Senegalese logistics tech startup Chargel has raised $2.5 million in a seed funding round led by Logos Ventures, with participation from Ventures Platform, Foundation Botnar, DFS Labs, and Seedstars, as well as $500,000 in debt.
The platform digitizes the trucking industry by matching shippers with transporters, streamlining a process that was previously offline. Chargel also expedites the transport process, tracking goods while in transit and offering insurance options to truck drivers.
Chargel reported doing over $1.2 million in gross merchandise value in 2022, and the platform is set to exceed that figure this year.
Chargel, which counts shipping companies Maersk and Grimaldi among its early clients, plans to expand its platform to more shippers in Senegal and open up operations in one additional Francophone African country to increase regional coverage.
The growth opportunities in the African trucking industry are significant, with freight demand within the continent expected to grow by 28% by the end of the decade, driven by the African Continental Free Trade Area.
Chargel's founders, who previously sold their hospitality tech startup Teranga in 2018, see potential in tapping into the expected trade boom in Africa.