Digital freight provider, MVX declared its $1.3 million seed round to help shippers to fast-track cargo transit. A particular percentage of commission is been charged for the services provided by the company, including trucking, warehousing, shipping, and cargo stuffing. The pan-African freight company has already recorded more than 300 shipments this year but they budget to end with 1,500. The primary aim of MVX is to make freight shipping and trade finance effective and efficient for African businesses by initiating booking and deployment processes online.
The logistics startup, established in 2019 by Membere-Otaji and Tobi Amusan as CTO, was called MVXchange at first. Its business model revolved around dishing out a support system booking platform that matched vessel chartering requests made by operators with available Offshore Support Vessels (OSVs). The funding program was led by Africa-focused firms Kepple Africa, The Continent Venture Partners, Founders Factory Africa, Launch Africa Ventures, and Capital Oak.
In March 2020, the company made a sharp turn and tweaked its model launching MVX transit, a digital freight booking platform, making cargo owners find deals on transit containers across Nigeria. Membere-Otaji clarifies the uncertainty of oil prices and the pandemic as reasons behind the motion. Also in In April 2021, the company launched MVXpay, a commercial avenue to issue out trade finance for freight operators all under MVX. Merchants looking to move shipments from Africa to the U.S or China, who lack the capital to pay for freight or supply can request credit on MVX. The startup passes this request over to its financial partners who now lend to the consumers if they meet the minimum requirements. Next, MVX takes care of the shipment and delivers it abroad. Once the transaction is done, the merchant pays back, with all partners taking commissions.