MVX raises $1.3Mn in seed funds to digitize cargo shipment in Africa

MVX raises $1.3Mn in seed funds to digitize cargo shipment in Africa

Nigeria-based digital freight company- MVX has announced raising USD 1.3 million in a seed funding round which will be used to boost its efforts to help ease the growing problem of inadequate cross-border trading methods in Africa.

MVX was initially launched as MVXchange after securing pre-seed funds worth USD 100,000 from Oui Capital. Its business model revolved around offering a vessel booking platform that met the increasing vessel chartering demand made by operators having Offshore Support Vessels.

However, in March’20, the entity had to make changes in its model due to variable oil prices and COVID-19 outbreak led economic losses.

Speaking about the changes in its operations, Tonye mentioned that “the firm couldn’t continue with vessel chartering due to the diminishing demand for fossil fuels over the years. MVX then decided to opt for something impactful and clean by introducing MVXtransit, a digital freight booking system that helped cargo owners find various deals on moving containers in Nigeria.”  

In this regard, in April 2021, the company launched MVXpay- a finance and payment platform to offer trade finance to freight operators. Although, both the operations have been clubbed into one- MVX.  

The end goal behind the establishment of MVX is to make trade financing and freight shipping easier for African businesses by offering booking and deployment services online.

Over the years, the startup has widened its operations beyond Nigeria and affirms that merchants from the western region as well as, South Africa, Ghana, Kenya, and Rwanda can use the platform to move consignments in and out of their countries.   

For the record, the pan-African freight entity charges a commission for the services it provides such as cargo stuffing, shipping, warehousing, and trucking. Additionally, MVX has registered over 300 shipments in 2021 and plans to end the year with 1,500.  

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