands with SPAR Nigeria to put together in a few days a reliable delivery service for groceries, enabling Lagossians to keep feeding their families without exposing themselves,” Poirot-Lellig told Nairametrics.
With the hope of raising €2 million, the founder said its objective, “is to scale up the business in Lagos and to participate actively to the digital transformation of commerce and last-mile logistics in Nigeria.”
Kwik has expansion plans: Poirot-Lellig also revealed that Kwik plans to expand into other cities in Nigeria in the coming years.
“We plan to make the Kwik delivery service available to customers and delivery partners in other major Nigerian cities, while making sure that we keep growing the user base in Lagos.”