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Senegalese logistics and delivery company PAPS raises $4.5M led by 4DX Ventures and Orange – TechCrunch

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Senegalese logistics and delivery company PAPS raises $4.5M led by 4DX Ventures and Orange – TechCrunch

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Multinationals like Amazon and Alibaba have leveraged logistics infrastructure like UPS and FedEx to build big businesses. This is not the case in Africa, where few third-party infrastructure players exist to provide end-to-end logistics to e-commerce businesses.

PAPS, a logistics and delivery company based in Senegal, fills this gap in its region by offering its customers various logistics services. Today, the company announces that it has raised a $4.5 million pre-Series A round to expand its technology-based logistics solution in the French-speaking region.

The round was co-led by pan-African venture capital firm 4DX Ventures and regional telecom operator Orange. Participating investors include existing funds Uma Ventures and Saviu Ventures and new investors Yamaha Motor, LoftyInc Capital, Proparco, Google Ventures, To.org, Kepple Ventures and Enza Capital.

Bamba Lo founded PAPS in 2016 to provide end-to-end logistics solutions to companies with offline and online operations.

Initially, PAPS operated a consumer-to-consumer logistics model. yet, he immediately pivoted after noticing how infrequent and disorganized most requests were. It was difficult to accurately predict the delivery flows in the space, which is different from the B2B model, where deliveries are planned.

The platform caters to small and large businesses, helping them with their logistics needs, from storage and international transport to last-mile delivery.

PAPS also provides merchants with visibility features to track and know the status of deliveries from take-off to destination point. Merchants can also schedule deliveries on the platform.

“When we launched PAPS, the first thing we wanted to give our customers was visibility into their transactions, they needed to know when the driver picked up their goods, where the goods are in transit and when they arrive,” Lo , the chief executive, told TechCrunch in a call. “So that’s what we’re trying to do to build – an infrastructure that can serve all B2B customers, from warehousing and shipping to last-mile delivery.”

Picture credits: PAP

The Senegalese company owns the warehouses used to store goods and customer packages. It also owns motorcycles, vans, cars and trucks to perform inter- and intra-city logistics and deliveries.. In addition, the logistics company has a relay network of hubs close to its customers who act as delivery points.

The CEO said PAPS wants to create this infrastructure and enable these companies to access customers that they cannot reach today due to logistics.

“The void we are filling is the one that all these big companies didn’t want us to fill, which is the internal market. No one was addressing the domestic market except PAPS and that’s why we want to deliver quality and reliability,” he added..

PAPS customers span a range of industries, such as banking, telecommunications and pharmaceuticals (Lo said the company currently handles the distribution of 70% of all pharmacies in Senegal).

Major logistics players such as DHL and FedEx and consumer and enterprise-focused e-commerce brands like Jumia, Glovo and Sokowatch also use PAPS for their operations in Senegal and Ivory Coast, the company said.

In a statement, PAPS claims to be the largest last-mile fleet in Senegal, making more than 10 million deliveries in its two markets since creation. And according to Lo, the company’s delivery numbers are up 150% year over year.

The company will use this pre-Series A round to bolster its technical team, build physical infrastructure to integrate more warehouses, hubs and fleets, and expand its offering to more African businesses.

Walter Baddoo, co-founder and general partner of 4DX Ventures, said in a statement: “We have been impressed with the execution of the Paps team so far and their dedication to creating a really innovative company in the field of logistics. We believe technology has a vital role to play in modernizing Africa’s logistics infrastructure and we look forward to continuing our partnership with Bamba and the paps team in this next phase of their growth.”

Senegalese logistics and delivery company PAPS raises $4.5M led by 4DX Ventures and Orange – TechCrunch

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