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Senegalese-Based Chargel startup secures $2.5M Seed Capital

Senegalese-Based Chargel startup secures $2.5M Seed Capital

Chargel, a Senegalese-based logistics startup has secured $2.5 million for its logistics business as it eyes to expand to more countries across Africa.

The startup matches shippers with transporters and has digitized processes that were previously largely offline.

Today, the start-up now boasts of some of the world’s largest shipping companies, Maersk and Grimaldi, among its portfolio of clientele as it is rapidly taking off.

According to Moustapha Noye and Alioune Ndoye, the two brothers and masterminds behind the start-up, in its next phase of growth, it is opening up its platform to more clients, as it had limited access to 10 companies.

“This year we are opening up the platform to more shippers in Senegal. We are also looking at expansion to one other Francophone African country,” said Moustapha.

He briefly worked as a senior product manager in charge of business solutions at Senegalese unicorn Wave.

Logos Ventures led its $2.5 million seed round as the firm seeks to explore new growth avenues.

Ventures Platform, Foundation Botnar, DFS Labs, and Seedstars also participated in the round, which also included $500,000 debt. The funding also includes $750,000 it announced last year.

Chargel Expansion move

The company makes deliveries to neighboring countries Mali, Guinea, and Mauritania.

Establishing full operations in an additional country, Moustapha said they will increase their regional coverage and address challenges related to road freight.

In 2022, Chargel did over $1.2 million in Gross Merchandise Value (GMV), with Moustapha saying they are close to surpassing that figure so far this year.

Both Moustapha and Alioune’s plan is to leverage the freight demand within the continent which is set to grow by 28 percent by the close of the decade as intra-regional commerce flourishes.

The firm is banking on the African Continental Free Trade Area (AfCFTA) – which is today, the world’s largest trade region.